Comparative Research on Major Regional Powers in Eurasia - Paper 2
Comparative Research on Major Regional Powers in Eurasia - Paper 2
Contributor(s): Akira Uegaki (Editor)
Subject(s): Economy, National Economy, Supranational / Global Economy
Published by: Hokkaido Slavic-Eurasian Reserarch Center
Summary/Abstract: The papers included in this volume were presented at the international symposium, “The Elusive Balance: Regional Powers and the Search for Sustainable Development”, which was held at the Slavic Research Center on July 9 – 10, 2009. This symposium was a part of the five-year Grants-in-Aid project, “Comparative Research on Major Regional Powers in Eurasia”, sponsored by the Ministry of Education and Sciences of Japan. By “regional powers”, we mean China, India, Russia and other large-scale countries, that have emerged as political and economic powers recently and are competing with old powers like the USA, the EU and Japan.
In the first part of this volume, the authors identify the long-term features of economic development of England, India, Japan and China in a comparative perspective. The readers can find some interesting viewpoints different from traditional ones to consider the economic history of these countries. There are also some hints for considering the long-term economic history of Russia.
In the second part, the authors describe the macro economic structure of China, India and Russia by examining balance of payments statistics and macro and factory-level statistics. We can identify the structural differences of the three regional powers by the evidences provided by valuable and interesting statistics. In the third part, the authors depict the situation of poverty in China, India and Russia. Both authors employ a strict method of econometrics, which allows us to consider the problems of poverty in a wider context. The fourth part examines the problems of energy and environment in China, Russia and Japan. The authors utilize a method of political economy, which takes into account some political motives of individuals and institutions in coping with the problems concerned. By doing so, they have succeeded in illustrating interesting complexities of energy and environmental problems of the world.
Series: Comparative Studies of Regional Powers Series
- Page Count: 201
- Publication Year: 2010
- Language: English
Income Growth and Inequality over the Very Long Run: England, India and Japan Compared
Income Growth and Inequality over the Very Long Run: England, India and Japan Compared
(Income Growth and Inequality over the Very Long Run: England, India and Japan Compared)
- Author(s):Osamu Saito
- Language:English
- Subject(s):Supranational / Global Economy, Socio-Economic Research
- Page Range:3-26
- No. of Pages:24
- Summary/Abstract:In »The Great Divergence: China, Europe and the Making of the Modern World Economy« (published in 2000), Ken Pomeranz argued that until about 1750, both East Asia and western Europe were reasonably advanced in terms of commercial growth and market integration, and hence that the former region’s standard of living was more or less on a par with that of the latter. The book thus postulates that there had been a sort of East-West convergence before the real divergence emerged with the industrialisation of the nineteenth century, and as such has stimulated debate amongst economic historians at both ends of Eurasia (Pomeranz, 2000). This paper turns to an issue that has not been explicitly discussed in the debate on the ‘Great Divergence’, that is, the question of class differentials in household earnings, and places inequality in the context of income growth from early modern to modern times. By adding India, where de-industrialisation is said to have taken place in the nineteenth century, to the Europe-Japan comparison, the paper will examine the three countries’ early modern social tables, and how they changed over time with special reference to trends in growth and inequalityin the period from the late nineteenth century to the 1930s.
