Why China has grown faster then India

Why China has grown faster then India Introduction: Comparative studies between China and India are becoming more popular now in the international level. China and India are among the largest economies in the world today. While the Chinese economy has surpass India by a wide margin over the past 15 years. I am comparing the growth experiences of China and India at a broad level, explaining why China has grown faster than India by focusing on the comparison of GDP, Exchange rates policies, Monetary and Fiscal policies, and Unemployment in India and China. In this study will analyze why per capita national income is so much higher in China than in India? And why Chinas GDP is growing so much faster? And why unemployment remains high in both the countries and how the Governments addressing the Unemployment factors? Why GDP per capita national income is so much higher in China than in India? In 1978, after years of state controlled productive assets, the Chinese government invests on a major economic reform program. In an effort to awaken economic giant, it encouraged the formation of rural enterprises, private businesses, liberalized foreign trade and investment. China also relaxed state control over some prices, invested in industrial production and stressed on education of its workforce. The growth in the country is accumulated capital assets, such as new factories, manufacturing machinery and communications systems. Economic development has suggested a significant role for capital investment in economic growth, and a sizable portion of Chinas recent growth is in fact attributable to capital investment that has made the country more productive. In other words, new machinery, better technology and more investment in infrastructure have helped to increase its output. Being hospitable to foreign investment, Chinas open-door policy has added power to the economic transformation. Cumulative foreign direct investment, negligible before 1978, reached nearly US$100 billion in 1994. Annual inflows increased from less than 1% of total fixed investment in 1979 to 18% in 1994. The foreign money helped China built factories, creates more jobs, linked China to international markets and led to important transfers of technology. These trends are especially apparent in the more than one dozen open coastal areas where foreign investors enjoy tax advantages. In addition, economic liberalization has boosted exports which rise 19% a year during 1981-1994. Strong export growth, in turn, appears to have fueled productivity growth in domestic industries. (Zuliu Hu, Mohin S.Khan, 1997) GDP Per Capita (Current US$) 2005 2006 2007 2008 2009 China 1,731 2,072 2,660 3,422 3,744 India 765 855 1,096 1,065 1,134 (Adapted from The World Bank Group, 2010) Why Chinas GDP is growing so much faster? GDP: Comparative Analysis between China and India As per IMF (International Monetary Fund) report, China was the fourth largest economy of the world by nominal GDP in 2006, where as India was 12th. China registered GDP growth rate of 14.2% in the first half of 2007, where as India has registered a 9.6% GDP growth in June 2007. Chinese economy is worth $4900 billion, whereas the India economy is worth of $1300 billion. GDP Growth (Annual %) 2005 2006 2007 2008 2009 China 11.3 12.7 14.2 9.6 9.1 India 9.3 10.1 9.6 5.1 7.7 (Adapted from The World Bank Group, 2010) GDP (Current US$) 2006 2007 2008 2009 China 2,716,870,000,000 3,505,530,000,000 4,532,790,000,000 4,984,730,000,000 India 949,192,000,000 1,232,820,000,000 1,214,210,000,000 1,310,170,000,000 (Adapted from The World Bank Group, 2010) Chinas economy seems to be a better bet, for unlike China; India is yet to prove that it can sustain high growth rates over a period of time. The general feeling is that despite having a boom in technology, services and IT sector, the Indian economy still eventually depends on good monsoons, meaning that agriculture continues to dominate the Indian economy more than it should. (Arvinder Singh, May/June 2005) Foreign Direct Investment, Net Inflows (BoP, Current US$) The FDI flow depends on the market size, market growth rates, political stability, corruption, exchange rates, labor productivity, economic freedom, infrastructure, openness, human capital and taxes. China got $79 billion in 2005 in FDI and India did not even get $ 7 billion in FDI. In 2009 there is slight change in Chinas FDI of about $78 billion dollars but India made a good progress of raising $34 billion in FDI compared to year 2005. The study tried to explore this phenomenon and to understand the drivers for attracting foreign investment in emerging economies. India despite being the largest democracy in the world has lagged behind due to its focus on services and specialized skill based relatively small manufacturing model in contrast to China. India growth model has been based on IT, ITES and skilled manufacturing which are dependent