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Jessica Nono
Jessica Nono

CHINA VS INDIA ECONOMIC GROWTH MODEL FOR AFRICA

Posted on April 15, 2024April 15, 2024 By jessica

Let’s explore the grounds on which some conceive India to be a more practicable economic growth prototype than China.

Characteristics of China’s model

State-led growth: heavily driven by state-controlled investments, central planning and significant government intervention

Manufacturing and export focus: massively invested in manufacturing and infrastructure to spur export, thus becoming the “world’s factory”

Authoritative political context: single-party system with no free elections or political opposition.

Characteristics of India’s model

Market-driven growth: government intervention is less pervasive, compared to China

Service-oriented economy: the country has a particularly strong IT sector, acknowledged internationally

Democratic structure: federal setting, with several political parties and classified as a “partly free” country by Freedom House.

Adaptability to Africa

Firstly, it should be highlighted that as many African countries function within a defined democratic framework, India might be more suitable to the former. Then the diversity on linguistic, cultural and religious levels shared by both India and some African countries, abets policies that allow applicable methods for said countries. Thirdly, India successful services sector could be appealing to a burgeoning African youth and a constantly expanding digital connectivity. Finally, as India managed to revamp its infrastructure with limited resources, this has potential to present valuable lessons for those African nations.

Challenges and considerations

African leaders looking for a quick fix to economic development issues might be attracted to China’s extremely quick growth in a short period of time, that bears the particularity of having lifted hundreds of millions of its citizens out of poverty.

There are also the geopolitical repercussions linked to aligning with either China or India African countries that have to be carefully examined. In effect, this comes down to China’s Belt and Road Initiative conferring infrastructure project, and Indian Technical and Economic Cooperation (ITEC)’s soft power and capacity-building initiatives.

Conclusion

Deciding whether to look to India or China as a model involves weighing these complex factors against the specific needs, capacities, and aspirations of individual African countries. While India’s model offers the benefits of a democratic, diverse, and service-oriented roadmap, China’s model offers lessons in rapid industrialization and infrastructure-driven growth. Each African country’s choice will likely depend on its unique circumstances, priorities, and the kind of relationship it seeks to cultivate with these rising global powers.

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