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China leaves India behind, heads towards first world

beijingwalker

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China leaves India behind, heads towards first world


MADHAV NALAPAT
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China leaves India behind, heads towards first world

30 years ago, China was as dysfunctional as India is to the present day. It was after Deng took charge of economic policy in 1979 that China began its climb to the top.

visit to China is always a humbling experience. Unlike Terminal 3 at — what else? — Indira Gandhi International Airport, there are no carpets concealing the floors of Beijing Capital Airport. Why planners of the Delhi facility wanted carpets is a mystery. Already they are looking dusty, and the smell of mould is creeping into the atmosphere. Within a few years, the odour will be overpowering, as will be the dust. Of course, there is a silver lining. Hospitals catering to respiratory diseases will see a sharp rise in their custom, as passengers spend hour after hour waiting for flights that seem never to take off, either because the pilot is in a bad mood that day or for some other cause. Of course, carpets are not the only useless — indeed, destructive — extravagance in a facility that has become not the best in the world, but the most expensive. Even the toilet facilities come from fancy locations such as Germany. Clearly, those in charge at IGIA Terminal 3 are used to their bottoms resting on the seats of German-made cars, hence their obsession to boost employment in that country at the expense of local suppliers.

Thirty years ago, China was as dysfunctional as India is to the present day. While Mao Zedong unified his country and transferred some of his confidence in it to the rest of the populace, he was as weak in economics as Prime Minister Manmohan Singh has been. It was only after Deng Xiaoping took charge of economic policy in 1979 that China began its climb to the top. Today, to compare India to China would be even more fatuous than comparing India with Pakistan. Our northern neighbour is so far ahead that it is not even visible in the distance. Our administrators pride themselves on being the "steel frame". A better word for their effect on the country would be straitjacket.

Either because of an absence of courage or of character, officials in India have connived with politicians in creating webs of graft that are choking the economy as surely as weeds destroy a lake. These lines are being written in the business class cabin of the high-speed train going from Tianjin to Shanghai. Because the seats are fully reclinable, this columnist was able to catch up on sleep lost in the Delhi to Beijing flight, which departed from IGIA at 3.25 a.m. The train itself proceeds smoothly to Shanghai at a speed of more than 300 kilometres and hour, many times more than the fastest in India.

Of course, the Chinese cannot savour the theatrical brilliance of Mamata Banerjee or Lalu Yadav the way we fortunate citizens of the world's most regulated democracy can on our television screens. Their political fare is much duller, comprising episodes where suited men with broad smiles go to various public locations and thereby demonstrate their immense love for the common man.

Although the UGC may not know much about originality in research — and in fact would be horrified at such subversion of the system — its babus are masters at conjuring up numerous mechanical milestones. These days, doctorates get turned out with the frequency of Ford cars during the time when old Henry was still around in Detroit. Interesting ideas are spurned in favour of rehashes of tomes written elsewhere, with exactly the degree of copycat prose needed to escape computer traps for plagiarism. Research in India's university sector is as barren as the Gobi desert, and the UGC seems happy to keep it that way. Unfortunately, the Chinese disagree. From the time Hu Jintao took charge as General Secretary a decade ago, there has been an emphasis on R&D, so that while in 2002, China was where India is today, importing almost all its high-end technologies, these days the country is self-sufficient in most.

Tianjin is an example of how far China has leapt ahead of India. Although more than 150 kilometres away from Beijing, the city is reached by train in a half-hour. Its two universities, Tianjin and Nankai, are working at excellence, as are other universities in China. In the 1980s, almost all were worse than their top 20 Indian counterparts. These days, even middle-rank universities have left Indian ones far behind, another great achievement of the UGC and its babudom. It has an international airport and a huge port, where several ships, including cruise liners, regularly call. Comparing Tianjin with the squalor of Gurgaon, where taxes disappear into the pockets of officials and politicians, is an exercise in raising blood pressure to dangerous levels. If China can do it, why not India? Why not indeed? Look at our officials, look at their political masters, and the answer will become clear.
 
And the heading just hit a wall ..... and a crisis looms large over the correcting economy.
 
even fall we will be still in the first world,you are so low down there at the bottom,virtually beyond everyone's reach.
 
No doubt,what china achieved in 30 years is impressive and envious.
Unlike china, India started its economic boom from the beginning of 21st century..and there is no point in comparing India with china right now.Also it is indeed difficult to manage a country like India which is much more diverse than China.

But despite of all those problems,we are developing fast....Since 2000,India changed a lot,much beyond our expectation & iam very much optimistic about my country's future.
 
but China still steals other techs, still restricts its people to have kids, still prevents poeple to vote for their system, still enforces its rules on its people no matter people agree with it or not, still restricts people the access to open media, still dogs are killed x......., still proliferates WMD, still eyes the land and sea of its neighbouring countries, not having a good relationhip with most of the countries in the world and lmostly with its neighbours........ and on top of that....it steals others Cameras....:rofl:
 
Just reduce the 30 year YoY growth by 3 to 4 percent and then calculate the real GDP, then you will know the chinese economy......:lol:

If you account for India's 6-8% YoY growth over past couple of decades and calculate the real GDP excluding debt accumulation of which the Indian economy have been built upon, India will be lucky to have actually grown by 1%. Now that those debts are coming home to roost with the Rupee losing confidence among investors. That debt based Ponzi scheme is falling apart right before our eyes. I believe India is ALREADY in recession if you calculate their real GDP. There is no way they are growing when it's currency has collapsed, inflation very high, and deficits soaring.

