Development Strategies - Appraisal

Question 1

Why do we need to appraise Development Strategy of Other Countries?

1 It serves as lesson and guidance for own development

2 We can learn from success and failures of economic policies of our neighbours

3 We should also understand different phases of their development and effects of reform undertaken by them and compare it with our own country

Question 2

When were Reforms introduced in India, Pakistan and China?

Question 3

Reforms in China

Why did China Introduce Reforms in 1978?

Reforms were introduced in China because

Chinese leadership was not happy with:

1 Slow place of growth

2 Lack of Modernization

3 No Increase in Per capita Grain Output

4 Failure of Maoist Vision based on decentralization, shunning of foreign technology

Note

Reforms were not introduced due to

Pressure of World Bank and International Monetary Fund (like in the case of India)

Different Reforms Undertaken

Major Reforms undertaken were:

1. Reforms in Agriculture

Commune lands were divided and allocated to individual households for use

However, ownership remain with government

These farm owners were allowed to keep all profit after paying taxes to govt.

2. Reforms in Private Sector

Private Sector was allowed to produce goods and compete with Public Sector Enterprises (called SOE - State Owned Enterprises)

3. Dual Pricing

Agriculture and private Sector had to buy and sell goods at 2 Prices

A certain fixed Quantity at govt determined Prices

Balance Quantity at Market Prices

Note

In earlier years, production was more at Govt prices

In later years, as production increased, goods at market determined prices increased

Reforms in Investment Sector

Govt Promoted foreign investment by allowing Special Economic Zones(SEZ) to be set up

Govt gave tax concessions to foreign companies who established there units in these SEZ

Investment in Infrastructure

Massive Investment in Infrastructure was undertaken like Building of roads, bridges, electricity supply, new cities, extension of basic health services

These not only provided jobs but also boosted the industrial sector

Strategy Adopted by China for Reforms

Reforms were first introduced over a smaller level

Once it were successful

They were extended on a massive scale

This helped in saving cost and avoiding reform failure

What were the main achievements of China pre and Post Reforms?

Pre Reforms

Govt was successful in extending basic health facilities to rural areas

Because of Commune System, there was more equitable distribution of food grains

Post Reforms

There was large scale improvement in social and economic indicators

China's economy started growing at rate of 10% and it became second largest economy in the world

Large amount of jobs were created due to investment in Infrastructure and Foreign Investment

Food grain Production also increased after commune land was divided and allocated to small sectors

NCERT Questions

Question 17

Fill in the blanks

1. First Five Year Plan of ________________ commenced in the year 1956. (Pakistan/China)
2. Maternal mortality rate is high in _____________. (China/ Pakistan)
3. Proportion of people below poverty line is more in __________. (India/Pakistan)
4. Reforms in ______________ were introduced in 1978. (China/ Pakistan)

Other Books

Question 1

What were the main achievements of China pre and Post Reforms?

Question 2

Why did China Introduce Reforms in 1978?