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Mention some examples of regional and economic groupings.

SAARC, European Union, ADEAN, G-8, G-20 are some of the regional and economical groupings.


What are the various means by which countries are trying to strengthen their own domestic economies?

They have formed global economic groups like SAARC, European Union, ADEAN, G-8, G-20 etc. Apart from this nations have tried to understand the features of the growth of other nations and hence tried to analyze their own strengths and weaknesses. This is very essential in this era of globalization, as it helps a nation understand its competitors from both the developed and developing nations.


What similar developmental strategies have India and Pakistan followed for their respective developmental paths?

India announced her Five year plans first from 1951-56, while Pakistan in 1956. Pakistan has had eight five year plans so far while India is out of its tenth. Raising the public sector and increased expenses towards social causes were the similarities between the Indian and Pakistani strategies.


Explain the Great Leap Forward campaign of China as initiated in 1958.

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.


China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.

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.


Describe the path of developmental initiatives taken by Pakistan for its economic development.

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. All these encouraged new investors and in 1988 reforms were initiated again.


What is the important implication of the ‘one child norm’ in China?

The low growth rate is attributed to the one child norm in China which was introduced in 1970s. This lead to a decrease in the sex ratio which is the number of women per 1000 men.


Mention the salient demographic indicators of China, Pakistan and India.

India and China are the most populated nations of the world. The population of Pakistan is around 10% of that of China and India. China is the most populous country but its population density is low.


Estimated Population
(in millions)

Annual Growth

(per km)

Sex Ratio

Fertility Rate


India 1103.6 1.7 358 933 3.0 27.8
China 1303.7 1 138 937 1.8 36.1
Pakistan 162.4 2.5 193 922 5.1 33.4

The above table shows that the growth rate is highest in Pakistan and lowest in China. The low growth rate is attributed to the one child norm in China which was introduced in 1970s. This lead to a decrease in the sex ratio which is the number of women per 1000 men. It can be noticed that the sex ratio is biased against women. This is because of the preference of a son over daughter in all the three countries. All the three countries are trying to stem the growth rate by introducing one child norms. This has other implications too. For example, in China, there will be a lot of elderly people compared to number of younger people. Hence the government would have to take steps to provide social security measures. Urbanization is the lowest in India and the fertility rate is highest in Pakistan.


Compare and contrast India and China’s sectoral contribution towards GDP in 2003. What does it indicate?

As seen earlier both in Pakistan and China the urban sector contributes more as the concentration of workforce in the urban sector is more than that in the rural sector. Due to geographical reasons, the cultivation land available in China is just 10% of the whole area. This is just around 40% of the total cultivable land in India. Till the 1980s, about 80% of the people in China were dependent on agriculture for their livelihood. After the introduction of the reforms, the government encouraged them to get alternate sources of income through arts and crafts and other industries.







China 10.3 9.7
Pakistan 6.3 3.6



Mention the various indicators of human development.






Human Development Index (Value)




Rank 127 85 135
Life Expectancy (Years) 63.3 71.6 63
Adult literacy rate 61.1 90.9 48.7
GDP per capita 2,892 5,003 2,097
People below poverty line 34.7 16.6 13.4
Infant Mortality rate 63 30 81
Maternity Mortality rate 540 56 500
Population with sustainable access to improved sanitation 30 44 54
Population with sustainable access to improved water source 86 77 90
Undernourished Population 21 11 20



Define the liberty indicator. Give some examples of liberty indicators.

Liberty measure which is basically a measure of the extent of democratic participation in social and political decision making. Some liberty measures like measures of the external Constitutional protection given to rights of citizens or the extent of constitutional protection of the Independence of the Judiciary and the Rule of Law which have not come into existence so far.


Evaluate the various factors that led to the rapid growth in economic development in China.

China did not have any compulsion by the World Bank to introduce any reforms in 1988. The leaders then thought that the Maoist vision based on decentralization, self sufficiency and shunning of foreign technology, goods and capital was not successful. There was lack of modernization and industrial growth despite the Great Leap Forward and other initiatives. The per capita income had not grown much. It was the establishment of infrastructure in the areas of health, education, land reforms, existence of decentralized planning and small enterprises had a positive impact on the development of the society and income levels after the reforms. Even before the reform period, basic health services were quite extensive and though the communes ensured equitable distribution of food grains. The reforms were first implemented at a smaller level and then expanded. The reforms ushered in by the decentralized government enabled them to assess the economic, social and political cost of the success or failure of each reform. For example, the land reform of handing over lands to individuals brought in prosperity to a lot of poor workers and it helped the rural industrial sector grow and it built a strong support base for future reforms.


Give reasons for the slow growth and re-emergence of poverty in Pakistan.

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.


Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.

The three countries: India, China and Pakistan had maintained the same growth rate till the late 1970s after which China accelerated it growth rate by introducing reforms. The manufacturing industry started contributing in majority to the GDP and the dependence on agriculture got reduced. Health care services and other indicators of human development show that China has achieved development in almost all the spheres. India, has grown economically, but is behind China. Infrastructural facilities are still not too good and still a vast number of the population depends on agriculture for their livelihood. India has a democracy while in China the lack of political freedom and Human Rights remains an issue. In Pakistan, economic growth was higher than India till the period of reforms after which the growth rate had a steep decline. The government is now trying to stem the rot and is taking initiatives in order to attain high economic growth.

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