Certainly India is relatiely democratic, whereas China is not, but be careful even in India of today there is a lot of undemocratic or traditional or tribal or religious customs that dominate and are undemocratic. These are varied and widespread.
Moreover, history proves that a centrally controlled market can rise and grow quite well. In fact, that has how China been doing it, as you point out.
Is India's rise going to eclipse China because it is a real democracy?
I think India will eclipse China not because it is a democracy but more because India understands capitalism. They aggressively train their people on computers and they seek jobs.
Reply:This is indeed the opinion of many analysts, and I agree with it. Seen from investors and entrepreneurs (especially foreigners), China is attractive in the short run because of its massive and low-cost manpower. This is very profitable right now. But in the long run, serious investors need solid property rights, a decent degree of freedom and strong legal guarantees. China is still weak on these issues (hope they will improve in the future), while India has a good democratic tradition and I think can provide all the conditions to grow into a big and modern economy.
Reply:democracy?
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