All questions of Comparative Development Experiences of India and its Neighbours for Commerce Exam

Shift from Agriculture to Manufacturing to Services in China, India and Pakistan

China, India, and Pakistan have followed the classical development pattern of a gradual shift from agriculture to manufacturing and then to services. This can be explained in detail as follows:

Agriculture:
- All three countries have a strong agricultural base and have relied heavily on agriculture for their economy.
- Agriculture has been the main source of income for a large section of the population in all three countries.
- However, with the growth of the population, the agricultural sector has become overcrowded, leading to a decline in productivity and income.

Manufacturing:
- With the need to generate more income and provide employment opportunities, all three countries have shifted their focus from agriculture to manufacturing.
- Manufacturing has been the engine of economic growth in all three countries, with China leading the way as the world's largest manufacturing hub.
- India and Pakistan have also made significant progress in manufacturing, with both countries becoming major players in the global market.

Services:
- As the economies of all three countries have grown, they have also shifted their focus to the services sector.
- The services sector includes a wide range of activities such as IT, banking, tourism, healthcare, etc.
- In recent years, the services sector has emerged as the fastest-growing sector in all three countries, contributing significantly to their GDP.

Conclusion:
In conclusion, China, India, and Pakistan have followed the classical development pattern of a gradual shift from agriculture to manufacturing and then to services. This shift has been driven by the need to generate more income and provide employment opportunities for their growing population. While all three countries have made significant progress, there is still a long way to go in terms of achieving sustainable and inclusive growth.

All three countries had started planning their development strategies in similar ways. While India announced its first Five Year Plan for 1951–56, Pakistan announced its first five year plan, now called the Medium Term Development Plan, in 1956. China announced its First Five Year Plan in 1953.

Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

The state was established in January 1912 after the Xinhai Revolution, which overthrew the Qing dynasty, the last imperial dynasty of China. Its government fled to Taipei in 1949 due to the Kuomintang's defeat in the Chinese Civil War.Correct option is C.

Industry was 39.5% of China's gross domestic product (GDP).

Reforms were introduced in phases in China. In the first phase, reforms were initiated in agriculture, foreign trade and investment sector.

Malawi remains one of the poorest countries in the world, with a Human Development Index (HDI) of 0.418, ranking 170 out of 187 countries (UNDP 2013 HDR). Life expectancy stands at about 54.8 years and the country is marked by high levels of vulnerability including poor nutrition.

The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher, and the GDP per capita is higher. It was developed by Indian Nobel prize winner Amartya Sen and Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics, and was further used to measure a country's development by the United Nations Development Program (UNDP)'s Human Development Report Office.

Answer:
The person who said the lines, "These new and revolutionary changes in China And India even though they differ in content symbolise the new spirit of Asia and new vitality which is finding expression in the countries in Asia" was Jawaharlal Nehru.
Explanation:
Jawaharlal Nehru, the first Prime Minister of India, is known for his role in shaping the country's foreign policy and promoting the idea of pan-Asian cooperation. The quote reflects his belief in the emergence of a new Asia that is experiencing significant changes and progress. Here is a breakdown of the answer:
1. Jawaharlal Nehru: He was the author of the quote and a prominent leader in the Indian independence movement.
2. China and India: Nehru recognized the transformative changes occurring in both countries, even though they had different contexts and content.
3. New spirit of Asia: Nehru believed that the progress and vitality seen in China and India represented a broader trend of renewal and rejuvenation in Asia as a whole.
4. New vitality: The quote suggests that the energy and dynamism of the Asian countries are finding expression in various ways, contributing to the region's growth and development.
It is important to note that Nehru's perspective on the new spirit of Asia and its expression in China and India was influenced by his vision of a united and prosperous continent.

Option is 'C' it is because : nominal GDP÷Price Index ×100 = Real GDP & price index = Nominal GDP÷ Price index ×100 . So, that change in GDP owing to the Change In th Price level.

After independence, India had the option of being a capitalist or a socialist economy. The leaders of independent India wanted to give importance to both public and private sectors and hence decided to adopted the mixed economy principle.

One-child policy, official program initiated in the late 1970s and early '80s by the central government of China, the purpose of which was to limit the great majority of family units in the country to one child each.

