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India Next Door, China Over the Horizon: The View from South Asia

IndoCarib

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Teresita C. Schaffer, Nonresident Senior Fellow, Foreign Policy, 21st Century Defense Initiative

The National Bureau of Asian Research

Main Argument:

For Pakistan, the rise of India is a strategic nightmare, while the rise of China is an opportunity to curb India’s advancement and reduce dependence on the United States. Afghanistan sees its ties with India and China, as well as with the U.S., as vehicles for blunting interference by its immediate neighbors, especially Pakistan. Bangladesh, Nepal, and Sri Lanka generally accept India’s primacy in their region. Bangladesh and Nepal see their ties with China as a way of increasing their freedom of action against India; Sri Lanka sees both India and China as means to emphasize its independence from Western donors.

Policy Implications:

* India’s South Asian neighbors look on India and China with one eye on relations with the U.S. Most of these countries are seeking either to balance a hostile relationship or to hedge against excessive dependency on the U.S. or India.

* India is still the major player in South Asia, and is becoming more active in East Asia.

* China’s security profile and economic heft in South Asia have risen dramatically in the past decade. India’s economic growth will determine whether New Delhi maintains its influence in its own neighborhood.

* The Indian Ocean is the arena where the India-China rivalry will play out. U.S. strategic goals align well with India’s, and U.S. interests would be well served by treating the Indian Ocean as a single policy space.

* The smaller South Asian countries, especially Sri Lanka, will play a greater role in the dynamics of the Indian Ocean region than traditional U.S. policy would indicate.

India Next Door, China Over the Horizon: The View from South Asia - Brookings Institution
 
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I agree with the article. India's economic growth is only way to crub Chinese influence across the world
 
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Too bad then, that your economic growth is slowing down to 7%.

Slow down is there all over the world and all major growing economies have shrinked over past couple of years.. Point is it is still growing close to 8% which is not bad at all.. Also as India takes this growth flight you may see impact on yours sooner or later.. Already people are considering moving the manufacturing from China to India.. I know it's not going to be immediate but slowly and steadily we will reach there..
 
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Slow down is there all over the world and all major growing economies have shrinked over past couple of years.. Point is it is still growing close to 8% which is not bad at all.. Also as India takes this growth flight you may see impact on yours sooner or later.. Already people are considering moving the manufacturing from China to India.. I know it's not going to be immediate but slowly and steadily we will reach there..

China has been growing due to capital accumulation. The growth that is coming from capital accumulation has to stop somewhere. China has to take its growth to next level by increasing total factor productivity. Alas…with its older population, this would be a hard task. China is developing economy with a demographics of an advanced country
 
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China has been growing due to capital accumulation. The growth that is coming from capital accumulation has to stop somewhere. China has to take its growth to next level by increasing total factor productivity. Alas…with its older population, this would be a hard task. China is developing economy with a demographics of an advanced country

If you say it that way, ALL east asian economies including Japan have been growing mostly due to increased accumulation.

China's total factor productivity has been increasing ever since 1952, though capital accumulation was the primary source of growth until 2004.

http://www.iariw.org/papers/2007/ozyurt.pdf

China in fact has one of the higher TFP increase rates in East Asia.

http://www.adb.org/documents/working-papers/2010/Economics-WP227.pdf
 
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China has been growing due to capital accumulation. The growth that is coming from capital accumulation has to stop somewhere. China has to take its growth to next level by increasing total factor productivity. Alas…with its older population, this would be a hard task. China is developing economy with a demographics of an advanced country

But can't productivity be increased by effective use of technology, if older population becomes a concern.. I think Japan utilized technology quite well for quite long when they had aging population all the while..
 
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China has been growing due to capital accumulation. The growth that is coming from capital accumulation has to stop somewhere. China has to take its growth to next level by increasing total factor productivity. Alas…with its older population, this would be a hard task. China is developing economy with a demographics of an advanced country

Actually, China has a lower dependency ratio than India does, and this is likely to continue for a very long time.

dependency.png


China and India, 2025 | RAND Report
 
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If you say it that way, ALL east asian economies including Japan have been growing mostly due to increased accumulation.

China's total factor productivity has been increasing ever since 1952, though capital accumulation was the primary source of growth until 2004.

http://www.iariw.org/papers/2007/ozyurt.pdf

China in fact has one of the higher TFP increase rates in East Asia.

http://www.adb.org/documents/working-papers/2010/Economics-WP227.pdf

Yes, as economies grow, the growth rate increasingly comes from TFP’s. I am not saying that China’s growth is not come from TFP’s. However, in advanced countries, 70% to 80% growth comes from growth in TFP’s which clearly not the case with China. For the China the figures are the other way round.
 
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If you say it that way, ALL east asian economies including Japan have been growing mostly due to increased accumulation.

China's total factor productivity has been increasing ever since 1952, though capital accumulation was the primary source of growth until 2004.

http://www.iariw.org/papers/2007/ozyurt.pdf

China in fact has one of the higher TFP increase rates in East Asia.

http://www.adb.org/documents/working-papers/2010/Economics-WP227.pdf

Dude, China need to as effectively use Technology as Japan and South Korea has done to counter issues related to aging population.. Believe, your aging population is coming to haunt you so better be prepared.. You climbed when factors were in your favour (like one child policy/lesser mouths to feed per family) but now these very factors are coming to haunt you (as you are going to have more elderly & less youth).. Better be prepared and as i said earlier your acceleration of growth will actually be dependent on how you make good use of technologies..
 
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After 2030 dependency ration is increasing for China.
 
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Actually, China has a lower dependency ratio than India does, and this is likely to continue for a very long time.

dependency.png


China and India, 2025 | RAND Report

First of all, the figure clearly showing that India has younger populations, so it vindicates my stand that at some point in future India’s growth rate will exceed China’s. Second, although correlated, the relationship between population dependency rate and growth rate would not be a straight line with 45 degree to x axis and hence India should achieve higher growth rate than China much before 2030
 
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India is still the major player in South Asia, and is becoming more active in East Asia.

LOL...what a joke.

---------- Post added at 07:46 AM ---------- Previous post was at 07:44 AM ----------

India is still the major player in South Asia, and is becoming more active in East Asia.

LOL...what a joke.

by the way, economic numbers in India is faked too. Politicians tell the Statistics to fabricate the number, not a thing in India.
 
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