CBSE Class 11 Economics Development Experience of India Assignment

DEVELOPMENT EXPERIENCES OF INDIA: A COMPARISON WITH NEIGHBOURS

INTRODUCTION
Over the last two decades or so, the economic transformation that is taking place in different countries across the world, partly because of the process of globalization, has both short as well as long term implication for each country, India, China and Pakistan.
Nations have been primarily trying to adopt various means which will strengthen their own domestic economies. To this effect they are forming regional and global economic grouping such as SAARC, European Union, ASEAN, G-8, G-20, BRICS etc. In addition, there is also an increasing eagerness on the parts of various nations to try and understand the developmental process pursued by their neighboring nations as it allows them to better comprehend their own strengths and weaknesses vis- a- vis their neighbors.

SIMILARITIES IN THE DEVELOPMENT STRATEGIES OF INDIA, CHINA, PAKISTAN.
• All the three nations started towards their developmental path at the same time. While India and Pakistan became Independent nations in 1947, People’s Republic of China was established in 1949.
• All the three countries started planning their development strategies in similar ways. While India announced its first five-year plan for 1951-56, Pakistan announced its first five-year plan, called the medium term plan, in 1956. China announced its first five-year plan in 1953
• India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development
• Till the 1980s, all the three countries had similar growth rate and per capita incomes
• Economic reforms took place in all the three countries. Reforms started in India in 1991, in China 1978, and in Pakistan in 1988

HISTORICAL PATH OF DEVELOPMENT POLICIES IN CHINA
The Great Leap Forward Campaign (GLF)- It was initiated in 1958 aimed at industrializing the country on a massive scale. People were encouraged to set up industries in their backyards
Problems faced by GLF Campaign
• A severe drought caused havoc in China killing about 30 million people.
• When Russia had conflict with China, it withdrew its professionals who had earlier been sent to China to help in the industrialization process

Commune System – Under the commune system, people collectively cultivated lands. In 1958, there were 26000 communes covering almost all the farm population
Great Proletarian Cultural Revolution (1966-76)- In 1965, Mao Se Tung introduced the Great Proletarian Revolution under which students and professionals were sent to work and learn from the countryside
Economic Reforms in China 1978- China’s present rapid industrial growth can be traced back to its reforms in 1978. China introduced reforms in phases
Initial Phase- Reforms were initiated in agriculture, foreign trade and investment sectors. In agriculture, commune lands were divided into small plots, which were allocated to individual households. They were allowed to keep all income from the land after paying stipulated taxes.
Later Phase- Reforms were initiated in the industrial sector
• Private sector firms, in general, and township and village enterprises in particular were allowed to produce goods
• At this stage, enterprises owned by government (known as State Owned Enterprises- SOEs) In India we call PSUs were made to face competition
• The reform 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 inputs and outputs on the basis of prices fixed by the government and rest were purchased and sold at market prices
• In order to attract foreign investors, Special Economic Zones (ZESs) were set up

INITIATIVES TAKEN BY PAKISTAN FOR ITS ECONOMIC DEVELOPMENT
• Pakistan followed the mixed economy model
• In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (Import substitution based industrialization). The Policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports.
• The introduction of Green Revolution led to mechanization and increase in public investment, which finally led to a rise in the production of food grains.
• In the 1970s, nationalization of capital goods industries took place. During this period, Pakistan also received financial support from western nations and remittances from continuously increasing outflow of emigrants to the middle east.
• The government at that time also offered incentives to the private sector.
• In 1988 economic reforms were initiated in the country.

DEVELOPMENT EXPERIENCE– A COMPARATIVE STUDY

Salient Demographic Indicators
Country       Estimated Population (in million)   Density (per sq.km     Annual growth of population   Sex ratio   Fertility Rate  Urbanization
India              1311     441    1.2    929   2.3    33
China             1371    146    0.5   941    1.6    56
Pakistan         188      245    2.1   947    3.7    39

Source-World Development Indicators 2017
(1) Size of population- (a) China has the highest population closely followed by India. India and china together are a habitat for 38% of the world’s population. (b) China with nearly 1371 million (2015) is a habitat for nearly 20 % of world population (c) India with nearly 1311million people (2015) is a habitat for nearly 18% of world population. (d) The population of Pakistan is very small and accounts for roughly about one- tenth of China or India.
(2) Growth rate of population- (a) The population growth is the highest in Pakistan followed by India and China. (b) One Child Norm introduced in China in the late 1970s is the major reason for low population growth. (c) The trend of growth rate tells that the population of India would exceed China soon.
(3) Density of Population- It is estimated to be 148 persons per square kilometer in China 275 per sq.km in Pakistan, and 455 persons per sq.km in India.
(4) Sex Ratio- The sex ratio is low and biased against females in all three countries ‘preference for son ‘prevailing in all these countries is the reason for low sex ratio
(5) Urbanization- In India 34% of population is urbanized compared with 37% in Pakistan and 59% in China.
Note- One child norm and resultant arrest in growth of population also have other implications. For instance, after a few decades, in China there will be more elderly people in proportion to young people. This led to allowing couples to have two children from 2016 and allowing three children from 2021

GDP Growth Rate
Annual Growth of GDP (in%), 1980-2015
Country     1980-90     2011-2015
India          5.7             6.7
China        10.3           7.9
Pakistan     6.3            4.0

• China has the second largest GDP of 19.8 trillion dollars. India’s GDP is 8.07 trillion dollars. Pakistan’s GDP is 0.94 trillion dollars.
• In the 1980s Pakistan was ahead of India, China was having double digit growth and India was at the bottom
• In 2011-15 there has been decline in China’s growth rates, whereas, Pakistan met with drastic decline at 4 percent. Some scholars hold the reform processes introduced in 1988 in Pakistan and political instability over a long period as reasons behind the trend.

