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What were the initiatives taken by the Chinese government before the reforms?

The establishment of the republic of China harnessed all the critical sectors under one rule.
Economy, enterprise and land was bought under the control of the government and a campaign called The Great Leap Forward (GLF) initiated in 1958 aimed at industrialization at a very large scale.
Industries were set up in the backyards of houses.
A system called the Commune system was started wherin people collectively cultivated land. By 1958, the whole farm population was covered under 26,000 communes.
Great Proletarian Cultural Revolution was introduced in 1965 by Mao under which professional and students were sent to the countryside to work and learn.



Discuss about the reforms in China and the impacts.

The reforms introduced in 1978 are responsible for the present day industrial growth of China. There were many phases in which the reforms were introduced.
To start with, reforms were introduced in agriculture, trade and investment.
In agriculture, the communes were divided into small plot and given to individual household who were allowed to keep the income from it after paying all the taxes.
In the next phase, reforms were introduced in the industrial sector.
Private firms and enterprises owned and operated by local collectives were allowed to produce goods.
During this stage, enterprises owned by the government called State Owned Enterprise (SOEs) were made to face competition.
The reform process also introduced dual pricing.
The prices were fixed in two ways: industrialists and farmers were stipulated to buy and sell a certain quantity of inputs and outputs at the price fixed by the government.
The rest were bought and sold at market prices.
As the years rolled by, the goods sold in the markets increased as the production increased.
Special economic zones were set up to attract foreign investors.



Discuss the economic state of Pakistan before reforms were introduced.

Pakistan’s economic policies have a lot of similarities with those of India’s. They also followed a mixed economy pattern and during the late 1950s early 1960s, Pakistan initiated a slew of regulated policy framework to bring about industrialization which would produce goods that were being imported.
This policy combined tariff protection for manufacturing consumer goods along with direct import controls on imports which were a competition to the domestic goods.
Green revolution was introduced which changed the agricultural sector.
It led to mechanization and increase in the public investment in infrastructure in selected areas and led to an increase in the production of food grains.
The nationalization of the capital goods industries took place in 1970s.
Between the 1970s and 1980s, Pakistan shifted to policies of denationalization and more encouragement was given to the private sector.
During this period, Pakistan received financial support from the countries of the west.
There were also remittances from the immigrants who moved into the Middle east.
This helped the economic growth of the country.
The government also offered incentives to private enterprises.



Discuss about the GDP growth of India, China and Pakistan.

In China, the contribution of the agricultural sector to the GDP post reforms reduced while that of the industrial sector grew. The population dependent on agriculture also decreased. While in India and Pakistan, the contribution of the agricultural sector decreased and that of the service sector increased. The population dependent on the agricultural sector did not decrease. China has had a two digit growth while other countries have managed just around 5. Post reforms, Pakistan has had a decline in its economic progress.


What are the reasons for decline in Pakistan’s growth rate after reforms?

The reasons for the decline in the growth rate are:

1. The agricultural growth has not been based on the use of technology but on the basis of good weather conditions and hence good harvest. Hence if the weather was good, agriculture showed a positive trend else it had a negative trend.

2. Pakistan’s foreign exchange came from remittances of migrants who moved to the Middle-east and export of agricultural products whose production was volatile. The foreign loans grew while the payment became difficult.


Discuss the various demographic indicators of the three countries.

The demographic indicators indicate the following. China is moving ahead of India and Pakistan. This is true for all indicators like GDP per capita, people below poverty arte, infant mortality rate, etc.
  Both India and Pakistan have a very high female maternity mortality rate whereas the same is very low in China. This indicates great improvement in the health care sector.
  India and Pakistan are ahead of China in providing a good supply of water.
  People below the poverty line are very high in India while China and Pakistan are in the same level.
  Despite all these will fall short if liberty measures are added.



What is the commune system?

The Commune system was introduced in China, wherein farmers cultivated land by combining all their lands and farming the combined area.


Briefly discuss the problems faced by GLF in China.

The following were the problems faced by GLF in China: A drought killed more than 30 million people.
  Because of China’s conflicts with Russia, Russia withdrew professional who had been sent to help the industrialization process.



Discuss about the growth of GDP and the contributing sectors in China.

China has managed to maintain a growth rate of around 10% while the other countries even developed countries struggled to maintain a rate of 5%. The urban sector contributes more as the workforce concentration in the urban sector is more.
The cultivable land is just 10% of the total area and after the advent of the reforms; the government encouraged people to set up new industries and gave arts and crafts a boost.
Over the years the people dependent on agriculture also reduced and the contribution by the industrial sector grew to maximum.


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