Development Experience of India Test - 5

Policy of 'reform and opening-up' launched in 1978
The policy of 'reform and opening-up' was a significant turning point in China's modern history. It was initiated by the Chinese government under the leadership of Deng Xiaoping in 1978. Here are the key points to understand:
- Background: Prior to the launch of the reform and opening-up policy, China had experienced several decades of economic and social turmoil under the leadership of Mao Zedong. The country's economy was largely planned and centralized, resulting in inefficiencies and stagnation.
- Objective: The main objective of the reform and opening-up policy was to shift China from a centrally planned economy to a more market-oriented and globally integrated economy. The government aimed to modernize the country, improve living standards, and achieve sustainable economic growth.
- Key measures: The policy introduced a series of reforms and measures aimed at liberalizing the economy and attracting foreign investment. These included the establishment of special economic zones, relaxation of state control over prices and production, encouragement of private enterprise, and opening up to international trade and investment.
- Economic impact: The reform and opening-up policy had a profound impact on China's economy. It led to rapid economic growth, with average annual GDP growth rate exceeding 9% for several decades. The country transformed into the world's second-largest economy and lifted millions of people out of poverty.
- Social changes: The policy also brought about significant social changes in China. It led to the emergence of a middle class, urbanization, and increased consumerism. It also brought greater exposure to Western culture and ideas.
- Continuity and challenges: The reform and opening-up policy has continued to shape China's economic and social development. However, it has also faced challenges and criticism, including issues related to income inequality, environmental degradation, and the need to further deepen reforms.
In conclusion, the policy of 'reform and opening-up' was launched in 1978 by the Chinese government under Deng Xiaoping's leadership. It aimed to shift China towards a more market-oriented and globally integrated economy, leading to significant economic and social changes in the country.

To determine which country has a higher per capita income, we need to compare the per capita income of China, Pakistan, and India.
Per Capita Income:
- Per capita income is a measure of the average income earned per person in a specific country.
- It is calculated by dividing the total income of a country by its population.
Let's compare the per capita income of the given countries:
A. China:
- China is known for its rapid economic growth and development.
- According to recent data, China has a relatively high per capita income compared to other developing countries.
- The per capita income of China is higher than Pakistan and India.
B. Pakistan:
- Pakistan is a developing country with a growing population.
- The per capita income of Pakistan is lower compared to China and India.
C. India:
- India is also a developing country with a large population.
- The per capita income of India is lower compared to China and higher than Pakistan.
Conclusion:
Based on the given information, the correct answer is A: China . China has a higher per capita income compared to Pakistan and India.

Foreign loan cause show the sovereign to our country and payment of high rate of interest and and such cause debt trap.

The Gini index is a simple measure of the distribution of income across income percentiles in a population. A higher Gini index indicates greater inequality, with high income individuals receiving much larger percentages of the total income of the population.

Malawi remains one of the poorest countries in the world, with a Human Development Index (HDI) of 0.418, ranking 170 out of 187 countries (UNDP 2013 HDR). Life expectancy stands at about 54.8 years and the country is marked by high levels of vulnerability including poor nutrition.

Explanation:
The common price level base is used for meaningful comparison because:
1. 100 GDP of one country is not the same as 100 GDP of another country: GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders. However, the value of goods and services can vary significantly between countries due to differences in factors such as labor costs, exchange rates, and productivity. Therefore, comparing GDP values without adjusting for these differences would not provide an accurate comparison.
2. Domestic prices differ in different countries: Prices of goods and services can vary significantly between countries due to factors such as inflation rates, exchange rates, and purchasing power. Therefore, comparing economic indicators such as GDP, income, or inflation without considering the differences in price levels would not reflect the true economic situation of the countries being compared.
By using a common price level base, such as a common currency or a purchasing power parity (PPP) adjustment, we can ensure that the comparison is meaningful and reflects the real differences in economic performance between countries. This allows for a more accurate assessment of economic indicators and facilitates better decision-making in areas such as trade, investment, and policy formulation.

