Comparing India and China’s Potential for Economic Growth

December 30, 2011

The cover for The Economist of October 2 – 8, 2010, placed a bet on India in an economic race with China.

The Economist wants India to win this race, because India is a democracy as is the U.S., but what isn’t mentioned is that China is evolving into a republic closer to the original republic that the United States was in 1776 with a Chinese twist, which is what Dr. Sun Yat-sen wanted.

Some claim China is ruled be a dictator today but that is not true. China is a republic that is guided by the word of law, which is the essence of a Republic.  In 1982, China wrote a new Constitution that spelled out the law and China’s schoolchildren are taught what these laws mean and how to live with them. However, the Chinese Constitution is not the same as the one in the US, so the laws are different.

I opened The Economist magazine and read the two pieces the cover was about. One was India’s surprising economic miracle and the second piece was A bumpier but freer road.

On page 11, I read, “many observers think China has done a better job than India of curbing corruption…”

On page 77, a Western banker was quoted saying, “It’s much easier to deal with the well-understood ‘organization chart’ of China Inc than the freewheeling chaos of India.”

Corruption exists in every country and Transparency International attempts to define and identify what global corruption looks like. Comparing China and India, we discover that while India’s corruption appears to be getting worse, corruption in China is improving due to the evolution of its new legal system.

In fact, in the past 3 years, the perception of corruption in India was 74%, [in the United States that perception was 72%], while in China it was only 46%.

In addition, the BBC reported recently, “Widespread corruption in India costs billions of dollars and threatens to derail the country’s growth…”

After I read both pieces in The Economist comparing China with India, it was obvious that India would never beat China economically without controlling its corruption, shrinking severe poverty and increasing literacy. Overall, the latest World Bank data shows that India’s poverty rate is 27.5% [330 million people], based on India’s current poverty line of $1.03 per person per day and an illiteracy rate of almost 26% [312 million people].

In comparison, literacy in China is more than 94% and the World Bank says in 2004, people in China living in poverty represented 2.8% of the population.

There are more reasons The Economist is wrong about India winning this economic race just because it is a democracy. One reason is that America’s Founding Fathers hated democracy and had a good reason.

Live Journal goes into detail on this topic. Live Journal says, “It would be an understatement to say that the (U.S.) Founding Fathers hated democracy. They warned against it vehemently and relentlessly. They equated it–properly–with mob rule.”

 

The Founders of the US, who hated democracy, built a free country [a republic]. Our [meaning many Americans] ignorance of history, which has led to a love of democracy, is causing the US to surrender its freedoms at an alarming rate.

Dr. Sun Yat-sen (1866 – 1925), known as the father of modern China [by both China and Taiwan], said he wanted to model China’s government after America but by combining Western thought with Chinese tradition.

When he said this, it was 1910, and America, by definition, was still a republic. Once you read the two pieces in The Economist, you may understand why India’s democracy cannot beat China’s growing republic.

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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.

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 This revised and edited post first appeared October 13, 2010.


China and India at War – 1962

December 29, 2011

For the next few days, we will focus on India and China as a topic. The first post is about the 1962 border war between the two countries.

America is not the first country to attempt nation building (Iraq and Afghanistan). The British Empire did it much earlier and left behind a mess in India, the Middle East and Africa. Too bad the US didn’t learn from that failure.

In the 19th century, with the reckless stoke of a pen or pencil, British Explorer McMahon drew the borders on maps creating India.

Due to this British arrogance, India has had border disputes/wars with China, Nepal and Pakistan. Source: Boundaries

In fact, before the British Empire established the Raj, India wasn’t a country, and no Chinese government was included in the changes McMahon made to the borders between Tibet and India. Source: Victorian Web

At the time, the Qing Dynasty like the Yuan and Ming Dynasties before it considered Tibet part of China.

In 1947, soon after the end of World War II, India gained its independence from Britain, and the Indian government refused to negotiate with China over land that was once was part of China-Tibet.

After 1949, Mao’s government told India that some of the land behind the McMahon line in India was part of China-Tibet and the PRC wanted that land back.

For thirteen years, China and India held a series of diplomatic conversations about this boundary issue. Zhou Enlai, the first prime minister of the PRC, attempted to convince Jawaharlal Nehru to resolve the boundary issue peacefully.

With the failure of peaceful negotiations, Chinese troops were sent to the McMahon Line. In the embedded video are actual battle scenes from the China-Indian conflict of 1962.

India’s Nehru government repeatedly rejected China’s requests to negotiate the border dispute over the McMahon Line.

Instead, the Indian army built bases and outposts in the disputed area. Then Chinese troops strengthened their defenses on their side of the disputed border.

India sent patrols into territory occupied by China and its troops were captured. Then on June 4, 1962, Indian troops built fortified outposts deep in the disputed territory.

On September 8, 1962, Chinese troops surrounded the Indian outposts to stop further advances.