Sectoral Contribution Towards GDP &Sectoral Share of Employment
Sectoral share of employment and GDP (%)in 2015- 2017
Sector       Contribution to GDP                  Distribution of workforce
                   India     China     Pakistan       India    China    Pakistan
Agriculture   17          9           25                   42.7    17.5       42
Industry      30          43          21                  23.8     26.5       3.7
Services      53         48           54                 33.5    56          54.3
Total           100       100         100                100     100        100

Source: Human Development Report; key indicators of Asia and Pacific 2016
• In both India and Pakistan, the contribution of agriculture to GDP was 17 and 25 per cent, respectively, but the proportion of workforce that works in this sector is more in India. In Pakistan, about 42 per cent of people work in agriculture, whereas in India, it is 43 per cent.
• The sectoral share of output and employment also shows that in all three economies, the industry and service sector have less proportion of workforce but contribute more in terms of output
• In China manufacturing and service sector which contribute the highest to GDP at 43 and 48 per cent respectively whereas in India and Pakistan, it is the service sector which contributes the highest by more than 50 per cent of GDP
• The contribution of industries to GDP is at 30 per cent in India and 21 per cent in Pakistan.
Indicators of Human Development
Item                                                                      India       China      Pakistan
Human Development Index (value)                      0.624      0.738       0.550
Rank (Based on HDI)                                            131        91            148
Life Expectancy at birth (Years)                             68.3       76            66.4
Mean years of schooling (%aged 15 and above)   6.3        7.6           5.1
People Below Poverty line (%) 3.10 per day          37         32            44
GDP per capita (PPP US Dollar                            6092      14,400     4866
Infant Mortality Rate (per 1000 live births)            38           9              66
Maternal Mortality Rate (per 1 lakh births)            174        27            178
Population using improved sanitation (%)             40          77            64
Population with Sustainable access to                  94          96            91
improved water source (%)
Percentage of Undernourished Children               39           9            45

• China is moving ahead of India and Pakistan. This is true for many indicators of human development-(1) Income indicators such as GDP per capita, proportion of population below poverty line (2) Health indicators such as mortality rates, access to sanitation, adult literacy rate, life expectancy, malnourishment
• Pakistan is ahead of India in reducing proportion of people below the poverty line and also its performance in sanitation.
• Neither of these two countries- India and Pakistan- have been able to save women from maternal mortality.
• In China, for one lakh births, only 27 women die whereas in India and Pakistan, about 178 and 174 women die respectively.
• In China, for one lakh births, only 27 women die whereas in India and Pakistan, about 178 and 174 women die respectively

Liberty Indicators- The human development indicators given above are all extremely important indicators; but these are not sufficient. Along with these, we also need what may be called ’Liberty indicators’. liberty indicators are those indicators which represent the degree of social and political freedom to individuals in a country

Examples- A measure of the extent of democratic participation in social and political decision making
A measure of the extent of constitutional protection given to rights of citizen
A measure of the extent of constitutional protection of the independence of the judiciary and the Rule of Law

DEVELOPMENTAL STRATEGIES-AN APPRAISAL AND CONCLUSION
China
China introduced reforms in 1978 to address the slow pace of economic growth. They felt that Maoist vision of economic development based on decentralization, self-sufficiency and shunning of foreign technology, goods and capital had failed.

Various factors that led to the rapid growth in economic development in China
• Establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralized planning and existence of small enterprises helped positively in improving the social and income indicators in the post reform period.
• Through the commune system, there was more equitable distribution of food grains
• Each reform measure was first implemented at a smaller level and then extended on a massive scale
• The experimentation under decentralized government created favorable condition for agriculture. It created conditions for subsequent phenomenal growth in rural industries and built up a strong support base for more reforms.

Pakistan
Reasons for the slow growth and re-emergence of poverty in Pakistan
• Agricultural growth and food supply situation were based not on an institutionalized process of technical change but on good harvest. When there was a good harvest, the economy was in good condition, when it was not, the economic indicators showed stagnation or negative trends
• If a country is able to build up its foreign exchange earnings by sustainable export of manufactured goods, it need not worry. In Pakistan most foreign exchange earnings came from remittances from Pakistani workers in the Middle –east and the exports of highly volatile agricultural products.
• There was also growing dependence on foreign loans on the one hand and increasing difficulty in paying back the loans on the other.
India
Our performance is neither so bad nor so good. GDP of Pakistan is just 11% of GDP of India. But GDP of India is just 41% of GDP of China. During the reforms, India performed moderately, but a majority of its people still depend on agriculture. Infrastructure is lacking in many parts of the country. It is yet to raise the level of more than one-fourth of its population that lives below the poverty line.

- Points to Remember
- Development Path of India, Pakistan and China :
i) All the three countries started their developmental 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 initiated 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 oneparty 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 studends and professionals were sent to work and learn from the countryside.
iv) In rural areas, communes were started, under which people collectively cultivated lands.
v) Reforms were introduced in Chna 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 governmen and rest were purchased and sold at market prices.
viii) In order to attract foreign investors, Special Economic Zones (SEZ) were set up.

B. PAKISTAN

i) Pakistan followed the mixed economy model with co-existence of pulic and private sectors.
ii) Pakistan Introduced tariff protection for manufacturing of consumer goods, together with direct import controls on competing imports.
iii) The introduction of Green Revolution and increase in public investment in infrastructure in select areas, led to a rise in the production of foodgrains.
iv) In 1970’s, Capital goods industries were nationalised.
v) In 1988, structural reforms were introduced. Major thrust areas were denational is action and encouragement to private sector.
vi) Pakistan also received financial support from western nations and remittances from emigrants to the Middle East countries. This helped the country in stimulating economic growth.

- Comparative Study - India, Pakistan and China

1. Demographic Indicators :
- The population of Pakistan is very small and accounts for roughly about one-tenth of China and India.
- Though China is the largest nation geographically among the three, its density is the lowest.
- Population growth is highest in Pakistan followed by India and China. One-child norn introduced in China in the late 1970s is the major reason for low population growth. But this measure led to a decline in the sex ratio, that is the proportion of females per 1000 males.
- The sex ratio is low and biased against females in all the three countries. There is strong son-preference prevailing in all these countries as the reason.
- The Fertility rate is low in China and very high in Pakistan.
- Urbanisation is high in both China and Pakistan - with India having 28 percent of its people living in Urban areas.

2. Gross Domestic Product (GDP) and Sectors :
- China has the second largest GDP (PPP) of $7.2 trillion where as India’s GDP (PPP) is $ 3.3 trillion and Pakistan’s GDP is roughly about 10 percent of India’s GDP.
- In 1980s Pakistan was ahead of India in GDP growth rate. China was having double digit growth rate and India was at the bottom.
- In 1990s there is a marginal rise in India’s growth rate and a marginal decline in China’s growth rate but a drastic decline in Pakistan’s growth rate. Some Scholars hold the reform process introduced in 1988 in Pakistan and Political instability as the reason behind this trend.
- In China, in the year 2000, with 54 percent of its workforce engaged in agriculture, its contribution to GDP is 15 percent. In both India and Pakistan, the contribution of agriculture to GDP is the same, at 23 percent. In Pakistan about 49 percent of people work in agriculture whereas in India it is 60 percent.
- In china, manufacturing contributes the highest to GDP at 53 percent whereas in India and Pakistan, it is the service sector which contributes the highest (more than 50 percent of GDP)
- Though china has followed the classical development pattern of gradual shift from agriculture to manufacturing and then to services, India and Pakistan’s shift has been directly from agriculture to service sector.
- In the 1980s, India, China and Pakistan employed 17, 12 and 27 percent of its workforce in the service sector respectively. In 2000, It reached the level of 24, 19 and 37 percent respectively.
- China’s growth is mainly contributed by the manufacturing sector where as in both India and pakistan, the service sector is emerging as a major player of development.

