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Factors which led to rapid economic growth in China and India in the 1990s…
Factors which led to rapid economic growth in China and India in the 1990s
Investment into infrastructure-
China has developed the longest highway network
Its rail system reached 100,000km which links all cities and provinces across China
Its high speed rail service has doubled in length over the last 10 years and links major cities like Shenzhen, Beijing and shanghai
Shanghai's Maglev (a magnetic levitation train) has become the world's fastest commercial train and covers the 30km journey from Shanghai's airport to the CBD
82 airports have been built since 2000, taking China's total to 250-
8 of the top 12 airports by freight tonnage in the world are based in China (e.g. Shanghai)
Better Education and Training
Education is actually
free and compulsory
in china between ages 6 and 15!
This caused
94%
of Chinese over the age of 15 to be literate, compared to the small 20% in 1950
This also let
7.2 million
Chinese graduate from uni in 2014, 15 times higher than in 2000!
Because of this,
China now has a larger skilled education,
allowing for more
knowledge and service sector jobs
to be avaliable
HOWEVER!
There's still a
huge rural-urban divide,
with rural households earning significantly less per capita annually,
One reason for this is that money spent for secondary education is
much less
than in urban areas, with variations such as
2200
in Bejing to only
300
in Guizhou!
Introduced an open door policy
This encouraged foreign investment
By 2013, two way trade between Asia and the Americas was double trade between the Americas and Europe
Allowed overseas companies to access Chinese markets
FDI restrictions were relaxed in 1978 and 1991
FDI flow increased significantly in the next 10-15 years
China focused on manufacturing and India focused on software development and call-centres due to their high English proficiency
Increases in urban incomes
China's one child policy meant that employers had to pay higher wages
Urban incomes have risen by 10% a year since 2005
by 2014 they averages USD$9000 per year
Significantly higher than what they would be if they worked in the countryside
Large and growing rural-urban divide in china
India's
links with the UK
India used to be controlled by the British. Although this isn't the case now, lots of British culture and links still retained in their country
This has helped cause India to have
close political links
to the UK and even
adopting english as their second language.
This, accompanied by
lots of technological universities
, has helped India to have a
advantage
in software development and tech alongside providing
call centre services
for the UK and other English speaking countries
Additionally,
communication and transport
has developed thanks to technology, helping India grow!
