The dynamic of economic growth

Abstract

Economic growth theories originated with the work of Malthus in the 17th century . Theories of growth have , since then , been used to explain economic developments and the reasons for the growth and decline of nations and communities . Growth theories have developed over time in response to developments like industrialization , advances in technology and the rise in human capital

The past two decades have seen enormous growth occurring in China and India , their achievements in this area silencing all critics and inspiring awe and respect . Both countries are expected to become

among the richest of world nations in the next two decades . This assignment attempts to delve into the reasons behind their growth stories , assess its impact upon the global community and examine future developments

Table of Contents

Serial Details Page

Abstract 1

1 Introduction 3

a Overview 3

b Detailing of Issue 4

c Objective 5

2 Research Methodology 6

a Methodology 6

b Choice of Research Methodology 6

c Research Questions 7

d Limitations of Study 8

3 Literature Review 9

a Economic Growth 9

b A Historical Perspective 13

c India 20

d China 27

e Similarities and Differences between India and China 35

4 Findings and Analysis 38

5 Conclusions 42

Appendix 44

References 46 1 . Introduction

a . Overview

The post Second World War era has been witness to change on a scale never witnessed before . Rapid and continual change occurring in areas of science , technology and medicine have impacted the world in many ways through the introduction of new products , elimination of age old diseases , and changes in lifestyles . The end of colonialism ended the subjugation and slavery of millions of world inhabitants , mostly in the nations of Africa and Asia . The post war period also saw massive reconstruction in the countries of West Europe and Japan , decades of economic growth propelling them into rich and affluent states . Japan very much the surprise package of the post war years dazzled the world with enormous strides in science , technology , and manufacturing overtaking the countries of West Europe to become the second richest country in the world . In South East Asia and in the Pacific , growth in the ASEAN (Association of South East Asian Nations ) nations , Australia and New Zealand created a new area of world affluence , and led to the emergence of cities like Singapore and Seoul (Berger Borer , 1997

While a number of countries were able to take advantage of the new opportunities , much of the world continued to exist in economic backwardness , marked by poor living standards and abject poverty . China and India , the two most populated countries in the world , referred by economists as Asia 's non identical twins , along with smaller countries in South Asia , Africa , and South America , continued to suffer from low economic growth rates , poor living standards , high illiteracy levels and infectious diseases Floods and food shortages caused enormous hardship and led to large numbers of human deaths . While China , because of its nuclear strength and anti west approach...