Contrasting Styles of Industrial Reform
China and India in the 1980s
For economists, the two countries offer an interesting test case for examining similar reform programs launched from disparate political and economic systems. For policymakers concerned with the region's stability, a clear view of the economic futures of these two major powers is paramount.
Examining and comparing the reform experiences of China and India up to the present, George Rosen shows that although China enacted more sweeping reform measures and produced more impressive local growth, it also experienced more significant inflationary spurts. Two-thirds of each nation's population was involved in agriculture at the start of the reform period and nearly that many at the conclusion. Ultimately, the effects of the past industrial reforms in both countries in terms of significantly greater industrial employment or well-being of their populations were limited. An important lesson in these findings, argues Rosen, is that they actually reveal more about the political factors that limit and shape economic policy reforms in a dictatorship or democracy than they confirm the virtues of either capitalism or communism.
Introduction: The Rationale for the Book
1. The Political-Economic Systems of China and India
2. The Necessity for Economic Reform
3. The Reforms
4. Economic Results of the Reforms
5. Economic Reform and Political Systems
6. A Brief Summary and Some Broader Generalizations on Reform Processes