    
Raithubidda
Pilla Bewarse
Username: Raithubidda
Post Number: 22
Registered: 04-2005
Posted From: 66.87.126.51
Rating: 
Votes: 1 (Vote!) | | Posted on Wednesday, August 17, 2005 - 11:40 pm: |    |
Excerpts from the main story and round table discussions:
"The average Indian company posted a 16.7% return on capital in 2004, vs. 12.8% in China."
"The lack of intellectual property protection, and Beijing's heavy role in building up its own tech companies, make many other multinationals leery of doing serious R&D in China"
"One major advantage that India has is the existence of a functioning democracy and the economic "soft infrastructure," or what I would describe as "institutional capital" that those in developed economies accept as standard -- rule of law, commercial code, veracity of the data, evenhanded treatment of all parties, root out corruption, property rights (intellectual and otherwise), bankruptcy procedures, monetary and fiscal policies that work and are understandable, etc."
"China has been growing at roughly 9% a year with an investment/GDP ratio of around 40%. India has been clocking about 6% a year with an investment/GDP ratio of about 25%. This indicates that India is using capital more efficiently, in the sense that it gets more growth bang for the investment buck"
" The first is to confront the so-called "peasant question." With all the talk of the high-tech industry, software, and IT nowadays, let's not forget that China's economic reform and the subsequent takeoff began from the countryside."
"The so-called "sannong" crisis -- crisis in the agrarian sector, in the agrarian regions and among the agrarian population -- has caused serious problems for China's overall development. India may have to deal with some of its own fundamental problems in the vast rural areas if it wants to produce its own sustainable miracle of growth."
"There is one even more fundamental issue: None of the above could be accomplished in the Chinese case without a strong state. And the Chinese state is both nondemocratic and totally committed to growth at the same time. While there is no convincing correlation between an authoritarian strong state and a high growth rate, neither is there clear evidence linking democracy with strong economic performance. It is obvious that there are some lessons that India can learn from China, but there are also factors in China that cannot be emulated by India."
"In producing about 4% of the world's annual GDP, China consumes 10% of the world's electricity, 20% of its copper, 31% of its coal, and some 40% of its cement. In generating every ton of iron and steel, major Chinese iron and steel producers consume 40% more energy than the world average."
" Although the Chinese rhetoric about "South-South cooperation" used to have a strong political tone, it is now more about real business partnerships based on market and profit calculations. The majority of Chinese enterprises are totally market driven and they do cut-throat capitalistic operations with a ruthless attitude. So whenever they find it complementary with Indian enterprises, they will be ready to do business as they do with others. And there are many opportunities emerging. |
