Awakening Giant Feet of Clay Chapter.7 Pak Ming Man Awakening Giant Feet of Clay Chapter.7

Chapter .7 Poverty and Inequality The differences in poverty and inequality between China and India in the 1981-2005 Used a lot of data to show which country is doing better to solve poverty and inequality in their country during the 1981-2005

Which is better in solving poverty? China had 730.4 millions of people(73.5%) were below the poverty line. Only 106.1millions of people (8.1%) were below the poverty line in 2005. India had 295.1 millions of people(42.1%) were below the poverty line. 266.5 millions of people(24.3%) still below the poverty line in 2005 Poverty line is $1 a day Per Capita (PPP)

China Land redistributions (every rural family getting equal piece of land) Foreign trade and investment since the 1990

India Rate of decline in poverty did not accelerate in 1995-2005. Most of the reason was because the public investment in rural infrastructure decline. India’s health indicators are worse than those of Bangladesh The percentage of underweight children is 46% in India. China only have 8%. Trade liberalization trade liberalization actually slowing down the decline in rural poverty. Such results may indicate the difficulty of displaced farmers and workers in adjusting to new activities and sectors on account of various constraints

Why China is greater than India? Differential inequalities of opportunity in the two countries. Land and Education. inequalities are much high than China The poverty reduction has been less than China’s, not just because growth has been faster in China but also because the same 1 percent growth rate reduces poverty in India by much less.

Inequality Economic inequality is the difference found in various measures of economic well-being among individuals in a group, among groups in a population, or among countries

Inequality in China Land distribution inequality was 0.49 in 2002 Educational inequality was 0.37 in 2002 Gender inequality both of them have more male than female. inequality is using Gini coefficient to measure Male to female ratio in children 1.19 in china 1.08 in India

India Gini coefficient of inequality of land distribution was 0.62 in 2002 Educational inequality is 0.56 Real wages of urban full-time employees in India increased from 0.38 in 1983 to 0.47 in 2004. In India the poorer states have grown much more slowly than richer states so relative inequality has increased

Which country is doing better? Education has much bigger impact on India than China Even higher than some African countries (one of the worst in the world) China is better in every catalogs of the inequalities of coefficient than India in the last 30s years