on the availability of human skill and capital in an emerging market. (Swapna S Sinha, Apr-Sep 2008) FDI, Net inflows (BoP, Current US$) 2005 2006 2007 2008 2009 China 79,126,731,413 78,094,665,751 138,413,000,000 147,791,000,000 78,192,727,413 India 7,606,425,242 20,335,947,448 25,127,155,852 41,168,605,242 34,577,000,000 (Adapted from The World Bank Group, 2010) China is regularly getting 10 to 12 times more foreign investment than India. In India the number have come up, they will probably come up more. I believe China has a more competitive manufacturing sector than India and that is derived primarily from Chinas greater degree of openness than India. That does not mean that India does not have many world class manufacturing companies, it certainly does, but on an average the competitive environment in China is much stronger because its tariff being much lower. (Wanda Tseng, 2006) Trade in Goods (Imports, Exports and Trade Balance) in China India: Trade with China Month Exports Imports Balance January 2010 6,888.8 25,185.1 -18,296.3 February 2010 6,855.1 23,363.8 -16,508.8 March 2010 7,403.6 24,300.2 -16,896.6 April 2010 6,591.2 25,905.7 -19,314.5 May 2010 6,752.7 29,036.8 -22,284.1 June 2010 6,715.0 32,866.5 -26,151.5 July 2010 7,344.7 33,260.0 -25,915.3 August 2010 7,253.5 35,288.5 -28,035.0 Total 55,804.6 229,206.7 -173,402.1 Note: All figures are in millions of US dollars on a nominal basis, not seasonally adjusted unless otherwise specified. (Adapted from U.S. Census Bureau, 2010) Trade with India Month Exports Imports Balance January 2010 1,295.5 2,079.4 -783.9 February 2010 1,235.2 1,958.1 -722.9 March 2010 1,454.8 2,472.4 -1,017.6 April 2010 1,671.2 2,650.0 -978.8 May 2010 1,852.9 2,672.6 -819.7 June 2010 1,690.6 2,532.6 -841.9 July 2010 1,800.2 2,591.4 -791.2 August 2010 1,716.8 2,773.5 -1056.7 Total 12,717.1 19,729.9 -7012.7 Note: All figures are in millions of US dollars on a nominal basis, not seasonally adjusted unless otherwise specified. (Adapted from U.S. Census Bureau, 2010) ? Exchange Rate Policies in two countries: China policy The debate over the exchange rate between the Renminbi (RMB) and the Dollar is usually framed in terms of global imbalances, excessive US consumption beyond its savings on the one hand, and excessive Chinese production and savings beyond its own spending on the other. This quickly leads to a conclusion that the United States should export and save more and China should import and spend more. Leaders in the United States would like the RMB to appreciate significantly and quickly to encourage an expansion of US exports and employment. The argument for a sustained appreciation of the RMB is rooted not only in short term concerns about Chinas large current account surplus, but also in long term trends of Chinas economic fundamentals, including high growth rate, rapid urbanization and industrialization, low national debt and low fiscal deficits. These trends are the result of three decades of reform in China that have opened the country to trade with the rest of the world and led to strong productivity gains. Based on the experience of other fast growing industrializing economies, these forces will increase Chinese wages, the value of the RMB and Chinas price level over time. (Steven Dunaway, 2010) (Geng Xiao, 2010) Indian Policy With the appreciation of the rupee/dollar exchange rate in early May and the expectation of interest rate hike, there was some appreciation of the rupee and that could hurt exports. In particular, it would hurt the low value added exports from small and medium enterprises. The recent recovery in exports happens to be the biggest factor for a sharp rise in industrial output growth; this imminent rate hike was opposed. There were calls for the Reserve Bank of India to intervene in the forex market to contain the strength of the rupee largely to support the export sector recovery. There were even suggestions to continue the export incentives that were part of the overall stimulus packages of 2009. These suggestions are based on the assumption that in India, a weak rupee would encourage exports and thus, help the overall growth recovery. Many economists have argued for intervention in the forex market, and some Asian economies, notable China maintain artificially undervalued exchange rates to maintain international competitiveness. (N R Bhanumurthy, 2010) Monetary and Fiscal Policies in two countries: Indian Monetary Policy The Reserve bank continues its tightening cycle as inflation pressures are building, by raising reserve requirements and its main interest rates since the beginning of the year. Indian Fiscal Policy The budget for the 2010-11 fiscal year projects improvements for the deficit after the fiscal stimulus of last year and the large one off expenditures of the year before. As a share of GDP, the deficit is expected to reach 7.8% of GDP from 9.6% last year and 11.8% in 2008-09. The improvement will come from