THE IMPLEMENTATION TRICKLE DONE THEORY AND

INCLUSIVE GROWTH THEORY

 The case of study of success (China)

In China, the implementation of Trickle-Down Theory has been largely successful in the past
few decades. The country's economic growth has been phenomenal, with GDP increasing by
an average of 9.5% per year from 1979 to 2018. This growth has been fueled by large-scale
infrastructure projects, privatization of state-owned enterprises, and liberalization of markets.
As a result, the country has become a global economic powerhouse and lifted millions of
people out of poverty.

However, the success of Trickle-Down Theory has come at a cost. Income inequality has
soared, and the wealth gap between the rich and poor is one of the highest in the world. The
rural-urban income gap is also significant, with rural residents earning only a fraction of what
their urban counterparts make. Moreover, the country's growth has been driven by export-
oriented manufacturing, which has resulted in environmental degradation and exploitation of
workers.

To address these issues, China has recently shifted its focus towards Inclusive Growth
Theory. The government has introduced policies aimed at reducing poverty, improving
access to education and healthcare, and promoting innovation and entrepreneurship. The
country has also taken steps to address environmental concerns by promoting green energy
and reducing pollution.

While it is still too early to fully evaluate the success of these policies, there have been some
positive signs. In 2020, China's poverty rate fell to 0.6%, down from 10% in 2012. The
government has also invested heavily in education, with the number of college graduates
increasing significantly in recent years. Additionally, the country has made significant strides
in the development of green technologies and has become a global leader in renewable
energy.

In conclusion, the case study of China's implementation of Trickle-Down Theory and

Inclusive Growth Theory highlights the potential benefits and drawbacks of these economic
models. While Trickle-Down Theory has led to remarkable economic growth, it has also
exacerbated income inequality and environmental problems. Inclusive Growth Theory aims
to address these issues by promoting equality and sustainability.

 The case of study of failure (India)

One example of a country where the implementation of the trickle-down theory and inclusive
growth theory has been deemed a failure is India.

While India has experienced significant economic growth in recent years, there is still a large
wealth gap between the rich and the poor. The trickle-down theory suggests that if the
government creates policies that benefit the rich, the wealth will eventually trickle down to
the rest of society. However, this has not been the case in India, as the benefits of economic
growth have largely gone to the wealthy elite, while poverty and inequality remain
widespread.

Inclusive growth theory, on the other hand, advocates for policies that aim to reduce poverty
and inequality by promoting equal access to education, healthcare, and economic
opportunities for all members of society. While India has made some progress in this area,
there are still significant disparities in access to education and healthcare, particularly in rural
areas and among marginalized communities.

Overall, the implementation of these economic theories has not led to the desired outcomes in
India, and there is still much work to be done to address poverty and inequality in the
country.

Hafizhah Dzakirah

20220430174