Comparative development of India and its Neighbours Notes Class 12

This chapter tells us about the comparative development of India’s two closest neighbor countries, China and Pakistan. Here are the Comparative development of India and its Neighbours Notes Class 12.

Development Path of India, China, & Pakistan

• India and Pakistan gained independence in 1947 and the People’s Republic of China was established in 1949.
• India’s first five-year plan was launched in 1951.
• China’s first five-year plan was launched in 1953.
• Pakistan’s Five-year plan was launched in 1956.
• Till 1980, all three countries adopted similar strategies & similar growth rates.

China

Background

1. Established in 1949.
2. Considered the oldest civilization in the world.
3. The official language is ‘Mandarin’.
4. It was established under the ‘One Party Rule System’ known as the communist system.

Policies used to develop China

a) Great Leap Forward Campaign (GLF 1958)

1. The Great Leap Forward was initiated by Mao with the main aim of transforming the agrarian economy into a modern economy.
2. People were encouraged to set up industries in their backyards.
3. In 1958, there were 26,000 communes, covering almost all the farm population.
4. GLF campaign met with many problems. Also, a severe drought caused the death of about 30 million people.
5. In rural areas, communes were started. Under the commune system, people collectively cultivated land.

b) The Great Proletarian Cultural Revolution (1965)

1. Mao introduced this revolution under which students and professionals were sent to work and learn from the countryside.
2. However, when Russia had conflicts with China, it withdrew its professionals, who were sent to help China in the industrialization process.

c) Industrial Reforms (1978)

China introduced reforms in two phases:

1. In the first phase, reforms were initiated in:
   i) Agriculture
   ii) Foreign Trade
   iii) Investments Sector
   In agriculture, commune lands were divided into smaller parts and allocated to individuals who were allowed to keep all the income from the land after paying taxes.
2. In the later phase, reforms were initiated in the industrial sector:
   i) The private sector was first, and village enterprises were allowed to produce goods.
   ii) Also, enterprises owned by the government were made to face competition.

d) The Dual Pricing Policy

Under this reform, prices were fixed in two ways:

1. Farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs at prices fixed by the government.
2. For all other transactions inputs and outputs were purchased and sold at market price.

e) Special Economic Zones (SEZ)

To attract foreign investors, Special Economic Zones were set up.

Pakistan

• Pakistan is officially known as the “Islamic Republic of Pakistan”.
• Pakistan gained independence on 14th August 1947.
• In 1947, a civil war occurred in East Pakistan resulting in the independence of Bangladesh.
• Pakistan was characterized by:
  a) Slow Economic Growth
  b) Military Rule
  c) Political Instability
• Pakistan is the 6th most populous country in the world and 1/3 population lives below the poverty line.
• It has the second-largest Muslim population in the world after Indonesia.
• National Language: Urdu
• Official Language: English

Rural Development Indian Economy Class 12 Notes

Economic Reforms in Pakistan

1. Pakistan followed a mixed economic system i.e. coexistence of public and private sector.
2. Green Revolution:
   i) In the field of Agriculture, the Green Revolution was introduced in 1960.
   ii) Also, the increase in public investment in infrastructure led to a rise in the production of food grains.
3. In the early 1970s, the nationalization of capital goods industries takes place. In the late 1970s, the government adopted the policy of Denationalization.
4. Financial Support during the late 1970s:
   i) During this period, Pakistan received financial support from countries like the UK, New Zealand, etc.
   ii) Remittances from emigrants to the Middle East.
   iii) In 1988, the reforms were initiated in the country.

Comparison between India, China, and Pakistan

Let us compare some demographic indicators of India, China, and Pakistan with the help of the table:

Note:

Density – Per sq. km.
Sex Ratio – Percentage of females as compared to thousand males.
Fertility Rate – It is calculated as several children born by women in the ‘Reproductive Age’ (15-45) age.

Comparison of India, China, and Pakistan with Respect to GDP Growth:

Analysis

During 1980-90

• China was having double-digit growth.
• Pakistan’s growth rate was 6.3%.
• India was at the bottom with a 5.7% growth rate.

During 2011-15

• There was a drastic (major) fall in China’s growth rate from 10.3% to 6.8%.
• Pakistan also met with a drastic fall in growth rate from 6.3% to 5.3%. Political instability was the major reason.
• India’s growth rate increased from 5.7% to 7.3% because of better implementation and efficient economic planning.

Contribution of India, China, and Pakistan wrt. to Workforce

Here is the comparison of India, China, and Pakistan with respect to the distribution of workforce and the parallel contribution to GDP and Employment (%) in 2018-19:

China’s Distribution of Workforce

Primary Sector

• Due to climatic conditions, the suitable areas for cultivation were only 10%.
• Till 1980, almost 80% of the population was dependent on farming as their sole source of livelihood.
• Since then, the government encouraged people to leave their fields and opt (choice) for other activities like Handicrafts, Commerce, Business, and transport.

Secondary and Tertiary Sector

• In China, manufacturing sector (secondary sector) and services sector contributes the highest to GDP.
• Also, GDP has been shifting employment and output from agriculture to manufacturing and then to services.

Conclusion

1. In the last 2 decades, the contribution of agriculture to GDP has declined.
2. In the industrial sector, China had maintained a double digit growth rate.
3. In the service sector, China also raised its growth rate.

Comparison of Overall Performance

Till 1970, all three countries maintained the same level of development that is low development. The last three decades have takes these countries to different levels.

India

• Indian economy performed moderately, but the majority of its people were still dependent on agriculture.
• There was an unequal distribution of infrastructure facilities across the country.
• It is yet to raise the standard of living of more than one-fourth of its population that lives below the poverty line.

Pakistan

• Pakistan’s economy is performing in a slowdown manner.
• The main reasons were:
  a) Political Instability
  b) Over-dependence on remittances
  c) Foreign aid (help)
• Pakistan was hoping to improve the situation by maintaining high GDP growth.
• Pakistan was showing economic recovery indicated by positive macroeconomic indicator.

China

• For China, human rights were a major concern because of the lack of political freedom.
• However, in the last 3 decades, China succeeded in raising the level of growth with the alleviation of poverty.
• China used the ‘Market Mechanism’ to create additional social and economic opportunities.
• By retaining collective ownership of land and allowing individuals to cultivate land, China has ensured social security in rural areas.
• Also, Public intervention in providing social infrastructure brought positive results in human development indicators.

Important Dates Relevant to this Chapter

These were the Comparative development of India and its Neighbours Notes Class 12. If you have any doubt in these notes, you can ask in the comments section.