Shanghai-Researchers and development experts from around the world gathered here today to identify emerging development challenges facing China and India, two of the world's fastest-growing economies.
The two-day international conference, "The Dragon and the Elephant: China and India's Economic Reforms," is organized jointly by the International Food Policy Research Institute (IFPRI), Shanghai University of Finance and Economics (SUFE), Chinese Economists Society (CES), and the China Executive Leadership Academy Pudong.
During the past few decades, China (the dragon) and India (the elephant) achieved unprecedented economic growth and poverty reduction through a series of economic reforms. Between 1981 and 2001, the two nations accounted for nearly all global progress made in reducing the number of people in developing countries living on less than U.S. $1 a day.
"Reforms put in place decades ago have transformed China and India's economies and lifted millions out of poverty," said Shenggen Fan, director of the development strategy and governance division at IFPRI. "There has been remarkable progress, but the 'dragon' and the 'elephant' must now confront the new challenge of how to accelerate this growth for the benefit of the poorest."
China and India have taken different approaches to reforming their economies. While China initiated reforms in the agriculture sector and rural areas at the end of the 1970s, India began by reforming its manufacturing sector in the early 1990s. These reforms led to rapid economic growth rates of 8-9 per annum in China, and 5-6 percent per annum in India.
Spurred by these reforms, China and India now face new challenges on the path to further prosperity. Within the two countries, some regions still lag behind in reducing poverty, and the poor are increasingly concentrated in these areas. In western China-a region marked by poor agricultural land and weak infrastructure-rural poverty accounted for 13 million in 2004, compared to 4 million in the eastern coastal region of the country.
Increased exports from China and India have contributed to the region's robust trade, but in some cases, this growth has constrained the markets of developed and developing countries. Lower birthrates and aging populations are also driving forces that could potentially limit future economic growth in both countries.
"Targeted investments and policies over the past few decades have helped to improve the livelihoods of millions of Chinese and Indian poor," said Ashok Gulati, director in Asia at IFPRI. "In the decades ahead, both China and India must go beyond previous reforms to address burgeoning new pressures-increasing international and regional trade, rising inequality, and rapidly changing populations."
Conference participants will focus on issues such as demography and development, trade and investment, regional inequality, and pro-poor growth. Participants will explore important policy questions, such as: What types of policies and reforms can the two countries pursue to promote pro-poor economic growth? Can current growth and poverty reduction rates be maintained with an aging population and declining birthrate? How does China and India's robust trade affect other developed and developing countries? What lessons can other developing countries learn from these two mega-economies?
"This conference offers an opportunity to evaluate and learn from China and India's development experiences," said Dr. Guoqiang Tian, dean of the school of economics at SUFE. "The lessons learned will assist policymakers in developing countries to undertake their own reforms to catalyze economic growth and poverty reduction."
The workshop will be inaugurated by H. E. Nalin Surie, Indian Ambassador to the People's Republic of China. Other participants include:
- Vijay Vyas, Professor, Institute of Development Studies (India)
- Zhou Shudong, Professor, Nanjing Agricultural University
- Assar Lindbeck, Professor, University of Stockholm
- Gregory Chow, Professor, Princeton University
- Leela Visaria, Director, Gujrat Institute of Development Research
- Martin Ravallion, Senior Research Manager, World Bank
- Pranab Bardhan, Professor, University of California, Berkeley
- Funing Zhong, Dean of Economics and Trade, Nanjing Agricultural University
- James A. Mirrlees, Noble Laureate, University of Cambridge
- Ravi Kanbur, Professor, Cornell University
"Addressing these challenges requires strategies that balance growth with human well-being," said Xiaobo Zhang, IFPRI senior research fellow and CES president. "The dialogue started here will continue at the upcoming CES annual conference in Shanghai where leading scholars and policymakers will identify policies that encourage growth without leaving the poor behind."
The International Food Policy Research Institute (IFPRI) seeks sustainable solutions for ending hunger and poverty. IFPRI is one of 15 international agricultural research centers supported by the Consultative Group on International Agricultural Research, an alliance of 64 governments, private foundations, and international and regional organizations. Please visit our website at www.ifpri.org.
Shanghai University of Finance and Economics (SUFE) is a highly prestigious institute of higher learning with a history of 87 years. SUFE's central aims are "Seeking Truth and Contributing More to Mankind" and maintaining its tradition of "Diligence, Precision, Practicality and Creativity". More information is available at http://www.shufe.edu.cn
Download a copy of this press releaseFor more information, please contact:
- CHEN Lin, +86 21 13661457998
clin63@mail.shufe.edu.cn
Additional information available at: http://www.ifpri.org/media/200607DragonEl.asp