Tale of two “China” (or “India”)
Posted : July 15, 2005 at 3:11 pm [America/Los_Angeles]
China is really two economies rolled into one. Wealthy coastal China has 450 million people living in a vibrant emerging market, while the rest of China has 750 million still living in a poor developing country.
— Kenneth Rogoff, Harvard University (Source: The Globalist)
India seems to be following a similar trajectory with a much greater unfavorable tilt towards folks who are still living in, as Rogoff puts it, “…a poor developing country”:
Let me do some quick arithmetic here. We (in Indian media) keep talking of a minimum aggregate GDP growth of 6-7 per cent in India. If agriculture constitutes roughly 25 per cent and is growing on average at 1.9 per cent, the rest of the economy, comprising industry and services, has to grow at least 7.3 per cent…Thus we have a dual economic structure in which a 1.9 per cent growth economy supports more than 60 per cent of the population and a 7.3 per cent growth economy supports the remaining 40 per cent.
— Abheek Barua, “The 1.9 per cent growth economy”
- Anand
Category: Chindia