a combination of weaker expenditure growth from reduced subsidies and greater revenues from the acceleration of economic growth. The reversal of indirect tax cuts that were part of the fiscal stimulus package, the expansion of the tax base and the revival of the privatization program, as well as the one time sale of G3 licenses, which generated over US$ 15 billion. Solvency indicators will improve again, but are expected to remain above comfortable levels, with public debt to GDP reaching 68% by 2014-15. (Export Development Canada, 2010) Unemployment in China India and Remedial Measures by the Government: Causes of Unemployment in China This country has largest population in the world. The work force available is too large. Every year new generation is added to the already available work force. It is very difficult for any government to find jobs for millions of young people entering in the job market. In 2004 the estimation was that 15 million young people will enter the job market and only about 8 million jobs were expected to be created in that year. The other major reason behind the unemployment is the type of jobs offered. There is lack of jobs for the graduates and literate young people. I feel that the ever increasing population and lack of the English speaking workforce are the two major causes of unemployment in China. Causes of Unemployment in India There are individual factors like age, slow pace of development, high growth rate of population, slow industrialization, slow growth rate of agriculture etc. Every year Indian population increases manifold. More than this every year about 5 million people become eligible for securing jobs. Self employment field is subject to ups and downs of trade cycle and globalization. Technological advancement contributes to economic development, but unplanned and uncontrolled growth of technology is causing havoc on job opportunities. The Chinese government is addressing the unemployment issues by promoting growth of tertiary industries, by increasing financial support and implementing favorable policy for non state sector especially small medium companies in private sector. It is also readjusting the employment concept and is preparing laborers with practical job training and education. Conclusion: The main reason why Chinas GDP is higher than Indias is that the growth of China has resulted from the rapid rise in the manufacturing of high-tech goods in the country under the large scale high tech manufacturing firms like Lenovo, Baidu.com and Huawei Technologies. The infrastructural development in China has also been quite high than that of India, which has added to growth of the Chinese GDP. China spends 11% of GDP on infrastructure and India spends 6% of GDP on infrastructure. (Geethanjali Nataraj, 2010)

Emily Brontes Wuthering Heights: Life is Hard :: Wuthering Heights Essays

Wuthering Heights – Life is Hard Many times in life, people leave our lives and then come back into them.   However, we remember them, but they do not remember us.   The same thing happened in Emily Brontà «'s book Wuthering Heights.   Linton, taken by his mother to London after his birth, never knew his father, then when things happened, he came back home.   He had family fighting over where he was to live and whom he would be around.   Not knowing part of your family until after you are fifteen is hard.   Ã‚  Ã‚   Isabella took her son, after he was born, and moved to London away from Thrushcross Grange.   At the same time, she moved away from her husband, Heathcliff.   During the time that Isabella and Linton were gone, Isabella got sick and passed away.   Right before her death, a letter came saying that she was dying so Hindley went to visit her.   While he was there, she did passed on so he brought Linton back with him.   Once back, everyone looked after him and made him feel at home.   Ã‚  Ã‚   Heathcliff soon came to the knowledge that his son had returned to Wuthering Heights.   He then sent someone to Wuthering Heights to get Linton.   However, he did not know that Linton was already asleep so he did not get the boy that night.   The next day the boy was taken to Heathcliff at Thrushcross Grange.   The father and son were nothing alike, and Linton was intimidated by his father.   He did stay, and meet some of his relatives that he had never seen, who helped him adjust to living there.   Ã‚  Ã‚   Everyday in our lives we run into situations that we wish we had never been involved with.   I relate to the characters of Linton and Heathcliff.   I am like Linton because people know who I am, but I never remember meeting them, and am scared around them.   I also feel the same as Hindly might have of.   This is because I would want to see the person I did not know, but then I would not know how to cat around them.   In time people come around, but others, as with Heathcliff and Linton, never come around.   Ã‚  Ã‚   Everyday life is something we take for granted.

