Archive for the ‘China’ Category

China & World

April 29, 2012

China & World

This blog is about China and its tryst with poverty.

China went through rapid reforms in 1970’s to uplift 50% of its population out of poverty. It ate voraciously on its natural resources, mostly creating manual labour employment. Now the situation is, it has got limited natural resources, 50% of the population above poverty line or middle class, but still dependent on natural resources. And then off course, the remaining 50% of the population under poverty line which are in need of natural resources & upliftment.

China is stuck with environmental problems, lack of innovation and is also a country which is being rapidly divided into two (the rich and the poor). The world has constant natural resources, so this problem wont go away. Only innovation can solve the problem of China, till then its going to be a tough ride.

This case would be true for all countries in the World (and was always true earlier too), including India and America due to limited natural resources, languishing poverty and lack of innovation.

Hence, the only thing important in China and World would now be innovation.

Caution: This might be all theory

Capitalism & Socialism

April 25, 2011

Capitalism & Socialism

This blog is to understand Capitalism, Socialism and the myth surrounding it.


Socialism is for the good of everyone. The wealth is held by the State and wages distributed equally among the masses.

Capitalism is solely dependent on talent and expertise of an individual. The State has very little to play while the market (customers & suppliers) dictate how money is distributed among the people.


Here is why Capitalism is a form of Socialism (In fact it is more fair and rewarding) :

1. Instead of a few emperors or Tsars holding a lot of stake of the country, there are a whole lot of merchants, businessman, social activist holding a stake of the country.

2. In Capitalism, an individual has a chance to come out on the top depending on his talent. In Socialism everyone remains at the same level controlled by the people at the top (emperors) irrespective of their merits.

3. An individual at the lowest level in capitalism has same or more purchasing power than in Socialism. A relatively fair Capitalist country would easily put a Socialist country to shame in the areas of public infrastructure and fairness which the Socialist country would boast of.

4. Innovation is impossible in Socialism. Only Capitalism can bring about innovation and solve the problems of the masses without occupation dependent on land.

5. Let us take the example of America & Russia:

a. America & Russia are example of Capitalism & Socialism. Both began at the same time to industrialize and based their economy on Science (In the early 19th century).

b. America has taken most of its masses out of poverty (a middle class of 250+ million people) and has a social security for them too. While Russia (a middle class of 50+ million people) , there is a lot of poverty still rampant.

c. America has industries in all spheres of life: research, pharma, computers, cars, consumer goods and more. Russia has only heavy industries and is heavily dependent on consumer goods on other world countries.

d. In Russia, unlike America, the overall Quality would keep on degrading, except for where (Germans) were involved or where the country was at stake (Cold War).


It is made to believe that Capitalism exploits and Socialism is more equal. But it is exactly the other way round. Capitalism is far more equal & fair than a Socialist Empire.

Caution: This might be all theory

How to manage a Country of a Billion People – V – Case Study (China)

December 3, 2010

How to manage a Country of a Billion People – V – Case Study (China)

A billion people in one country under a communist rule free of poverty is unimaginable to think off. But it has been made possible. A country with one of the oldest civilization which had lost its way midway is finally finding its place in the Sun.

China’s Early Civilization

China has one of the oldest Civilizations to its name. It was a country of farmers and mostly under dynasty rule for more than 20 centuries. Learned scholars like  Confucius & Lao-Tse enriched their civilizations. China unlike India was mostly free of foreign rule for most of the time and its artistry, culture was preserved. It has to its name quite a few wonders: Great Wall of China, world-class infrastructure, it recently hosted the Olympics flawlessly and many more.

Values, Ethics of Chinese

China has been an extensively hard-working country. My personal experience too has made me believe no other person in the World can compete with them in terms of working long hours. No wonder it is the body shop of the World today. The Chinese show an extremely high loyalty to its rulers and compassion for its fellow one’s not to be found in India. India on the other hand lacks both (Something which India has to learn from China if it has to go anywhere or we would remain in the shit-hole where we have developed a liking too for the last few centuries). China is currently the undisputed dragon of Asia and might want to find its earlier fame in the World too.

China in the 1970’s

China in the late 1970’s under the leadership of Den Xiaoping opened up the Chinese economy for foreign investment. This led to a tremendous build up of Chinese exports, its mainland infrastructure and swelling of its foreign reserves. The Chinese today are buying up the World with the cash surplus it has generated with its hard work.

China today

China in the last two decades has got half of its population and is headed to be poverty-free by 2020. 1 Billion people free of poverty in 50 years has been a herculean task by any measure. It has world-class infrastructure with cities cropping up everywhere pushing up the standard of living of its citizens. Its economy surpassed that of Germany and would more or less overtake America by mid-21st century. Its global influence is growing and it is muscling its way into the World arena with its cash and military power.

It’s challenges

China despite of its past success and its rosy near term future, has quite a few challenges ahead. It is under communist rule without any freedom for its citizens. There is mass scale media restrictions. It is mostly a back office and manufacturing joint for the world without any innovation. The next generation is more than likely to be without any creative skills considering most of them, most of the time are spending in manual labour. It will also have to work quite a bit on its English skills. Once the country has past its golden era of manufacturing, it would have to convert to democracy if it has to move ahead as a civilization. Otherwise history is ripe of countries rise and fall without any effect to the world as a whole. China could also vanish into the air if it rest on its late 20th century laurels.

