Globalization

The Effects of Globalization of India and China By The Effects of Globalization of India and China China and India are 2 of the largest economic players in the world. This was not always the case. Both countries were the poorest nations in the world as early as the 1940’s. Globalization impacted the populations of China and India, for the most part, in a positive way. Globalization helped the people of China and India improve their lives in every way, that is, in health, education, commerce, and freedom. Prior to China’s globalization in approximately 1979, most of the Chinese people under Chairman Mao, lived in severe poverty in rural areas, life expectancy was about 40 years, infectious diseases were prevalent, and economic growth was very slow. Then in 1978, Deng came in and restructured the government with his “Four Socialist Modernization”, of growth of technology, military, agriculture, and science. This brought greater privatization personal land and more opportunity for the Chinese to produce and sell their products. The Chinese people moved out of rural areas into cities, had greater control of investment opportunities, and earned more per year. At this time China opened up their markets to the Western countries, complimenting China’s large work force with technology, money and business knowledge, making China one of the largest economies in the world (Sharma, 2009). In 1947, the 200 year British rule ended, and India became independent. At this time the life expectancy was about 34 years old, most of the population lived in rural parts of the country, and disease was rampant. India was also among the poorest nations in the world. During and after globalization, more specifically after 1991, many Indians lived in cities, were healthier, earned more money per year, and were encouraged to privately invest in the market (Sharma, 2009). India was directly, intentionally, and positively plunged into becoming more global. Economic growth was slow initially from 1950 to about 1980, and in 1990, the deficit from borrowing so much private and foreign money, grew to 10% of India’s Gross Domestic Product, causing the financial situation in India to became very critical. Due to the International Monetary Fund assistance, India was forced to overhaul its economy greatly. As a result, India became more liberal in its trade, decreased tariffs, and increased its consumer goods exportation (Sharma, 2009). The majority of Indian people went from poor and starving to more wealthier and productive. Many Indians had a chance to become entrepreneurs and to invest privately into the local and global markets. In this case globalization made Indian society happier and more individually driven (Sharma, 2009). Bibliography Sharma, Shalendra. (2009). China and India in the Age of Globalizaion. Cambridge University Press: New York.