Similarity and Differences Between China and India Inequality

Paper Type:  Research paper
Pages:  7
Wordcount:  1854 Words
Date:  2021-03-30

In the past few years, China and India have experienced drastic changes when it comes to their economy after incorporation of liberalism into their systems after a long struggle with inequality in their economic, social and political constructs. They are perceived as emerging economies that are gradually gaining stability in the international market. The countries are similar in various ways but tend to defer when it comes to their progress and development over the past six decades (Xie & Xiang 6928). By analyzing the similarities and differences in inequality between China and India, it becomes easier to comprehend the political, social and economic aspects of both countries.

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China before the Reformations

After the introductions of reforms regarding the free markets, there was a slow progress in the economy of China which is attributed to the great Famine that took place in 1960 and the revolution of culture that took place in the 1970s (Lai 435). One of the notable aspects is the national government taking part in a planning system that was centralized such that it took control of all issues regarding financial prospects. The goal was to promote equity in the distribution of resources. The occurrence of the great famine brought about immense inequality whereby the misappropriation of funds and the occurrence of several natural disasters brought about inequality between people living in the rural and urban areas and also several deaths respectively. The famine was a huge blow to the countrys developmental progress as several reforms had to be made for it to gain stability (Lai 435). Furthermore, the immense bias that was present in the industrial sector and the absence of incentives in the agriculture sector in regards to the cultural transformation contributed significantly to the inequality. Be that as it may, the presence of the centralized planning assisted China in sustaining its levels of income such that it gave it hope in redeeming its economic structure. In 1978, the Chinese government made introduced reforms in order to bring a transformation in the economy of the country. One of its major interests was in the reformation of the agricultural sector that needed boosting for the purpose of balance in the manufacturing industry (Lai 435).

India before the Reformations

India introduced its reforms in 1991 in addition to commencing its liberalization process. Its constitution that was enacted in 1949 depicted an economy that was diverse such that both private and public sectors were enabled to take part in the countrys economic progress (Krishna & Bajpai 45). However, the tight controls by the government limited the economic progress of the country such that the attempts put in place between the 60s and the 70s regarding liberalism could not assist its development. In the middle of the 80s, the progress of India was way behind when compared to countries such as Japan, China, and Korea that had experienced immense growth. It is worth noting that the country wanted to adopt socialist model due to the presence of equity in its social and economic aspects. However, the period before the reforms were put in place indicated that there was widespread inequality in the country in addition to immense poverty. The presence of a low GDP and strict economic structures made the government of India consider introducing reforms to transform its economy in addition to allowing progress. However, the reforms brought about little progress such that the government sought to take a loan that later increased the debt of the country. The high debt led to a national crisis that overcame the country between the years 1990 and 1991. To address the situation, Manmohan Singh who was the finance minister initiated a reform that aimed at stabilizing the macroeconomic sector in addition to opening up the markets of India such that the country might obtain and maintain a high growth in its GDP. One of the areas that both China and India experience inequality is on location. The location tends to affect both countries when it comes to the distribution of resources (Krishna & Bajpai 46).


From a general perspective, it is worth noting that before the beginning of reformation, China and India were similar in their economic and developmental progress. Furthermore, the agrarian revolution was also a common aspect in both countries whereby the governments tried to provide incentives to boost agriculture. Also, both countries gained independence at the same time whereby India got its independence in 1947 while China got its independence in 1949. Furthermore, both economies can be described as continental size whereby they contain billions of people in addition to other populations that are found in the continent of Asia (Lu & Deng 35).

Chinas coast tends to have a division in its interior. It is worth noting that the perpetuation of exports along the coastal-divide has led to increasing in regional inequality. The disparity is attributed to the fact that priority was given to the development of urban centers on the coast lines when compared to the other regions (Lu & Deng 36). From the 80s, China was consistent in supporting trades that allowed it to propel in the international market. It established a policy that was biased in only developing the coastal regions such that it was a challenge for the inland areas to take part in the open markets. Some of the basic factors included in the policy are; a rise in the rating regarding national investment, an increase in the level of provincial autonomy as a result of decentralization, attractive polices meant to lure resources, labors and capital, high breaking of taxes for the exports, imports in the coastal provinces having low tariffs, in addition to high retention rates concerning foreign exchange (Lu & Deng 39).

