New Delhi -- Researchers, policymakers and advisors from China and India gathered today at the India Habitat Centre to discuss the best ways to promote economic development and reduce poverty. The two-day workshop, "The Dragon and the Elephant: A Comparative Study of Economic and Agricultural Reforms in China and India," is organized jointly by Jawaharlal Nehru University in New Delhi, and the Washington, D.C.-based International Food Policy Research Institute (IFPRI). China (the dragon) and India (the elephant) account for 40 percent of world's population, and they are home to almost one-half of the world's poor that survive on less than one dollar a day. The two nations face similar challenges on how to further reform their economies for future growth and make the resulting gains more equitable. Both countries implemented a series of economic reforms in the past few decades. China initiated this process at the end of 1970s, while India began in the early 1990s. These reforms led to rapid economic growths rates of 8-9 percent per annum in China, and 5-6 percent per annum in India.
"There's much that China and India can learn from each other in the course of their economic development," said Joachim von Braun, director general of IFPRI. "The two countries, while similar in many ways, have taken different paths to reform their economies. China initiated reforms in the agriculture sector and in rural areas, while India started by liberalizing and reforming the manufacturing sector.
"The two countries also differ in political systems, India being the largest democracy in the world, and China being one of the last still existing 'socialist' societies. These differences have led to dissimilar growth rates, and more importantly, different rates of poverty reduction," von Braun continued.
The workshop will explore important policy questions, such as: What can we learn from the process of economic reforms in these two countries? Does the sequencing of reform packages matter? What could other developing countries, and countries in economic transition learn from the experiences of India and China? How can these two largest developing countries cooperate in their agricultural and economic development? How can they work together in WTO and other multilateral negotiations?
"Food and agricultural policies of these two mega-economies need to be studied closely as they will potentially affect the global markets significantly. If there is information flow between 'the dragon' and 'the elephant' on comparative advantages and transparency in marketing, trade volumes can go up several fold, benefiting millions of poor people in these two countries. This workshop is a small beginning in that direction," said Ashok Gulati, director of Markets, Trade, and Institutions at IFPRI.
"Despite its faster growth and poverty reduction, China can learn from India's experience on many fronts, for example, the more active role of non-governmental organizations and informal institutions in rural development, free labor mobility across regions and between rural and urban areas, and strong local financial institutions," noted Shenggen Fan, a Chinese economist and IFPRI senior research fellow.
Researchers, policymakers and advisors at the workshop will share their country's experiences on issues such as land tenure and institutions, agricultural market reforms, rural investment, development of the rural non-farm economy. The workshop will be inaugurated by Dr. Manmohan Singh, the former Finance Minister of India, who is also considered as the main architect of India's economic reforms launched in 1991. Other presenters include:
- G. K. Chadha, Vice-Chancellor, Jawaharlal Nehru University
- Y K Alagh, former Vice Chancellor of JNU and Minister of Power in GOI.
- G. S. Bhalla, Professor Emeritus, Centre for the Study of Regional Development, Jawaharlal Nehru University
- Jikun Huang, Director, Center for Chinese Agricultural Policy, Chinese Academy of Sciences
- Keming Qian, Director General, Institute of Agricultural Economics, Chinese Academy of Agricultural Sciences
- C. H. Hanumantha Rao, Chairman, Centre for Economic and Social Studies
- Vijay Vyas and Kirit Parikh, both members of the Economic Advisory Council of the Prime Minister of India.
- Funing Zhong, Dean, Economics and Trade, Nanjing Agricultural University
"We are pleased to host this workshop. The lessons learned from this dialogue will assist policymakers in developing better strategies to alleviate poverty through diversification of rural economy and expanding employment opportunities," Professor Chadha remarked.
"This workshop represents a first step in developing a network of policy researchers, advisors and policy decision makers in China and India," said Peter Hazell, director of Development Strategy and Governance at IFPRI. "We hope to continue the debate and dialogue on these issues at a workshop in Beijing later in the year."
For more information, contact:
a.gulati@cgiar.org
s.fan@cgiar.org
m.rubinstein@cgiar.org
The International Food Policy Research Institute (IFPRI) seeks sustainable solutions for ending hunger and poverty. IFPRI is one of 15 Future Harvest Centers and receives its principal funding from 58 governments, private foundations, and international and regional organizations known as the Consultative Group on International Agricultural Research.