UNDP stands for United Nations Development Programme.
The detailed solution is as follows:
Introduction:
The United Nations Development Programme (UNDP) is a global development agency established by the United Nations General Assembly in 1965. It aims to eradicate poverty, reduce inequality, and promote sustainable development worldwide.
Explanation:
Here is a detailed explanation of the given options:
A. United Nations Development Programme:
- This is the correct answer. UNDP stands for United Nations Development Programme, which is a UN agency responsible for promoting sustainable development and human development globally.
B. United Nations Development Policy:
- This option is incorrect. UNDP does not stand for United Nations Development Policy. UNDP primarily focuses on implementing development programs and policies rather than formulating development policies.
C. Union Nations Development Programme:
- This option is incorrect. UNDP does not stand for Union Nations Development Programme. The correct term is United Nations Development Programme, which denotes the collaboration and coordination among nations under the United Nations umbrella.
D. None of These:
- This option is incorrect. UNDP stands for United Nations Development Programme. It is a well-established global agency with a specific mandate and role in promoting development worldwide.
Conclusion:
UNDP stands for United Nations Development Programme, which is a global agency working towards eradicating poverty, reducing inequality, and promoting sustainable development.

Arranging countries according to their HDI ranking:


The correct order of the countries according to their HDI ranking is:


A: II, I, III


Explanation:


To determine the correct order, we need to refer to the Human Development Index (HDI) rankings of the countries. HDI is a measure of a country's overall development based on factors such as life expectancy, education, and income. The higher the HDI, the more developed the country is considered to be.


Here is the explanation for the correct order:


(i) China:
- China has consistently ranked higher than both India and Pakistan in the HDI rankings.
- It has made significant progress in terms of economic growth, education, and healthcare.
- Therefore, China is ranked higher than both India and Pakistan.


(ii) India:
- India has shown progress in various development indicators but still falls behind China.
- It has a lower HDI ranking compared to China but is higher than Pakistan.
- Therefore, India is ranked second in the given options.


(iii) Pakistan:
- Pakistan has a lower HDI ranking compared to both China and India.
- It faces challenges in areas such as education, healthcare, and income inequality.
- Therefore, Pakistan is ranked last in the given options.


In conclusion, the correct order of the countries according to their HDI ranking is II (China), I (India), III (Pakistan).

Service Sector

The service sector, also known as the tertiary sector, is the sector of the economy that provides services rather than producing goods. It encompasses a wide range of industries and activities that involve providing various services to consumers and businesses.

Characteristics of the Service Sector:

• Intangible: Services are intangible and cannot be touched or felt.


• Produced and consumed simultaneously: Services are usually produced and consumed at the same time.


• Customer-oriented: The focus is on meeting customer needs and providing satisfaction.


• High degree of customer interaction: Services often require direct interaction between service providers and customers.


• Varied industries: The service sector includes industries such as healthcare, education, banking, hospitality, transportation, and many more.


 

Comparison with Other Sectors:

• Primary Sector: The primary sector involves the extraction of natural resources, such as agriculture, mining, and fishing. It is the sector that directly uses natural resources for production.


• Secondary Sector: The secondary sector involves the manufacturing and construction industries. It is responsible for transforming raw materials from the primary sector into finished goods.


• Tertiary Sector: The tertiary sector, or service sector, focuses on providing services to consumers and businesses. It does not involve direct extraction or manufacturing of goods.


 

Answer: C. Tertiary sector

The service sector plays a crucial role in modern economies, contributing significantly to economic growth and employment opportunities. It is driven by the increasing demand for various services in a society that values convenience, quality, and personalized experiences.

The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher, and the GDP per capita is higher. It was developed by Indian Nobel prize winner Amartya Sen and Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics, and was further used to measure a country 's development by the United Nations Development Program (UNDP)'s Human Development Report Office.