Conflict, Institutional Change, and Development in the Era of Globalization
- New Thinking in Political Economy series
Edited by Joachim Ahrens, Rolf Caspers and Janina Weingarth
Chapter 8: Successfully Catching Up: Non-Orthodox Economic and Governance Reforms in India and China
8. Successfully Catching Up: NonOrthodox Economic and Governance Reforms in India and China Christian Roland* India and China have been two of the fastest-growing countries over the last 25 years with average annual gross domestic product (GDP) growth rates of 5.8 per cent and 9.1 per cent between 1980 and 2004; this resulted in a fourfold increase of GDP in India and a ninefold one in China. During that period, GDP per capita grew by 3.8 per cent in India and 8.3 per cent in China.} This astonishing growth performance is only rivaled by Japan's and Germany's ascendancy after World War II and the rise of the Asian Tigers in the 1970s and 1980s. Nonetheless, India's and China's take-off is more impressive as it involved far larger populations - around 700 million in India and almost a billion in China in 1980. Equally astonishing as the raw figures involved, is how this growth performance came about. For an observer comparing the standard policy recommendations with the actual policies followed, the growth acceleration must come as a surprise: both countries have deviated significantly from the orthodox policy recommendations commonly given to developing countries. The economic take-off in China, for example, occurred despite the absence of private property rights, large-scale privatization and a market-based banking sector. Qian (2003, p. 298) stresses that [t]he Chinese path of refonn and its associated rapid growth is puzzling because it seems to defy ... conventional wisdom. Although China has adopted many of the policies advocated by...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.