3. HUMAN DEVELOPMENT INDICATORS :
- In most areas of human development, China has performed better than India and Pakistan. This is true for many indicators
- GDP per Capita or proportion of population below poverty line or health indicators such as mortality rates, access to sanitation, literacy, life expectancy or malnourishment.
- Pakistan is ahead of India in reducing proportion of people below the poverty line and also its performance in sanitation and access to water is better than India. But neither of these two countries have been able to save women from maternal mortality.
- India and Pakistan are ahead of China in providing improved water sources :
- Conclusion

A) India - India performed moderately as is clear from :
- A majority of its people still depend on agriculture.
- Infrastructure is lacking in many parts of the country.
- It is yet to raise the level of living of more than one-fourth of its population that lives below the poverty line.

B) Pakistan - Pakistan has performed poorly. The reasons for the slowdown of growth and re-emergence of poverty in Pakistan’s economy are :
i) Political instability.
ii) Volatile performace of agriculture sector.
iii) Over dependence on remittances.
iv) Growing dependence on foreign loans on the one hand and increasing difficulty in paying back the loans on the other.

C) China - China has performed comparatively the best as is clear from:
- Success in raising the level of growth along with alleviation of poverty.
- It used the market mechanism to creat additional social and economic opportunities without losing political commitment.
- By retaining collective ownership of land and allowing individuals to cultivate lands, China has ensured social security in rural areas.
- Public intervention in providing social infrastructure has brought about positive results in human development indicators in China.
 

OBJECTIVE TYPE QUESTIONS

Question. While India and Pakistan became independent nations in 1947, People’s Republic of China was established in
(a) 1949
(b) 1953
(c) 1958
(d) 1965
Answer: A

Question. Which of the following countries has the lowest density of population?
(a) India
(b) China
(c) Pakistan
(d) None of the above
Answer: B

Question. Special Economic Zones were set up by China to:
(a)  Attract foreign investors
(b) To develop the backward regions
(c) To maintain economic equality
(d) To promote private sector
Answer: A

Question. Proportion of people living below poverty line is more in---
(a) India
(b) China
(c) Pakistan
(d) None of the above
Answer: A

Question. China discontinued the One child policy because:
(a) There will be more elderly people in proportion to young people.
(b) It increased the number of dependent population
(c) People became dissatisfied with the policy
(d) All the above
Answer: D

Question. First five-year plan of India was commenced in the year------
Answer: 1956

Question. ---------- campaign was initiated in China in 1958, aimed at industrializing the country on a massive scale
Answer: The Great Leap Forward

Question. Reforms in -------were introduced in 1978 (China/Pakistan)
Answer: China

Question. In 1965, Mao introduced the ----------- under which students and professionals were sent to work and learn from the countryside.
Answer: The Great proletarian and cultural revolution.

Question. ------ is considered as the major reason for low population growth in China
Answer: ns: One child norm

Question. When were economic reforms introduced in Pakistan
a) 1978
b) 1980
c) 1988
d) 1991.
Answer: C

Question. Which of the following is an indicator of human development?
a) life expectancy
b) Maternal mortality rate
c) Infant mortality rate
d) All of these
Answer: D

Question. Match the following
Column 1                                                             Column 2
(a)Regional and Global economic grouping’s    (1) Students and Professionals were sent to 
such as the SAARC, G-8, G-20, ASEAN etc.           work and learn from the country side.
(b)The Great Leap Forward campaign             (2) Meant to strengthen the own domestic economies
initiated by China in 1958
(c) The Commune system in China                 (3) People collectively cultivated lands
(d) The Great Proletarian Cultural                   (4) Industrialising the country
Revolution introduced by Mao in 1965                 on a massive scale
Answer: a-2, b-4, c-3, d-1

Question. Match the following
Column 1                                    Column 2
(a) High degree of urbanisation     1) India
(b) Very high fertility rate             2) China
(c) Lowest Density of population   3) Pakistan
(d) Growth due to service sector
Answer: a-2, b-3, c-2, d-1

Question. Identify the correct sequence of alternatives given in Column 11 by matching them with respective events of China in Column 1
Column 1                                                                   Column 11
(a) Introduction of Economic Reforms in China           (i) 1949
(b) Establishment of People’s Republic of China         (ii) 1953
(c) China announced its five-year plan                         (iii) 1958
(d) Great Leap Forward campaign initiated in China    (iv) 1978
Answer: a-iv, b-i, c-ii, d-iii

Question. What are the various means by which countries are trying to strengthen their own domestic economies?
Answer: To strengthen their own domestic economies nations are forming regional and global economic groupings such as the SAARC, European Union, ASEAN, G-8, G-20, BRICS etc.

Question. Write a note on Commune system
Answer: Commune system was introduced in 1958 in China. Under Commune system people collectively cultivated lands. In 1958, there were 26000 communes covering almost all the farm population.

Case Study Questions Comparative Development Experience of India and Its Neighbours Class 11 Economics    

Though India, Pakistan and China have totally different political systems but all of them have followed plans for their economic and social
development. India and Pakistan have followed the path of mixed economy. China, on the other hand,had command economy. All the three countries launched their economic development programme almost simultaneously in the early part of the decade of 1950s. While India and Pakistan depended heavily on the public sector for giving a big push to the economy, China was absolutely the state controlled economy.  Till the early 1980s, the major development indicators of all the three nations such as growth rate, sectorial distribution of output/income and employment and human development were more or less similar. The level of development was also low in all these three countries. But with the introduction of economic reforms, changes in their level of development became visible. As a result of various policy both India and Pakistan in terms of social and economic development.

Question: What is peculiar about the structural transformation process in context of Indian and Pakistan economy?
(a) Balanced development of all the sectors with equal contribution to the GDP 
(b) Direct jump from agriculture to services with later contributing more to the GDP
(c) Transformation in the economic outlook- from agrarian to industrial
(d) A jump from agriculture to industry with later contributing more to the GDP 
Answer: B

Question: Which of the following pair is incorrectly matched with regard to the introduction of economicreforms in context of the given three nations?  

