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Industry policy in Asia’s demographic giants: China, India and Indonesia compared

Tom Barnes

  The Economic and Labour Relations Review, Volume 28, Issue 2, June 2017

The experience of industry policy in the wider Asian region contrasts significantly with many of the neoliberal policy prescriptions prevalent in Australia today. Using the automotive industry as a comparative case study, this article compares industry policy in three demographic and geographic giants of the region: China, India and Indonesia. China’s dominant position has benefited from a highly ‘interventionist’ industry policy which places strict conditions on foreign carmakers in joint ventures. This policy has also influenced the emergence of a thriving domestic industry, with state-owned enterprises leading the way. While India has also emerged as a major auto producer, its industry policy has moved away from the joint venture model since the 1990s, with fully foreign-owned operations now playing a much bigger role. In contrast, Indonesia retains a version of the joint venture model while local industry is dominated by Japanese capital. The record of industry policy in these countries challenges the idea that more ‘liberal’ economic systems lead to stronger domestic industries or firms.

URL: http://journals.sagepub.com/doi/abs/10.1177/1035304616656562

Courtesy: Sage


The Sino-Indian border issue as a factor for the development of bilateral relations

Albina Muratbekova

Asian Journal of Comparative Politics, 2018, Vol. 3(1)

The border issue between China and India has been prominent since the establishment of diplomatic relations between the two countries. Depending on time, an internal and external situation has changed, hence the value of disputed territory also shifted. This article shows the development of the border issue, recent rapprochements, and steps taken to settle the issue.

URL: http://journals.sagepub.com/doi/abs/10.1177/2057891117690453

Courtesy: Sage

How Does the Productivity and Economic Growth Performance of China and India Compare in the Post-Reform Era, 1981-2011?

Wu, Harry X.; Krishna, K. L.; Das, Deb Kusum; Das, Pilu Chandra

International Productivity Monitor, Fall 2017

Applying an aggregate production possibility frontier (APPF) framework for growth accounting à la Jorgenson et al. to economy-wide Chinese and Indian industry productivity accounts, constructed in the spirit of the KLEMS principle, we estimate and compare growth and productivity performance in China and India over their post-reform period from 1981 to 2011. We show that during this period China grew over 50 per cent-faster than India in
value added (9.4 versus 6.1 per cent per annum) but about 25 per cent-slower than India in TFP (0.83 versus 1.13 per cent per annum). The two economies also experienced very different growth and productivity performances over sub-periods distinguished by special policy regimes and governing systems. While both countries appeared to enjoy their best performances in the 2002-2007 period following China’s WTO entry, China faltered much more in terms of total factor productivity growth in the wake of the global financial crisis.

URL: http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=11&sid=72ce6719-03e3-48f0-b408-235059a7eee5%40sessionmgr4010

Courtesy: Econlit

Transforming peasantries in India and China: comparative investigations of institutional dimensions

Ashwani Saith

The Indian Journal of Labour Economics, Volume 59, Issue 1

My lecture is about the study of transforming peasantries, in two senses: both as the subjects, as well as the agents of societal transformation. The differential development performance of rural India and China is explained through stylised micro-comparisons drawn from longitudinal village, and synthetic field studies conducted by the author in both countries since the 1970s, highlighting the salience of contrasting rural institutional factors, using a string of binary contrasting features displayed by the Indian village vis-a-vis the collectives of rural China. The micro-cosmic comparison poses a puzzling paradox: Chinese rural development performance easily outstripped Indian achievements in the first three decades of its collectivist path, from 1949–1978, despite the upheavals associated with the Great Leap Forward and the large-scale famines of the time. But, if the initial conditions of the two countries were remarkably equivalent, and if the external factors, state macro and inter-sectoral policies were no more, and in some respects, considerably less favourable in China than in India, how can one explain the superior Chinese performance in the countryside virtually across the board for this early high-collectvism period that laid the foundations for the subsequent high-growth trajectory at the national level? Why did rural China pull ahead, why did India lag behind? The micro-cosmic comparisons of rural institutions are used to resolve this paradox. The answer lies in the crucial differentiated role of the institutional dimension in the two countries. Chinese advantage originates not in the market reforms era, but in the socialist period when the countryside was organised in rural collectives. In India, rural institutions were generally obstructive, sticky, and posed a constraint to policies of rapid transformation; in China, the institutional profile, far from setting a constraint, was itself converted into a policy instrumental variable, where institutional features were designed and periodically redesigned primarily using the criteria of their functional appropriateness for generating rural accumulation and growth.

