44 pointsby rochansinha4 hours ago21 comments
  • samantp6 minutes ago
    China invested in converting people to a skilled workforce planned top down. Smart workhorses, be it workers, doctors engineers, scientists, sportspersons. Freedom from traditional norms were replaced by bondage to standardisation/regimentation to communist party leadership’s planned rule sets to scale quickly. And which is fine.

    India in 1947 invested in freedom of thought, democracy, and gradual donning away with archaic customs (only) wherever needed, with overall gentleness. Or should I say, this has been nothing new with India, happening since eternity. Without mega turbulence, maybe with intermediate evolution-revolutions as needed like the freedom movement till 1947. Business as usual.

    This is clearly an unclosed chapter at this point. Many alternative futures could work out. Say, with machines doing more and more work including that of building machines, that part hopefully will get commoditised, along with the core science and infra behind that. And innovative controlled employment of those advances for societal benefits will become the need. Grassroot level, day-to-day creativity and innovation will be the mantra. Who could tell? All analysis is in hindsight anyways.

    Even the current fear around India moving towards some authoritarian regimented society is nonsense. Society will not let it happen. They have tasted the blood of freedom. Often at the cost of discipline, progress, economy, basic survival.

    They do seem to cling hard their religion, gods, spirituality though!

  • nitwit0052 hours ago
    People seem to succeed in creating narratives around this sort of thing, but if we truly understood what was going on, we should be able to predict future economic growth rates.
  • arjie3 hours ago
    The comment under does make sense. We have to explain Taiwan, Korea, and Japan as well. If the difference is 1950s actions then Taiwan in particular is unexplained, having diverged in 1949.

    Though the cotton mill productivity does challenge the idea that it’s genetics or something inherent. Interesting problem for sure.

    • rayiner2 hours ago
      Orderly east asian culture versus disorderly south asian culture? Countries with cold weather and resource constraints that require long-term planning, versus countries that have three planting seasons annually?
    • mc322 hours ago
      According to Lee Kwan Yew[1], apparently he identified two big factors:

      India's diversity is not its strength -whereas China's relative homogeneity allows for easier governance(no contending non-pluralistic factions)

      India's federation is not its strength either. India's central government, unlike the Chinese, cannot unilaterally execute national plans. [in his example, they can't modernize a single international hub without having a fight that engenders delay and even kills projects]

      [1]https://www.youtube.com/watch?v=QaTNpw0-wAk

      • argeean hour ago
        > India's central government, unlike the Chinese, cannot unilaterally execute national plans.

        They don’t have the appetite to be socially modern anyway. Every Indian passport still has the holder’s parents’ name within (in Indian bureaucracy your parents seem to essentially own you regardless of age), which as TFA contends ties them to a social unit in a way that hampers the fungibility needed for smooth industrialization. Is it possible to argue that the central government doesn’t control even the passport it issues itself? It’s obvious that the motivation is simply absent, same as it was nearly a hundred years ago.

  • 0xpiguyan hour ago
    The article didn’t mention what I think is the single most important reason: the ability to align local governments with the central government.

    You can design the best policies in the world, but it’s local governments that actually implement them.

    The Great Chinese Famine was a prime example of this. Mao became the scapegoat, but he wasn’t as detached from reality or as blindly idealistic as many people make him out to be. His mistake was treating local governments the way he treated the military - giving them significant autonomy, making them compete and trusting the information they reported back to him.

    It turned out that politicians were far more corrupt than military generals. Local officials lied about food production and greatly exaggerated output figures to gain promotions. As a result, the country sold more grain than it actually had, contributing to widespread famine and millions of deaths.

    When Deng returned to power and began reforming the country, he famously toured China city by city to ensure that local governments understood the message and stop fk around this time.

    To outsiders, it may seem that China can move quickly simply because the central government holds a great deal of power. That is certainly true compared with many other systems of governance. However, what really enables rapid policy implementation is the alignment between the central and local governments. Without that alignment, you would see the central government issue one policy but local government adds lots of red tapes and nothing really gets done in the end

    • esjeon30 minutes ago
      > the ability to align local governments

      I think seeing it as an “align”-ment problem puts too much blame on the local side. Also, autonomy has nothing to do with the problem of misalignment.

      In authoritarian systems like China, mis-alignment with authority can carry serious political and social risks, so people are easily pushed toward dishonesty. What happened under the Mao’s rule is simply this; local officials were too afraid of criticizing the very father of the revolution, which could be interpreted as attacking the legitimacy of the revolution itself. It was a side effect of over-concentration, and gaining more control over local would have not made any differences.

