Seek Truth From Facts

It is comforting for Indians to say that this is not a fair comparison, since the Chinese Communist Party has been able to enforce economic reform with just the same machine as it previously enforced central planning, brooking no opposition. India is a democracy and it is difficult to get things done. These are fair points. Nevertheless, Indias leaders can learn not so much from the specific steps which China has taken as from its general approach to reform. Though like India it is naturally suspicious of foreigners, China has opened itself up to foreign investment in all but a few sectors. It has not bothered to worry about whether the country will be taken over by foreigners, since it is confident that this will not happen. Instead, it has seen many of its companies learn vital skills from foreign companies, and millions of its people gainfully employed by foreign-invested enterprises. China has also given free rein to competition in many areas of industry. In reforming the economic and financial system, has not been frightened of experimentation and it has not been too bothered about keeping control of the reform process. India falls short in these areas. But the results in China are there for all to see.

 

India has reason to take note of the Chinese example precisely because, unless it gives further freedom to its own economy to grow and build capital, the country will inc-reasingly be overshadowed by its huge and rich neighbour. The death of Deng Xiao-ping also gives India reason to take note on other grounds. A close watch will need to be kept on Chinas domestic politics in light of the inevitable uncertainty which will surro-und the leadership. Whoever emerges and President Jiang Zemin is the man in office India should seek to accelerate the improvement in relations which has already been taking place in recent years. Growing rapport between the worlds two largest nations can bring huge benefits not only to each of those nations but also to the world at large.