India vs China

In an article in the CPM journal People’s Democracy,Left economist Prabhat Patnaik compares India and China’s growth stories and argues that there are fundamental differences between their experiences.

Published: October 24, 2012 2:57:54 am

India vs China

In an article in the CPM journal People’s Democracy,Left economist Prabhat Patnaik compares India and China’s growth stories and argues that there are fundamental differences between their experiences. He says while the two are often bracketed together as “emerging economic superpowers”,the difference is becoming more apparent as the impact of the economic crisis reaches Asian shores.

“One may be critical of China’s economic policies,notwithstanding their success in ushering in high growth,for a variety of reasons,but it is undeniable that China’s economy is on an altogether different footing today than India’s,” he writes.

He says the first crucial difference is that China’s export success was based on manufacturing,while India’s export success is related to services,especially IT-related services. Per unit value of exports,he says,China creates larger employment than India since the wage rates of those employed in the former are relatively lower than of those employed in the latter.

Another basic difference,he notes,is that China has had a current account surplus on the balance of payments,while India has more or less had a deficit. “China’s surplus has contributed to the building up of its foreign exchange reserves,while India has had to depend upon foreign capital inflows to finance its deficit and its reserves have got built up only because this inflow has exceeded the deficit,” he says.

BY-POLLS VERDICT

CPI’s New Age focuses on the results of last week’s by-polls in two Lok Sabha constituencies — the Congress nominee was defeated in Tehri while its candidate scraped through in Jangipur — saying the writing is on the wall for the UPA. The results are a clear indication of the people’s mood,it argues.

The editorial concentrates on Jangipur,where President Pranab Mukherjee’s son won by a margin of just 2,500. The worrying point in Jangipur result,it claims,is the increase in the BJP’s voteshare.

“It seems that the Trinamool,though it had endorsed the Congress nominee,did not campaign actively and its vote got transferred to the BJP. In the past,the BJP had only once won representation in the West Bengal assembly and that was when Mamata Banerjee had aligned with it. Mamata first became railway minister under Vajpayee. If BJP gets a foothold in the generally secular state of West Bengal,Trinamool Congress will be solely responsible for it,” it says.

The other disturbing feature of the two by-polls,the editorial says,is the role played by newly floated Muslim political outfits. “In both constituencies,these Muslim organisations have cornered a good chunk of the votes. But their campaign has ultimately contributed to further polarisation of masses on communal lines and it has helped the BJP. One brand of communalism breeds the other. The Muslim minority have to ponder whose cause they will serve by communalising politics,” it argues.

DELHI NEXUS

CPI(ML) weekly ML Update discusses the controversy over Robert Vadra’s business ties with real estate major DLF and argues that the Vadra-DLF deal and subsequent Salman Khurshid episode have further damaged an already heavily dented Congress.

It points out that the main opposition party,the BJP,also faces many questions. “One is not talking here of Kejriwal’s findings regarding Nitin Gadkari,showing how the Congress-NCP government favoured him,violating all rules and norms. The revelations have,of course,forced the voluble Gadkari to coin a new euphemism to introduce himself — he now calls himself a ‘social entrepreneur’… It is the BJP’s deafening silence over the Vadra-DLF deal which actually speaks volumes for the party’s anti-corruption credentials,” it says.

“Why? Is it because Vadra is ‘Indian’ enough compared to Sonia Gandhi’s Italian origin? The reason for the BJP’s deliberate silence perhaps has nothing to do with Vadra,it has everything to do with DLF,the ‘private entity’ at the other end of the deal… DLF doesn’t operate only in Congress-ruled states,it has interests in BJP-ruled states as well,Gujarat included,” it concludes.

Compiled by Manoj C.G.

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