Introduction
There has been growth that has been experienced in India and China. This has been in place because these two countries have been in danger of having high poverty rates therefore they had to come up with measures that could lead to a reduction of these poverty rates. Therefore, there are different economic strategies that have been used in these two countries so that they can deal with the problems of poverty and have changes in economy. (Gordon, 2002).
Main body
In India, there has been the use of policies that have led to poverty reduction and economic growth and the policy is changes made infrastructure this is because with proper transportation network then it is possible for a country to have high production. The main idea is that with proper means of transport then it means that a country will be in a position to have access to international market this is because they will have to do research that will be important in knowing which country will be interested in getting gods from that India and this will lead to high production. There is the indication that countries will not have problems in taking their produce to these countries this is mainly because they will be in a better position as there will be reduced costs therefore in transportation then it will be possible to have goods from one place to another without problems. India has been in danger of facing terrorism this terrorist have had impact on the growth rate of the country the problem is that people are not in a position to produce because they live with fear therefore they are forced to live lives that are for dependency and this means that the poverty rate is high. The reason for high poverty rates is that people are less committed to carry out activities that will lead to production as what they do is just to dependent on a creation percentages that is likely to produce low meaning that what is produced is not enough for the population that is very great. Terrorism is a social economic factor because it leads to low production as people will not be involved in doing what is expected of them and this leads to high poverty rate. In order to do away with this terrorism then India is suppose to take the right measures that will ensure that they curb this problem before it spreads to all parts of the country even though the antiterrorism measures are very expensive but it can get assistance from other countries like US. Capital is a factor that a country has to put inconsideration this is because it is not possible for a country to live and have changes in economy without capital therefore it is important for a country to know where to get capital that will lead to expansion of economic practices that have to be carried out in a country. India has been in a position to have many financial institutions so that they can give loans and aids to the sectors that operate in the country like the agricultural sectors the loans should be given in a way that they will not be costly for the small scale farmers who want to expand there production. Some of the Indian institutions are civil services which is a reserved bank of India. The technology that is required in this country will be mainly the modern technology this is because this country is the second largest producer of agricultural produce in the world and has sectors like forestry, logging and fishing and the economic sector plays a significant part in the overall social economic development in the country. (Desai, 2003).
Therefore for the success of this sector to be effective the country is supposed to make use of the recent technology so that they can have high production in all sectors in the country. In this I mean that with the changes in technology like new machines then this sector should be in a position to come up with the best machines that will lead to high production at limited cost. This will mean that even though there will be effect to the human labour but they should balance in ensuring that the casuals still play their role in making the economy grow so that they can have changes in economy. Without in corporation of new technologies then it will mean that a country will not be in a position to have the right economic growth this is because they will find that the dependency rates will be higher than required leading to reduced changes in living standards of people. For India to have change in poverty which is widely advanced in the country then there are strategies that are important so that they can lead to changes in living standards of people in this I mean that people have to be encouraged to do their work so that they can have reduced poverty rates that will have effect to economic growth.
Therefore it is important for the country to ensure that all people in the country are working even if they are casuals this will mean that what this country will have to do is to come up with several sectors that will be targeted to ensuring that all are involved in activities that are productive. Therefore in a country there are changes that have to be made in education levels so that they have many people who are educated this will mean that with many people whop can secure better jobs and still come up with new projects then it means that the poverty rates have to be curbed. In having education for all the Indian government has been in a position to establish many schools so that all children can have access to education been proper rich this will lead to a young generation that is active introduction and which is ready to carry out all the activities that are required so that they can reduce dependency rates. Generally what I mean in this is that India been a country that is for agriculture should be in a position to ensure that there is high production that is for all people so that they will not have to depend on other countries for survival. (Burgess, 2002).
China is a country that has been in a position to have poverty reduction this has been due to the strategies that have been used in the country by the Chinese people. There is the use of investment strategy where by the investors have been in a position to ensure that they have high production for the country this has been through investing in several sectors so that they can have many people involved in production. The human capital that is in operation in this country has been both informal and active labour workers in that this country has had a high population that has been ready to provide labour so that they have high production which will change there living standards. There has been much entrepreneurial culture in that many Chinese have been able to have their own businesses so that they can earn living this has led to high living standards as there has been reduction in dependency rates. This means that with people been in a position to work and produce then there are few people who are unable to produce and what they do is to get assistance from those who are working. This means that there are highly educated people in the country and at the same time they are in a position to have new projects that leads to income rates. Many Chinese people are in a position to earn a lot of income this is because from a report that was received in this country a well trained worker in this country is able to earn about 60 cents per hour this has the indication that they are in a position to have high living standards because they are getting income.