URL: https://link.springer.com/article/10.1007/s41027-016-0051-2/fulltext.html

Courtesy: Springer

Between Protest and Policy: Women Claim their Right to Agricultural Land in Rural China and India

Govind Kelkar

UNRISD WP 2016-10

This research was conceptualized to ascertain the state response to women’s extra-procedural claims making to land through collective and individual protests, demonstrations, public performances and women farmers’ conclaves for building public opinion against the gender differential arrangements in land tenure and agrarian production system in India. An attempt was also made to understand China’s policy on women’s legal and equal rights to land since the 1950s. The author situates the discussion on women and land in the broader context of women’s emerging agential power against the patriarchal forces of the state, market fundamentalism and social cultural norms that influence both formal and informal institutions at various levels. Women’s claims are thus framed against two major related factors: an insidious state-backed development policy that keeps women dependent on the male as the head of the household; and a combination of institutional structures with social norms and legal rules that shut most rural women out of land and property ownership.

An analysis of land reform policies in China and India show that the state agencies speak simultaneously to two groups: the political elite raised with notions of gender-discriminatory forms of power who exercise influence through access to political and economic institutions; and the political constituency of organized rural women and men who wield influence through the right to vote, and therefore exercise power over the regime through the ballot box. The contradictory power bases of these two groups lead to a gap between policy rhetoric and implementation or gradualism constrained by social norms.

The research findings suggest that, as a consequence of the continued demand for women’s entitlement to land, there have been some partial and fitful changes in policies and enactment of laws in the two countries. The women who acquired an entitlement to land gained greater social status and increased bargaining power over household assets, experienced a reduction in gender-based violence, and had more of a voice in land governance as well as decision making in socio-political affairs. However, these changes are punctuated with patriarchal disorders and reversals.

The author further notes in the study that the state, in most cases, has responded to women’s protests and claims to justice and rights, in terms of formulation of policies and legal frameworks. However, these legal frameworks and policies have remained largely ineffective in changing institutions trapped in gendered norms and women’s economic dependency. There has been no significant withdrawal of male power over land and productive assets despite the fact that women and civil society groups, in large numbers, have continued with the claim that the intrinsic value of justice and right to equality lies in ensuring women’s autonomy and their freedom from violence and dependency relationships.

This study is divided into eight sections. The introduction outlines the conceptual framework and raises the major questions of the study. Section 2 discusses discriminatory social norms and attitudes. Section 3 describes the policy change in response to women’s historical struggles for equality against the gender regimes in Asia, followed by women’s right to land and inheritance in the two countries in section 4. Major drivers of policy change are discussed in section 5. Section 6 assesses change in the practice of women’s lives. Some continued challenges related to the state’s institutional structures and the market are discussed in section 7. The concluding section 8 suggests some desirable policy and action towards mitigating gendered negative outcomes of past agricultural development.
URL: http://www.unrisd.org/unrisd/website/document.nsf/(httpPublications)/222B7313533B75D7C125801E005E58E0?OpenDocument

Courtesy: UNRISD

Intensive and Extensive Margins of Exports: What Can India Learn from China?

C. Veeramani, Lakshmi A, Prachi Gupta

IGIDR WP-2017-002

We decompose India’s export performance in manufactured products during 2000-2015 into changes at the intensive and extensive margins. India’s performance, along different margins, is compared and contrasted with that of China. The results show that while China outperforms India at both the margins, the gap is particularly wide at the intensive margin. Decomposition of intensive margin along quantity and price margins shows that Chinese products are generally sold cheaper than Indian products. Higher price margin, however, has not translated into high intensive margin for India due to its abysmally low quantity margin. We examine different explanations for China’s superior performance relative to India, along different margins, using a gravity model. Our results suggest that China’s exchange rate policy was not the prime reason for its export success. Neither do we find that FDI inflows were significant in explaining the export performance gap between them. The results show that China’s export relationship bias towards high-income partner countries holds the key in understanding its superior performance. This bias is a natural consequence of China’s high degree of specialization in labor-intensive activities. India, by contrast, due to an idiosyncratic pattern of specialization, has failed to exploit its export potential in high income countries.

URL: http://www.igidr.ac.in/pdf/publication/WP-2017-002.pdf

Courtesy: IGIDR

Splitting the South: China and India’s Divergence in International Environmental Negotiations

Leah C. Stokes, Amanda Giang, and Noelle E. Selin

Global Environmental Politics , Vol. 16, No. 4  November 2016

International environmental negotiations often involve conflicts between developed and developing countries. However, considering environmental cooperation in a North-South dichotomy obscures important variation within the Global South, particularly as emerging economies become more important politically, economically, and environmentally. This article examines change in the Southern coalition in environmental negotiations, using the recently concluded Minamata Convention on Mercury as its primary case. Focusing on India and China, we argue that three key factors explain divergence in their positions as the negotiations progressed: domestic resources and regulatory politics, development constraints, and domestic scientific and technological capacity. We conclude that the intersection between scientific and technological development and domestic policy is of increasing importance in shaping emerging economies’ engagement in international environmental negotiations. We also discuss how this divergence is affecting international environmental cooperation on other issues, including the ozone and climate negotiations.

URL: http://www.mitpressjournals.org/toc/glep/16/4

Courtesy : MIT Press