The paper 'Economic Development of China and India" is a good example of a macro and microeconomics case study. Economic growth is a crucial concept for determining whether a country is successful or not (Wohlmuth, 2009). The economic growth of a nation is dependent on the strategies and policies used. It is for this reason that policy changes occur when a country is undergoing a recession. Different countries have different endowments. It is upon how a nation has designed its policies and strategies that it can achieve an economic growth rate. Some countries such as China have seen unprecedented growth since the 1980s yet they are not endowed with natural resources like others basically due to well-designed policies and strategies used.
India is also a good example of a country that has achieved tremendous economic growth since 1980 although the rate cannot be compared to that of China. The two countries are perfect examples of emerging economies as a result of good policy framework and strategies. What has been quite inexplicable for most of the economists is on how countries need to adapt their policy framework and strategies.
For example, Mahtaney (2010: 159) highlights the fact that the context and circumstances prevailing in a certain country should be considered when choosing policies and strategies for sustainable economic development. This essay will argue in support of this idea and arguments will be drawn from the two states which have seen remarkable economic development in the last two decades; China and India. Globalization and economic development are two common concepts that economists cannot miss to mention in any of their discussions. Similarly, one cannot miss hearing economists talk of emerging economies and sustainable development.
Perhaps, a perfect way to get into the subject of this discussion is by defining these common concepts. As earlier stated, these are common terms therefore a number of definitions have emerged from various literary works. Needless to say, most of these definitions talk about the same concept. Globalization has been defined by many scholars in different ways. Lack of a precise definition has been argued to be the main factor spurring debates on the effects of globalization. According to Waller-Hunter & Jones (2002), globalization can be defined as “ that process in which business decisions, production and markets display more of international attributes and lesser of the home of origin ones” (P.
53). In almost the same way, Hamilton, (2008) defines this term as the global integration of economic, technological, political, cultural and social characteristics between nations (P 10). There are many other scholars who have contributed in defining this concept but what is common for all of them is that their definitions are centered towards the idea of strengthening relations in terms of economic, technological, political, cultural and social aspects.
It is, therefore, a multifaceted term affecting diverse sectors of a country’ s economy either directly or ramblingly. According to Waller-Hunter & Jones (2002), globalization is a major contributing factor in a nation’ s economic growth or development (p 53). Economic development, on the other hand, is the process by which an economy is translated from that of low per capita income to a self-sustaining per capita income (Adelman, 1961: 1). Economic development is a determining factor of whether a society is underdeveloped, Countries vary in the way they achieve economic development.
It can either be short term or long-lasting. Countries which have achieved long-lasting development are said to have sustainable development. Sustainable development is, therefore, a development that lasts (Waller-Hunter & Jones, 2002: 53). Importantly, societies should experience sustainable development in all realms; environmental, social and economic. Similarly, the rates at which nations achieve economic development also vary. Some countries such as China and India have had exemplary performance in terms of economic development for the last two decades and they are referred to as emerging economies.
Countries experiencing fast growth or moving out of underdevelopment and there are experiencing significant economic growth are termed as emerging economies (Tridico, 2007: 2). Therefore, they can also be termed as transitional economies basically because these reforms involve changes in their structures and institutions. Most of those countries within the group of emerging economies are instituting changes that allow their economies to be open to the rest of the world.
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