Codes
(a) A-1
(b) B-2
(c) C-3
(d) None of these
Answer: B

Question: As against India’s rank at 131, the HDI rank of Pakistan for the year 2020 is 154. The given statement is
(a) True
(b) False
(c) Partially true, true for India and false for Pakistan
(d) None of the above
Answer: A

Question: Which of the following factor is relates close to the Chinese economy?
(a) Very high fertility rate
(b) Growth due to the service sector
(c) Growth due to the manufacturing sector
(d) High density of population
Answer: C

Question: Assertion (A) Dual price policy in China was an attempt to encourage industrialisation.
Reason (R) Special Economic Zones were an attempt to attract foreign capital in the country.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is false, but Reason (R) is true
(d) Both the statements are false
Answer: B

Question: Which of the following factors is not considered while constructing the HDI Index?
(a) Long and healthy life measured by life expectancy at birth
(b) Knowledge as measured by the adult literacy rate
(c) A good environment as measured by appropriate environment policies
(d) A decent standard of living as measured by GDP per capita
Answer: C

 Since its independence in 1947, India has faced two major financial crises and two consequent devaluations of the rupee. These crises were in 1966 and 1991 and this paragraph highlights the case of 1991.
Foreign exchange reserves are an extremely critical aspect of any country’s ability to engage in commerce with other countries. A large stock of foreign currency reserves facilitates trade with other nations and lowers transaction costs associated with international commerce. If a nation depletes its foreign currency reserves and finds that its own currency is not accepted abroad, the only option left to the country is to borrow from abroad.
1991 is often cited as the year of economic reform in India. Surely, the government’s economic policies changed drastically in that year.
The Import-Export Policy of 1985-1988 replaced import quotas with tariffs.
This represented a major overhaul of Indian trade policy as previously, India’s trade barriers mostly took the form of quantitative restrictions.
After 1991, the Government of India further reduced trade barriers by lowering tariffs on imports. In the post-liberalisation era, quantitative
restrictions have not been significant.
While the devaluation of 1991 was economically necessary to avert a financial crisis, the radical changes in India’s economic policies were, to some extent, undertaken voluntarily by the government of P V Narasimha Rao.

Question: Which of the following reason(s) is/are responsible for removal of licensing policy in India?
(a) To reduce inefficiency of public sector
(b) Increase the role of private sector
(c) To attract foreign investment
(d) All of the above
Answer: B

Question: The reforms under liberalisation in the above situation were referred to as ……… .
(a) depreciation
(b) devaluation
(c) appreciation
(d) revaluation
Answer: B

Question: Which of the following reginal economic groups are formed between India, China and Pakistan?
(a) ASEAN
(b) G-8
(c) SAARC
(d) All of these
Answer: D

Question: As compared to India, Pakistan opted for which of the following policies during the economic reforms of 1988?
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) All of these
Answer: D

Question: Read the following statements given below and choose the correct alternative.
Statement I In 1980s, India, China and Pakistan had similar growth rate.
Statement II Fertility rate in India was lowest in 2017-18.
Alternatives
(a) Both are correct.
(b) Both are incorrect
(c) Statement I is correct and Statement II is incorrect.
(d) Statement I is incorrect and Statement II is correct.
Answer: C

Question: Assertion (A) China has done better than India and Pakistan, as it is a socialist economy.
Reason (R) In socialism, government can implement policies which are in interest of people.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is false, but Reason (R) is true
(d) Both the statements are false
Answer: A

Short Answer  Type Questions
 

Question: What similar development and strategies have India and Pakistan followed for their respective development paths? 
Answer: They followed following similar strategies in their respective development plans
(i) Both India and Pakistan have followed five year planning. India announced its first plan in 1951and Pakistan in 1956.
(ii) Both nations adopted a strategy of creating a large public sector and raising public expenditures on social development.
(iii) Both of them have adopted the mixed economic system involving the co-existence of both the public and the private sector.

Question: What are the various means by which countries are trying to strengthen their own domesticeconomies? 
Answer: The various means used by countries to strengthen their own domestic economies are
(i) Countries are forming regional and economic groups such as SAARC, European union, G-8, G-20, etc.
(ii) Countries try to understand the development processes followed by their neighbouring countries as it helps them to better understand their strength
and weakness.
(iii) Nations have also resorted to liberalise their economies by minimising government interference in economic activities. The economy is governed by
market forces which promote efficiency and strengthen the economy.

Question: Critically appraise the development strategies of Pakistan.
Answer:The development strategies of Pakistan are summarised below
(i) Mixed Economy Pakistan follows a mixed economy system where both the public and private sectors co-existed.
(ii) Import Substitution Pakistan adopted a regulatory policy framework in the late 1950s, and 1960s for import industrialisation.
The policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports.
(iii) Green Revolution This was introduced to increase productivity and self-sufficiency in food.
This increased the output of food grains. This had changed the agrarian structure dramatically.
In 1970’s, nationalisation of capital goods took place.
Pakistan shifted its policy orientation in 1970’s and 1980’s when the private sector got encouragement.

Question: China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.
Answer: Yes, it cannot be denied that China’s rapid industrial growth is an aggregate outcome of the various economic reforms that were introduced in phases since 1978. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. The system of collective farming known as Commune System was implemented.
In the later phase, reforms were initiated in the industrial sector. During this phase, the private firms, village and township enterprises were allowed to produce goods and services and to compete with the state owned enterprises.
The reforms also included dual pricing.
The reforms also included setting up of special economic zones to attract foreign investors. Therefore, China’s rapid industrial growth is attributable to the success of different phases of its economic reforms.

Question: Mention the salient demographic indicators of China, Pakistan and India. 
Answer: The salient demographic indicatiors of China, Pakistan and India are discussed below
(i) China is the most populous country followed by India with 1352 million and Pakistan with 212 million.
(ii) China has the lowest density of population and India has the highest with 455. For Pakistan this figure is 275.
(iii) Sex ratio is baised against females in all the three nations. It is estimated at 924, 949 and 943 for India,China and Pakistan respectively.
(iv) Urbanisation is high in both Pakistan (37 %) and China (59%). In India, 34% of people are living in urban areas.

Question: (i) What is the important implication of the ‘one child norm’ in China?
(ii) Explain the great leap forward campaign of china as initiated in 1958. 
Answer: (i) One child policy was introduced in china in the late 1970s. This policy resulted in a decline in the growth of population. It has an important
implication also. After a few decades, there will be more elderly people in proportion to young people.
This will compel China to initiate step to provide social security measures with fewer workers 
(ii) The great leap forward campaign initiated by China in 1958 aimed at industrialising the country on a massive scale. Under this programme, people were
encouraged to set up industries in their backyards.
The system of collective farming known as commune system was implemented.

Question: State the factors which created a conducive environment for new investments in Pakistan.
Answer: Following factors created conducive environment for new investments in Pakistan
(i) Adoption of green revolution
(ii) Shift of the orientation of nationalisation policy to
denationalisation and encouragement to private sector
(iii) Financial support from western nations
(iv) Growing remittances from Pakistani workers in the middle-east.