      Deng was successful only because he was exactly aware of this problem. In his speeches on the government reform (the Open-Door policy), he explicitly pointed out over-concentration as a major issue. He not only eased the concentration of power, but also redesigned the incentive structure, so that officials can adopt objective measures and even try their own experiments.

    • mc3224 minutes ago
      Lee Kwan Yew identified this shortcoming along with the issue of many factions in India. Due to its huge diversity there is little pan-national alignment -everyone wants their own thing and prioritizes accordingly.

      Here's me Lee: https://www.youtube.com/watch?v=QaTNpw0-wAk

  • JojoFatsani2 hours ago
    It wasn’t all hugs and lollipops for India in the 70’s either. Read about Indira Ghandi and The Emergency.
    • triceratopsan hour ago
      > Read about Indira Ghandi and The Emergency

      Genuinely amazed you apparently study Indian history but don't know how to spell Gandhi. Sorry for nitpicking.

  • jnaina2 hours ago
    China used an iron-fisted central authority to impose unity from above. China’s model created cohesion mostly through forced coercion and cultural flattening. “Let a hundred flowers bloom; let a hundred schools of thought contend” provided, of course, that every flower grows in the approved direction and every school arrives at the correct answer.

    On the other hand, India’s progress continues to be hobbled by deep-rooted social challenges, including religious extremism, caste-based inequality, utter breakdown of civic culture, social fragmentation, linguistic chauvinism and regional rivalries.

    Forced order or complete chaos. Choose your pick.

    • newsicanuse2 hours ago
      Corruption, red-tapism and colonial-mindset had and still has more part to play than thr reasons you have stated.
      • aabdi2 hours ago
        +1, all the things that were said about India are true about Malaysia, Singapore, and to various degrees within Vietnam and Thailand. Yet these countries are all richer than India.

        It is still true today as Lky said 50ish years ago. The bureaucracy of India is federalized yet overly centralized.

        When the city governor must ask for permission to their own money from the federal when yet they are so far away, there is nothing efficient. The powers are yet so powerful yet blind at the same time.

    • dartharva38 minutes ago
      India never had that choice, because forced order in the magnitude of China is practically impossible for the country for a vast variety of reasons too many to list down. Suffice to say there can be no comparison between PRC's federal admin that holds absolute power over every inch of its territory, and India's that barely survives each year.

      For India, the choice was either an endless cycle of balkanization, bloodshed and anarchy à la Sub-Saharan Africa with a mild possibility of some of the states eventually thriving economically, or an inherited weak but held-together nation-state with a bit more negotiating power in the world stage.

  • rayiner3 hours ago
    Getting to the bottom of this is one of the most important public policy issues in the world. When my family left Bangladesh in 1989, the country’s GDP per capita was similar to China’s and India’s. Today, India and Bangladesh are still poor countries while China has roared ahead. How can you replicate that?
  • dartharvaan hour ago
    There is no singular decisive answer. Sure, you can chalk all of it up to "wrong" policy, but peel the layers a bit and explore the causes behind them and you'll see an endless chain of cause-and-effect covering more factors than all schools of academia can feasibly cover.
  • tecoholic4 hours ago
    If the author is reading - China is a single party nation state, India is a union of states. Dive into the metrics of states, you will find everything from Sub-sharan Africa levels of HDI to the ones that compete with European countries.
    • broken_clock3 hours ago
      How is China (or any other country) any different except the same thing shifted upward?

      https://en.wikipedia.org/wiki/List_of_administrative_divisio...

      • tecoholic2 hours ago
        In case of China, the extend to which the central government can set laws and policies far exceeds what’s possible in India. India’s powers are split into Federal, State and “Concurrent” lists. Health and education for example is a state and concurrent list subject respectively, to which the “Indian Government” has only very limited say. So it’s apples to oranges when it comes to comparing investments in those domains.
    • iberator3 hours ago
      China has more political parties in parliament than the USA. Stop spreading FUD
      • hollerith3 hours ago
        A Chinese person cannot vote for any party except the CCP or if they can, the voting is performative cannot remove the CCP from its position of absolute control.
      • smlavine3 hours ago
        And how often do they vote against each other?
        • fragmede2 hours ago
          What would that tell you? The US only has two major parties and they vote against each other all the time.
          • smlavinean hour ago
            It would indicate that the parties are actually independent and not just controlled opposition.
      • Our_Benefactors3 hours ago
        It’s fairer to call them factions. Also a misuse of the term “FUD”. They also don’t have a parliament, they have the “National People’s Congress” which doesn’t function as a parliamentary body.
      • lazide3 hours ago
        Lol, how is it FUD?
  • jmclnx25 minutes ago
    I have to say I think the author makes a good point.

