“The road from Socialist/Command to market is a realistically achievable path”

The first major factor, in determining whether or not a country is moving towards a market economy depends on the degree of state intervention- How much of a role does the government play when it comes to making economic decisions? Naturally the type of government in action would give us this answer. The Republic of India is a federal democracy whilst Communist China runs under a single political party. India as a federal democracy, means that state governments, rather than the central government, lead the way in the reform process. China on the other hand, falls only under the one rule. When comparing the effectiveness of the two forms of government, one might argue that a transition under a communist regime (like China) would be best. If a whole nation played by the same rules and guidelines, there would be fewer problems. India’s problem is that there are too many states, and

China, so far, has made undeniable progress in her reforms. If the present stability of their economy is to be maintained, a truly market economy is not far from being achieved. It is hard to say the same for India. Vijay Kelkar, Indian economist justifies this in stating that “India’s development is outstanding when compared to our own historical standards, but seen in the context of the contemporary experience of other economies of Asia, such as China (et al) our performance, is perhaps far short”. (Kelkar, 1999, p2) In conclusion, we will draw back to our hypothesis. Is the road from socialist/command to market a realistically achievable path? Our analysis has proved that for some economies, it may be a realistic goal, but for others it is not the case.

Considering the adjustments made in state intervention, one can only question what effect these adjustments have made on the development of industry. India’s situation is a good example of these changes. When considering factors that contribute to low productivity and growth, we could say that their economy is not competitive enough and that their past neglect for international trade, has left them far behind. Like a typical centrally planned economy (CPE), they saw foreign integration as a threat

Some topics in this essay:
India China, India Prior, Communist China, China India, India’s Industries, Asia China, Kelkar Indian, Republic India, human capital, realistically achievable, market realistically, , market realistically achievable, socialist/command market realistically, human capital technology, foreign investment, central government, road socialist/command, achievable path, capital technology, road socialist/command market, india federal democracy, private ownership, china hand,