My Personal Experience with Religion

I have considered myself a religious person for most of my life.   I was saved at ten years old, but I have been in church since I was two years old.   I know that many people say that religion and Christianity are not the same, but I am one of those few people who do believe that religion is important to.   I think that you cannot have one without the other.   They are both vital to the spiritual makeup of a person. If it had not been for my acceptance of Christ and the Holy Spirit that dwells in me, I don’t know what would have happened to me.   I definitely would not be the person that I am today.   I have always prayed about everything.   I believe that God is my spiritual father, and just like I talk with my biological father and converse with him everyday, I talk with my heavenly about everything. I believe that it is very hard to talk freely with a stranger.   Before you open up and bare your soul to someone, there is an established relationship.   It is the same with God.   It is extremely hard to take everything to him if a person does not know him.   I cannot remember a time when I have not had a relationship with him. It has made a huge difference in my life to be able to talk to him about everything.   I have actually had many prayers answered.   There is no way that I could remember all of them since they have happened every day of my life.   Therefore, my spiritualism has grown and changed over time.   When I was much younger, I saw God as one who had to be obeyed, but I have now grown to the point where I actually do have a relationship with him.   I used to worry so much about how I would handle everything in my life. Now I know that it is all in God’s hands.   I have learned that I have to completely trust him, and that all of my plans and worrying is not going to help.  Ã‚   It sounds on paper like I have just given up, but nothing can be further from the truth.   I have actually gotten stronger, and the time I used to spend on worrying, I now spend on talking to God. I do think that my religion has helped to strengthen my relationship with God.   It is through my religion that I have a church family of people who I can depend upon for my strength.   It is a wonderful sense of well being when I know that I have a whole host of people behind me that love and care about me because of our common beliefs through Jesus Christ.   I also believe that a religion is easier to understand when you are a part of it because you have access to others to teach you.   I have always had mentors and ministers to help me in my understanding of the faith that I have chosen. They not only tell me what they believe about it, but they have encouraged me to seek the scriptures to find my answers, and since they are more experienced than I am, they can steer me in the right direction to find those scriptures.   The faith that I am associated with encourages its members to seek answers from the scripture.   It is not encouraged to accept something just because a person tells us that is the way that it is.   I have many friends from other faiths, and it is nearly impossible for them to overcome the stereotypes that they have heard about my religion.   I find that I have the same problem when it comes to theirs as well. As I stated earlier, my religion encourages its members to try our beliefs with what the scriptures says.   Because of that I do think that I can remain objective.   I have learned that when I challenge something that someone of my faith says is right or wrong, I can go to the scriptures and if it is not there, I can choose to disregard the opinion.   In fact I believe that everyone has challenged at least one thing that their religion upholds.   I think that is only human and it is perfectly natural. If one cannot be objective and at least listen to both sides of a religious topic, then the person must look closely at whether he/she is brainwashed.   Questioning and objectivity is a good thing.   One cannot grow and accept other if he/she does not remain objective.   The only thing that cannot be changed what the Bible says about an issue. My life has been a full one and it has been steeped in religion.   I have enjoyed it immensely.   I am proud of the way that I have grown in my religion and my faith.   I would have to say that my religious experience has been a totally positive experience. Works Cited Warren, Rick. The Purpose Driven Life. 2003. Nashville: Zonderman Press. The Sacred Ritual There have been many sacred rituals that I have participated in during the course of my life.   The one that I enjoy the most and that has had the most impact on me is communion.   It is something that started with the night of Jesus’ arrest before his crucifixion.   I believe that the ritual is so beautiful and meaningful that I get emotional every time I take it. When I was a little child, I could not understand why all of the adults got to eat and drink from those cute cups and I could not have it.   Therefore, I suppose I hated the ritual at first.   I especially couldn’t understand how my own mother, who share everything with her children, could eat and drink in front of us and not even give us a taste.   I remember that her attempts at explaining it to us were feeble at best, so I would get angry every communion.   I cannot help but get a little tickled even today when I hear the small children at my church when communion is served.   