Amartya Sen: Why India Trails China

While China’s wealth gap has become an increasingly hot topic, Nobel Prize-winning economist Amartya Sen suggests that China’s achievements on inequality have far surpassed India’s, leaving the latter at a considerable economic disadvantage. From The New York Times:

The hope that India might overtake China one day in now seems a distant one. But that comparison is not what should worry Indians most. The far greater gap between India and China is in the provision of essential public services — a failing that depresses living standards and is a persistence drag on growth.

Inequality is high in both countries, but China has done far more than India to raise life expectancy, expand general and secure for its people. India has elite schools of varying degrees of excellence for the privileged, but among all Indians 7 or older, nearly one in every five males and one in every three females are illiterate. And most schools are of low quality; less than half the children can divide 20 by 5, even after four years of schooling.

[…] The case for combating debilitating inequality in India is not only a matter of social justice. Unlike India, China did not miss the huge lesson of Asian economic development, about the economic returns that come from bettering human lives, especially at the bottom of the socioeconomic pyramid. India’s growth and its earnings from exports have tended to depend narrowly on a few sectors, like information technology, pharmaceuticals and specialized auto parts, many of which rely on the role of highly trained personnel from the well-educated classes. For India to match China in its range of manufacturing capacity — its ability to produce gadgets of almost every kind, with increasing use of technology and better quality control — it needs a better-educated and healthier labor force at all levels of society. What it needs most is more knowledge and public discussion about the nature and the huge extent of inequality and its damaging consequences, including for economic growth. [Source]

Read more comparisons between India and China via CDT.

June 21, 2013 2:40 PM
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