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Comfort of GDP Against Social Insecurity

In 2006, the GDP per capita of USA was 8, China stood at 131 and India was at 160 just one rank above Pakistan. In 2009, the highest GDP was USA, China occupied third position and India stood at 11position. In 2010, USA retains its first position, China moved up to to second and India remained at 11 position.

China and India jointly account for 2.4 billion people, which is roughly 40 percent of the total population of the world. It has been reported that India’s GDP (PPP) is four trillion whereas China’s GDP (PPP) is ten trillion. It is also predicted that GDP India and GDP China will witness an overwhelming growth that will transcend the G7 countries, that includes United States of America, Canada, France, Germany, Italy, Japan, and United Kingdom. It is assumed that by the year 2050, both India GDP and China GDP will witness a gigantic growth. The current GDP of China is USD two trillion which is predicted to reach USD 48.6 trillion by 2050. On the other hand, India’s current GDP is USD one trillion, which will become USD 27 trillion by that time.

The rapid growth is attributed to the reforms in these two countries, China since 1970’s and India since 1990s. China’s growth has resulted from the rapid rise in the manufacturing of high-tech goods in the country under the large-scale high-tech manufacturing foreign firms. The infrastructural development in China has also been higher than that of India. In general, China spends much more in its infrastructural facilities than India. India’s strength is identified in its robust public sector financial institutions. Both countries benefitted from export earnings in IT and FDI mainly from overseas non residents.

The extraordinary upscale of France GDP and GDP India attracted attention and admiration of the world and it provided a strong boost for their respective national self esteem and confidence. But the picture of overall national health indicator is sadly dimmed by the social sector poor delivery in both countries. China’s education program, health policy, wage structure and civil service reforms in a big way have provided the desired support base for a focus planning and implementation. India’s social sector policy and implementation strategy is however weakened terribly by the stark absence of civil service reforms which can assist in public policy for a much better focus approach. This has resulted in inadequate budget planning and outcome manifested in poor delivery of services leaving India a home of the most illiterate, poorest, and largest number of unemployment in the world.

Placing the two countries on a race is quite irrelevant when PPP as an economic indicator is not a measurement of social impact from the economic growth. Higher GDP growth does not lead to automatic growth in social sector. It needs resource transfer to social sector with planning for mobilisation, allocation and spending. The exercise from micro to macro planning covering the entire social sector for efficient and effective public service delivery requires expert support of public and social policy. Who will bell the cat for capacity building through civil service reforms to perform in social sector? So far, there is pin drop silence on the issue.

If a race is to be conjectured between the two Asian Giants, the winner will go to the sharper mind to identify the problem and innovate ideas to give solution. The loser could be the complacent one who thinks will win despite all the odds.



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