India can benefit from studying China’s experience to maintain high economic growth and vice versa. A paper published in China & World Economy by Wiley-Blackwell suggests that there is knowledge India and China can share for mutual economic benefit and to sustain a high rate of economic development in both countries.
The mutual interest of these two countries has become apparent in recent years. China-India trade, almost non-existent some 10 years ago, is now growing faster than the total external trade of either country. Author of the paper, titled “What India Can Learn from China and Vice Versa”, Pieter Bottelier – an economist and Senior Adjunct Professor at Johns Hopkins School of Advanced International Studies (SAIS) in Washington, DC – draws from China’s model of trade and suggests that India would achieve significant gains by further opening its economy to both internal and external trade and investment.. The path of India’s recent high economic growth needs to be broadened to make its high growth sustainable. In addition, – with 60% of the Indian population still living in rural areas and often dependent on agriculture for most of its income - India’s rural infrastructure, including water storage and irrigation facilities, must be improved to spread the benefits of higher growth.
China, on the other hand, could learn from India that greater political pluralism, added liberty in expression and judicial independence does not threaten social stability. India’s superior private sector corporate development, more highly developed capital markets and stronger “rule-of-law” culture, should be another source of inspiration for China.
“With India and China, two of the world’s fastest growing economies, accounting for close to 40% of the world’s population, constructive relations between them – as both governments seem determined to promote – is a matter of global interest”, says Pieter Bottelier.
He added, “India and China are not pre-destined to become adversaries. If they get it right and continue to develop trade and investment relations between them for mutual benefit, they can be a strong force for stability in Asia, and in the world.
This paper is published in the May-June 2007 issue of China & World Economy (52-69, Vol.15, No.3, 2007).
About China & World Economy
China & World Economy was launched in 1993 by the Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). Originally self-published, the journal begins its official publishing partnership with Blackwell Publishing in 2006. Published six times a year, this journal combines original academic research works with policy review articles - many of its authors are distinguished Chinese economists from both academic and governmental circles. As the only English language journal in China devoted to the topic of Chinese economics, readers can expect objective, analytical and up-to-date quality content. With distinguished contributors such as economists from both the government and academic circles, the journal will provide an informed and balanced window on China, and will undoubtedly become essential reading for all those interested in China's development.
Wiley-Blackwell was formed in February 2007 as a result of the merger between Blackwell Publishing Ltd. and John Wiley & Sons, Inc.'s Scientific, Technical, and Medical business. Together, the companies have created a global publishing business with deep strength in every major academic and professional field. Wiley-Blackwell publishes approximately 1,250 scholarly peer-reviewed journals and an extensive collection of books with global appeal.