Question: Write a brief note on the commune systeminChina.
Answer: Commune system was started in the rural areas of China,under which people collectively cultivated lands.
Commune lands were divided into small plots. These plots were allocated to individual households for cultivation, not ownership. Households were allowed to
keep all income from the land after paying specified taxes. In 1958, there were 26,000 communes covering almost all the farm population. The commune system resulted in more equitable distribution of food grains in China.

Question: Critically assess pre and post-reform period in China.
Answer: Pre-reform Period
(i) There was massive establishment of infrastructure in the areas of education and health.
(ii) Extensive land reforms were introduced to bring about changes in the ownership of land holdings and encourage equity.
(iii) Development of small enterprises was promoted on a large scale.
Post-reform Period
(i) Reforms in agriculture brought about prosperity to a vast number of poor people.
(ii) Reforms created conditions for the subsequent phenomenal growth in rural industries.
(iii) Strong support base was built up for more reforms.x

Question: (i) Enumerate the reasons of success of structural reforms in China.
(ii) Enumerate the failures of the structural reforms in China.
Answer: (i) The reasons of success of structural reforms in China are enumerated below (any two)
(a) There was existence of infrastructure in the areas of education, health and land reforms.
(b) There was decentralised planning and existence of small enterprise.
(c) Through the commune system, there was more equitable distribution of foodgrains.
(d) There was extension of basic health services in rural areas.
(ii) Following are the failure of structural reforms in China (any two)
(a) There was slow pace of growth and lack of modernisation in the Chinese economy under the Maoist rule.
(b) Maoist vision of economic development is based on decentralisation, self-sufficiency and shunning of foreign technology had failed.
(c) Despite extensive land reforms, collectivisation, the great leap forward and other initiatives, the per capita gain in output in 1978 was the same as it was
in the mid-1950s.

Question: ‘‘India, China and Pakistan have many similarities in their development strategies.’’ Elaborate.
Answer: India, China and Pakistan have many similarities in development strategies which are as follows (i) All the three countries had started planning their
development strategies in similar ways. India announced its five year plan in 1951-56, while Pakistan announced its first five year plan in 1956,
which is called ‘Medium Term Plan’ China announced its first five year plan in 1953. 
(ii) India and Pakistan adopted similar strategies such as creating a large public sector and raising public expenditure on social development.
(iii) Till the 1980s, all the three countries had similar growth rates and per capita incomes.
(iv) Economic reforms took place in all the three countries, reforms started in India in 1991, in China in 1978 and in Pakistan in 1988.

Question: Explain briefly the various development strategies of China.
Answer: Certain development strategies of China are discussed below
(i) Great Leap Forward (GLF) Campaign This campaign initiated in 1958, aimed at industrialising the country on a massive scale. People were encouraged to setup industries in their backyards. In rural areas, communes were started. Under the commune system, people collectively cultivated land.
(ii) Great Proletarian Cultural Revolution (1966-76) In 1965, Mao Tse Tung started a cultural revolution on a large scale. In this revolution, students and professionals were sent to work and learn from the countryside.
(iii) 1978 Reforms Since 1978, China began to introduce many reforms in phases. The reforms were initiated in agriculture, foreign trade and investment sector. In agriculture, lands were divided into small plots which were allocated to individual households.
They were allowed to keep all income from the land after paying taxes. In later phase, reforms were initiated in industrial sector. All enterprises which were owned and operated by local collectives in particular, were allowed to produce goods.
(iv) One Child Norm The Chinese government introduced one-child norm to check its growing population. Couples were allowed to have only one child. In case, they gave birth to second child, social assistance was stopped.

Question: ‘‘India, China and Pakistan have travelled more than seven decades of developmental path with varied results.’’ Explain the given statement with
valid arguments. 
Answer: ‘‘India, China and Pakistan have travelled more than seven decades of developmental path with varied results.’’ This statement can be explained with the help of following arguments 
(i) Till the late 1970s, all of them were maintaining the same level of low development. The last three decades have taken these countries to different
levels.
(ii) Indian economy performed moderately, but majority of the population depends on agriculture and 1/4th of the population lives below poverty line.
Infrastructure is also lacking in many parts of the country.
(iii) Pakistan economy was slowdown because of political instability, over dependence on remittances and foreign aid along with volatile performance of agriculature sector.
(iv) China used the market system without losing political commitment and succeeded in raising the level of growth along with alleviation of poverty.
Public intervention in providing social infrastructure bought positive results in human development indicators in China.

Question: Comment on the growth rate trends witnessed in China, India and Pakistan in the last two decades.
Answer: China has a second largest GDP (PPP) of $ 2.5 trillion in the world where as India’s GDP (PPP) $ 9.03 trillion and Pakistan GDP (PPP) is $ 0.94 trillion, roughly about 11% of India’s GDP. In 1980, Pakistan was ahead of India.
China was having double digit growth and India was at the bottom. In 2015-2017, there was a decline in Pakistan and China’s growth rate, whereas India met with moderate increase in growth rate.
In both India and Pakistan, the contribution of agriculture was 16 and 24% respectively but the portion of workforce that work in this sector is more in India. In Pakistan, about 41% of people work in agriculture whereas in India it is 43%.

Question: Compare India and Pakistan on the basis of their demography. )
Answer: India and Pakistan can be compared on demographic front as follows
(i) The population of Pakistan is very small and accounts for roughly about 1/10th of India.
(ii) Pakistan have more proportion of urban people than India.
(iii) The fertility rate is very high in Pakistan as compared to India.
(iv) The sex ratio of the two nations stand quite near to each other, showing preference of male child in both the nations. India stands at 924 females per 1,000 males and Pakistan stands at 943 females per 1,000 males.

Question: In which areas India has an edge over Pakistan?
Answer: In the area of skilled manpower, research and development institutions, India is better placed than Pakistan.
Indian scientists excel in the areas of defence technology,space research, electronics and avionics, genetics, tele communications, etc. The number of PhDs produced by India in science and engineering every year (about 5000) is higher than the entire stock of PhDs in Pakistan. Issues of health facilities in general and infant mortality in particular are better addressed in India.

Question: Define liberty indicators. Give some examples of liberty indicators.
Answer: ‘Liberty indicators’ are those indicators which represent the degree of civil and political freedom to individuals in a country. They should also be considered alongwith indicators of income, health and education in the human development index.
One such indicator has actually been added as a measure is ‘the extent of democratic participation in social and political decision-making’ but it has not been given any extra weight.
Some other ‘liberty indicators’ are measures of ‘the extent of constitutional protection given to rights of citizens’ or the extent of constitutional protection of the ‘Independence of the Judiciary’ and the ‘Rule of Law’ which have not been introduced in HDI till now.
Without including such indicators and giving them adequate weightage, the construction of a human development index remains incomplete and its usefulness remains limited.

