Should India follow China’s economic growth model?

Not really, it appears after Prof James Manor of London School of Advanced Studies delivered a lecture on “India and China in comparative perspective,” at the inauguration of a public lecture series of the Institute for Social and Economic Change here on Friday.

While comparing the socio-economic status of the two countries, Prof Manor said China’s economy would be in a very risky position if the world experienced economic downturn and recovery from such economic shock would be difficult for China. Whereas India’s growth model has the capability to recover soon from such economic shock. China would suffer badly even if US economy fails as China is depending on US market for its economic growth, he added.

He pointed out that though China follows Communism, all actions of its governments, particularly post-1979, were radically rightist and ‘enterprise-oriented.’

Though some enterprises in China were in the private sector, majority were state-owned but “only on paper.” In reality all the state-owned enterprises were de facto private ones as they were owned by either political or military veterans, said Prof Manor, an expert on Indo-China affairs.

Even though China, Prof Manor said, claims to be a Communist country in practice and policies, it had abandoned Communism long ago. “Chinese rulers, going by history, always took drastic or extreme steps to achieve their goals - political, developmental or economic - without any compromises.

Chinese rulers, aimed at wealth and power, were implementing development projects at the cost of their environment, which in the long run will seriously affect the future of the country, he pointed out.

On the contrary, India, irrespective of governments in power, always took a “centrist” path whether it was on liberalisation or programme for alleviation of poverty, and always avoided drastic change though they lacked clear public policy. Though 1991 economic liberalisation looked like radical policy change, Prof Manor opined it was cautious, limited and gradual when compared to other countries. 

US N-DEAL
No, says Prof James Manor, while noting that Indian bureaucrats and politicians are well aware that the US, which is terming the deal “generous”, might be aiming elsewhere. 

Mr Manor also disclosed that India, without any publicity, is giving economic advice to African and other developing countries to prepare them for gaining equal representation on international platform.