India, China and Globalization: The Emerging Superpowers and the Future of Economic Development

by P. Mahtaney

Overview

Economic growth does not always add up to development. In a world riddled with asymmetries and disparity, the economic achievement of India and China shows a path that, despite all its inherent imperfections, can take poorer nations towards development. The two countries are recent reminders of an invaluable lesson of our times: development does not need perfect systems, but it is the outcome of strategic thinking, smart implementation and efficient governance. As we stand on the threshold of the next wave of globalization it could bring in its wake the next frontier of development. However, there is a fundamental challenge, perhaps the foremost concern of our time. This arises from the glaring need to bridge the gap between growth, globalism and sustainable development. In this context the book presents an exploration that emanates from the empirical evidence which is pertinent to the ascent of India and China and the impact that globalization has had during recent decades.

About the Author:
Piya Mahtaney is a member of the Economic Reform Committee of the Indian Merchants Chamber, Mumbai, India, a member of Forum of Free Enterprise and the India-China Economic and Cultural Council

Product Details

ISBN-13:	9781349352722
Publisher:	Palgrave Macmillan UK
Publication date:	01/01/2007
Edition description:	1st ed. 2007
Pages:	323
Product dimensions:	5.51(w) x 8.50(h) x (d)

About the Author

Piya Mahtaney is a member of the Economic Reform Committee of the Indian Merchants Chamber, Mumbai, India. She previously worked as Senior Feature Writer at the Economic Times. She is author of The Economic Con-Game. She has also been a Lecturer at Wigan and Leigh College.

Table of Contents

List of Tables, Figures and Boxes     ix
The New Age Paradox     1
The new age paradox: inevitability and implications     1
The way ahead     8
The Rising Superpowers: Issues, Implications and the Future
Introduction to Part I     14
India's Story: As it Rolls On     17
India: Her Tryst with Globalization     18
The turning point     18
Role of FDI in the Indian economy     24
Liberalization and the dynamics of economic progress     27
Economic Reform: Moving Beyond Liberalization     30
Sustainable growth and economic reform     31
The political economy of underdevelopment: its ramifications     32
Infrastructure provision and human capital formation: a story of unaffordable paucity     34
Privatization: an overview of its impact in India     41
Conclusion     48
Appendix     50
India: Unleashing Opportunity Creation     51
Introduction     51
Growth creation and slackened employment growth in the Indian economy: an analysis     53
The impact of liberalization on the manufacturing sector in India: trends in productivity, output expansion and employment creation     56
Conclusion     61
A Multisectoral Pattern of Economic Growth: Important Issues     63
The skill development paradigm     69
India's Economic Ascent: Insights and Issues     72
China: The Emerging Superpower     82
China: Its Ascent as an Economic Powerhouse     83
Economic liberalization     86
Conclusion     94
Appendix     95
State-owned Enterprise Restructuring in China: Issues and Challenges     97
The impact of enterprise restructuring     100
The impact of financial-sector reform in China: issues and concerns     108
Conclusion     114
Appendix     115
Economic Reform in China: The Ensuing Phase     116
The underpinnings of China's present growth patterns: sustainability issues and imperatives     118
Poverty reduction in China     122
Conclusion     130
Human Capital Formation: Trends, Implications and Future Prospects in China     131
Health care reform in China: was it an instrument of inequity?     132
The link between human capital formation and technological advancement     134
Conclusion     138
Appendix      139
China's Foreign Direct Investment Story: An Evaluation     141
China's accession to the WTO     141
Broad trends in foreign investment     144
Broad trends in China's trade     146
Evaluating China's FDI-export model     147
Protectionism: its impact on technological upgrading     151
The trickle-down effect of technology transfer     154
Conclusion     158
China's Economic Experience: Insights, Lessons and a Perspective     159
Reinventing neo-liberalism     160
Economic transformation and turnaround: beyond structural adjustment     165
Conclusion     168
fundamental lessons, in a nutshell     169
When Elephants Walk and Dragons Dance: A Comparison between the Indian and Chinese Economies     170
An overview of recent history: India and China     172
Liberalization: the initial stage     173
Liberalization: India and China's variant     178
Present reform imperatives in India and China: a comparison     182
Conclusion     185
Globalization: A Process of Incomplete Economic Integration
Introduction to Part II     190
Globalization: Vision and Reality     191
Economic history: lessons in restrospect     192
Globalization and economic integration: the dichotomy     197
Financial and trade liberalization: an overview of its impact     197
Trade liberalization: is it about free or fettered trade?     201
Conclusion     204
Appendix     205
Revisiting the East Asian Miracle     209
Analysis     211
Comparisons: East Asia and Africa     220
Conclusion     227
The Stilettoization of Economic Progress     231
The political economy of underdevelopment: a macroview     232
Economic integration: altering its partial approach     241
Conclusion     244
Bridging the Gap between Growth and Development: Evolving a Paradigm
Introduction to Part III     248
The Production Function of Development     249
The nature of economic growth     249
The Development Paradigm: Its Evolution and Importance     256
Evolution of the development paradigm     256
The curative: a transition from resource mobilization to resource management     269
Singapore: exemplifying EEM     271
Reform: it cannot cease     272
Appendix      276
Bibliography     277
Index     289

Editorial Reviews

'This well-researched, thought-provoking and documented book is bound to generate a considerable amount of interest in government, business and the academic world in general and the student community in particular.' S. Divakara, Director-General, Forum of Free Enterprise, India

'To write a book on such a well-trodden and controversial subject as globalization and successfully differentiate it from other works is no small feat. That is precisely what Mahtaney accomplishes in this comparative study of India's and China's economic development and its implications for future development of other emerging economies... Mahtaney makes illuminating distinctions among growth, increase in per capita real GDP, and development, and raises important issues concerning the future of globalization and economic integration.' - CHOICE

From the Publisher