NCERT Solutions for Class 11 Economics Chapter 8 - Comparative Development Experiences Of India And Its Neighbours

1. Why are regional and economic groupings formed? 

Ans: Different nations throughout the world are motivated to form regional and global economic groups such as SAARC, European Union, ASEAN, and others in order to better grasp diverse means and plans for economic strengthening. Such formations allow member countries to learn about the development methods and policies used by other members. This allows them to assess their strengths and weaknesses and, as a result, adopt strategies to expedite social growth and cultural development among its member countries. Second, another key reason for the formation of these associations is to maintain the member countries' peace and stability. Furthermore, these organizations provide a common forum for people to unite and speak out on shared issues in order to protect their common interests.

2. What are the various means by which countries are trying to strengthen their own domestic economies?

Ans: The following are the different methods through which nations are attempting to boost their domestic economies:

1. To boost their economies, nations are joining numerous regional and economic groups such as SAARC, the European Union, the G-8, the G-20, and ASEAN. These organizations provide a shared forum for member countries to speak out on common concerns in a cohesive voice in order to protect their common interests.

2. They are also interested in learning about the developmental processes used by their neighboring countries in order to assess their own strengths and flaws. As a result, they adopt strategies to enhance social and cultural growth among member countries.

3. Furthermore, governments are liberalizing their economy. This reduces the government's involvement in economic activity. The economy is governed by market forces, i.e. demand and supply factors.

4. Nations also use the globalisation process to open up their economy and create a large worldwide market to their domestic producers.

3. What similar developmental strategies have India and Pakistan followed for their respective developmental paths? 

Ans: Both India and Pakistan have pursued a similar developmental agenda. The following are the primary similarities between the developmental strategies:

1. Both India and Pakistan began development programs based on economic planning soon after their independence in 1947.

2. Both countries rely on the public sector to kickstart the growth and development process.

3. They have both followed the road of a mixed economic structure, involving both the state and the private sector.

4. They both implemented economic changes at the same time in order to develop their economies.

4. Explain the Great Leap Forward campaign of China as initiated in 1958. 

Ans: The Great Leap Forward (GLF) was a Chinese movement that began in 1958. The following are the campaign's objectives:

1. The campaign's goal was to kickstart large-scale industrialization in the country, focusing not just on urban but also on rural areas.
2. People in cities were encouraged to start businesses in their own backyards.
3. The Commune System was adopted in rural regions. People engaged in collective farming under this method.

5. China's rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.

Ans: Yes, China's rapid industrial expansion cannot be ignored as a result of the different economic reforms implemented in stages since 1978. Reforms were undertaken in the agriculture, foreign trade, and investment sectors during the early period. The Commune Method, a collaborative farming system, was adopted. Land was divided into tiny plots and assigned to individual households under this method. After paying taxes to the government, these households were allowed to keep the remainder of their land revenue. Reforms in the industrial sector were undertaken later in the phase. Dual pricing was also incorporated in the revisions. Dual pricing implies that farmers and industrial units were forced to acquire and sell a predetermined quantity of inputs and output at a government-determined price, while the remaining quantities were sold at market prices. The changes also included the establishment of Special Economic Zones in order to attract foreign firms. As a result, China's rapid industrial expansion can be attributed to the success of various stages of its economic reforms.

6. Describe the path of developmental initiatives taken by Pakistan for its economic development. 

Ans: 

1. In order to achieve economic development, Pakistan developed a mixed economy model in which the private and governmental sectors coexist.

2. During the 1950s and 1960s, Pakistan used a range of controlled policy frameworks for import substitution and industrialization. This entails creating items at home to replace imports, so inhibiting imports while boosting and expanding indigenous industry.

3. Tariff barriers were erected as a policy instrument to protect domestic companies manufacturing consumer products.

4. The introduction of the Green Revolution mechanised agriculture, resulting in an increase in food grain output.

5. In the 1970s, mechanisation of agriculture was followed by nationalisation of capital goods industries.

6. In the late 1970s and early 1980s, Pakistan switched its policy orientation by denationalizing the thrust areas, thereby supporting private sector growth.

7. All of the preceding actions established an environment suitable to launching the economic changes that were eventually launched in 1988.

7.  What is the important implication of the one child norm in China? 

Ans: The significant impact of China's one-child policy is the country's low population growth. This approach also resulted in a decrease in China's sex ratio, or the proportion of females per thousand males. However, the country believes that in the following decades, there will be a greater proportion of elderly people than young ones. As a result, the country will be forced to implement social security measures with fewer personnel.