It is worth noting that the presence of these policies in addition to the constricting trading laws and a pressing budget, it became difficult for people that are landlocked to make use of the trading opportunity. In other words, regions that are found along the coastal lines tend to exhibit high growth in the volume of sales when compared to the land locked areas. Focus is being paid in the coastal areas whereby areas along the coast receive an upper hand when it comes to development when compared to the other regions (Lu & Deng 39)..

(Xie & Xhang 6929)

In India, the geographical aspect is also a major issue affecting the issue of inequality in the region. The largest population of people in India is located in the rural vicinities and hence having a significant impact in regards to inequality. It is worth noting that the largest portion of people in the rural areas engages in agriculture and that, unlike China that focuses mostly on its hard industry, India depends on agriculture. India is in a shortage of adequate advancements required in the development of agriculture and hence decreasing its progress. The inadequacy of infrastructure has made people move from the rural areas to urban areas such that they take part in the service industries and hence resulting in an imbalance between the rural and urban areas (Mathur, Das & Sircar 5328).

Another significant similarity on inequality between China and India is the lack of balance between the agricultural sector and the industrial sector. In China, the focus is put more on the industrial sector when compared to agriculture. The imbalance brings about inequality especially when it comes to the distribution of resources and the development of areas. In China, areas that are industrialized tend to experience high development or urban growth when compared to areas that focus mostly on agriculture. The same case applies to India, whereby, even though its economy highly depends on agriculture, the lack of adequate technology makes people opt for living in urban areas instead of the rural areas (Mathur, Das & Sircar 5330).

Another significant similarity on inequality between both countries is the issue of population. Both countries report high population growth on an annual basis; an aspect that brings about imbalance when it comes to resources and other economic aspects. According to statistics done in 2014, China exceeded India with a population of 126 million individuals. Furthermore, it is estimated that India will have a total of 1.45 billion people in its location (Statistics Time). A large population implies a large labor market and hence high chances of progress. However, a large population growth implies that resources will be strained, resources on aspects such as public health, education, and urban development. It becomes the responsibility of governments of both countries to take into consideration the issue of the population such that flexible policies are made to cater to the needs of the increasing number in addition to an adequate supply of resources and other amenities (Mathur, Das & Sircar 5330).

(Statistics Time)


In regards to the political aspect, China is governed by a single party system while India has a multi-party system. It is worth noting that when it comes to the freedom of expression, China has a censorship system whereby the citizens and the press are limited when it comes to expressing their opinions (Lai 433). However, in India, the press and the citizens are able to express themselves without feeling limited. Furthermore, India tends to have an independent judiciary system when compared to China where the judiciary is limited to control by the government. While China puts focus in the manufacturing industry that is characterized by a labor market that is export-oriented, India relies on its domestic demands (Lai 435). A huge economic difference emanated between the two whereby China profited from the huge foreign investments such that millions of people were able to secure employment when compared to India that experienced failure in its myriad attempts. It is estimated that the workforce of both countries would have increased with millions of people for many years. However, China tends to be more advanced and developed when compared to India. The disparity is attributed to the fact that China put more emphasis on its manufacturing industry and has adequate technology to support its agricultural sector (Nanavati 1).

As stated earlier, by analyzing the similarities and differences in inequality between China and India, it becomes easier to comprehend the political, social and economic aspects of both countries. China and India are perceived to be emerging countries in regards to the international market. Both countries have experienced myriad changes in their political, social and economic constructs that have shaped the countries to what they are today. They are still experiencing development, and with time, they would have fully adapted to the international market. Some of the significant similarities between both countries include inequalities in urban and rural development, inequalities in hard industries and also inequalities in the social construct. In regards to the differences, there tends to be differences in the political structure, industrial sectors and also the issue of freedom of expression.

Work Cited

Krishna, Anirudh., & Devendra Bajpai. Lineal Spread and Radial Dissipation: Experiencing Growth in Rural India, 1993-2005. Economic and Political Weekly, 2011, 46.38, 44-51. Print.

Lai, H. H. China's western development program: It's rational, implementation, and prospects. Modern China, 2002, 28, 432-66. Print.

Lu, Z., & Deng, X. China's western development strategy: policies, effects and prospects.

MPRA Paper, 2011. Print

Mathur, A. S., Das, S., & Sircar, S. (2007). Status of Agriculture in India: Trends and Prospects. Economic a...

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