False Statement about China

Introduction:
China is the most populous country in the world with a population of over 1.4 billion. China has undergone rapid demographic changes over the past few decades, including a decline in fertility rates and an aging population.

False Statement:
Population is very small

Explanation:
The false statement is option C, which states that the population of China is very small. This statement is incorrect as China has the largest population in the world. The population of China is over 1.4 billion, which is more than four times the population of the United States, the third most populous country in the world.

Other Statements:
To understand why option C is false, let's take a look at the other statements:

- Density of population is lowest: This statement is false. China has a high population density, with an average of 146 people per square kilometer. However, the population density varies widely across the country, with some regions being more densely populated than others.

- Sex ratio is biased and low: This statement is true. China has a skewed sex ratio due to its former one-child policy and a cultural preference for male children. As a result, there are more men than women in the country, with a sex ratio of 105.7 men for every 100 women.

- Fertility rate is low: This statement is true. China's fertility rate has been declining since the 1970s and is currently below the replacement level of 2.1 children per woman. This has led to concerns about an aging population and a shrinking workforce.

Conclusion:
In conclusion, the false statement about China is that its population is very small. China has the largest population in the world, with a high population density, a skewed sex ratio, and a declining fertility rate.

Land area determines agricultural potential

Land area plays a crucial role in determining the agricultural potential of a region. The availability of sufficient land for agricultural activities is a fundamental requirement for the production of food, fiber, and other agricultural products. Here's how land area influences agricultural potential:

1. Availability of arable land:
The total land area of a region determines the amount of arable land available for cultivation. Arable land refers to land that is suitable for growing crops. Larger land areas generally provide more arable land, which can support higher levels of agricultural production.

2. Crop rotation and diversification:
A larger land area allows for greater flexibility in crop rotation and diversification. Crop rotation involves growing different crops in a specific sequence on the same land to improve soil fertility and reduce pest and disease problems. Diversification refers to growing a variety of crops to mitigate risks associated with market fluctuations and climate variability. A larger land area provides more options for implementing effective crop rotation and diversification strategies.

3. Access to water resources:
Land area influences the availability of water resources for irrigation, which is essential for agricultural productivity. Larger land areas often have access to more water sources such as rivers, lakes, or underground aquifers, enabling farmers to irrigate their crops and overcome water scarcity issues.

4. Scale of agricultural operations:
A larger land area allows for the implementation of larger-scale agricultural operations. This includes the use of modern machinery, technology, and infrastructure, which can significantly enhance productivity and efficiency in agriculture. Large-scale farming operations can take advantage of economies of scale and optimize resource utilization.

5. Agricultural intensification:
In regions with limited land area, there may be a need for agricultural intensification to maximize production. Agricultural intensification involves increasing the productivity of land through practices such as high-yield crop varieties, improved irrigation systems, and efficient use of fertilizers and pesticides. However, extensive agricultural intensification can lead to environmental degradation and resource depletion.

In conclusion, land area has a significant impact on agricultural potential. A larger land area provides more opportunities for arable land, crop rotation, diversification, access to water resources, and large-scale agricultural operations. These factors collectively contribute to increased agricultural productivity and the ability to meet the food and fiber demands of a growing population.

Explanation:

Assertion (A) is false:
China set up special economic zones to attract foreign investors, not special social zones. These zones offer various incentives to attract foreign investment and promote economic growth.

Reason (R) is true:
The government of China provides a range of incentives for industries set up in these special economic zones. These incentives may include tax breaks, subsidies, streamlined administrative processes, and access to infrastructure.

Therefore, while the reason is true, the assertion is false as it incorrectly states the purpose of these zones.