Question. There is also an increasing eagerness on the parts of various nations to try and understand the developmental processes pursued by their neighbouring nations. Why?
Answer: Because it allows them to better comprehend their own strengths and weaknesses and their neighbours. It is particularly essential for developing countries as they face competition not only from developed nations but also amongst themselves. Besides an understanding of the other economies also required as all major common economic activities in the region impinge on overall human development in a shared environment.

Question. India, Pakistan and China have similar physical endowments but totally different political systems. Explain.
Answer: India has the largest democracy of the world which is wedded to a secular and deeply liberal Constitution. Pakistan has militarist political power structure. China has the command economy. Recently Pakistan started moving towards a democratic system. And China towards more liberal economic restructuring.

Question. What is dual pricing?
Answer: Dual pricing introduced in China as part of Economic reforms. This means fixing the prices in two ways- farmers and industrial units were required to buy and sell fixed quantities of inputs and output on the basis of prices fixed by the government and the rest were purchased and sold at market prices. Over the years, as production increased, proportion of goods and inputs transacted in the market also increased.

Question. What are the factors that created conducive climate for new investments in Pakistan.?
Answer: Pakistan received financial support from western nations and remittances from continuously increasing outflow of emigrants to the middle east. The government also offered incentives to the private sector. It created a conducive climate for new investments in Pakistan.

Question. Though China is the largest nation and geographically occupies the largest area, the contribution of agriculture to GDP was very low. Why?
Answer: In China, due to topographic and climatic conditions, the area suitable for cultivation is relatively small- only about 10% of its total land area. Until 1980s more than 80% of the people in China were dependent on farming as their sole source of livelihood. Since then the government encouraged people to leave their fields and pursue other activities such as handicrafts, commerce and transport.

Question. Why did China introduce structural reforms in 1978?
Answer: China did not have any compulsion to introduce reforms as dictated by the World Bank and International Monetary Fund to India and Pakistan. The new leadership at that time in China was not happy with the slow pace of growth and lack of modernisation in the Chinese economy under the Maoist rule. They felt that Maoist vision of economic development based on decentralisation, self-sufficiency and shunning of foreign technology goods and capital had failed. Despite extensive land forms, collectivisation, the Great Leap Forward and other initiatives, the per capita food grain output in 1978 was the same as it was in the mid -1950s.

Question. What similar developmental strategies have India, China and Pakistan followed for their respective developmental paths?
Answer: All the three nations have started towards their developmental path at the same time. While India and Pakistan became independent nations in 1947, People’s Republic of China was established in 1949.
India announced its first Five Year plan for 1951-56, Pakistan announced its first five-year plan called Medium term plan in1956 and China announced its First five-year plan in 1953.
India and Pakistan adopted similar strategies such as –creating a large public sector and raising public expenditure on social development.

Question. Describe the path of developmental initiatives taken by Pakistan for its economic development.
Answer: a) In the late 1950’sand 1960’s Pakistan introduced a variety of regulated policy framework (for import substitution –based industrialisation). The policy combined tariff protection and direct import controls.
b) The introduction of Green Revolution led to mechanisation in infrastructure, which led to a rise in the production of food grains.
c) In the 1970’s nationalisation of capital goods industries took place.
d) Pakistan shifted its policy orientation in the late 1970s and 1980s to denationalisation and encouragement of private sector. During this period Pakistan received financial support from western nations and remittances from Pakistani workers in the middle-east. The government also offered incentives to the private sector. All these stimulated economic growths.
e) In 1988 economic reforms were initiated in Pakistan.

Question. Evaluate various factors that led to the rapid growth in economic development in China.
Answer: Following are various factors that led to the rapid growth in economic development in China
a) Establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralised planning and existence of small enterprises had helped positively in improving the social and income indicators in the post reform period.
b) Through the commune system, there was more equitable distribution of food grains.
c) Each reform measure was first implemented at a smaller level and then extended on a massive scale.
d) The handing over of plots of land to individuals for cultivation after the reform, brought prosperity to vast number of poor people. It created conditions for the subsequent phenomenal growth in rural industries and build up a strong support for more reforms.

Question. Explain the Great Leap Forward campaign of China and state the problems which GLF campaign met with.
Answer: The Great Leap Forward (GLF) campaign was initiated in China in 1958, which aimed at industrialising the country on a massive scale. People were encouraged to set up industries in their backyards. GLF campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflict with China, it withdrew its professionals who had earlier been sent to China to help in the industrialisation process.

Question. “The present day fast industrial growth in China can be traced back to the reforms introduced in 1978” Defend or refute the above statement.
Answer: The given statement is correct.
i) In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors.
For instance, in agriculture commune lands were divided into small plots which were allocated to individual households. They were allowed to keep all income from the land after paying taxes.
ii) In the latter phase, reforms were initiated in the industrial sector. Private sector firms and township and village enterprises were allowed to produce goods. At this stage, State Owned Enterprises (SOE) were made to face competition.
(iii) The reform 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 inputs and output on the basis of prices fixed by the government and the rest were purchased and sold at market prices. Over the years, as production increased, proportion of goods and inputs transacted in the market also increased.
iv) In order to attract foreign investors, special economic zones were set up.

Question. “In Pakistan the Reform process led to worsening of all the economic indicators. However, during the last few years, Pakistan has recovered its economic growth and has been sustaining.” Do you agree with this statement?
Answer: The given statement is correct.
The reform process introduced in Pakistan led to declining growth rate in Pakistan. The annual growth of GDP was 6.3 percent during 1980-90, which decreased to 5.3 percent during 2015-2017. The proportion of poor in 1980s was 25%, which started rising again during 1990s. The reasons for the slow-down of growth and re-emergence of poverty in Pakistan’s economy are as follows:
i)Volatile performance of agriculture sector- Agricultural growth and food supply situation were based not on an institutionalised process of technical change but on good harvest. When there was good harvest, the economy was in good condition, when it was not, the economic indicators showed stagnation or negative trends.
ii) Over-dependence on remittances and foreign aid. -In Pakistan most foreign exchange earnings came from remittances from Pakistani workers in the middle east and the exports of highly volatile agricultural products. There was also growing dependence on foreign loans, and increasing difficulty in paying back loans.
iii) Political instability over a long period time.

