Test 2 India Flashcards
(16 cards)
What were the policy building blocks of Mahatma Gandhi
- economic self-sufficiency: home spinning and salt campaigns, decrease import of textiles and colonial salt monopoly
- peaceful resistance- non violence, show moral superiority over brutality of the colonizers
- restore the unity of indians by returning to the balance of village life- end the middle class assimilation with the Britain’s.
- policy of non-alignment: until 1990s india is neither pro Western/Capitalist nor pro communist (third way)
Compare the population growth in India and china
China’s baby boom helped fuel their rise, and it will do the same for India. china’s baby boom is about to end, but India’s still has legs.
- in 2020 the average Chinese will be 37 but the average Indian will be 29
- see demographics as an advantage in competition, hope is that china will get old before it gets reach, India will reach middle income while it is still young
India and Brazil belong to high context societies- how sharma characterized them?
cultures in which people are colorful, noisy, quick to make promises that cannot always be relied on, and a bit casual about meeting times and deadlines.
- family oriented, tight relationships
- values deeply shared
State protection examples in India and Brazil?
both have a desire for protection from life’s risks.
- social welfare for the nation as one big in-group
- deep fondness for welfare-state liberalism
- demand high levels of income support
Why india infrastructure remains underdeveloped
Lack of money for infrastructure means that they have poor roads and no modern port facilities.
- 50% of tax is left with the local governments, only 30 millions businesses actually pay taxes, people are so poor the govt has to distribute money to them
- develop call centers, no delay in getting info to other countries, only need digital transportation
sharma is making observation concerning billionaires in India, china, mexico and russia. Explain what his rule of the road is and what you can learn from the chart in the book about the countries
rule of the road: watch the changes in the list of top billionaires, learn how they made their billions, and note how many billions they made
- provides bellwether for the balance of growth across income classes and industries
- generating too many billionaires related to size of economy- off balance
- if average billionaire > 10 billion, lack of balance could lead to stagnation
- money made from government patronage- could feed resentment
What is issue with power generation and distribution in India?
power distribution holds up power generation- no bill collection = no cash flow = no commercial investment in power generation
- power theft
- 600 million indians have lines house to house and don’t pay bills, politicians offer free electricity to farmers for votes
- private-public partnerships in power generation are afraid to lose money on their projects, india needs 600 billion investment over 10 years
- solution = unbundling or separation of power generation and transmission
What is the North-south divide in India
the center of economic dynamism is shifting from the south and parts of the west to the major population centers of the central and northern heartland
- southern states in india saw themselves as harder working, better educated and more ready to compete in the world
- recently the north has been growing faster, south went from 7-6.5 percent, north went from 4.5-6.8%
What is the difference in the willingness of the Indian and Chinese farmers to migrate to the urban areas and how does it relate to alleged “demographic dividend” in India?
China was able to convert growing labor force, rapid mass migration of inland farmers to more productive coastal cities- 35-46% living in urban areas
- Indian’s urban population only grew from 26-30%
- India provided guarantees of rural employment and kept up subsidies to the poor
- Indian men don’t want to leave their wives at home alone
- no work in towns, caste system keeps them at home
What is holding back India from developing the export economy?
They cannot become export economy without investing in the infrastructure: roads, bridges, airports, container ports, fast railway, logistic centers
The education issues in India
India’s higher education system is not generating enough talent to meet the demand for higher skills.
- many children are never educated
- 7 million students and 500 thousand professionals but still high illiteracy rate
Why there is interest rate crowding out in india?
the real interest rates are too high for businesses because they compete with the government borrowing
- government has to borrow because of budgetary deficit, interest rates rise
- government spending too much, cost of money is rising and pushing out consumers and investors from the market
- crowding out and pushing away from access to money from offering bond returns, pool of savings is sucked up
What is the caste system in india and how does it affect the indian economy
caste system regulates relationships in society, religion, economy and family
- priests- prayers
- warrior class - Kshatria
- merchant class - Vaishia
- Peasant class - Sudra
- untouchables- dalit: menial jobs, underclass, poverty, discrimination
- discriminating against certain groups keeps the economy from growing, can’t move out of farms untouchables have no mobility
What is the level of poverty in india?
20%, was at 50% before
-400 million indians live on 1.25 a day, 36% of the worlds poor
What are the main socio-economic issues which need to be addressed in India?
- poverty
- underdeveloped transportation and logistics
- corruption and bureaucracy
- low mobility of farmers
- poor central budget
- the caste system
- tensions between Hindu and Muslims
- Hostility between India and Pakistan
Prove why it is theoretically easier to maintain high rate of economic growth in India than in China.
India has a lower gdp per capita of 1,489. this is much lower than China’s 5,000 so in order to grow they don’t need to make as much. India has lower income per capita so the GDP additions are smaller to maintain the same rate of growth than in China
