NCERT Solutions Class 12, Economics, Indian Economic Development, Chapter- 8, Comparative Development Experiences of India and Its Neighbours
1. Why are regional and economic groupings formed?
Solution:
Regional and economic groupings are formed by countries to understand the development strategies and growth measures that are used by the other member countries. This helped countries to analyse the strength and weaknesses they possessed and the corrective measures that needed to be taken to bring in growth and prosperity. Forming a regional group also makes countries maintain peace among themselves and having a common platform for trade as well as a representation on the World Forum.
2. What are the various means by which countries are trying to strengthen their own domestic economies?
Solution:
The following are the means by which countries are trying to strengthen their own domestic economy:
(i) By forming regional and economic groupings like European Union (EU), SAARC, ASEAN, OPEC, and G-8 etc.
(ii) By analysing the development model and strategies adopted by member countries in order to boost the economy of the country.
(iii) By liberalising the economies, which reduces government intervention in economic activities, the economy is governed by the demand and supply of the market.
(iv) By opening their economy to the world, which is known as globalisation. It is a move to provide the scope of business in the international market for domestic products.
3. What similar developmental strategies have India and Pakistan followed for their respective developmental paths?
Solution:
The developmental strategies followed by India and Pakistan are as follows:
(i) Developmental programmes adopted by both countries were based on economic planning.
(ii) For growth and development, the public sector was selected as the medium of choice.
(iii) A mixed economic structure was followed by both countries, which involved public and private sector participation.
(iv) Economic reforms were introduced at the same time to strengthen their respective economies.
4. Explain the Great Leap Forward campaign of China as initiated in 1958.
Solution:
Great Leap Forward was a campaign started by communist leader Mao Zedong in 1958.
It had the following objectives:
(i) To initiate industrialisation of the economy in urban as well as rural areas.
(ii) Motivating people to set up industries in the backyard.
(iii) Engaging rural people in collective farming under the Commune System.
5. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.
Solution:
The rapid industrial growth of China is attributed to the economic reforms that were introduced in phases in 1978. The first phase started with developments made in agriculture, investment and foreign trade. For agriculture commune system was introduced in which small plots were allocated to individual households. Income generated from the land can be kept by the households after paying the tax to the government. The next phase of reforms started with the industrial sector, where private firms were encouraged to compete with government-owned enterprises. A system of dual pricing was introduced in which farmers and industries need to buy and sell a fixed quantity of inputs and outputs at government-fixed price and trade remaining quantities at market price. Also introduced were special economic zones that were designed to attract foreign investment.
6. Describe the path of developmental initiatives taken by Pakistan for its economic development.
Solution:
The following initiatives were taken by Pakistan for its economic development:
(i) Adopted the mixed economy model where both public and private sectors exist.
(ii) Introduced regulatory frameworks during the 1950s-60s, where domestically produced goods were used as substitutes for imports, which helped develop domestic industries.
(iii) Mechanisation of agriculture to bring about the Green Revolution leading to the production of food grains.
(iv) Capital goods industries were nationalised in the 1970s.
(v) The important thrust areas were denationalised, which encouraged private-sector participation.
7. What is the important implication of the ‘one child norm’ in China?
Solution:
The important implication of one child norm led to low population growth and a decline in the sex ratio in China. It meant a lower proportion of females per thousand males.
8. Mention the salient demographic indicators of China, Pakistan and India.
Solution:
The salient demographic indicators of India, China and Pakistan are:
(i) The population of Pakistan is significantly very small and hence roughly accounts for only about one-tenth of China or India.
(ii) Although China happens to be the largest nation geographically among the three, its density is the lowest.
(iii) The population growth stands to be the highest in Pakistan followed by India and China. One-child norm introduced in China in the late 1970 became the major reason for its low population growth. They also state that this measure led to a decline in the sex ratio, that is, the proportion of females per 1000 males.
(iv) There is low sex ratio, which is biased against females in all the three countries.
(v) The fertility rate is recorded to be low in China and very high in Pakistan.
(vi) Urbanisation is high in both Pakistan and China with India having 28 per cent of its people living in urban areas.
9. Compare and contrast India and China’s sectoral contribution towards GVA/GDP. What does it indicate?
Solution:
GVA is referred to as the contribution of different sectors to GDP.
In 2018-19 with 26% of the workforce is engaged in agriculture in China and 43% in India which contributes to 7% and 16% in GVA respectively. 28% of the workforce in China is engaged in the Industry while 25% of the working population in India is engaged in industries and their share in GVA is 41% and 30% respectively. 46.1% of the workforce in China is engaged in the service sector having a contribution of 52% in GVA while 32% of the population in India is engaged in the service sector having a contribution of 54% in GVA.
In China employment and output first shift from agriculture to Industry and then to the service sector while in the case of India, it has shifted from agriculture to the service sector. In both countries service sector contribution is highest in the GVA.
Thus we conclude that China’s growth is contributed mainly by the industrial sector and service sector while India’s growth is contributed by the service sector.
10. Mention the various indicators of human development.
Solution:
Human development indicators include:
(i) Expected Life Expectancy.
(ii) Rate of Adult Literacy.
(iii) Rate of Infant Mortality
(iv) The proportion of the people living in poverty.
(v) Gross Domestic Product (GDP) Per Capita Income
(vi) The proportion of the population who has access to improved sanitation.
(vii) The proportion of the population who has access to upgraded water sources.
