Partially Awakened Giants: Uneven Growth in China and India

The paper examines the ways in which recent economic growth has been uneven in China and India and what this has meant for inequality and poverty. Drawing on analyses based on existing household survey data and aggregate data from official sources, the authors show that growth has indeed been uneven...

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Bibliographic Details
Main Authors:	Chaudhuri, Shubham, Ravallion, Martin
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE INEQUALITY ABSOLUTE POVERTY ABSOLUTE TERMS ACCESS TO MARKETS AGGREGATE GROWTH AGGREGATE INCOME AGGREGATE INEQUALITY AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRODUCTION ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL RATE AVERAGE ANNUAL AVERAGE GROWTH AVERAGE GROWTH RATE BALANCED GROWTH CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION PER CAPITA COUNTERFACTUAL CREDIT MARKET DATA ISSUES DEPENDENT VARIABLE DISTRIBUTIONAL EFFECT ECONOMIC GROWTH ECONOMIC INCENTIVES EDUCATIONAL ATTAINMENT FARM EMPLOYMENT FARM PRODUCTION FUTURE GROWTH GEOGRAPHIC POVERTY TRAPS GINI COEFFICIENT GINI INDEX GLOBAL ECONOMY GREEN REVOLUTION GROUP INEQUALITIES GROWTH EFFECT GROWTH ELASTICITY GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATES HIGH GROWTH HIGHER INEQUALITY HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD SURVEY HOUSING HUMAN CAPITAL HUMAN DEVELOPMENT IMPACT ON POVERTY INCOME INCOME GROWTH INCOME INEQUALITY INCOMES AT THE TOP OF THE DISTRIBUTION INCREASING WAGE INDIVIDUAL WELFARE INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INSURANCE INVESTMENT CLIMATE ISSUES OF POVERTY LABOR MARKET LABOR MARKETS LIFESTYLES LIVING STANDARDS LOG GINI LONG-TERM GROWTH MARKET FAILURES MEAN GROWTH MEAN INCOME MEAN INCOMES MEASURED INEQUALITY MEASURING POVERTY MICRO DATA NATIONAL ACCOUNTS NATIONAL LEVEL NATIONAL POVERTY NEGATIVE CORRELATION POLICY CIRCLES POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL CONSIDERATIONS POOR POOR AREA POOR FARMERS POOR HOUSEHOLD POOR PEOPLE POORER PROVINCES POPULATION SHARE POPULATION SHIFT POSITIVE GROWTH POST-REFORM POVERTY LINE POVERTY LINES POVERTY MEASUREMENT POVERTY MEASURES POVERTY RATE POVERTY REDUCING POVERTY REDUCTION POWER PARITY PRIVATE CONSUMPTION PRIVATE SECTOR PRO-POOR PROGRESS PUBLIC INVESTMENT PUBLIC SERVICES PUBLIC SPENDING PURCHASING POWER PURCHASING POWER PARITY RAPID GROWTH RATE OF GROWTH RATES OF GROWTH REDUCTION IN POVERTY REGIONAL DISPARITIES REGIONAL INEQUALITIES REGIONAL INEQUALITY RELATIVE GAINS RISING INCOME INEQUALITY RISING INEQUALITY RURAL RURAL AREAS RURAL DEVELOPMENT RURAL DISPARITIES RURAL DIVIDE RURAL ECONOMIC GROWTH RURAL GAP RURAL HEADCOUNT RURAL HEADCOUNT INDEX RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL INCOME RURAL INCOMES RURAL INEQUALITY RURAL INFRASTRUCTURE RURAL MIGRANTS RURAL POOR RURAL POVERTY RURAL POVERTY REDUCTION SCHOOLING SECTORAL COMPOSITION SERIES DATA SIGNIFICANCE LEVEL SIGNIFICANT EFFECT SOCIAL FACTORS TOTAL POVERTY URBAN AREAS URBAN BIAS URBAN POPULATION URBAN-RURAL DISPARITIES WELFARE INDICATOR
Online Access:	http://documents.worldbank.org/curated/en/2006/11/7208840/partially-awakened-giants-uneven-growth-china-india http://hdl.handle.net/10986/8877

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Summary:	The paper examines the ways in which recent economic growth has been uneven in China and India and what this has meant for inequality and poverty. Drawing on analyses based on existing household survey data and aggregate data from official sources, the authors show that growth has indeed been uneven-geographically, sectorally, and at the household level-and that this has meant uneven progress against poverty, less poverty reduction than might have been achieved had growth been more balanced, and an increase in income inequality. The paper then examines why growth was uneven and why this should be of concern. The discussion is structured around the idea that there are both "good" and "bad" inequalities-drivers and dimensions of inequality and uneven growth that are good or bad in terms of what they imply for both equity and long-term growth and development. The authors argue that the development paths of both China and India have been influenced by, and have generated, both types of inequalities and that while good inequalities-most notably those that reflect the role of economic incentives-have been critical to the growth experience thus far, there is a risk that bad inequalities-those that prevent individuals from connecting to markets and limit investment and accumulation of human capital and physical capital-may undermine the sustainability of growth in the coming years. The authors argue that policies are needed that preserve the good inequalities-continued incentives for innovation and investment-but reduce the scope for bad ones, notably through investments in human capital and rural infrastructure that help the poor connect to markets.

Partially Awakened Giants: Uneven Growth in China and India

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