I've always said this, Indian economy was built on debt and now that they are forced to narrow their deficits (which have been their source of growth), their growth is collapsing. India is far to corrupt and the vast majority of its people are too incompetent to ever be successful.

but China still steals other techs, still restricts its people to have kids, still prevents poeple to vote for their system, still enforces its rules on its people no matter people agree with it or not, still restricts people the access to open media, still dogs are killed x......., still proliferates WMD, still eyes the land and sea of its neighbouring countries, not having a good relationhip with most of the countries in the world and lmostly with its neighbours........ and on top of that....it steals others Cameras....:rofl:

And we are STILL more successful than India. Now you see how corrupt and incompetent India is...:lol:
 
Chinese economic propaganda is mostly farce. They lie about everything. Given below is one example. Western countries do not dive into Chinese data as long as they make dollar store items cheap and deposit all their surplus cash with America. The following article is published in this very forum.


Local governments inflated China’s GDP by $900 billion last year

Local governments inflated China’s GDP by $900 billion last year



Chinese president Xi Jinping recently said that the government would stop tying promotions of local government officials to GDP performance alone. This is important because local leaders under pressure to produce high economic output are much more prone to spending wastefully and in ways that harm the environment.

Although this was hailed as a big breakthrough when Xi made the pronouncement, the last government made similar promises. Here’s a look at how effective those were:



Local governments reported a combined $9.4 trillion in economic output in 2012—11.1% higher than the central government’s final GDP calculation. And their noses have only gotten longer in recent years. Back in 2009, local government GDP inflation was only 8.0% higher than the $5.5 trillion the central government reported.

This isn’t just bureaucratic farce (though it is that too). Layers of inflated economic growth from the local level could be understating how sharp China’s slowdown actually is. National Business Daily reports that when the National Bureau of Statistics began doing spot-checks on industrial companies in Zhongshan, a city in Guangdong, it found that the local government reported a combined 85 billion yuan in output for 71 of its companies, just a bit higher than the 2.2 billion yuan they actually generated (link in Chinese). It’s hard to believe the central government statisticians would be able to filter out such an extreme degree of exaggeration when totting up their own GDP calculations. Distortions like that could be misleading central government economic planners, and as the recent interbank loan spikes hinted, that can lead to big policy missteps.

All things considered, though, inflating data is probably the least harmful outcomes of the Chinese Communist Party’s emphasis on GDP performance. In fact, it’s a lot better than relying on credit to stimulate the economy.

Unfortunately, just because Xi hints it’s safe for local officials to come clean about lousy economic output doesn’t mean they will—or that they’ll cut back on their credit habit.

Many poorer provinces don’t have a lot of options at their disposal. Particularly in the central provinces, foreign investment and domestic consumption simply aren’t enough to buoy growth (link in Chinese). As a provincial deputy governor told NBD about the need for local government to keep investing, “The central government sets the target at 7-8%, and since we’re not a province with a strong economy, our target has to exceed 10%. And with the not-so-great economic situation, surpassing that target is now more urgent.”

Even if the central government catches all that fibbing, it’s counting the credit-bingeing. That’s a good thing to keep in mind on July 15, when China announces its Q2 GDP.
 
I think majority of Chinese are pragmatic in nature. Rare to see this type of hater breed from Chinese. You can only see here on PDF. They must have some hidden links to brainwashed religious nutcases.

They can only see negative comments from some Indians but always ignore positive comments from majority Indians here. They are just born to do such dirty job!!
 
If you account for India's 6-8% YoY growth over past couple of decades and calculate the real GDP excluding debt accumulation of which the Indian economy have been built upon, India will be lucky to have actually grown by 1%. Now that those debts are coming home to roost with the Rupee losing confidence among investors. That debt based Ponzi scheme is falling apart right before our eyes. I believe India is ALREADY in recession if you calculate their real GDP. There is no way they are growing when it's currency has collapsed, inflation very high, and deficits soaring.

Debt ! What debt? India has the lest foreign debt of all big economies? You seem to be simply extrapolating out of your A@@. The entire Indian growth is almost completely been financed out of domestic savings with very little contribution from FDI investment. And unlike China, India is largely a domestic market and worldwide slump will not hurt us much.

The major difference is that India , being a democratic nation with property rights is not able to provide the obscene subsidies which China has been giving to provide artificial stimulus to its industries so that they may dump their cheap products worldwide.
I've always said this, Indian economy was built on debt and now that they are forced to narrow their deficits (which have been their source of growth), their growth is collapsing. India is far to corrupt and the vast majority of its people are too incompetent to ever be successful.



And we are STILL more successful than India. Now you see how corrupt and incompetent India is...:lol:
 

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