Most of them are questioning their parents and grandparents and I automatically go back to my youth in my mind and remember all of my frustrations. Once I was saved and was able to take communion, I was just so glad that I was one of the big people, that I still did not realize the significance of what I was doing.   It was not until I was in my late teens that I realized what it was really all about.   At my church, a sermon on communion is always preached.   It might seem repetitive to some, but like a favorite bedtime story, or favorite movie, it is a joy to revisit the seen of the last supper.   I love the part where Jesus explains to the disciples what each part of the ritual means, and I enjoy what the Apostle Paul explains that it is not just a fellowship supper, but a meaningful link between Jesus and the Christian people. I find it refreshing during the part where all of the Christians in the church take time to reflect on the sins in their lives.   Sometimes it is painful when they are remembered, but after I have asked forgiveness, I feel as fresh as a newborn baby.   I am ready to start over.   There is also a time to ask forgiveness of others that we might have wronged.   This is also a special time.   I love it when I am reunited with someone that I have been at odds with. Then there is the sacred time of sharing the bread and the cup with our Lord Jesus.   The bread is the symbol of the body of Christ.   When we break it to eat it, it symbolizes what cruelties were done to his body.   I was not in Jerusalem the day of the crucifixion, but by taking part in communion I can be.   He died as much for me as he did the ones living at the time.   Therefore, when I break the bread, I am actually symbolizing that I did break his body so that he could die for my sins.   Then I drink from the cup that is supposed to represent the blood of Christ.   Without the shedding of blood, there can be no forgiveness of sin.   When I drink from the cup, I symbolize that his blood was spilled, and only through the spilling of the Savior’s blood could I be saved. When I ponder these things, I get chilled just knowing what Jesus has done for me and every other person.   He did not have to, but he willingly went to the cross for us.   Communion is one of the ways that I get to be reminded of the tremendous gift that Christ gave to all mankind. Works Cited The Holy Bible. King James Version. New York: Thomas Nelson Press. My Understanding Since I have taken this class, I have had a little better understanding of evil in the world.   I say a little because I have thought about this so much that my feelings on the matter have progressed over a long period of time. I feel that there are many reasons that God allows evil to exist in the world.   I believe that man has a great deal to do with it.   Yes, God is all powerful, but he allows us to live with the mess that we have made.   I will use the example of the horrible Hurricane Katrina.   There were many good people who lost everything that they had and many even lost their lives.   The same can be said of those who had not lived good lives.   There were babies who died, many elderly, and many in the prime of their lives. Some might question why God would allow this to happen.   Instead they should question man.   It was man who built so many houses and cleared so many forest and wetlands that the water had no where to go.   It was man who built underneath Lake Pontchartrain, and it was man who did not do adequate upkeep on the levies.   It could be argued that man helped create the hurricane itself with his utter disregard to the environment which is leading to global warming.   It is man who has to live with the decisions he and others before him have made.   God designed the earth to be perfect.   It was man who messed things up and brought sin into the earth.   If he had stopped man, then he would have taken away personal choice. My ability to understand what is right and wrong has changed over the years.   First I accepted what my parents told me was right and wrong.   When I became a teen, I judged what was right and wrong with what I wanted to do and think.   Now I search the scriptures.   I read the Bible as much as I can, and I have a pretty good feel for the obvious things that are right and wrong.   I will argue an opinion, but when it comes to the Word of God, I feel that if it is in the Bible, then that is the way that it is. I pray about situations that I have a difficult time determining what is right and wrong, and God never fails to send me a sign.   Sometimes it is not the one that I wanted, but he still delivers.   I also rely on what many people call a conscious, but I feel is the Holy Spirit.   I believe if I listen to the still small voice within me, then it is usually more right than what society tells me is right and wrong. Socrates` question: `Is something right because God commands it or does he command it because it is right?`   I feel that there are times that people think too much and this is an example.   Words are powerful and they can also have the power to confuse us.   I feel that God only commands what is right and he is omnipotent therefore he is right.   If he is the creator of all things, and I believe that he is, then he created right and wrong.   At the same time he commands things to be right because he determined it.   God is right. Works Cited Stearns, Bill. Fine Lines: Knowing God's Right/Wrongs for Your Life. San Bernardino: Here’s Life Publishers. 1987.

