Uncategorized

India and China : Superficial Superpowers ?

(via YaleGlobal online) Every day, countless commentators prophesize the ascendance of the world’s next superpowers, China and India, the two “Asian giants” shaking off their ancient slumber and rising to the call of the 21st century. According to popular punditry, their place in the firmament of globalization’s success stories is already guaranteed. Yet economist Pranab Bardhan argues that a much more complicated picture belies the rosy visions of optimists. In China, rural and urban inequality grows at alarming rates, stirring unrest amongst those hundreds of millions who remain impoverished. In fact, China, responsible for only 6 percent of world trade, has actually lost manufacturing jobs in the past ten years. Meanwhile, India’s much-vaunted hi-tech sector accounts for less than one quarter of one percent of the country’s labor force. The nation still boasts the world’s highest illiteracy rate, while poverty reduction continues to slow. In short, Bardhan suggests, only patience and struggle – not destiny – can guide India and China to the level of superpowers.

Of the total of 2.3 billion people in these two countries, nearly 1.5 billion earn less than US$2 a day, according to World Bank calculations.

A Herculean Task What about the hordes of Indian software engineers, call-center operators, and back-room programmers supposedly hollowing out white-collar jobs in rich countries? The total number of workers in all possible forms of IT-related jobs in India comes to less than a million workers – one-quarter of one percent of the Indian labor force. For all its Nobel Prizes and brilliant scholars and professionals, India is the largest single-country contributor to the pool of illiterate people in the world. Lifting them out of poverty and dead-end menial jobs will remain a Herculean task for decades to come.

Commercial regulatory structures in both countries are still slow and heavy-handed. According to the World Bank, to start a business requires in India 71 days, in China 48 days (compared to 6 days in Singapore); enforcing debt contracts requires 425 days in India, 241 days in China (69 days in Singapore).

2 thoughts on “India and China : Superficial Superpowers ?”

  1. Yes- Media is always the main culprit in either giving boost to the economy of a country by giving hyped projections or might dwell upon only political uncertenity and thus predict doom of the same country. But , the realities are entirely different and depends on so many factors, which only future can prove it right or wrong.

    Gouraswamy krishna murthy

  2. Couldnt agree more! Dont know much about China (I am sure you do 😉 ) but considering India & China at par in statements like “India & China are giants who are just waking up etc, etc, etc….” are putting me to sleep! Some giant – majority of folks still under the poverty line, education still not a basic guarantee, basic infrastructure (roads, water, power, basic transportation) still decades away, treatment of women – just above Pakistan (not something to write home about) – some giant (?)

    My favorite line is “India being the next super-power” – Ya, Right!! These statements are pure media hype (IMHO) and mis-leading at a minimum but sell newspapers to our very special desi mind-set population, which craves for some (any!) – recognition (mention!) from the fair-skinned – and in the absence of which – hey, they come up with the aforementioned cr*p. How many other coutries do you know where people are more concerned about what other people think of them & their country – than they are of their own country – I rest my case…. Have a wonderful rest of the day

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s