India or China--who will prevail?

By Charles Cooper, CNET News.com
Tuesday, May 22, 2007 01:59 PM

Charles Cooper

perspective China versus India: which one is destined to rule the 21st century?

When it comes to divining the future, only a sucker or a veritable oracle would dare handicap that burgeoning geopolitical rivalry. Ignoring my own warning, let me try to give it a shot.

The conventional wisdom is that the Middle Kingdom is the rabbit in this race, destined to leave the tortoise that is India in the dust. At first blush, that sounds like the more plausible outcome.

Clearly, China's post-Mao transformation is the story of post-war economic history. The nation's economy has grown more than 7 percent annually for the last couple of decades. China's emergence as a manufacturer of high-tech goods is equally impressive with a roster of companies featuring the likes of Lenovo, Baidu.com and Huawei Technologies. But China's hyper-growth has disguised several increasingly pronounced blemishes.

After spending nearly a month traveling throughout China, a friend wrote me how hard it was for a visitor to comprehend the magnitude of all one encounters.

"The multitudes of people, the size of their building projects, and the sheer audacity of their vision to transform this country into a mega-powerhouse," the friend wrote. "What do you do with an infrastructure that is developing so rapidly, that there are more than 160 cities with populations over 1 million each and no fewer than 10 cities with populations over 10 million?"

Talk about an understatement. That mind-numbing question is as big as all of China.

He also could have added that almost 15 million people in China each year move from the countryside to the cities. With so vast a population in transition, the absence of a safety net carries with it the ever-present potential for social unrest.

So far, things have worked out. After Deng Xiaoping came to power following Mao's death in 1976, the government made a covenant with the rising entrepreneurial class. To put it simply, it went like this: "We'll let you get rich, but leave the politics to us." Of course, the state has had to deal with occasional turbulence, such as the rebellion at Tiananmen or the northwestern province of Xinjiang.

But these rate as momentary detours on an otherwise unimpeded march toward superpower status. Meanwhile, India has had its own issues. The state doesn't invest enough in vital infrastructure while it spends too much money subsidizing agriculture.

India's political power doesn't emanate from the barrel of a gun.

"China's invested more in infrastructure than India, which is in a big catch-up situation," said Michael Spence of Stanford University, who won the Nobel Prize for Economics in 2001. "If they don't do that, they won't grow at the rates being projected."

Nobody knows whether India's leadership will act on that warning. But if I were a betting man, I'd say there's a lot to like here.

For all the mess that is India, it's still one heck of a productive mess. In its latest five-year plan, the country forecast average growth accelerating from 9 percent to more than 10 percent. That's a breathtaking climb. And consider the following: In 2002, the country's annual GDP growth was lower than that of China, Vietnam, Sudan, Tanzania, Uganda and Bangladesh. Within a year, India had closed to No. 2 behind China, largely on the strength of its emerging IT and business process outsourcing sectors.

India also reaps benefits from an excellent educational system that's generated thousands of graduates who work for overseas American corporations.

Above all, India's political power doesn't emanate from the barrel of a gun. On Tuesday, the U.S. statement included China with the likes of Iran, Zimbabwe, Cuba, North Korea and Myanmar as a country where human rights protections routinely get violated. Compare that with India.

The system may sometimes be raucous and inefficient, but it remains the world's largest functioning democracy. That counts for a lot and helps feed into a touchy-feely attribute that can't be measured like a dry economic input.

Spence summed it up this way: It has a lot to do with a sense of optimism and momentum, a feeling that today will be better than yesterday and tomorrow will be better than today. It's a very American way to explain India's phenomenal growth, but I think it helps fill in some of the gaps. In China, you can dream of being rich, but it then behooves you to keep your opinions to yourself. The average Indian can also dream about making her fortune--and then figure out how to apply those lessons to building a better society.

What could be more Indian? What could be more American?

Biography
Charles Cooper is the executive editor of commentary at CNET News.com.


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Talkback 7 comments

I am disappointed that the writer chose to make a linear projection and picked the politically-correct choice of democratic India. The article should have been more balanced and forward-thinking. Life is a dynamic process. History has shown that autocratic governments, such as Taiwan and South Korea, have made the transition to a democracy after they become industrialized and wealthy. Put another way, please name a wealthy industrialized Asian nation that remained autocratic? You can't? Gee, I wonder what the odds are that China will become a democracy in the future.
Posted by Martin Su on Tuesday, May 22 2007 03:22 PM

A functional democracy wherein human rights violations don't exist. That brings a smile to my face. Make no mistake - I am Indian, and a proud one at that.

India faces as many problems as Red China - we have problems with people migrating to Cities as well - which is more pronounced because most of the cities have no infrastructure to support this excess. Shortage of water, electricity - coupled with a rising regional chauvinism (we are a veritable amalgamation of hundreds of dialects and scores of languages), fuel increasing intolerance of secularism. There are also problems arising between the Haves and the Have-nots.

From a purely political perspective - India is a much better investment bet than China, because we are so much more OPEN - free media, freedom to voice our dissent and concerns. Certainly free to make our choices of leaders (though we keep electing absolute nincompoops who keep getting in the way of the progressive leaders/politicians). However whether this aspect alone will be sufficient in ensuring that the Indian Tortoise will over take the Red Rabbit is something I would not like to stake on.
Posted by Palani on Tuesday, May 22 2007 04:36 PM

This article is nothing new, democracy is always winning. However, the reality is a totally different thing. China is miles a head from India in almost every aspect. You name it, be economy, millitary, sports. Chinese live much longer than Indian. India's democracy is a failed democracy. India's democracy = chaos, China's Dictatorship = Discipline. A large and poor country needs disciplne and stable society. Opposite to the author's statement that people in india are equal, India still has most inhuman caste system. China will prevail.
Posted by David on Tuesday, May 22 2007 08:45 PM

India already prevailed. You can read headlines about India becoming a superpower in 2020, but China admits it will take at least 100 years for its citizen's living standard to be comparable to developed country. India in 15 years and China in 100 years. India wins!
Posted by India1st on Wednesday, May 23 2007 08:08 AM

I agree that China will prevail in the near future like 20 years until we could see India can make extreme progress in infrastructure, politics, education, or else India will possibily fail in the next 5 or 6 years when its only shining point, software services, be taken over by China and other emerging countries
Posted by Sergie on Wednesday, May 23 2007 09:07 AM

I wish Western commentators could understand that, unpalatable as it may seem, China's political system is part of the reason for its economic success. To get infrastructure built in a big poor country, you need an authoritarian government that can plan on a ten-year horizon. You need a government that can ensure basic health and literacy for all, and can unify and mobilize people and resources on a massive scale. A communist regime can do these things better than a democracy. For the moment, China has the government it needs. India by contrast has a government that simply cannot do big things because democracy gets in the way. And its "boom", such as it is, is largely based on the historical fluke of having a large group English-speakers¯in other words, on the fact that it was conquered and colonized by a foreign power. That India still does not have its own national language, despite the fact that only tiny minority are truly fluent in English, is shameful. As for human rights¯what use is freedom of speech when one-third of your people cannot read? And how come all those who (rightly) criticise the repression of the Chinese communist party have nothing to say about Indian caste, which condemns over 100 million people to discrimination and misery?
Posted by oohkuchi on Saturday, July 28 2007 01:23 AM

Hmmm the only thing that I can really see here is that china was able to raise its own by its own withi ts own means while india was somehow dependent of with an external body.
Posted by kamakari on Monday, August 20 2007 01:53 PM

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