A.3. China and India’s Development Strategies
Today, China and India are recognized as significant economic powerhouses. In 2010, China surpassed Japan to become the world’s second-largest economy, even when measured using market exchange rates. Media outlets frequently cover China’s prominence in trade and finance, alongside India’s rapid growth in technology and innovation. Both nations are also deeply involved in economic relations with developing countries.
They are considered key economic and political players on the global stage, particularly in trade and global governance. Their economic engagement with developing countries spans areas such as labor, human rights, international relations, security, and environmental sustainability.
While there are potential risks linked to trade and financial flows, as well as the socio-political consequences of China’s financial outflows, both nations have helped mitigate the effects of recent global economic crises. Their demand for goods from developing countries has acted as a buffer against the declining resource flows from advanced economies.
China and India influence global economic and political dynamics and can provide alternative sources of development assistance for developing countries. They can also provide several potential lessons for other developing countries, three of which are highlighted in this article: absorption of surplus labour, the raising of domestic and foreign investment, and support for R&D.