BRIEF ECONOMIC HISTORY (1850-1970)

Brief Economic History :

 India.
 China.
 Japan.
 South Korea.
 Singapore.
 NICs.
 1870-1950 :The Decline Period

 Transformation of two prosperous countries to poor

undeveloped nations.
 Period coincides with Industrial Revolution in Europe.

Pre British Era:

 India -Decline began after the rule of Mughal Emperor
Aurangzeb.
 Deterioration in Economic and Political status of
country.
 China -Strong resistance to British Imperialist, but
finally succumbed to Japanese invasion.
 Trade :1870-1950

 Flourished between India and China.

 For eg: Import ice blocks from Tudor Ice Company
Belmont, US.
 Surplus trade with Europe.

19th century:
 Exports generated large surplus with the USA.
 Tribute to Britain in the shape of "Home Charges".
 Net outflow from 1898-1914 came to £ 15.5
million .
 Agriculture :1952
China vis-a-vis India:
 Growth rate in foodgrains-6 times more than
India's.
 Non-foodgrain crops- marginally higher rates than
India.
 24 percent higher consumption per capita than India.

India:
 Ahead in literacy and enrolment in higher education.
 Per capita income was 54% higher in India.
 Tax :1753-1908

China:
 Land tax grew at an average rate of 0.4%.
 Feudalistic lords were not entertained in the
collection of land taxes.
 China had much fewer famines than India.
 Tax :1753-1908

India:
 Effects of Colonialism.
 Bulk of revenue and taxes paid by the Intermediary
class.
 Oppressive land revenue system.
 Motivated by political need to secure collaborations
for Imperial Rule.
 Combined with heavy taxes, famines and droughts
broke the backbone of Indian agriculture.
 Railways :1870-1950

India:
 Increased from 7678 kms to 65,217 kms.

China:
 Increased from 15 kms to 25,700 kms.
 Geographical area is in fact three times India’s.
 Mutinies and their Consequences

China - Taiping Rebellion

Consequence:
 Rulers more accommodative to the peasants.

India - Mutiny of 1857

Consequence:
 Government hardened their approach towards the
peasants.
 Behind China, in the largest sector of economic
activity: agriculture.
 Soviet Model
China:
 Liberation of the nation in 1949.
 Chinese Communist Party led governmentt adopted
Soviet Model.

India:
 Soviet Model adopted by PM Jawaharlal Nehru.
 Total reversal of principles of Gandhi and Patel.
 Post 1947- Achievement of "Commanding Heights".
 Strict administrative controls.
 Statistics :1952

 1952-1978: Both countries achieved similar growth

rates-4%.
 Chinese and Indian agricultural sectors grew at
about the same rate.
 In industrial value added, Chinese growth rate was
about double at 9.0% percent per year.
 In services sector, India was ahead at 5.1 per year
compared to China.
 Statistics :1952

Total Productivity factor(TFP):

 China -decreased at minus 0.5 per year.
 India -increased at 1.1 per year.

Gini coefficients:
 China -0.33
 India -0.42
SUMMARY
Thank You !!!