    It will be interesting to see how the current US War on education changes the country in 20 years. Will a similar but opposite article be written about the US in a few decades ?

  • ninjagoo37 minutes ago
    This article seems to completely miss the significant compounding effect of real growth over 13 years.

    China liberalized their economy in the 70s: 1976 Mao dies -> Cultural revolution ends -> 1978 Deng Xiaoping launches 'Reform & Opening Up'.

    India liberalized their economy in the 90s: 1991 Rao and Singh come to power -> eliminate tariffs, dismantle the License Raj.

    The difference is at least that of compounded growth over time. At 7% real growth, in 13 years an economy gains about 2.4x. In PPP terms, China's economy is about 2.4x India's [1].

    Additional factors to consider are that China liberalized more aggressively through state directed experimentation, and India liberalized more gradually, and within a democratic legal system. Also, on the Chinese side there were periods of slowdown (1989, others), and on the Indian side the economy would have been about 20% larger but for the right-wing/fascist policies of the BJP government [2][3]. But policy failures on both sides are probably a wash, bringing us to today's gap.

    [1] https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/...

    [2] https://www.hks.harvard.edu/sites/default/files/centers/cid/...

    [3] https://www.nationalheraldindia.com/india/ill-conceived-demo...

  • api3 hours ago
    It’s been kind of obvious to me that China did it by copying what America was doing from the post Civil War era until we abandoned the formula in the 1970s.

    China calls it “iron and salt” I think. The state makes very large investments in infrastructure and helps build huge globally competitive conglomerates in strategic and bedrock industries. The state builds the “iron.” Then it allows the free market to do the “salt,” because while big state enterprise is good at doing stuff like mass steel production or the three gorges dam it’s horrible at making consumer goods or filling small niches.

    (The USSR tried to have the state do the iron and the salt.)

    America started doing this in a big way with the railroads. Then came roads, aviation, petroleum, electrification of the entire country, bringing clean water and sanitation to the whole country, huge public works projects, the interstate highway system, the space program, DARPAnet, and so on.

    Then we stopped doing this kind of bedrock investment, being sold on the idea that it’s not necessary. Then we lost our lead in all industries except… the ones we still do this in like aerospace.

    • rayiner2 hours ago
      I agree. It’s worth remembering that the Lincoln GOP was an interventionist party. That history was retconned by the Reagan GOP.
    • cucumber37328423 hours ago
      >Then we stopped doing this kind of bedrock investment, being sold on the idea that it’s not necessary. Then we lost our lead in all industries except… the ones we still do this in like aerospace.

      Where's environmentalism and financializationn in all this?

      We didn't "just" stop. We didn't close all those steel plants and whatnot for fun.

    • hollerith3 hours ago
      I doubt investment in railroads or aviation in the US was anything close to majority-government. I'd be shocked if the government's share of cumulative investment in petroleum production since 1859 (the start of commercial production when Edwin Drake's well near Titusville, Pennsylvania, struck oil) was above 2%.
      • nobodyandproud28 minutes ago
        For railroads, just wrong.

        Can’t speak for the rest, but we still subsidize airlines and the infrastructure to make it possible.

        As we should.

        All of the little industrialists and VCs here on HN wouldn’t have a prayer of striking it rich without the median income workers paying (hard-carrying) your little dreams.

  • h4kunamata43 minutes ago
    OP sure didn't check the call center owners scamming the entire globe lmao

    India is scamming everybody, and getting very rich at it.

  • avadodin4 hours ago
    The article feels all over the place.

    What should India do to beat China?

    Invest in education?

    Exterminate millions of its own (undereducated) population in meaningless wars and poorly–planned public works?

    Make their women burn their bras?

    Switch Communism in for Hinduism and end Democracy?

    Other than the first, I think I'd rather bow down to China.

  • kylehotchkiss3 hours ago
    Babus
  • 3 hours ago
    undefined
  • effnorwood3 hours ago
    more transistors
  • coolThingsFirst3 hours ago
    Beside the point, why is the US in decline?
  • aaron6952 hours ago
    [dead]
  • abdelhousni3 hours ago
    So many responses to answer the title
  • guardiangodan hour ago
    Because all the educated Indians moved to US and contributed to the American economy, versus the Chinese who get educated in America, then move back to China to work there.

    English is a major reason- Indians are just better at speaking English than Chinese and thrives in corporate America. Whereas mainland Chinese couldn't climb the corporate ladder and have to seek better opportunities back in China.

    Find me a tech executive in a Big Tech firm who is from mainland China. You can't find one. Both Lisa Su of AMD and Jensen Huang of Nvidia are Taiwanese immigrants who grew up in US in the 70s and thus speak fluent English.