In the middle of September, Chinese intelligence reported that the Indian army would soon attack due to India’s Seventh Brigade being deployed to launch Operation Leghorn.

The first move by India took place on October 9, when Indian troops crossed the river that divided the two armies and attacked Chinese positions.

The resulting battle caused the Indian Seventh Brigade to collapse and a large number of Indian troops surrendered and were taken prisoner by the Chinese.

Chinese troops then counter attacked and crossed the river pushing south as the Indian troops retreated faster than the PLA could advance.

In addition, heavy Chinese artillery bombed Indian troop positions while China moved their Eleventh and Fifty-fifth divisions to the front.

To stop the Chinese advance, the Indian army had four brigades set up defensive positions along the only mountain road leading south through the harsh terrain.

At the same time, India planned to launch an assault on the Chinese army.

In a risky flanking maneuver, the Chinese sent 1,500 troops along a dangerous mountain trail to attack India’s Army in the rear and cut them in half.

The Chinese troops succeeded, and the Chinese army followed up with an attack from the north along the road.

India’s Sixty-second Brigade collapsed the first day. Soon after, India’s Sixty-fifth Brigade abandoned their positions without a fight.

News of the Indian army’s defeat reached New Delhi, and the people panicked causing large numbers of refugees to flee south.

When Chinese troops advanced into India beyond the disputed territory, China declared a unilateral cease fire.

There were abandoned Indian weapons everywhere and the Chinese troops gathered the weapons, which were returned to India. Then the Indian troops that were prisoners of war were released.

China then withdrew its troops to the claimed border keeping the disputed territory. Similar to the Korean Conflict, the war ended without a treaty.

India’s Casualties

Killed = 4,885
POW = 3,968
Wounded = 1,697

China’s casualties
Killed 722
Wounded 1,696

Since the 1962 war, China and India have continued to argue about the disputed area, which includes a portion of Kashmir and the eastern Indian state of Arunachal Pradesh.

Another area in dispute is Ladakh. For centuries, Ladakh was an independent kingdom but is now part of India with obvious cultural links with China.

In Ladakh, no one knows where India ends and China begins. China and India still share the biggest stretch of disputed border in the world divided by Nepal and Bhutan from Arunachal Pradesh in the south to Kashmir in the north.


Al Jazerra English – Renewed Tension Over India-China Border

India says the border violations were probably a mistake, but China says they never happened.

Diplomatic letters that Al Jazeera acquired show that both India and China are not telling the truth about Ladakh. Indian nomads wondered into Chinese occupied territory and were warned to leave or face the consequences.

The diplomatic letters also show that China does not accept that the area is disputed. Instead, China says it is their territory.

The Indian army keeps a heavy military presence on India’s side of the border in Ladakh and the Al Jazeera reporters were not allowed to visit the Chinese side.

What did you learn about China from its actions during this conflict, and/or you may also want to discover The Sino-Vietnam War of 1979

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Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. 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.

His latest novel is the multiple-award winning Running with the Enemy.

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China and India’s Mutual Collectivism and History

December 28, 2011

There appears to be an obsession in the West that India, since it is a democracy, is the developing country to counterbalance China’s economic and military growth.

The American Interest published a piece in their May/June 2010 issue – The Return of the Raj, which points out that where G. W. Bush failed to build an Indo-U.S. defense pact, Secretary of State Clinton in a visit to India in July 2009 did open the door to significant arms transfers from the U.S. to India.

If the United States and India can together rediscover and revive the Indian military’s expeditionary tradition, they will have a solid basis for strategic cooperation not only between themselves but also with the rest of the world’s democracies. Source: The American Interest

In another piece, A Himalayan rivalry, The Economist focuses on the 1962 conflict between India and China saying, “Memoires of a war between India and China are still vivid in the Tawang valley…”

However, memoires aren’t everything. There is also knowledge, and China is not the same country it was in 1962.

In 1962, some of the factors that led to the war between India and China were linked to Mao’s policies, the Great Leap Forward and the Cultural Revolution.

The Maoists were removed from power in the 1980s, and China is not the same socialist nation it was then.

Unlike India, China’s one party political system allows for quick decisions that often benefit the country.

Another important factor to remember is that China is still a collectivist nation as India is.

Due to this fact, China and India have more in common than India and America.

It does not matter that India is considered the world’s largest democracy, because to counter that, India also has a large bureaucracy that makes it difficult to get things done.

However, in India, the bureaucracy has a reputation for being tremendously arrogant and corrupt. It is a truism that Indian bureaucrats are generally smug and supercilious… source: Open India

Indian bureaucracy has often been criticized for being cumbersome and stretching procedures to sanction projects. Source: Meri News

A friend, Tom Carter, while shooting his next book in India, discovered that it was easier to travel and stay in China than India.