Therefore the foreign firms are in a position to get ready labour this is because most of the people in the country are wiling to work and provide for the country therefore there is no need for professionals from other countries as they have qualified people who can work in their firms. Therefore they do not have to spend income in getting professionals as they have Chinese who are ready to work for them. The Chinese enterprises operate in a transparency and better legal protections this means that these people are able to go their activities without fear as they have the knowledge that they are protected by the government this will mean that they will carry pout their activities which will lead to high production and better living standards. The china has been a member of WTO this means that there is an increase in openness and the believe that they will have their economy still in growth this is because they will be in a position to get assistance from this agency meaning that they will not face financial problems in any of the operating sectors. in the consideration of competitive advantage the country has been in a position to have all workers enjoying cost advantage in that the estimation that was made to city dwellers showed that this country was able to have high income for those who stayed in towns this meant that the rural dwellers have to move from their places to towns so that they can have this high income leading to many sectors in place because there was ready labour available. The investment firm has been estimated to have foreign joint ventures in Chinese companies where there has been a total compensation that has been made to labour of about five dollars an hour this has the indication that the workers in Chinese firms are no longer in danger of fear as they know they will be compensated therefore they work for the betterment of their economy. (Hira, 2002).
With low wages this country has been in a position to have high productivity and advanced supply chain infrastructure this means that the highly skilled Chinese workers can be hired as a fraction of the cost of similarly trained workers and this has the explanation why there has been a high growth of foreign direct investment in china. This has the indication that all in the country are able to work and have access to high production that is required to change the economy in the country. There has been the is of new technology in that the changes in technology that take place in the countries have been in use by the investors this is because the investors are in a position to have access to the changes in technology and this means that what they do will be to have these technologies been in place this leads to employment and trainings of the Chinese workers so that they can have access to better jobs. Therefore the country has been able to have high economic growth. The market reforms that have been in use in this country have led to structural changes which have had impact in economic growth. This is because people have been able to produce as they have ready market in place and therefore they are no longer in fear of production what they do is to take the new technologies and incorporate them so that they can have high production which will mean that they will have high sales. Due to better infrastructure in this country then many workers have been able to produce this is because they have seen the need to have high production with low costs that can be incurred in transportation of the products to the markets. (Chanda, 2001).
This means that they are able to have their perishable products in the market at the shortest time possible without facing dangers of loses as they will have goods in the market at the right time. The manufactures are able to produce highly this is because there are high prices that are attached to their products therefore they do not see the reason why they should produce low and yet the goods are highly priced. This has the indication that they will have high production that will lead to better living standards of people in that with high sales there will be high salaries that will be attached to what is been produced. The country has worked out the political instability which has been a factor that has been a bother to economic growth this means that what they have to do is to ensure that they have one party in operation and with this one party then they are in a position to have the government been in the frontline in ensuring that every thing in the country is in control. China is in use of informal lending systems this is because it is the best so that they have low financial cost that can be attached to small scale producers. Therefore they are able to save income that could have been used in getting income from other countries for Chinese people. (Hauser, 2001).
China and India have been in use of market reforms that have changed the poverty rate, this is because these reforms are mainly targeting the producers and customers and therefore they have been in a position to have assurance to people that what they want is provided to them within that time without delays. In this I mean that the reforms has been made in transportation networks in that there are better means of transport in these countries meaning that the goods reach the market within that time when they have been manufactured therefore the customers will have there consumption satisfied. Therefore in a country there should be assurance to people that what they require will be received so that they can not lead to delays and lack of satisfaction at the time when is required. Therefore with proper transportation network then I mean that there are better roads, rail ways and air transport and sea transport if they have to use these means of transport.
Conclusion
China and India has been in a place to curb poverty rates that were in place in the last decades. This has been effective because they have come up with different strategies that have assured them that it is important to have these methods that will not be costly to people and will lead to many been in a position ton work and earn living. In this I mean that people in these countries have been in a position to earn income through their activities that have been carried out and been in operation in the countries therefore the dependency rates has been reduced leading to better living standards.
Reference
Burgess, M. (2002): importance of banks in India. Evidence of Indian social banking experiment.
Chanda, H. (2001): development trade and WTO. World Bank.
Desai, K. (2003): changes in technologies in many industries in India. London business school.
Gordon, K. (2002): understanding India services revolution. India and china experience with reform and growth.
Hauser, P. (2001): importance of WTO. Expert report for Germany parliament.
Hira, T. (2002): competitive advantage in a country. CSPO working paper.