Which Is Greenest, City Living or Country Living

We often equate living in an environmentally responsible way with country living. The imagery is appealing: sun-drenched fields, tender green leaves on young fruit trees, laundry on the line, harvesting fresh chicken eggs. However, the question deserves to be examined: which is really greener, urban living, or rural living? Environmental Arguments for Rural Living Children with opportunities for ample outdoors experiences have frequent, genuine interactions with the natural world. There is some evidence that these experiences have health benefits like reduced anxiety and lower risks of myopia and obesity.Living closer to nature provides more hands-on experience and direct understanding of environmental issues. Witnessing sediment pollution, acid mine drainage, or algae blooms make it more likely that someone will seek to educate themselves about the problem, and perhaps organize their community to find solutions or otherwise take some steps to mitigate the issue.  By living closer to agriculture, one can get to know farmers, learn about the sustainability levels of the various practices they follow, and choose quality local food with a low environmental footprint. When the space is available, rural residents can grow healthy crops themselves or harvest wild foods, reducing their reliance on meats, fruit, and vegetables grown with questionabl e practices and transported over long distances. In addition, backyard food growers can control food waste better; supermarket food goes through distribution and marketing practices that create large amounts of waste.Rural living provides unique opportunities to minimize energy needs, reduce one’s carbon footprint, and lower contributions to global climate change. Less constrained by apartment or condo living, in the absence of restrictive homeowner association rules, and with more space available, rural residents have more freedom to design their own passive solar house, put up solar panels, or even install a micro-hydro turbine. Environmental Arguments for Urban Living Cities are characterized by dense housing, with many more people living in a comparatively small area. This concentrates human land use, easing pressure on natural areas outside the city. Without the high demand for suburban or rural living, there would be much less pressure on agriculture lands and wild lands, less habitat fragmentation, and less roadkill-causing car traffic.This dense urban fabric means small dwellings, requiring far less energy to heat and cool and leaving less room for energy-hungry appliances than the bigger homes typical of the countryside.A walking lifestyle is more accessible in the city, where the workplace may be located within walking or biking distance. In rural areas people are much more reliant on car transportation, contributing to greenhouse gas emissions. For those not walking to work or to conduct errands, public transportation options are usually much more accessible to urban residents.Access to quality local food. Surprisingly, it is often easier to find farmers markets in the city, where shoppers can make choices that favor local foods grown following sustainable practices. However, some of the worst food deserts in the country are in economically depressed urban areas, where the only accessible sources of food are convenient stores and fast-food restaurants offering few healthy and environmentally conscious options.While it is admittedly more of a health issue, in the United States water quality is generally better in cities, counter-intuitively. There, everyone is connected to a municipal water source that has been treated and is routinely tested. In rural areas, most people rely on well water, which vary greatly in quality and is rarely tested. Furthermore, the proximity to intensive agricultural operations can increase the chances of groundwater being contaminated by pesticides.Sewage treatment is centralized, monitored, and generally effective in cities. Rural residents rely on a patchwork of septic systems of various ages and level of maintenance. The Verdict In my opinion urban living likely results in, on average, lifestyles with a lighter environmental impact. At the same time, rural life may allow more flexibility for individuals to make personal choices aimed at minimizing ones ecological footprint. How about suburban living? That is a great question which deserves to be explored more in depth soon.