Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India

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But since , China has surged ahead of India - China's per capita income growth in the past two decades has been at least double the rate that of India. Both remain the world's fastest growing big economies.

The conventional wisdom is that decades of socialist controls and red tape stifled enterprise in both countries. Market reforms and globalisation helped uncork the genie and unleashed massive entrepreneurial energies. This, in turn, led to a decline in poverty and increase in economic growth. Commentators have called this the unshackling of "caged tigers", among other things.

Others have waxed eloquent on the two giants spawning "three billion capitalists", redefining the next stage of globalisation. Is that really the case? In a provocative and brilliantly argued new book, one of India's leading economists Pranab Bardhan argues that a lot of "hype and oversimplification" has distorted recent accounts of the two economies.

Mr Bardhan, who teaches at the University of California, Berkeley, mines critical data and offers incisive analysis to offer a more nuanced picture. The truth, as he shows, is much more sobering than the hype.

Reforms have made the country's corporate sector more vibrant and competitive. Services - financial business services and telecommunications where reforms may have made a significant impact - constitute only about a quarter of the total service sector output. Globalisation's impact on economies has been a divisive issue with economists.

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Some say it sharpened inequities and made the poor poorer; others believe it has pulled lots of people out of poverty. He cites India's national household data, which suggests that poverty did not decline sharply in , when India experienced extensive opening up of its economy. Social indicators like child health remained - and remain - abysmally poor. At the same time, the growth rate in agriculture, where most of the poor work, has declined somewhat in the past decade.

This is largely because of the decline of public investment in farm infrastructure and has nothing to do with globalisation, argues the economist.

Book: Checks and Balances - Leisure News - Issue Date: Aug 9,

Globalisation also does not appear to have helped in boosting India's social development indicators, Mr Bardhan suggests. How else can one explain that Gujarat, the country's richest, high-growth, reform-friendly state, has a higher percentage of underweight children than sub-Saharan Africa?

Also, contrary to popular perception, China's growth has not been primarily export driven, the book argues. See what's been added to the collection in the current 1 2 3 4 5 6 weeks months years. Your reader barcode: Your last name:. Cite this Email this Add to favourites Print this page. J Wikipedia Citation Please see Wikipedia's template documentation for further citation fields that may be required. You must be logged in to Tag Records. In the Library Request this item to view in the Library's reading rooms using your library card.

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Order a copy Copyright or permission restrictions may apply. We will contact you if necessary. To learn more about Copies Direct watch this short online video. Need help? Cover Download Save. Title Page, Copyright pp. Contents pp. Preface pp. Chapter 4 Infrastructure: The Dazzling Difference pp. Chapter 6 The Pattern of Burgeoning Capitalism pp.

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Chapter 9 Environment: The Alarming Signs pp. Afterword to the Paperback Edition pp.

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References pp. Index pp.