Nevertheless China is the miracle of the 20th and 21st century. It would continue to influence the World like no other country would (with the exception of USAGermany)

Caution: This might be theory

The Quest for Civilization – IV

September 23, 2010

The Quest for Civilization – IV

In this part of quest for civilization, we look at some of the persistent struggles across the world for religion, natural resources and power, which has taken the toll of millions of lives. Let us delve deeper into the issues of these struggles and see if we can find out a common trace of cause in some of them. Is the fighting really for religion? Or underneath the surface, is it for greed- land, oil, gold, power?

Some of the struggles existing across the world are:

Ethnic fighting in Africa

– What is Ethnic fighting in Africa? It is a fight for natural resources (land, Oil, gold, diamonds) and power between two or more tribes. These tribes also fear annihilation which often results in more wars between them.
Israel and Arab Countries Land Issue

– The Middleast issue is over the holy land of Jerusalem, refugees, water and oil resources and power struggle in this region.
– Countries like AmericaRussia have significant interest in this region for oil and power. With America mostly supporting Israel and Russia supporting Iran.
 India Pakistan Land Issue
Most of the Hindu’s and Muslims originally living in separate lands. The only difference between the per-independence and post-independence was creation of three countries – IndiaPakistan and Bangladesh. And yes, also the loss of lives which occurred due to some transfer of people from one country to another.
– The fight for J&K is also for its vast natural resources and strategic location

 China and Japan Shrine Issue

– What is the Japan Shrine Issue? Is this issue coming up more rapidly because of China’s and Japan’s increasing influence over the World? How long this issue has been present?
– Is this an issue over gas in the area of East China Sea?
– Is the issue over Taiwan Strait?
China Japan Shrine Issue : 3
 Russia and Neighboring Countries Land Issue
– Is this an issue over land, oil?
– Is this an issue a power struggle?

As we see in most of the above struggles across the world are for natural resources (land, oil, gold, diamonds) & power rather than religion. The need for money has already outgrown Religion and God. However the common man often remains ignorant of the core issues in these struggles. They are made to believe that religion is the core issue. Where do we go from here now? Is there an amicable solution in all these issues which can be arrived at and the world can be made a peaceful place? This is a point to ponder on which we will look at in our next blog “The Quest for Civilization – V”

Caution: This might be all theory

China and India

January 30, 2010

China and India are one of the oldest civilizations of the World. A lot of leaders with original thought, inventions and art came out from these two countries during the earliest times of the human race.

Both these countries produced great leaders during their earlier times. India saw a renaissance in her through people like Ashoka the beloved, Buddha and China through people like Confucius. Several important philosophies like Confucianism, Upanishads, Buddhism, and Mahabharata came out of these countries.

Communism is a classless society based on Marxism where majority of property is controlled by the state. There is a single party ruling the country with considerable authority in making decisions regarding the country. Communism came to China in the 20th century. China has made rapid progress due to rapid decision making and implementation of large scale projects in the country. Majority of the masses have been lifted out of poverty however they have limited democratic rights to express themselves (especially against the government).

During the time of Aryans, cast system was introduced in India for systematic organization of people with different habits, culture, and profession. This system continued to proliferate and has currently become too rigid to absorb change. It has become a hindrance for progress and development. It also created the problem of unity within our country as people were restricted to a particular community for socializing. Leaders produced had excellent qualities however lacked foresight to see India as one whole.

Both China and India experienced explosive population growth in the 19th and the 20th century doubling their population every 100 years. This has led to a severe strain on the natural resources and the environment. China has recently implemented the 1-child policy to check its population.

China opened up its economy in 1970, allowed foreign investment and rapidly grew its economy towards a developed economy. Decisive government, patriotic & hard working people helped it to rapidly lift its masses out of poverty, import & integrate technology. It is currently the largest exporter in the world.

Due to uncontrollable debt, India had to liberalize in 1991 opening up its economy to the World. This launched India to integrate the technology of West with its culture. However a large population, indecisive democratic government, cast system has been a hindrance to lift its majority out of poverty, integrate technology and become a developed nation. It would be several decades before we become a developed nation. The probability of success is stacked against her.

Some current scenario facts of China & India are shown in the table below:

Region/ Country People Qualities Population (Million) GDP (Trillion$) Exports/ Imports Industries / Companies Outlook
China Confucius Patriotic, Hard Working 1300 4.3 Largest Exporter Diversified / Petro China, Bank of China, China Construction, China Pet & Chem, China Telecom, China Life Insurance, Bank of Communications, Baoshan Iron and Steel, China Shenhua Energy, Ping An Insurance 4
India* Ashoka the beloved, Mahatma Gandhi, Buddha The Current India is yet to define itself 1200 1.2 1% of World Exports Diversified  / Reliance, ONGC, SBI, IOC, ICICI, NTPC, SAIL, Tata Steel, Bharti Airtel, Reliance Communication 1

There are several thoughts and questions about the future of China and India

1. Due to an increasing large population & decreasing quality of life, where will the future leaders come from in China and India?

2. Currently India has a rigid caste system. If she has to replace it with a new system, what would it be like?

3. As both China & India are known for outsourcing & manufacturing and innovation hard to come by, when will they excel or be on-par with the developed world?

4. Both the countries are in an in-between state where their old philosophy has been lost and innovation hard to come by. Where are these two countries heading to? Or are they just living by the day?

5. *After more than 60 years after Independence, India is yet to make our own Indian flag properly. The Ashoka chakra rolled over 1 inch to the left from the middle of the Indian flag. I am then confused, what is the definition of patriotism?

# All data in this blog  is either from Glimpses of World History by Jawaharlal Nehru, The Discovery of India by Jawaharlal Nehru, Wikipedia or Google