Emerging Giants: China and India in the World Economy

China and India are the two most populous countries in the world and now also two of the fastest growing. By sheer virtue of the fact that China and India are home to 2.4 billion people - two-fifths of the world's population - the rapid growth of their economies has far-reaching implications not just for global living standards and poverty reduction but also for competitiveness and distribution of income in the rest of the world. Commensurate with their economic progress, there has been a surge of interest in the nature and implications of China and India's economic growth. There are several apparent similarities in the development process of China and India: both are home to ancient civilizations that have bequeathed distinctive attitudes, institutions, and traditions. Both have very large populations. Both have performed well economically for more than two decades. However there are important differences that can be seen beneath the surface. China started the current reform process in 1978 - that is, almost fifteen years before India. The two countries have very different political systems. Their development models differ fundamentally as well. China has opened up much more than India to foreign trade and foreign direct investment, while India has a better developed banking system. Growth in the two countries has been driven by different sectors - Chinese growth by manufacturing and Indian growth by services. This volume brings together some of the best research on issues related to the growth experience of China and India and places these issues in a comparative perspective. It contains papers written by some of the leading academic and experts in the world on issues ranging from the roles of China and India in the world economy, contrasts in their development experience, and challenges to sustaining growth. Contributors to this volume - Franklin Allen, The Wharton School, University of Pennsylvania Bart van Ark, The Conference Board; University of Groningen Jahangir Aziz, Asia and Pacific Department, the International Monetary Fund Barry Bosworth, The Brookings Institution Rajesh Chakrabarti, Indian School of Business, Hyderabad Vivian Chen, The Conference Board Catherine Y. Co, Department of Economics, University of Nebraska at Omaha Susan Collins, The Brookings Institution and the University of Michigan Sankar De, Centre for Analytical Finance, Indian School of Business, Hyderabad Abdul Azeez Erumban, University of Groningen Aaron Flaaen, The Brookings Institution Poonam Gupta, Department of Economics, Delhi School of Economics Rana Hasan, Asian Development Bank Alan Heston, University of Pennsylvania Fanying Kong, Department of Sociology, Midland Lutheran College, Fremont Przemek Kowalski, Organization for Economic Co-operation and Development Utsav Kumar, The Conference Board, New York Shuangling Lin, Department of Economics, University of Nebraska at Omaha School of Economics, Peking University, Beijing Eswar Prasad, Department of Applied Economics and Management, Cornell University Jun "QJ " Qian, Carroll School of Management, Boston College Meijun Qian, NUS Business School, National University of Singapore Zhi Wang, Office of Economics, United States International Trade Commission Shang-Jin Wei, Graduate School of Business, Columbia University