Scarcity of capital, technological backwardness, and unemployment are generally found in underdeveloped countries.
Underdeveloped countries, also known as developing countries or less developed countries, face various challenges that hinder their economic growth and progress. Some of the main reasons why scarcity of capital, technological backwardness, and unemployment are prevalent in underdeveloped countries are:
1. Lack of investment: Underdeveloped countries often lack sufficient capital to invest in infrastructure, industries, and technological advancements. Limited access to financial resources hampers their ability to develop and modernize their economies.
2. Technological backwardness: Underdeveloped countries often lag behind in terms of technological advancements and innovation. Limited access to modern technologies, lack of research and development capabilities, and inadequate infrastructure hinder their progress in various sectors.
3. High unemployment rates: Underdeveloped countries often struggle with high levels of unemployment. Factors such as limited job opportunities, low skill levels, and inadequate education and training systems contribute to the high unemployment rates in these countries.
4. Poverty: Underdeveloped countries often face widespread poverty, which further exacerbates the scarcity of capital and technological backwardness. Limited resources and lack of economic opportunities trap people in a cycle of poverty, making it difficult to invest in education, health, and other essential sectors.
5. Weak institutional frameworks: Underdeveloped countries often have weak governance structures, corruption, and inadequate legal and regulatory frameworks. These factors can hinder economic growth, discourage foreign investment, and impede technological advancements.
It is important to note that while underdeveloped countries primarily face these challenges, some developed countries may also experience elements of scarcity of capital, technological backwardness, and unemployment in certain regions or sectors. However, the prevalence of these issues is generally higher in underdeveloped countries.

India is the world's largest parliamentary democracy, while China is a one-party dictatorship. India's reforms have scaled back state-run industries, while China's reforms have created a pseudo-free-market command economy. India has courted the capitalist West while China has tried to counter it.

Socialism shaped the principal economic and social policies of the Indian government but mostly followed Dirigisme after independence until the early 1990s, when India moved towards a more market-based economy.

It is up to individuals, organizations, and governments to establish and implement policies that align with their goals and values.

India’s share of the global economy today is still less than half of what it was at independence in 1948. India’s economy is expanding rapidly; but its trade is still less than 1 percent of the global total, whereas China’s trade is the second or third largest. A similar disparity exists in foreign investment.

Arranging countries according to their HDI ranking:


The correct order of the countries according to their HDI ranking is:


A: II, I, III


Explanation:


To determine the correct order, we need to refer to the Human Development Index (HDI) rankings of the countries. HDI is a measure of a country's overall development based on factors such as life expectancy, education, and income. The higher the HDI, the more developed the country is considered to be.


Here is the explanation for the correct order:


(i) China:
- China has consistently ranked higher than both India and Pakistan in the HDI rankings.
- It has made significant progress in terms of economic growth, education, and healthcare.
- Therefore, China is ranked higher than both India and Pakistan.


(ii) India:
- India has shown progress in various development indicators but still falls behind China.
- It has a lower HDI ranking compared to China but is higher than Pakistan.
- Therefore, India is ranked second in the given options.


(iii) Pakistan:
- Pakistan has a lower HDI ranking compared to both China and India.
- It faces challenges in areas such as education, healthcare, and income inequality.
- Therefore, Pakistan is ranked last in the given options.


In conclusion, the correct order of the countries according to their HDI ranking is II (China), I (India), III (Pakistan).

Classification of an Economy
An economy can be classified based on the occupations within it. The most common classification system divides the economy into three sectors: the primary sector, the secondary sector, and the tertiary sector.
1. Primary Sector:
- The primary sector includes activities that involve the extraction and production of raw materials.
- It encompasses industries such as agriculture, fishing, mining, and forestry.
- Workers in this sector are directly involved in the production of natural resources.
2. Secondary Sector:
- The secondary sector includes activities that involve the processing and manufacturing of raw materials.
- It encompasses industries such as manufacturing, construction, and utilities.
- Workers in this sector transform raw materials into finished products.
3. Tertiary Sector:
- The tertiary sector includes activities that involve the provision of services.
- It encompasses industries such as retail, healthcare, education, finance, and hospitality.
- Workers in this sector provide services to consumers and businesses.
Other Possible Classifications:
While the primary, secondary, and tertiary sectors are the most commonly used classifications, there are other ways to classify an economy as well. These may include:
- Quaternary Sector: This sector involves activities related to information technology, research, development, and intellectual services.
- Quinary Sector: This sector includes activities related to high-level decision-making and policymaking in areas such as government, education, and healthcare.
Conclusion:
In summary, an economy can be classified into different sectors based on the type of occupations within it. The primary sector involves the extraction and production of raw materials, the secondary sector involves processing and manufacturing, and the tertiary sector involves the provision of services. Other classifications, such as the quaternary and quinary sectors, may also be considered depending on the context.

