An Undefined Race: The Growth Debate between China and India

Julie Pazderka

Master's thesis

Abstract:

In an effort to define which country will succeed in being the first of the two, I have given much attention to the East India Trade Company (EIC) and its influence on both India and China and the impact it has had on the social, political and economic change in both countries. While both countries have started off the same in the first half of the 20th century, their economic difference began with Xiaopings' rule in the late 70's of the 20th century. He is the one responsible for the opening of China, allowing it to have a steady takeoff and accelerate post-Cold War. India on the other hand has been in fear of foreign exploitation due to the EIC, making their development substantially slower. Religious and regional issues are a reason for India to not have enough focus on their human capital and their multi-party government, resulting in an inability to focus on the necessary reformation of the 'red tapes'. Another domestic policy missing in India, but strong in China is human capital, which is a private matter in India, while China has highly invested in it since The Great Leap Forward. Understanding the governance and economic policies of both countries provides an insight to both countries and supports my reasoning as to why I believe that China will - despite its' slowdown, be ahead of the race.

Abstract:

In an effort to define which country will succeed in being the first of the two, I have given much attention to the East India Trade Company (EIC) and its influence on both India and China and the impact it has had on the social, political and economic change in both countries. While both countries have started off the same in the first half of the 20th century, their economic difference began with Xiaopings' rule in the late 70's of the 20th century. He is the one responsible for the opening of China, allowing it to have a steady takeoff and accelerate post-Cold War. India on the other hand has been in fear of foreign exploitation due to the EIC, making their development substantially slower. Religious and regional issues are a reason for India to not have enough focus on their human capital and their multi-party government, resulting in an inability to focus on the necessary reformation of the 'red tapes'. Another domestic policy missing in India, but strong in China is human capital, which is a private matter in India, while China has highly invested in it since The Great Leap Forward. Understanding the governance and economic policies of both countries provides an insight to both countries and supports my reasoning as to why I believe that China will - despite its' slowdown, be ahead of the race.

Keywords

Securalism, Opening, Reformation, Liberalization, China, India, Colonialism, Borders, Religion, Socio-politics

Keywords

Securalism, Opening, Reformation, Liberalization, Borders, Religion, Socio-politics, China, India, Colonialism

Language used: English

Date on which the thesis was submitted / produced: 10. 10. 2014

Thesis defence

• Date of defence: 7. 9. 2015
• Supervisor: Pavel Žamberský
• Reader: Josef Taušer

Vysoká škola ekonomická v Praze

Master programme / field:
Mezinárodní ekonomické vztahy / International and Diplomatic Studies