8. Mention the salient demographic indicators China, Pakistan and India.  

Ans:  Select democratic indicators, 2013

Based on the data shown above, we can deduce that China has the largest population, closely followed by India. Pakistan's population is quite small, accounting for around one-tenth of that of China or India. China has the lowest population density and India has the greatest. China's one-child policy has slowed the country's population growth pace. Since society is biased against women and male dominated, the sex ratio is low in all three countries. Pakistan has the highest fertility rate and China has the lowest, whereas China has the highest degree of urbanization when compared to India and Pakistan.

9. Compare and contrast India and China's sectoral contribution towards GDP in 2003. What does it indicate?

Ans: 

According to the above figures for India and China's sectoral contributions to GDP in 2003, agriculture contributed 15% to GDP in China while it contributed 23% to GDP in India. Manufacturing, on the other hand, provides the most to GDP in China, at 53 percent, while the service sector contributes the most in India, at roughly 51 percent. Economic expansion has resulted in a significant shift in the sectoral proportion of output and employment. The primary sector's proportion of overall output and employment is decreasing, while the secondary and tertiary sectors' share is increasing. This suggests that both the economic and social conditions are improving. China's experience is comparable to that of other industrialized countries throughout the world. According to the experience of industrialized countries, the secondary sector, followed by the tertiary sector, emerges as the major sectors of the economy. In comparison to China, India saw a direct shift from the primary to tertiary sectors. This is owing to the rapid integration of these two economies with the rest of the world's market economy.

10.  Mention the various indicators of human development. 

Ans: Human development indicators include:

i. Expected Life Expectancy.

ii. Rate of Adult Literacy.

iv. Rate of Infant Mortality

iv. The proportion of the people living in poverty.

v. Gross Domestic Product (GDP) Per Capita Income

vi. The proportion of the population who has access to improved sanitation.

vii. The proportion of the population who has access to upgraded water sources.

11. Define liberty indicator. Give some examples of liberty indicators. 

Ans: The Liberty Indicator can be characterized as a measure of population engagement in social and political decision-making. In other words, it is a metric for measuring people's involvement in decision-making. Some examples of liberty indicators include measures of the extent to which people' constitutional rights are protected, as well as the extent to which the judiciary's independence and the rule of law are protected by the constitution.

12.  Evaluate the various factors that led to the rapid growth in economic development in China. 

Ans: China's rapid economic progress is the result of the gradual implementation of reforms beginning in 1978. The following are the numerous reasons that contributed to China's rapid economic development:

1. Initially, reforms in agriculture, foreign trade, and investment were implemented. The Commune Method, a collaborative farming system, was adopted. Land was divided into tiny plots and assigned to individual households under this method. After paying taxes to the government, these households were allowed to keep the remainder of their land revenue.

2. Later in the phase, reforms in the industrial sector were begun. During this period, private corporations, village and township enterprises, and village and township enterprises were permitted to manufacture goods and services and compete with State Owned Enterprises.

3. The dual pricing was put in place. This means that farmers and industrial units were compelled to acquire and sell a predetermined number of inputs and output at a government-determined price, while the remaining quantities were sold at market prices. With the tremendous expansion in aggregate output in later years, the quantities sold in the market multiplied many times over.

4. The changes also included the establishment of Special Economic Zones to attract international businesses and boost exports. As a result of the combined focus of all of these economic changes, China has experienced fast industrial expansion and economic development.

13. Group the following features pertaining to the economies of India, China and Pakistan under three heads

• One-child norm 
• Low fertility rate 
• High degree of urbanisation 
• Mixed economy 
• Very high fertility rate 
• Large population 
• High density of population 
• Growth due to manufacturing sector • Growth due to service sector 

Ans:

• One-child norm: China
• Low fertility rate: China 
• High degree of urbanization: Pakistan and China 
• Mixed economy: India and Pakistan 
• Very high fertility rate: Pakistan 
• Large population: India and China 
• High density of population: India 
• Growth due to manufacturing sector: China 
• Growth due to service sector: India

14. Give reasons for the slow growth and re-emergence of poverty in Pakistan. 

Ans: The following are the primary causes behind Pakistan's slow growth and re-emergence of poverty:

1. Greater Dependence on Public Sector Enterprises: The fundamental reason for Pakistan's poor economic growth is the country's increased reliance on Public Sector Enterprises. Pakistan relied heavily on a protectionist policy, with the Public Sector Enterprises playing a prominent role. The operational inefficiencies of public-sector enterprises, as well as the misallocation of scarce resources, resulting in a sluggish economic growth rate.

2. Traditional Agricultural Practices: Pakistan's agricultural practices were primarily reliant on traditional methods and the vagaries of climatic circumstances, resulting in low productivity. As a result, the agricultural industry was unable to thrive to the amount that was anticipated.