In Pakistan, the reforms were introduced as a result of pressure from both the International Monetary Fund (IMF) and the World Bank. These international financial institutions played a significant role in shaping Pakistan's economic policies and pushing for reforms.

- Pressure from the IMF:
The IMF is an international organization that provides financial assistance and advice to member countries facing economic difficulties. Pakistan has often sought financial assistance from the IMF during times of economic crisis. In exchange for financial support, the IMF usually imposes conditions or policy reforms aimed at stabilizing the economy and promoting sustainable growth.

1. Economic Crisis: Pakistan has faced numerous economic crises over the years, characterized by high inflation, fiscal deficits, and a lack of foreign exchange reserves. In such situations, the IMF has provided bailout packages to help stabilize the economy.

2. Policy Reforms: As a condition for receiving financial assistance, the IMF has often demanded policy reforms in various sectors, including fiscal discipline, monetary policy, tax reforms, privatization, and structural adjustments. These reforms are aimed at addressing the root causes of economic instability and promoting long-term growth.

- Pressure from the World Bank:
The World Bank is another international financial institution that provides loans and grants to developing countries for development projects. Like the IMF, the World Bank also influences economic policy in recipient countries.

1. Development Projects: The World Bank finances various development projects in Pakistan, such as infrastructure development, education, healthcare, and poverty reduction. In order to qualify for funding, the government of Pakistan is required to implement certain reforms and meet specific criteria set by the World Bank.

2. Policy Advice: The World Bank also provides policy advice and technical assistance to the government of Pakistan. It conducts research and analysis on various economic and social issues, and recommends policy measures to address these challenges. The government often takes these recommendations into account when formulating its policies and reforms.

- Joint Influence:
Both the IMF and the World Bank have a common goal of promoting economic stability, growth, and poverty reduction. They work closely together and often coordinate their efforts in providing financial assistance and policy advice to member countries. In the case of Pakistan, the pressure from both institutions has played a crucial role in shaping the country's economic reforms and policies.

Overall, the reforms introduced in Pakistan were a result of pressure from both the IMF and the World Bank, as they provided financial assistance, imposed conditions, and offered policy advice aimed at stabilizing the economy and promoting sustainable growth.

The initiative was led by Mao Zedong, also known as Mao Tse-tung and Chair Mao. Mao's official goal was to rapidly evolve China from an agrarian economy into a modern industrial society with greater ability to compete with Western industrialized nations.

Major Reforms in China's Economy in 1978

In 1978, China introduced major economic reforms under the leadership of Deng Xiaoping. These reforms were aimed at transforming China from a centrally planned economy to a market-oriented economy. The reforms brought significant changes in China's economic policies and contributed to the country's rapid economic growth.

Some of the major reforms introduced in 1978 are:

1. Decentralization of Economic Power: The reforms aimed to decentralize the economic power from the central government to the local governments. This gave more autonomy to the local governments to make economic decisions and implement policies that were more suited to their regional needs.

2. Agricultural Reforms: The agricultural reforms allowed farmers to lease land from the government, sell their surplus produce in the market, and earn profits. This led to increased agricultural productivity and improved the living standards of rural communities.

3. Opening up to Foreign Trade: The reforms allowed foreign companies to invest in China and trade with Chinese companies. This opened up new markets for Chinese goods and services and boosted the country's exports.

4. Price Liberalization: The reforms introduced price liberalization and removed price controls on goods and services. This allowed the market to determine the prices, leading to increased competition and improved efficiency.

5. State-Owned Enterprise Reforms: The reforms aimed to improve the efficiency of state-owned enterprises by introducing market-oriented reforms. This included reducing subsidies, increasing competition, and improving management practices.

The reforms introduced in 1978 had a transformative impact on China's economy. The country's GDP grew at an average rate of 9.5% annually from 1979 to 2019, making it one of the fastest-growing economies in the world. The reforms also helped to reduce poverty in China significantly.

Import substitution

Import substitution is an economic policy that encourages the development of domestic industries by substituting imported goods with domestically produced goods. This policy is often implemented by developing countries to reduce their dependency on foreign goods and promote domestic industries.

