Why can China build

Cities overnight

And Why India

Can NOT?
 FIAT FAIRNESS
( let it be done) ( if it can be done)

Theoretical Construct in

&
Theoretical construct in
Policy debate whereby all
policy debate whereby the
the affected
desirability rather than
side’s views
the probability of
are taken into
enactment and
consideration.
enforcement of a given
Action depends on ability
plan is debated, allowing
to enforce and potential of
an affirmative team to
enactment rather than
‘imagine’ a plan into being
desirability.
 China
China -- Progression
Progression

People’s Republic of China – 1949

The era of Mao Zedong
The transition to Socialism – 1953- 1957
‘Great Leap Forward’ by CCP – 1958 ( Failed)
Economic Reforms & Military Development – 1960
Readjustment & Recovery - 1961-1965
The Cultural Revolution Decade – 1966 – 1976
Rebuilding CCP – 1969
End of Mao’s era
The Era of Deng Xian gong
China & the Four Modernization
Reforms
 India
India -- Progression
Progression
1947 – Independent India
Nehru era – 1952-1964 – Socialist Policies
1970 – Nationalization movement.
Hard line socialism
License Raj
Emergency declared in 1975
1977- 1984 – Economic Turmoil, Fiscal instability.
1984 – Rajiv Gandhi – Political & Administrative Reforms
1991 – Dr. Manmohan Singh – LPG.
 Pudong

Pudong was a farmland till 1990

Chinese Govt. decided to set up an SEZ
Today Pudong has more skyscrapers than Manhattan.
Mumbai
Mumbai SEZ
SEZ
Investment
Investment --Rs.40000
Rs.40000Crore
Crore,,
Jobs
Jobsto
tobe
becreated
created––22,million.
,million.
Exports
Exportsfrom
fromthe
theSEZ
SEZ––Rs.100000
Rs.100000Crore
Crore
Revenue
Revenue––10000
10000Crore
Crore

RR&&RRPackage
Package--
1.1.AAJob,
Job,
2.2.12.5%
12.5%Developed
DevelopedLand
Land
3.3.Compensation
Compensationfor
forland
landat
atmarket
market
rates
rates
MMSSS - litigated against MSEZ, NMSEZ, and in
particular, questioning the SEZ Act, 2005.

It said that SEZ Act, 2005 was against the

fundamental rights under Article 14, 19 and 21.

Reliance petitioned for extension of Land

acquisition deadline. The SC did not support it.
 The Three Gorges Dam –
River Yangtze

THE GORGES PROJECT

It is the world's largest electricity-generating plant of any kind.

Commission in 1992 – Concerns shown by various quarters
Construction started in 1994 – finished in 2006 – ahead of schedule
 Narmada
Dam

• Oct 2000-SC cleared way for construction of Sardar Sarovar dam-biggest dam
••MOEF-conditional
ADVANTAGES-drinking
to be built clearancewater, irrigate the dry parts of Gujarat, to raise
in 1987
• agricultural
•World
Abovebank-morsegrowth
360 feet was rates tounless
high levels,
report-overstating
illegal produce was
compensation
benefits hydroelectricity
paid
••Public
Initial work
• By march started
litigation
2006-33 infeet
in 1994 1961-controversy-sharing
was allowed of water & costs btwn 3 states
••Halted
POSTPONED-20
• Displaced
work again yrs
peoplein claimed
95 that they had not been paid compensation
• 1985-Narmada Bachao Andolan-Medha
• Medha patkar-indefinite hunger strikePatkar-Violation Of fundamental rights
• Dam was to be completed in 1995!
How
How Can
Can China
China
Build
Build so
so fast?
fast?
Economi
●
●
Civil
Propert
Market
Free Press
Government
Judicial
Political
●
●

structure
Bureaucracy
Internet
y Rights
Rights
–cSocial E.
●
●
●
FDI
Political factors
 Government

• Single Party Socialist Republic

• The country is mainly run by the Communist Party of China (CPC)
• No substantial legal political opposition groups exist
• The CPC has been enforcing its rule by clamping down on political
dissidents while simultaneously attempting to reduce dissent by improving
the economy
 Bureaucracy
• In China, the government functions as a "helping hand" for economic development, -
promoting economic growth.

•  Serious bureaucratic reforms preceded any economic reforms.

• The reforms - 1980 – abolished the lifetime tenure of the cadres working for the party.

• Retired old revolutionary veterans whose political loyalty was valued more highly than
their administrative capabilities.

• This Modernized the contingent of govt. officials.

• A strict retirement age was enforced for govt. officials, and an education requirement was
introduced at each level of govt. positions.

• Imp. to note that this reform was implemented between 1982 – 1984, before the decision
to carry out official reforms.
Political factors
 Political
Political system
system

Worlds largest democracy.

• Opposition party as important as the ruling party.

• E.g. nuclear deal

• Heterogenous society

• Politician’s vote bank matters the most

E.g.: Machimaar village (Cuffe Parade)
Economical factors
 Economic Reforms
Beginning in the late 1978, China Economy has been
moving to a more market oriented economy. 

China decollectivized agriculture, yielding tremendous

gains in production.
The structural changes permitted a wide variety of small-
scale enterprises in service and light manufacturing.

Due to its increasing openness to foreign trade and

investment, in 1999, China Economy became the second
largest economy of the world after the USA, in terms of
GDP. 

