Why is China rich and successful and India poor?

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Why is China rich and successful and India poor?

In fact, there is a great deal of exaggeration in the question. China, of course, has made a huge leap forward in overcoming poverty, but there are still many undeveloped rural areas, and in the cities there are enough poor people – as a rule, yesterday’s rural residents who have no education. At the same time, India is developing almost as rapidly as the PRC, just less attention is paid to it.

Nevertheless, the difference is very noticeable even from a purely outward appearance. I have not been to India, but I regularly visit China and I can compare the TV picture of India with real China. The difference is huge. In China, there are no crowds of beggars and homeless people (especially children), there is no such dirt and shacks that we see in films and news about India. In turn, India does not have such a developed infrastructure (to be honest, there is no such infrastructure anywhere outside China), there is no such level of security and such a developed business.

I think there are several reasons for this.

The Chinese have managed to curb population growth, while India has failed. As a result, the Chinese divided the growing pie by about the same number of eaters as before, while the Indians were barely keeping pace with the population growth. As a result, the population of India is already 1.3 billion people.and almost caught up with the Chinese. True, China is already beginning to experience the negative consequences of its demographic policy – there are not enough workers, especially in the industrialized southern regions. But India is still far from that, for her huge population is still more of a problem than a resource for growth.

The Chinese have been able to attract huge foreign investment.After the normalization of relations with the United States and the gradual liberalization of the economy, the Americans discovered the unique possibilities of China – a sea of ​​cheap labor in conditions of complete security, political stability and de facto absence of labor legislation. They poured huge funds into China, creating a Chinese industry almost from scratch. India at this time stood apart and is now trying to catch up by presenting itself as an alternative to China, with which the Americans began a long-term commercial war.

The planned economy of the PRC allows more rational use of resources – labor, natural, financial, etc. In India, the regulation of the economy is not so strict, therefore, sometimes not the industries that the country needs, but those that bring more profit to the owners develop. For example, in Inner Mongolia (PRC), miners have been successfully working for a long time, using the cheap electricity of this coal region to mine cryptocurrencies. But as soon as large industrial enterprises came there, the government banned the connection of miners – factories are more important for the economy – and the industry in this area ceased to exist. But in the Sichuan province, miners are tolerated and even welcomed, because they consume electricity generated by small mining power plants in the foothills of Tibet, which still has nowhere to go. The key word is for now.

For half a century, the PRC has been fully focused on solving its own problems, primarily on economic growth. The Chinese do not fight with anyone (minor border conflicts do not count), do not interfere in other people’s affairs and are ready to work with anyone, without forcing them to build socialism / capitalism, without teaching them human rights, etc. This is very popular with investors, it allows access to external markets and sources of raw materials on optimal terms and conserves resources.

Unlike India, China is quite ethnically homogeneous. There, of course, more than a hundred ethnic groups live there, but the bulk of them are Han people (like Russians in Russia) and everyone uses a single system of hieroglyphs (even the Cantonese, who actually speak another language). Thanks to this, a graduate of a Chinese school or a foreign investor who has learned Chinese can work throughout the vast country. In India, dozens, if not hundreds, of ethnic groups live, which are united only by the English language, which many residents do not know at all or speak it very poorly.

The roots of this difference lie in history. China is one of the oldest civilizations with millennial traditions of statehood. It was never completely captured or colonized, did not lose its integrity or independence in full.

India, before the arrival of the British, was a conglomerate of principalities that were always at odds with each other, spoke different languages, and were often conquered. Modern India appeared thanks to the colonialists; a state with such borders had never existed before. Hence – internal conflicts and political instability, separatism.

 

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