The Causes of Differential Development: Beyond Regime Dichotomies
Successful economic modernization in China and India is crucial for the success of the global economy. This chapter reviews the course of reform in both countries and assesses the main challenges they face in becoming developed nations. Although China and India account for only 4 percent and 2 percent respectively of global GDP, they account for two-fifths of humanity. Failure to modernize in one or both of these countries would risk confining the successfully “globalized” part of the planet to large pockets in the West and East Asia, excluding half the world’s people and potentially threatening the stability of the global economy.
KeywordsForeign Direct Investment Differential Development Coalition Government Nonperforming Loan Fiscal Deficit
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