China is firmly committed to economic reform and opening to the outside world. The Chinese
leadership has identified reform of state industries and the establishment of a social safety net
as government priorities. Government strategies for achieving these goals include large-scale
privatization of unprofitable state-owned enterprises and development of a pension system for
workers.
Economical factors
 Economic
Economic system
system
• India: under socialist policies- 1947 to 1991
• Economy characterized by extensive regulation:
• 1. Licence Raj
• 2. Protectionism
• - leading to corruption and slow growth.
• Since 1991- continuing economic liberalization has moved
the economy towards a market-based system.
• Now it is a mixed economy
• This allowed automatic approval of FDI in many sectors
and also to Public private partnership
• Only after 2005 government has made regulations allowing
100%FDI in all sectors
The Judicial System
Judicial system in China
Judicial system in China

••Not
Not Independent
Independent

••No
No Laws
Laws toto
Protect
Protect Civil
Civil
Rights
Rights

••Property
Property laws
laws
are
are ill
ill defined
defined
PROPERTY LAWS THROUGH THE YEARS

1949-56 Private property in urban areas

recognized by the government
1956-66 Private land was taken in to public
control
1979 Rapid Production of urban
housing replacing existing
facilities
March 2004 Constitutional Amendments to
property rights made private
ownership easier

March 2007 The property of the state, the

collective, the individual and
others is protected by law, and no
units or individuals may infringe
upon it
 HOWEVER . .

"between
The legal principles
People’s Supreme Court works and reality Level
as a Ministerial
there exists
Organization and issome distance."
equal and not superior to the Ministry of
Construction
 Relocation
Relocationof
ofAffected
Affectedpeople
people--PUDONG
PUDONG

• Thousands of families relocated to remote

suburban areas

• Land/property easily taken over in return of a

compensation

• Protesting parties were harassed

• The government did no face any public outcry

The Judicial System
 Judicial
Judicial processes/system
processes/system
2 imp institutions of Indian democracy
1. Legislative
2. Judiciary

Both at loggerheads-on property rights

After independence, constitutional articles,

right to property=fundamental right

Article 31 – no one can be deprived of property except by law (set

principles on compensation to be paid)

Earlier socialist ideology Nehru’s Govt.

wanted to acquire (without compensation) and control private assets
(land) for public good

Legislature - appropriation of property rights

1951- 1st amendment JUDICIARY-allowed Govt. to acquire estates
(agricultural land)

Land owners continued to petition court-that this violated fundamental

rights

Still 1st amendment prevailed- Nehru charisma - legislature upperhand

Article 32- individual had the right to approach sc if fundamental rights are
violated
In order to avoid this, they removed right to property as a fundamental right

This led to judicial activism(over the yrs)

Eg- Golaknath case, Keshavnanda Bharati
Then brought back under article 21-expanded definition of life
& liberty

Net result->right to property=fundamental right

Tension between judiciary and legislative systems in India

 E.g.- Delhi Metro Project


 Judicial
Judicial processes/system
processes/system
2 imp institutions of Indian democracy
1. legislative-
2. judiciary-

Both at loggerheads.-on property rights

After independence constitutional articles, right to property- fundamental

right

Article 31 – no one can be deprived of property except by law (set

principles on compensation to be paid)

Earlier socialist ideology Nehru’s Govt. wanted to acquire (without

compensation) and control private assets (land) for public good

Legislative - appropriation of property rights

1951- 1st amendment JUDICIARY-allowed Govt. to acquire estates
(agricultural land)

Land owners continued to petition court-dat this violated fundamental rights

Still 1st amendment prevailed- Nehru charisma - legislature upperhand

Article 32- individual had the right to approach sc if fundamental rights are
violated

In order to avoid this, they removed right to property as a fundamental right

This led to judicial activism(over the yrs)

Eg- Golaknath case, Keshavnanda Bharati
 Then brought back under art.21-expanded definition of life
& liberty
 Net result->right to property=fundamental right
 Tension between judiciary and legislative systems in India
Civil Rights
 Freedom of Speech

Severly restricted

No freedom of speech

• One of China’s most enduring and

outspoken criti c of Damming the
Yangtze, Prof. Wangli Huang was sent
to a labor camp in 1958, and even his
children were pressured to denounce
him.
 Free
Free Press
Press
 Heavy Government involvement in the media, 
 most of the largest media organizations being run directly by the
government

 Contents are regulated and controlled

 Internet content also restricted

 Foreign internet search engines including Microsoft Live Search,

Yahoo!, Google Search China banned the word "Democracy" from
its chat rooms in China. 

 Yahoo! in particular, stated that it will not protect the privacy and
confidentiality of its Chinese customers from the authorities
Civil Rights
India:
India: Freedom
Freedom of
of speech
speech and
and expression
expression
Freedom of press

E.g. McKinsey 2003 published “Vision Mumbai” a report which

gave the to do list for the “Shanghaization of Mumbai”.

• Report was criticized by various environmentalist, activist’s,

academicians.

• This showed that changing infrastructure for national

development is unwelcomed concept in the minds of the
people.

People cannot accept change, if it conflicts with personal well

being.

Fairness: objective of all development is development with a

human face.
Who’s better tipped to succeed ? Who do you
put your money on?

China – Faster growth, efficient administration and

infrastructure, but what about Human rights ? Is
this model sustainable ?

India – Bureaucratic, divided, poor infrastructure and

consistently performing under power, but adheres
to all human rights. Every person is important. Is
this model sustainable ?

WHO WILL SUCCEED ??

 China should probably have a relook at the
way it implements various projects.
It should not just be a Fiat nation, but fairness
on rational ground should also be a factor for
growth.

India needs a change in its mindset. To become

a power to reckon with it needs to do away
with age old Bureaucracy and Laws. It needs
a revamp for the 21st century.
 Biblio - graphy
Billions of entrepreneurs – Tarun Khanna

Wikipedia

www.hiebs.hku.hk/working_paper_updates/pdf/wp1
049.pdf

http://ideas.repec.org/p/iie/wpaper/wp01-3.html
QUESTIONS?