Development Path of India, Pakistan and China.
(i) All the three countries started their development path at the same time.
India and Pakistan got independence in 1947 and people’s Republic of China
was established in 1949.
(ii) All the three countries had started planning their development strategies
in similar ways. India announced its First Five Year Plan in 1951, Pakistan
announced in 1956 and China in 1953.
(iii) India and Pakistan adopted similar strategies, such as creating a large
public sector and raising public expenditure on social development.
(iv) Both India and Pakistan had adopted ‘mixed economy’ model but China
had adopted ‘Command Economy’ model of economic growth.
(v) Till 1980s, all the three countries had similar growth rates and per capita
incomes.
(vi) Economic Reforms were implemented in China in 1978, in Pakistan in
1988 and in India in 1991.
Development Strategy:
A. China
(i) After the establishment of People’s Republic of china under one party rule,
all the critical sectors of the economy, enterprises and lands owned and
operated by individuals, were brought under government control.
(ii) A Programme named ‘The Great leap Forward (GLF) campaign was
initiated in 1958, which aimed at industrialising the country on a massive
scale. Under this programme, people were encouraged to set up industries in
their backyards.
(iii) 1965, Mao Tse Tung introduced the ‘Great Proletarian Cultural Revolution
(1966-1976)’, under which students and professionals were sent to work and
learn from the countryside (rural areas).
(iv) In rural areas, commune system was started, under which people
collectively cultivated lands.
(v) Reforms were introduced in China in phases.
(vi) In the initial phase, reforms were initiated in agriculture, foreign trade
and investment sectors. In the later phase, reforms were initiated in the
industrial sector.
(vii) The reforms process also involved dual pricing. This means fixing the
prices in two ways; farmers and industrial units were required to buy and sell
fixed quantities of raw materials and products on the basis of prices fixed by
the government and rest were purchases and sold at market prices.
(viii) In order to attract foreign investors, special Economics Zones (SEZ)
were set up. SEZ is a geographical region that has economic laws different
from a country’s typical economic laws. Usually the goal is to increase
foreign investment.
B. Pakistan
(i) Pakistan followed the mixed economy model with co-existence of public
and private sectors.
(ii) Pakistan Introduced tariff protection for manufacturing of consumer
(i) All the three countries started their development path at the same time.
India and Pakistan got independence in 1947 and people’s Republic of China
was established in 1949.
(ii) All the three countries had started planning their development strategies
in similar ways. India announced its First Five Year Plan in 1951, Pakistan
announced in 1956 and China in 1953.
(iii) India and Pakistan adopted similar strategies, such as creating a large
public sector and raising public expenditure on social development.
(iv) Both India and Pakistan had adopted ‘mixed economy’ model but China
had adopted ‘Command Economy’ model of economic growth.
(v) Till 1980s, all the three countries had similar growth rates and per capita
incomes.
(vi) Economic Reforms were implemented in China in 1978, in Pakistan in
1988 and in India in 1991.
Development Strategy:
A. China
(i) After the establishment of People’s Republic of china under one party rule,
all the critical sectors of the economy, enterprises and lands owned and
operated by individuals, were brought under government control.
(ii) A Programme named ‘The Great leap Forward (GLF) campaign was
initiated in 1958, which aimed at industrialising the country on a massive
scale. Under this programme, people were encouraged to set up industries in
their backyards.
(iii) 1965, Mao Tse Tung introduced the ‘Great Proletarian Cultural Revolution
(1966-1976)’, under which students and professionals were sent to work and
learn from the countryside (rural areas).
(iv) In rural areas, commune system was started, under which people
collectively cultivated lands.
(v) Reforms were introduced in China in phases.
(vi) In the initial phase, reforms were initiated in agriculture, foreign trade
and investment sectors. In the later phase, reforms were initiated in the
industrial sector.
(vii) The reforms process also involved dual pricing. This means fixing the
prices in two ways; farmers and industrial units were required to buy and sell
fixed quantities of raw materials and products on the basis of prices fixed by
the government and rest were purchases and sold at market prices.
(viii) In order to attract foreign investors, special Economics Zones (SEZ)
were set up. SEZ is a geographical region that has economic laws different
from a country’s typical economic laws. Usually the goal is to increase
foreign investment.
B. Pakistan
(i) Pakistan followed the mixed economy model with co-existence of public
and private sectors.
(ii) Pakistan Introduced tariff protection for manufacturing of consumer