Explanation:

1. Background:
Pakistan, like many other developing countries, faced a challenging economic situation after its independence in 1947. The country relied heavily on imports, which resulted in a trade deficit and economic instability. To address these issues, Pakistan adopted the import substitution policy in the 1950s.

2. Objectives:
The main objectives of the import substitution policy in Pakistan were:

- Reduce dependence on imported goods: The policy aimed to decrease the reliance on foreign products by promoting the production of goods domestically. This was done by imposing high tariffs and import restrictions on certain goods.

- Develop domestic industries: By substituting imported goods, the policy aimed to develop and strengthen domestic industries. This would lead to economic growth, job creation, and increased self-sufficiency.

- Enhance technological capabilities: The import substitution policy aimed to encourage the transfer of technology and knowledge to domestic industries. This would help in building the technological capabilities of the country and reduce the need for foreign assistance.

- Promote export-oriented industries: The policy also aimed to foster export-oriented industries by providing incentives and support. This would help in earning foreign exchange and improving the balance of trade.

3. Implementation:
To implement the import substitution policy, Pakistan adopted various measures, including:

- Tariffs and import restrictions: The government imposed high tariffs on imported goods to make them more expensive and less competitive in the domestic market. Import restrictions were also put in place to limit the entry of certain goods.

- Subsidies and incentives: The government provided subsidies and incentives to domestic industries to encourage their growth and development. This included financial assistance, tax benefits, and access to credit facilities.

- Investment in infrastructure: To support domestic industries, the government invested in infrastructure development, such as transportation, energy, and telecommunications. This created a favorable environment for industrial growth.

4. Impact:
The import substitution policy had both positive and negative impacts on Pakistan's economy.

- Positive impacts:
- Development of domestic industries: The policy led to the growth and development of various industries in Pakistan, including textiles, steel, and chemicals. This resulted in increased employment opportunities and economic diversification.
- Reduction in trade deficit: By substituting imports with domestically produced goods, Pakistan was able to reduce its trade deficit and achieve a more balanced trade.
- Technological advancements: The policy facilitated the transfer of technology and knowledge from foreign countries to domestic industries, leading to technological advancements in various sectors.

- Negative impacts:
- Lack of competitiveness: As the focus was on domestic production, the policy often resulted in the development of industries that were not globally competitive. This limited Pakistan's ability to export and compete in the international market.
- Dependency on imports for raw materials: Despite reducing the dependency on finished goods, Pakistan still relied heavily on imports for raw materials and intermediate goods. This limited the effectiveness of the import substitution policy.
- Inefficiencies and high costs: The policy sometimes led to inefficiencies and high production costs due to the lack of competition and protectionist measures. This affected the quality and affordability of domestically produced goods.

Conclusion:

The import substitution policy

Fertility rate in Pakistan

Fertility rate is defined as the number of children born to a woman during her reproductive years. In Pakistan, the fertility rate is the highest among the three given options.

Reasons for high fertility rate in Pakistan

1. Lack of education: The majority of women in Pakistan lack education and awareness about family planning methods. Due to this, they are unable to control their fertility.

2. Traditional values: In Pakistan, having many children is considered a sign of wealth and status. Therefore, families prefer to have a large number of children.

3. Lack of access to family planning services: Access to family planning services is limited in Pakistan, particularly in rural areas. This lack of access makes it difficult for women to control their fertility.

4. Religious beliefs: Some religious beliefs in Pakistan promote having many children. Therefore, some families prefer to have a large number of children for religious reasons.

Impact of high fertility rate

1. Overpopulation: High fertility rate can lead to overpopulation, which puts a strain on resources and infrastructure.

2. Poverty: High fertility rate can contribute to poverty, as families struggle to provide for a large number of children.

3. Health risks: High fertility rate can lead to health risks for women, as they may not have access to proper healthcare during pregnancy and childbirth.

Conclusion

In conclusion, Pakistan has the highest fertility rate among the given options due to a combination of factors, including lack of education, traditional values, lack of access to family planning services, and religious beliefs. The impact of high fertility rate includes overpopulation, poverty, and health risks for women.