 

Long Answer Type Questions
 

Question: What are the reasons for slow growth and re-emergence of poverty in Pakistan?
Answer: Reasons for the slow growth and re-emergence of poverty in Pakistan
(i) Traditional Method in the Agricultural Sector  The agricultural production method was not based on institutional basis of technology. As a result of a good
harvest system, agricultural production remained unstable and highly vulnerable to climatic conditions. Good harvest relies largely on a good
monsoon. If the conditions were not good, then the economic growth showed a negative trend.
(ii) High Dependence on Public Sector Enterprises Great emphasis on the significant role of the public sector was given in  the process of  growth as they
rely on huge investment of the government. As public sector enterprises lack operational efficiency and poor management of scarce resources, it led to 
slow progress in productivity.
(iii) High Dependence on Foreign Loans Generally, the balance of payment crisis was set right by borrowing funds from external sources such as International
Monetary Fund (IMF) and World Bank. Foreign exchange earnings are one of the essential components where a country can earn through sustainable export of manufactured goods. In Pakistan, major foreign exchange was earned from the remittances of Pakistani workers in the Middle East and export of highly unstable agricultural products. There was a high dependence on foreign loans and this increased the problem to repay the loan amount.
(iv) Lack of Political Stability  Huge public expenditure was incurred on law and order to stabilise the unfavourable political situation. This unproductive
expenditure caused a drain on economic resources.
(v) Inadequate Infrastructure  Pakistan was not able to attract foreign investment and trade activities because they lack infrastructural facility for business
development.

Question: Describe the path of development initiatives taken by Pakistan for its economic development.
Answer: For economic development Pakistan followed the mixed economy model with co-existence of public and private sectors.
The different policies adopted by Pakistan are stated below
(i) A variety of regulated policy frameworks were introduced in late 1950s and 1960s.
(ii) Protection of consumer goods, domestic industries through tariff harriers.
(iii) The introduction of green revolution and mechanisation in agriculture sector. 
(iv) Public investment in infrastructure in selected areas.
(v) Nationalisation of capital goods, industries was introduced in 1970s.
(vi) In 1980s, denationalisation and encouragement to private sector.
(vii) In 1988, economic reforms were initiated in the economy.

Question: Write a brief note on the following international organisations
(i) SAARC
(ii) ASEAN
(iii) European Union
(iv) G-8
(v) G-20
(vi) BRICS
Answer: (i) SAARC South Asian Association for Regional Cooperation (SAARC) was established on 8th December, 1985 to encourage cooperation among
member countries in the fields of agriculture, health,population control, anti-terrorism measurs, rural development, science and technology and narcotics
control Afghanistan, Bangladesh, Bhutan, India,Maldives, Nepal, Sri Lanka and Pakistan are its members. It was formed on the proposal of
Zia-Ur-Rehman, the then President of Bangladesh.
Its head quarter is in Kathmandu.

(ii) ASEAN Association of South East Asian Nation (ASEAN) was created on 8th August, 1967 by Indonesia, Malaysia, the Philippines, Singapore and
Thailand with objectives to accelerate economic growth, social progress, regional stability and to resolve their differences peacefully. Subsequently,
Brunei, Cambodia, Laos, Myanmar and Vietnam also joined this association. It is headquartered at Jakarta.

(iii) European Union It is a political and economic union of 27 member states that is primarily located in Europe. It was formed to develop an internal
single market regulated by a same set of laws to ensure free movement of people, goods and services between the member nations. A common currency
‘Euro’ circulates in all the member nations. Austria,France, Germany, Italy, Spain and Sweden are important member nations. Brussels is the defacto
capital of the European Union.

(iv) G-8 It is an inter-governmental political forum of the industrialised economies of the world, which are democratic in character. Initially, formed in 1975,
with six member countries, viz.
France, Germany, Italy, Japan, The United Kingdom and The United States, this association came to be known as G-8 with the inclusion of Canada in 1976
and of Russia in 1997. However, in 2014 Russia has been expelled from the membership of G-8,temporalily. This forum represents about 65% of the
world economy.

(v) G-20 It is an international form comprising of the governments and Central Bank governors of 20 major economies. It was founded in 1999 with an
objective to study, review and promote high-level discussions of measures to promote international financial stability.
The members include 19 individual countries, viz.
Argentina, Australia, Brazil, Canada, China, France,Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa,
Turkey, The United Kingdom, The United States,alongwith the European Union.
(vi) BRICS BRICS is the acronym representing association of five major emerging national economies, viz. Brazil, Russia, India, China and South Africa.
All the member countries are leading developing or newly industrialised countries and are characterised by their fast growing economies and those who
significantly influence their regional affairs. It was formed in 2011 and works on the principles of non-interference, equality and mutual benefit.

Question: Compare and contrast the development of India,China and Pakistan with respect to some salient human development indicators.
Answer: The development of India, China and Pakistan with respect to some salient human development indicators can be assessed and compared with the help of the following points
(i) China is ahead of India and Pakistan in human development indicators. China has better ranking in terms of income indicator such as GDP per capita or
proportion of population below poverty line or health indicators such as mortality rates, access to sanitation, literacy, life expectancy or malnourishment.
(ii) India is ahead of Pakistan in reducing proportion of people below the poverty line as per Human Development Report 2019.
(iii) India’s performance in education, sanitation and access to water is better than Pakistan.
(iv) Maternal mortality is very high in India and Pakistan as compared to China. In China, for one lakh births,only 29 women die whereas in India and Pakistan,more than 130 women die.
(v) All the three countries provide improved water sources for most of their population.
(vi) Considering the international poverty rate of $ 2 a day, India has the largest share of poor among the three countries in absolute terms.

Question. Explain the Demographic indicators of China, Pakistan and India.
Answer:
i) Population: The population of China is the highest followed by India. Out of every six persons living in this world, one is an Indian and another a Chinese. The population of Pakistan is very small.
Country      Estimated population (in million) (2015)
India            1311
China           1371
Pakistan       188

ii) Population Density: Though China is the largest nation and geographically occupies the largest area among the three nations, its density is the lowest.
Country      Density (per sq.km)
India             441
China            146
Pakistan        245

iii) Annual growth of Population: The population growth is the highest in Pakistan, whereas it is the lowest in China. ‘One Child norm’ introduced in China in the late 1970s is the major reason for low population growth in China. The annual population growth rate of India is in the danger zone of more than 1% p.a. India will be overtaking China as the most populous country in the world in near future.
Country      Annual Growth of population (2015)
India            1.2
China           0.5
Pakistan       2.1

(iv) Child sex ratio: The child sex ratio is low and biased against females in all three countries Preference for the son may be the reason. Amongst the three countries, India has most skewed data sex ratio (929 females per 1000 males). This is one of the major concerns for the demographers in India.
Country      Child sex ratio (2015)
India             929
China            941
Pakistan        947

(v) Fertility rate: The fertility rate is low in China and very high in Pakistan.
Country    Fertility rate (2015)
India           2.3
China          1.6
Pakistan      3.7

vi) Urbanisation: Urbanisation is high in China with India having only 33% of its people living in urban areas.
Country        Urbanisation (2015)
India             33%
China            56%
Pakistan        39%

Question. China is ahead of India and Pakistan on many human development indicators. Explain various factors that led to the rapid growth in economic development in China.
Answer: China is moving ahead of India and Pakistan in terms of Human Development indicators as shown below:
HD Indicators                     India   China    Pakistan
Life expectancy                   68.8    76.4     66.6
People below poverty line     60.4    23.5     46.4
Infant Mortality Rate            34.6    8.5       64.2
Maternal Mortality Rate        174     27        178
Following are some of the reasons for growth in economic development in China.

• Establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralised planning and existence of small enterprises helped positively in improving the social and income indicators in the post reform period.
• Through the commune system, there was more equitable distribution of food grains.
• Each reform measure was first implemented at a smaller level and then extended on a massive scale.
• The experimentation under decentralised government enabled to assess the economic, social, and political costs of success or failure. For instance, when reforms were made in agriculture by handing over plots of land to individuals for cultivation, it brought prosperity to a vast number of poor people. It created conditions for the subsequent phenomenal growth in rural industries and built up a strong support base for more reforms.

Question. What is the trend of GDP growth rate in India, China and Pakistan?
Answer: Till the late 1970s, India, China and Pakistan—all the three countries were maintaining the same level of low development. The last three decades have taken these countries to different levels.
Annual Growth Rate trends in India, China and Pakistan
Country   1980-90    2015-2017
India        5.7           7.3
China       10.3        6.8
Pakistan   6.3          5.3

INDIA
• The annual growth of GDP increased moderately from 5.7% during 1980-90 to 7.3%during 2015-2017. The share of service sector in GDP is the largest (53%)
• A majority of its people still depend on agriculture. In 2015-2017 about 43% of India workforce was engaged in agriculture. In 2015-2017 about 43% of India workforce was engaged in agriculture.
• Infrastructure is lacking in many parts of the country.
• It is yet to raise the level of living of more than one-fourth of its population that lives below the poverty line.

PAKISTAN
• The annual growth rate of GDP has fallen from 6.3%during 1980-90 to 5.3% during 2015-2017.
• The official data of Pakistan indicate rising poverty there. The proportion of poor which was 25% in 1980s started rising again in 1990s.
• Political instability over a long period of time, over-dependence on remittances and foreign aid and volatile performance of agricultural sector are the reasons for the slowdown of the Pakistan economy.

CHINA
• In China, the lack of political freedom and its implications for human rights are major concerns; yet in the last three decades, it used the market system without losing political commitment and succeeded in raising the level of growth along with alleviation of poverty.
• China has used the market mechanism to create additional social and economic opportunities.
• By retaining collective ownership of land and allowing individuals to cultivate lands, China has ensured social security in rural areas.
• Public investment in social infrastructure brought about positive results in human development indicators in china.

Question. “In the normal course of development, countries first shift their employment and output from agriculture to industry and then to services. But in India and Pakistan, the shift is taking place directly to the service sector.” Do you agree with the above statement? Give reason.
Answer: The statement is correct. In the normal course of development, countries first shift their employment and output from agriculture to industry and then to services. This is what is happening in China. But in India and Pakistan, the shift is taking place directly to the service sector.
Sector       India     China    Pakistan
Agriculture   17       9          25
Industry      30       43        21
Services       53      48        54
Total           100     100      100
In all three economies, the industry and service sectors contribute more in terms of output. In China, manufacturing and service sectors contribute the highest to GDP at 43 and 48 percent respectively whereas in India and Pakistan.

 

VERY SHORT ANSWER TYPE QUESTIONS (1 mark each)

1. What type of economic system is followed in China?

2. Mention some examples of regional and economic groupings.

3. When were reforms introduced in all the three conomies?

4. Give the meaning of infant mortality rate.

5. In which country, the Great Proletarian Cultural Revolution was introduced?

6. Between India and China, which country has higer value of Human Development Index?

7. Mention the major reason for the low population growth in China.

8. Name the programme started in China with the aim of industrialisation.

9. Which country has the highest life expectancy - India, China or Pakistan?

10. Out of China, Pakistan and India, which country has the largest contribution of the service sector to the GDP?

11. Out of India, China and Pakistan, Which country has the highest workforce engaged in agriculture?

12. Name any two indicators of human development.

13. Name any two indicators of comparative development.

14. Name the two areas of development where Pakistan has topped India.

15. Name the two areas of development where India has an edge over Pakistan.

SHORT ANSWER TYPE QUESTIONS (3/4 marks each)

1. Explain the “Great Leap Forward’ compaign of China, initiated in 1958.

2. Mention the various indicators of human development.

3. Briefly discuss the similarities in the developmental strategies followed by India, Pakistan and China.

4. Give reasons for the slow growth and re-emergence of poverty in Pakistan.

5. Compare the GDP growth of China, India and Pakistan.

6. Mention the salient demographic indicators of China, India and Pakistan.

7. What is the important implication of the the ‘one child norm’ in China?

8. Give an outline of the strategy of development adopted by China.

9. How was the structural transformation different in China as compared with India and Pakistan.

10. Give an outline of the strategy of development adopted by India and Pakistan after independence.

LONG ANSWER TYPE QUESTIONS (6 marks each)

1. Mention the various indicators of human development.

2. Compare the demographic indicators of India with China and Pakistan.

3. Explain the various factors that led to the rapid growth in economic development in China.

4. What are the areas where India has surpassed Pakistan?

5. Comment on the common failures of India and Pakistan.

6. What are the areas where Pakistan has performed better than India?

7. Compare the sectoral contribution in GDP and employment in India, China and Pakistan.

8. Explain how China has an edge over India.

ANSWERS OF ONE (1) MARK QUESTIONS

1. Command economy model. In this model all critical areas of production were brought under state ownership in China.

2. SAARC, ASEAN, European Union (EU), G-8 etc.

3. Reforms in China were introduced in 1978, in Pakistan in 1988 and India in 1991.

4. Infant mortality rate refers to number of infants dying before reaching one year of age per 1000 live birth in a year.

5. China

6. China

7. Introduction of ‘One Child Policy’

8. Great leap forward programme.

9. China has the highest life expectancy of 71.6 years.

10. Pakistan.

11. India has the highes workforce (60%) engaged in agriculture.

12. i) Life expectancy at birth
ii) Per Capita GDP (PPP) in US $

13 i) Growth
ii) Human Development

14. i) Less percentage of population below poverty line.
ii) Percentage of population having access to improved water sources

15. i) Skilled manpower
ii) Per Capita GDP (PPP) in US $.