A study of individualist and collectivist orientations across occupational groups in India by Anjali Ghosh where he refers to a study by Sinha & Verma (1994) … that masters-level university students express more idiocentric (individualist) orientations than allocentric (collectivist) due to Western influence, immediate life concerns and exposure to mass media.

However, Verma & Triandis (1999) observed that Indian students were more vertical collectivist than U.S. students were.

Another fact is that China and India both have ancient civilizations more than 5,000 years old and they are next-door neighbors as Canada and the US are.

Note: This revised and edited post first appeared as a two-part series on September 10, 2010 as China and India’s Mutual Collectivism and Shared History – Part 1

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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.

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The two faces of Confucius – Part 4/5

December 23, 2011

When comparing the practice of Confucianism in China to Japan, a report by Wai-ming Ng at the Chinese University in Hong Kong says, “The relationship between loyalty and filial piety, two fundamental virtues in Confucianism, has been a subject of concern among Confucian scholars in East Asia for many centuries.

“Many modern Japanese scholars believe that the main difference between Japanese Confucianism and Chinese Confucianism rests with their preference between loyalty and filial piety, suggesting that Japanese Confucianism puts  loyalty [to the government] before filial piety, whereas Chinese Confucianism prefers filial piety [in the family] to loyalty [of the government].”

That difference may be explained by China’s concept of the Mandate of Heaven, which says that heaven would bless the authority of a just ruler, as defined by the Five Confucian Relationships, but would be displeased with a despotic ruler and would withdraw its mandate, leading to the overthrow of that ruler. The Chinese people, of course, would be heaven’s hammer, which does not sound very obedient.

However, in Japan, the Mandate of Heaven is not practiced the same as in China. While the Chinese may protest and rebel, the Japanese tend to shy away from this behavior.

In The Coming China, Joseph King Goodrich says, “Obedience in China is a word that connotates far more than it does in Japan. It means obedience to the emperor, to the parent, to the family and to the government, although the Japanese have the reputation of being singularly marked with this trait.”


Confucianism = ritual, etiquette and being kind to one another

In China, the difference lies in the mandate to rule, which means that leaders do not tax the people unjustly. They make sure people have sufficient food and live in an orderly and peaceful society.

Confucian political philosophy is also rooted in the belief that a ruler should learn self-discipline, should govern his subjects by his own example, and should treat them with love and concern.

By providing these things, Confucius believed leaders would earn the confidence, trust and obedience of the people. By not providing these things, China’s leaders would lose the trust and obedience of the people.

One element of Confucianism that runs strong throughout East Asia is that Confucianism regards government and education as inseparable. Without a good education, it is considered impossible to find leaders who possess the virtues to run a government.

Confucius asked, “What has one who is not able to govern himself, to do with governing others?”

Continued on December 18, 2011 in The two-faces of Confucius – Part 5 or return to Part 3

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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.

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The two-faces of Confucius – Part 2/5

December 21, 2011

Before we look at the two-faces of Confucius, let us learn something from a New York Times Opinion piece by Eric X. Li, Counterpoint: Debunking Myths About China

Li says there is a common myth that because China does not hold elections that its rulers do not have the consent of the ruled.

However, “According to the Pew Research Center” Li says, “the Chinese government enjoys popular support that is among the highest in the world.The Chinese people’s satisfaction with the direction of their country was at 87% in 2010 and has been consistently above 80 percent in recent years.”

Compare the popularity of China’s government to that of the US government and its people, and we discover that, “Republican and Democratic leaders in Congress receive highly negative job ratings. Just 23% approve of the job Republican congressional leaders are doing, while 67% disapprove. Ratings for Democratic leaders are not much better: 30% approve while 61% disapprove…” Source: Pew Research Center


Common Misconceptions  About China

Li also debunked the myth that China is an authoritarian state in which the party’s political power is concentrated and self-perpetuating.

He then tackled the myth that China’s restriction on freedom of expression stifles innovation. Li says, “Some of the most successful IPO’s of Internet companies on the New York Stock Exchange and Nasdaq have been Chinese startups…” and “China’s share of scientific research papers published in recognized international journals went from 4.4 percent in the period between 1999-2003 to 10.2 percent in the period between 2004-2008, now just behind the United States.”

In addition, when it comes to claims that the Communist Party’s authoritarian rule leads to widespread corruption, “By Transparency International’s account [the lower the number the less corruption there is], China (78) ranks higher than India (87), Philippines (134), Indonesia (110), Argentina (105) and many more, and tied with Greece (78), barely below Italy (67) — all electoral democracies.

Apparently, China’s one-party system is less corrupt than many democratic countries.

In conclusion before moving on to the two-faces of Confucius in the next post, David Gosset in Common Misconceptions About the Chinese World says, “The level of individual freedom enjoyed today by its citizens has no equivalent in China’s past, and the effort to establish the rule of law will bring more social, economic and political improvements.”

Continued on December 15, 2011 in The two-faces of Confucius – Part 3 or return to Part 1

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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.

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