Another question Parfitt asked in in his comment to Comparing India and China’s Potential for Economic Growth was, “What about China’s debt problem? Would that hinder it [China] in its supposed race against India?”
I doubt strongly that there is an economic race between India and China. If it is perceived that one exists, we may thank the Western media circus for that, since the media often compares the annual growth of India’s GDP with China’s.
The answer to Parfitt’s question leads to another question that should have been asked instead.
Will India’s corruption [50% of GDP], poverty [25%], literacy rate [61%] and debt problems hinder it in its supposed economic race with China? Source of facts used: CIA Factbook
By comparison, literacy in China is 92.2% and those living below the poverty line according to the CIA Factbook represent 2.8% of the population.
India’s GDP [Purchasing Power Parity – PPP], according to the CIA Factbook, was about $4 trillion dollars in 2010 but its public debt was 50.6% of GDP. It’s reserves of foreign exchange and gold was $287.1 billion [this is the same as a savings account], and its external debt was $316.9 billion, which shows us that India owes more money than it has in its savings account. In addition, it has been reported that corruption in India is worse than China.
By comparison, China’s GDP [PPP] in 2010 was more than $10 trillion and its public debt was 16.3% of GDP, its savings account held almost $3 trillion and its external debt was $519 billion.
Another point of comparison is the US GDP [PPP], which was $14.66 trillion with $14.71 trillion in external debt and a public debt of 62.9%, while its savings account holds $132.4 billion.
With these numbers, which country is in the best shape economically to face challenges at home and globally in the near future and in the long run?
I replied to Mr. Parfitt’s comments and there was another reply from Alessandro, a regular visitor to this Blog. The reason I’m writing this post is the IGNORANCE Factor, which plays far too large a role in the circus of American politics and public opinion, which is often inflamed by the biased opinions of individuals such as Mr. Parfitt.
Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.
Subscribe to “iLook China”
Sign up for an E-mail Subscription at the top of this page.