Lessons from China and India
| Author | Steven Barnett/Paul Gruenwald |
| Position | IMF Asia and Pacific Department |
| Pages | 349-359 |
Page 349
China and India are fast becoming regional and global economic powerhouses. Are there lessons they can learn from each other and pointers that both can give to the rest of the world? In a sequel to a 2003 conference in Delhi, policymakers, business people, and academics gathered in Beijing to share analyses and lessons and to explore steps the two countries can take to create healthy financial sectors and sound fiscal positions, which will be needed to sustain high growth.
Page 358
China and India are emerging as increasingly important regional and global economic powers.What can each learn from the other, and what can the world learn from both? In Beijing in late October, a conference on China's and India's changing economic structures-a followup to a 2003 conference in Delhi (see box)-examined experiences and shared views on what will be needed to sustain high growth, with a focus on how to strengthen financial sectors, ensure fiscal stability, and deepen regional cooperation.
The conference-organized by the IMF, the China Society for Finance and Banking, and the Stanford Center for International Development-drew policymakers, business people, and scholars from India, China, and the region's emerging market countries and featured keynote addresses from the People's Bank of China Governor Zhou Xiaochuan and Reserve Bank of India Deputy Governor Rakesh Mohan.
In contrasting several major features of the two economies, Zhou paid particular attention to the contribution of the service sector to growth. He also paid tribute to the advances that India has made in its financial "ecology"-the institutions, laws, and regulations that underpin the system-adding that China had made this a priority, too. Looking ahead, he said, China's reforms will focus on building a harmonious society, including improving living standards in the countryside, promoting energy efficiency, and protecting the environment.
In his remarks,Mohan looked beyond the two countries to highlight several conundrums confronting the global economy, notably the muted impact of higher oil prices on global growth, falling long-term bond yields at a time when the U.S. Federal Reserve has been raising short-term interest rates, and the persistence of low...
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