THE RACE OF TWO ASIAN GIANTS
1.Key Points
- United Nations population survey estimated that in 2023 India will have the largest population and China will be second.
- The large population does not have merit in itself unless it is well-fed and endowed with economic progress.
- China has other numbers 2 rankings which may raise its standing, such as the second largest economy in the world.
- This is a reminder of how two fat the two Asian giants have come since their moments of profound political change in the late 1940s.
2.DIFFERENT DIRECTIONS
2.1.The late 1940s
- India gained freedom, and although the violence of partition cast a bloody cloud across the landscape.
- The establishment of India as a multi-party electoral democracy with free media was a foundation stone of secular politics that Nehru embodied.
- China’s fate at that time was also marked by violence, but it had a very different result.
- China had fought Japan from 1937 to 1945 during World War II but was then plunged into civil war between the ruling Nationalists of Chiang- Kai- Shek and the communists under Mao Zedong.
3.Establishment of PRC
- Mao's victory saw the establishment of the PRC, which leaned heavily on the Soviet Union for its economic model.
- China was kept out of United Nations for another two decades and did not open diplomatic relations with the US for three.
- The years of Mao’s rule saw immense domestic turmoil with events such as the Great Leap Forward of 1958-62, an experiment in self-sufficient socialism that went horrifically wrong and starved millions of farmers to death, as well as the Cultural Revolution of 1966 -76, in which China went to war with itself.
- Mao’s China also, of course, went to war with India, in a border conflict in 1962 whose after-effects are still very evident today.
4.Common Concerns
- By the 1990s India's highly protected economy was producing limited growth, and controversial reforms under figures including P.V. Narasimha Rao opened up the economy in various ways, creating a new class of millionaires as well as increasing inequality.
- In a sense, China had been there first, with an astonishing economic experiment begun in the 1970s with the blessing of Mao's ultimate successor, Deng Xiaoping.
- Instead of the command economy that Mao had favoured, China's senior leader allowed the development of a market economy.
- This did not follow the model pioneered by Ronald Reagan and Margaret Thatcher of removing the government as much as possible from the workings of the market.
- Chinese private sector was given space to develop within a framework controlled by the party. But it worked well, China became a manufacturing hub for the world, regularly posting 10% growth rates in the late 1990s and early 2000s.
- Today China's per capita GDP rate is around $9000 a year as opposed to around $ 2000 for India.
- There are some areas of commonality to be fair, both are nervous about climate change commitments that may hamper their growth.
- Both abstained at the United Nations this year rather than condemning Russia’s invasion of Ukraine.
5.Lessons to be learned
- China’s most powerful engine for growth has been its stress on education:2.4% of GDP goes on research and development broadly defined.
- In international university ranking, which mostly rates hard sciences, China has a group of institutions in the top tier, many more than India.
- However, China's current political system runs the risk of losing its gain as it becomes narrower and more authoritarian.
- In the last few years, technology entrepreneurs, academics, and lawyers have all become a victim of political crackdowns by the party.
- Societies that suppress questioning voices find in time that their capacity to innovate is damaged.
- India has a long pluralist system with a variety of voices, and the flexibility and capacity to change that such a system can provide should give both China and India pause for thought if neither wants to fall behind in the next stage of global development.
6.Challenges ahead
- On the international stage, both countries need to think about where they can find new friends.
- In the case of India, there are plenty of suitors, as the establishment of the Quad naval agreement with the US, Australia and Japan suggest.
- Yet independent India has always been reluctant to become entangled in disputes beyond its borders.
- The growing strength of China has become a source of alarm for India, but it is not yet obvious that New Delhi wants to accept the invitation of the US to become a full-blown ally against Beijing, nor what New Delhi's reaction would be, say to a Chinese attempt to take Taiwan in near future.
- China is likewise wary of formal alliances, but that is in part because its potential partners are ambivalent ones.