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121. Global Growth and Distribution: Are China and India Reshaping the World?

Author:
Dominique van der Mensbrugghe, Maurizio Bussolo, Rafael E. De Hoyos, and Denis Medvedev
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Over the past 20 years, aggregate measures of global inequality have changed little even if significant structural changes have been observed. High growth rates of China and India lifted millions out of poverty, while the stagnation in many African countries caused them to fall behind. Using the World Bank's LINKAGE global general equilibrium model and the newly developed Global Income Distribution Dynamics (GIDD) tool, this paper assesses the distribution and poverty effects of a scenario where these trends continue in the future. Even by anticipating a deceleration, growth in China and India is a key force behind the expected convergence of per capita incomes at the global level. Millions of Chinese and Indian consumers will enter into a rapidly emerging global middle class—a group of people who can afford, and demand access to, the standards of living previously reserved mainly for the residents of developed countries. Notwithstanding these positive developments, fast growth is often characterized by high urbanization and growing demand for skills, both of which result in a widening of income distribution within countries. These opposing distributional effects highlight the importance of analysing global disparities by taking into account—as the GIDD does—income dynamics between and within countries.
Topic:
Development, Economics, and Poverty
Political Geography:
Africa, China, India, and Asia

122. Measuring Vulnerability and Poverty: Estimates for Rural India

Author:
Raghav Gaiha and Katsushi Imai
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper measures the vulnerability of households in rural India, based upon the ICRISAT panel survey. We employ both ex ante and ex post measures of vulnerability. The latter are decomposed into aggregate and idiosyncratic risks and poverty components. Our decomposition shows that idiosyncratic risks account for the largest share, followed by poverty and aggregate risks. Despite some degree of risk-sharing, the landless or small farmers are vulnerable to idiosyncratic risks, forcing them to reduce consumption. Income-augmenting policies therefore must be combined with those that not only reduce aggregate and idiosyncratic risks but also build resilience against them.
Topic:
Demographics, Development, Economics, and Poverty
Political Geography:
India and Asia

123. m-Powering India: Mobile Communications for Inclusive Growth

Author:
Richard P. Adler and Mahesh Uppal
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Today, India is the world's fastest growing cellular phone market. This past month, we added 8 million subscribers. Our current telephone subscriber base stands at 273 million, with an annual compounded growth rate of 42 percent since 2002. The number of cellular phone subscriptions has tripled over the past year and is 233 million at present [December 2007]. India looks set to achieving the stated target of 500million telephone subscribers by the end of 2010.
Topic:
Development and Science and Technology
Political Geography:
India and Asia

124. Privatization, Efficiency, Gender, Development, and Inequality—Transnational Conflicts Over Access to Water and Sanitation

Author:
Srini Sitaraman
Publication Date:
01-2008
Content Type:
Journal Article
Journal:
Human Rights and Human Welfare - Review Essays
Institution:
Josef Korbel Graduate School of International Studies, University of Denver
Abstract:
The global supply of freshwater is finite and current estimates put freshwater availability at less than one-half of one percent of the total water stock. Intensive agriculture practices, rapid industrialization, and expanding population and urbanization are reducing freshwater supplies that are further stressed by climate change, placing enormous pressures on the already fragile environmental landscape. The World Wildlife Federation's (WWF) Dam Initiative report identifies twenty-one river basins around the world at severe risk of ecological degradation: topping the list is the Yangtze in China, La Plata in South America, Tigris and Euphrates in Turkey, and the Ganges and Brahmaputra in India (WWF 2004). Although dams have proved to be a boon for irrigation and generating hydroelectric power, they have also severely disrupted ecosystems by interrupting the flow of major rivers, destroying freshwater habitats and leading to the disappearance of unique species, such as the freshwater river dolphins; dams have uprooted the livelihood of millions of people who rely on the unaltered flow of river water, and they have also disrupted the structure of floodplain agriculture. India and China are two of the starkest examples of human dislocation, conflict, and environmental denudation caused by dams (Economy 2004). According to the World Bank, India's growing water crisis is resulting in “little civil wars”: (a) between states, (b) between different users in a river basin, (c) between communities and the state, (d) between farmers and the environment, and (e) between farmers and the city consumers (World Bank 2005). India's former Minister of Water Resources, Priyaranjan Das Munshi was quoted as saying, “I am not the Minister of Water Resources, but the Minister of Water Conflicts” (UNESCO 2006). The World Bank (2005: 5) report on India's Water Economy describes India's water situation, which is heavily dependent on unpredictable and seasonal monsoons, as turbulent and unsustainable in the long run.
Topic:
Development and Health
Political Geography:
China, Turkey, India, and South America

125. Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector

Author:
Peter Sheehan
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Industrialization occupies a central place in the rich tapestry of development theory and practice. Although that place has varied over time, many have agreed with Nicholas Kaldor that the kind of economic growth that leads to high real income per capita can only occur through industrialization. This paper argues that it is becoming increasingly difficult for most developing countries to achieve rapid growth through industrialization, and especially through export oriented activities. But the key mechanisms seen as driving the industrial take-off in much of the literature (internal increasing returns, transfer of labour into higher value activities and pecuniary externalities) are alive and well, and are evident in services as well as in industry. Furthermore, China is actively trying to move from a strategy based on industrialization to one based much more on agriculture and services, as the costs of the current pattern of industrialization become prohibitive, and India has demonstrated that rapid growth based primarily on the services sector is possible. Thus more attention needs to be given to strategies based on the expansion of the agricultural and services sectors, and to the ways in which better services in rural areas and higher rural output can combine to achieve rapid growth and improved human welfare in poor countries.
Topic:
Development
Political Geography:
China, India, and Asia

126. Comparing Regional Development in China and India

Author:
Yanrui Wu
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic growth in China and India has attracted many headlines recently. As a result, the literature comparing the two Asian giants has expanded substantially. This paper adds to the literature by comparing regional growth, disparity and convergence in the two economies. This is the first of its kind. The paper presents a detailed examination of economic growth in the regions of China and India over the past twenty years. It also provides an assessment of regional disparity in the two countries and investigates whether there is any evidence of regional convergence during the period of rapid economic growth. It attempts to identify the sources of regional disparity and hence draw policy implications for economic development in the two countries in the near future.
Topic:
Development
Political Geography:
China, India, and Asia

127. Development Path of China and India and the Challenges for their Sustainable Growth

Author:
Yuefen Li and Bin Zhang
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The segmentation of global manufacturing and services provided China and subsequently India with a golden opportunity to make full use of their absolute advantage—low cost yet educated labour—to integrate into the world economy within a comparatively shorter period of time than some earlier industrialisers. Though international trade functioned as a vent of surplus in view of the narrowness of their domestic markets at the beginning of their economic catch-up, the label of export-led model may not reflect the real picture as imports underwent dramatic increases during their respective growth periods, in particular for China. Foreign direct investment has played a pivotal role in their economic growth and has major presence in international trade and investment in leading sectors of both countries, giving rise to certain special features and weak links for their economic expansion and sustainability of fast economic growth. To maintain more broad-based, fast and balanced growth, it seems that both countries have to redress sectoral imbalances, encourage technology upgrading and cope with future changes in demographic profiles which constituted a trigger to fast economic growth at the time of their respective economic reform.
Topic:
Development and International Trade and Finance
Political Geography:
China, India, and Asia

128. The Dalit Movement and Democratization in Andhra Pradesh

Author:
K.Y. Ratnam
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
This study argues that the democratic state in India is an historical product of very specific circumstances; as such the broader idea of democracy is not consistent with the specific Caste system. Therefore, there is serious juxtaposition between the institutional promise of democracy and the real practice of democracy in relation to the victims of the caste system, the Dalits. However, the caste based hierarchical relations of dominance and subordination have provided sufficient conditions for the rise of Dalit consciousness and these objective conditions have transformed into the sites of democratic struggles when the Dalits are affronted with the real operation of liberal democratic principles of, equality, freedom, fraternity, and social justice. Caste conflict, thus, lies at the structural dimensions of Indian society in the form of exclusion, discrimination, and economic inequality. Inequalities based on the caste divisions are intrinsically anti democratic, and the caste system as an oppressive ideological system represents the scheme of power, domination, privilege, and hierarchy. Its very foundation remains acentral obstacle in the path of democratic redistribution of power.
Topic:
Democratization, Development, and Political Economy
Political Geography:
South Asia and India

129. Interview with Ed Luce: Inspite of the Gods: The Rise of Modern India

Author:
Nermeen Shaikh
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
Edward Luce is the Washington bureau chief for the Financial Times. He was the paper's South Asia bureau chief, based in New Delhi, between 2001 and 2006. From 1999–2000, Luce worked in the Clinton administration as the speechwriter to Treasury Secretary Larry Summers. Educated at Oxford and married into an Indian family, Luce now lives in Washington, D.C.
Topic:
Development, Economics, and Politics
Political Geography:
South Asia, Washington, India, Asia, and New Delhi

130. Minds on Fire: Enhancing India's Knowledge Workforce

Author:
Richard P. Adler
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
India's economy continues to grow at a remarkable pace. The country's gross domestic product (GDP) has been expanding an average of nearly 8 percent per year since 2002. In the fiscal year ending March 2007, India's economy grew at 9.4 percent. This performance means that the Indian economy met its own national five-year growth goal for the first time since the first five-year plan was issued by the government in 1950. At its current rate of growth, India will become a trillion-dollar economy by 2007–2008 and will overtake South Korea to become Asia's third-largest economy, after China and Japan.
Topic:
Development, Economics, Education, and Science and Technology
Political Geography:
Japan, India, Asia, and South Korea