3. Underdeveloped Manufacturing Sector: Remittances from Pakistani laborers in the Middle East and exports of highly volatile agricultural items accounted for the majority of Pakistan's foreign exchange revenues. This is one of the reasons behind the slowing economic growth. This is because the inflow of foreign cash in the form of remittances has replaced the necessity for the manufacturing sector to flourish in order to earn foreign exchange by exporting manufactured goods.

4. Growing Reliance on Foreign Loans: There was a growing reliance on foreign loans to cover foreign exchange obligations. During the years of agricultural failure, Pakistan experienced increasing difficulties repaying these loans, as well as the mounting interest liabilities. Pakistan's economic growth potential has been hampered by the increasing burden of large foreign loans.

5. Lack of Political Stability: The country's lack of political stability necessitated massive public expenditure to maintain law and order. This massive governmental expenditure depleted the country's economic resources.

6. Inadequate Foreign Investment: Pakistan has also struggled to attract adequate foreign investment due to a lack of political stability, a low level of international credibility, and a lack of well-developed infrastructure.

15. Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators. 

Ans: The indicators of human development are following below:

i. Life Expectancy 

ii. Adult Literacy Rate 

iii. Infant Mortality Rate 

iv. Percentage of the population below poverty line 

v. GDP per capita 

vi. The proportion of the population who has access to improved sanitation. 

vii. The proportion of the population who has access to better water sources. A Human Development Index (HDI) was created using individual indices of these characteristics. The higher the HDI rating, the greater a country's degree of growth and development. The rankings are assigned to countries based on their HDI. China was rated 81st, India was ranked 128th, and Pakistan was ranked 136th. China's high ranking is attributable to the country's higher GDP per capita. Furthermore, the one-child policy resulted in a steady increase in GDP, and as a result, China was ranked higher in HDI than India and Pakistan.

16. Comment on the growth rate trends witnessed in China and India in the last two decades. 

Ans: India, with democratic institutions, performed moderately, although agriculture remains the primary source of income for the vast majority of its people. Many regions of the country lack infrastructure. The country used the market system without sacrificing political commitment and succeeded in increasing growth while alleviating poverty. China took advantage of the market mechanism to develop new social and economic prospects. The government has also maintained collective farming, known as the Commune System, to ensure social stability in rural areas. Prior to the implementation of economic reforms, public investment in social infrastructure produced positive effects in China's human development metrics.

17. (a) First Five Year Plan commenced in 1956. (Pakistan/China) 

(b) Maternal mortality rate is high in. (China/Pakistan)

(c) Proportion of people below the poverty line is more in. (India/Pakistan) 

(d) Reforms were introduced in 1978. (China/Pakistan)

Ans: 

(a) Pakistan 

(b) Pakistan 

(c) India 

(d) China

NCERT Solutions for Class 11 Economics Chapter 8 Comparative Development

Foreign Direct Investment (FDI) 

Foreign Direct Investment (FDI) is the point at which an organization takes controlling possession of a business entity in another nation. With FDI, foreign organizations engage legitimately with everyday activities in the other nation. This implies they aren't merely carrying cash with them, but also, information, aptitudes, and innovation. By and large, FDI happens when a financial specialist sets up unfamiliar business activities or obtains unfamiliar business resources, including building up possession or controlling enthusiasm for an unfamiliar organization. Foreign Direct Investments happen in open economies that have a talented labour force and development prospects.  

Development Strategies of India

India, Pakistan, and China have begun towards their productive development simultaneously. India and Pakistan became free countries in 1947. At the same time, the People's Republic of China became independent in 1949. All the three nations had begun arranging their improvement methodologies in comparable manners. India declared its Five Year Plan in 1951-56, while Pakistan reported its initial Five Year Plan in 1956, which is called the Medium Term plan. China declared its First Five Year Plan in 1953.

A Portion of the Noticeable Methodologies of India is Discussed Below

1. Sound Trade System India was a nation that had the historical backdrop of shut exchange. On account of this chronicled foundation, there is a basic test for India to make another approach that can uphold the new open exchange framework. This new change in the economy of India has been presented and quickens the economic development of India.

2. Decrease in Poverty India has received a few neediness mitigation projects to lessen poverty in India. This would help in expanding per capita pay, ascend in sustenance level of low, and there is a next fall in the level of outright poor in individual states.

3. Country Development Under this system, India embraced different measures for the advancement of zones that are falling behind in the general improvement of the town economy.

4. Work Generation Several monetary changes were started to create work in the nation, and their point is to give productive, independent work and talented pay business openings.

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Solved Examples 

(a) The Production Process Involved in Changing One Product to Another Is ___ Sector

1) Primary

2) Secondary 

3) Tertiary 

4) None of the above

Answer: 2) Secondary Sector 

(b) Highest Per Capita Income Is Found in Which of the Following Nations :

1) China

2) Bangladesh

3) India

4) Pakistan

Answer: 3) India

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