He writes: "The...gap between India and China is in the provision of essential public services — a failing that depresses living standards and is a persistent drag on growth.
Thursday, June 20, 2013
India and China: Two Giants with Different Records When It Comes to Inequality
China is doing better for its citizens than India mainly because it is providing more equal opportunity, according to Amartya Sen, Nobel Laureate for economics in The New York Times today.  His message should be heeded by leaders in other countries like the US and Canada which are becoming more unequal.  
He writes: "The...gap between India and China is in the provision of essential public services — a failing that depresses living standards and is a persistent drag on growth.
He writes: "The...gap between India and China is in the provision of essential public services — a failing that depresses living standards and is a persistent drag on growth.
"Inequality is high in both countries, but China has done far more than 
India to raise life expectancy, expand general education and secure 
health care for its people. India has elite schools of varying degrees 
of excellence for the privileged, but among all Indians 7 or older, 
nearly one in every five males and one in every three females are 
illiterate. And most schools are of low quality; less than half the 
children can divide 20 by 5, even after four years of schooling.
"India may be the world’s largest producer of generic medicine, but its 
health care system is an unregulated mess. The poor have to rely on 
low-quality — and sometimes exploitative — private medical care, because
 there isn’t enough decent public care. While China devotes 2.7 percent 
of its gross domestic product to government spending on health care, 
India allots 1.2 percent.        
"India’s underperformance can be traced to a failure to learn from the 
examples of so-called Asian economic development, in which rapid 
expansion of human capability is both a goal in itself and an integral 
element in achieving rapid growth. Japan pioneered that approach, 
starting after the Meiji Restoration in 1868, when it resolved to 
achieve a fully literate society within a few decades. As Kido 
Takayoshi, a leader of that reform, explained: “Our people are no 
different from the Americans or Europeans of today; it is all a matter 
of education or lack of education.” Through investments in education and
 health care, Japan simultaneously enhanced living standards and labor 
productivity — the government collaborating with the market."
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