In China, approximately 35% of the workforce is engaged in agriculture.

China, being one of the largest countries in the world, has a diverse economy with various sectors contributing to its growth. Agriculture has traditionally been a significant sector in China, playing a vital role in the country's food security and rural development. However, as China has undergone rapid industrialization and urbanization in recent decades, the percentage of the workforce engaged in agriculture has decreased.

Reasons for the decrease:

1. Industrialization: The rapid industrialization in China has led to the growth of other sectors such as manufacturing and services. As industrialization has progressed, the demand for labor in non-agricultural sectors has increased, resulting in a decline in the percentage of the agricultural workforce.

2. Urbanization: China has experienced massive urbanization, with millions of people moving from rural areas to cities in search of better opportunities. This urban migration has further reduced the agricultural workforce as people find employment in urban industries.

3. Technological advancements: The agricultural sector in China has also witnessed significant advancements in technology and mechanization. These technological advancements have increased productivity and reduced the need for manual labor in agriculture. As a result, fewer workers are required in agricultural activities, leading to a decline in the workforce engaged in agriculture.

4. Government policies: The Chinese government has implemented various policies and initiatives to promote urbanization and industrial development. These policies have encouraged the growth of non-agricultural sectors and led to a shift of labor away from agriculture.

Implications:

The decreasing percentage of the workforce engaged in agriculture in China has both positive and negative implications. On the positive side, it reflects the country's economic transformation and the shift towards a more urban and industrialized society. It also signifies increased productivity in the agricultural sector due to technological advancements.

However, there are also challenges associated with this trend. The decline in the agricultural workforce raises concerns about the sustainability of food production and rural development. It puts pressure on the remaining agricultural workers to increase their productivity and meet the growing demand for food in the country. It also highlights the need for policies and investments to support the agricultural sector and ensure food security.

In conclusion, approximately 35% of the workforce in China is engaged in agriculture. The decrease in this percentage can be attributed to factors such as industrialization, urbanization, technological advancements, and government policies. While this shift reflects China's economic progress, it also poses challenges for food security and rural development.

UNDP stands for United Nations Development Programme.

Introduction:
The United Nations Development Programme (UNDP) is a global development network that operates in over 170 countries and territories. It is the largest multilateral development organization and is dedicated to eradicating poverty, reducing inequalities, and promoting sustainable development worldwide.

Role and Mandate:
The UNDP plays a crucial role in supporting countries in their efforts to achieve sustainable development. Its primary mandate is to assist governments and societies in addressing development challenges and achieving the Sustainable Development Goals (SDGs) set by the United Nations.

Functions and Activities:
The UNDP carries out a wide range of functions and activities to fulfill its mandate:

1. Policy Advice and Technical Assistance: UNDP provides policy advice and technical assistance to governments, helping them develop and implement effective development strategies and programs. It supports countries in areas such as poverty reduction, democratic governance, inclusive growth, climate change adaptation, and disaster risk reduction.

2. Capacity Development: The UNDP focuses on strengthening the capacity of governments, institutions, and civil society organizations to promote sustainable development. It provides training, knowledge sharing, and expertise to build the skills and capacities necessary for effective development planning and implementation.

3. Advocacy and Knowledge Sharing: The UNDP advocates for sustainable development and promotes knowledge sharing among countries. It conducts research, produces reports, and organizes conferences and workshops to facilitate the exchange of ideas, best practices, and innovative solutions to development challenges.

4. Funding and Resource Mobilization: The UNDP mobilizes financial resources and coordinates funding from various sources, including governments, international organizations, and the private sector. It manages funding programs and projects to support development initiatives in countries around the world.

Partnerships and Collaboration:
The UNDP works closely with governments, civil society organizations, academia, and the private sector to achieve its goals. It collaborates with other United Nations agencies, international financial institutions, and regional organizations to leverage resources, share expertise, and coordinate efforts for sustainable development.

Conclusion:
The United Nations Development Programme (UNDP) plays a critical role in supporting countries' development efforts and promoting sustainable development globally. Through its policy advice, technical assistance, capacity development, and advocacy activities, the UNDP contributes to poverty eradication, inclusive growth, and the achievement of the Sustainable Development Goals.