Review of the book “The Elephant and the Dragon”
This book is about two most populated countries in the world with big labor potential for world market. Two countries two different approaches towards development. China has authoritarian communist government and moves forward very quickly, because they don’t need a lot of time for making decision. India is a democratic country, actually the biggest democracy of the world. So it means that it takes much longer to move things around and if government makes some mistakes then voters replace them and it slows all process.
China is “the factory” of the world and India is “the back office” of the world. Why is like that? It happened like that, because India as colony of the Great Britain had a good education base with good university system. And China suffered a lot from closing universities under the order of dictatorship Mao. In China universities reopened only in 1978 after Mao died. After so many years without higher education China still feels traces of that period.
After 1978 when Dictator Mao died Deng Xiaoping opened China to the world and since then other countries invested huge amounts of money to their economy. It’s unique capitalist country with communist government. They still do these 5 years plans, but they move forward very quickly and their government main task is to modernize infrastructure which allows them to attract foreign investors. In 1989 they had only 168 miles of highways and in 2020 they plan to have 55000 miles of highways. What is the connection between investments and highways? Manufactures can easily move supplies and goods around. You can’t tell this about India, even Indians are in discomfort with their roads. Usually people find out about bad road conditions when they buy new car or motorbikes. People getting richer, buying vehicles, but don’t have where to drive. So India without roads can’t compete against China in manufacturing