Compare and Contrast the Recent Economic Development of the Economies Essay

Compare and Contrast the Recent Economic Development of the Economies of China and India, Which Country Has the Best Prospects - Essay Example The effects are already showing, like the combination of the new market opportunities growing from the enhanced purchasing power and also greater competitiveness of these huge economies as the producers of various selected goods. In order to come up with effective policies, it is necessary to check the expected impact in order to come up with the policies and strategies that foresee the different changes, so as to efficiently capitalize on the new opportunities (Barro & Lee 2001, p.17). A lot has become documented about India and China of late. The two nations have experienced increased growth that has led to notable achievements, mainly in areas dealing with reduction of poverty. The two countries also share the same problems related to rapid growth like the increasing rural urban income gap and also environmental degradation. Increasing incomes generate impetus for the structural change in the agricultural field and food areas as the demand and the consumption patterns tend to shif t. In addition, these impacts will move to commerce, trade and investment. Both the two nations, China and India have witnessed impressive growth in the field of agriculture, which is at the same time followed by the rapid growth in the industrial sector and a decline in the poverty levels. The essay is going to discuss the policy separately and also the institutional changes that lead to these changes. In addition, to compare and contrast both of the two countries in respect of the future growth, the impending impact that growth will have on the nations domestic economies and to some extent the impact of their growth to other Asia- Pacific nations (Bosworth & Collins 2003, p.89). It is evident that the growing incomes in these nations will still continue to develop pressure, for the nation’s structural reform of their own agricultural development and food areas to sustain the ever changing demand size and evolving consumers’ preferences and tastes. The changing income s also provide trade opportunities with nations in the region and also other global countries (Kuijis & Wang 2006, p. 12). According to a United Nations study, Both China and India have a joint population of 2.3 billion people, nearly 37% of the global population. A $100 increase in the levels of per capita income of these two nations would result in around $230billion in extra demand for goods. The ever-increasing growth of these two over-populated countries will affect the balance and direction of trade significantly, the trading possibilities and a conducive level playing field for other small countries in the region. This calls for a timely check of the growth pattern in these developing countries, in order to come up with policies that will optimize gains and minimize the losses and marginalization (Woo 2004, p.8). Both India and China have enormous agricultural sectors. The experience of the Chinese shows the vital role agricultural development has played in the initial period s of reform. In India, for example, a country that is not as industrialized as China, agriculture plays an important role in its development. While GDP share in agriculture has been decreasing, this sector still forms an indispensable part of the job sector. Performance in the agricultural sector is hence of immense importance for future policies and strategies to achieve the Development Goals, mostly the crucial first