Why the West became rich before China and Why China has been catching up with the West since 1949: Another Explanation of the “Great Divergence” and “Great Convergence” Stories
Why the West became rich before China and Why China has been catching up with the West since 1949: Another Explanation of the “Great Divergence” and “Great Convergence” Stories
(Why the West became rich before China and Why China has been catching up with the West since 1949: Another Explanation of the “Great Divergence” and “Great Convergence” Stories)
- Author(s):Vladimir Popov
- Language:English
- Subject(s):Supranational / Global Economy, Economic history
- Page Range:27-56
- No. of Pages:30
- Keywords:Great Divergence; Great Convergence; Colonialism;
- Summary/Abstract:Among many puzzles in economic history, the crucial and most intriguing is the “Great Divergence,” the gap between Western and developing countries that started to emerge in the sixteenth century and widened until at least the mid twentieth century. The USSR in the 1930s-60s was the first major non-Western country to experience successful catch-up development and to narrow the gap with the West, although afterwards (1970-80s), the gap stopped narrowing and it later (1990s) widened. Japan, South Korea, Taiwan, Hong Kong, and Singapore in the 1950-80s were the only states that successfully caught up with the West and became developed countries. In recent decades, a similar process is underway in Southeast Asia and China. Together with the recent acceleration of growth of India and some other developing countries, it could mean that we have reached a tipping point in the Great Divergence and that from now on, the world will gradually experience global convergence in the level of income. The goal of this paper is to offer a non-technical interpretation of the “Great Divergence” and “Great Convergence” stories. After reviewing the existing explanation in the literature, I offer a different interpretation. Western countries exited the Malthusian trap by destroying traditional institutions, which was associated with the increase in income inequalities and even decrease in life expectancy, but allowed to redistribute income in favor of savings and investment at the expense of consumption. When the same pattern was imposed on developing countries (colonialism – Latin America, FSU, SSA), it resulted in the destruction of traditional institutions, increase in income inequalities and worsening of the starting positions for catch up development. In other developing countries (East Asia, India, MENA) that were less affected by colonialism and managed to retain traditional institutions, starting positions for modern economic growth remained good. The slowly going technical progress finally allowed them to find another (and less painful) exit from the Malthusian trap – increased income permitted to raise the share of investment in GDP without the major increase in income inequalities and decrease in life expectancy.
Balance of Payments from a Comparative Perspective: China, India, and Russia under Globalization
Balance of Payments from a Comparative Perspective: China, India, and Russia under Globalization
(Balance of Payments from a Comparative Perspective: China, India, and Russia under Globalization)
- Author(s):Akira Uegaki
- Language:English
- Subject(s):National Economy, Supranational / Global Economy
- Page Range:59-82
- No. of Pages:24
- Summary/Abstract:The three regional powers of China, India, and Russia have been actively participating in international trade and international financing recently, although they have large populations, huge territories, and abundant natural resources, which would enable them to be independent and autarkic. The globalization movement especially since the ’90s has undoubtedly made their attitudes possible, but on the other hand, the fact that the three regional powers have sailed out on the world market itself has made today’s globalizing trend as a whole stronger and faster. The purpose of this paper is to clarify each country’s similarities and peculiarities in their international financing in a globalizing economic situation by using balance of payments statistics. China, India, and Russia have a common feature in their macroeconomic structure in the new century, that is, the excess of savings over investment, which resulted in current account surpluses. At the same time, the three countries have actively introduced foreign financial resources through various routes. Consequently, their financial claims against the rest of the world have been increasing rapidly, especially in the form of reserve assets of the central banks. These phenomena reflect weak financial networks in their domestic markets, which would have functioned as financial intermediaries and added to domestic investment. Of course there are different characteristics among the three countries. India seems to be a typical developing industrial state, because of its relatively small current account surplus (sometimes, deficit), and active introduction of many kinds of foreign financial resources, which have spurred domestic economic development. On the other hand, Russia is unique because both the I-S balance and fiscal balance have been in large surplus, which resulted in a large amount of reserve assets. At same time, it is noteworthy that its foreign economic transactions have been isolated from domestic economic circulation. China’s international finances, especially in the sphere of FDI, have close connection with its domestic economy. The net receipt of investment income is also an important point in China’s future.
External Openness and Firm Productivity in China and India: Evidence from Business Enterprises Surveys
External Openness and Firm Productivity in China and India: Evidence from Business Enterprises Surveys
(External Openness and Firm Productivity in China and India: Evidence from Business Enterprises Surveys)
- Author(s):Takahiro Sato
- Language:English
- Subject(s):National Economy, Supranational / Global Economy
- Page Range:83-93
- No. of Pages:11
- Summary/Abstract:China and India have experienced high economic growth over the last two decades after a long period of stagnation. During the period 1980-2007 India's annual growth rate of per capita income was 6.4 percent compared with that of China at 10.9 percent. While India's growth performance has been considerable, China's has been nothing short of a miracle. The main propose of this paper is to provide a comparative analysis of China's and India's economic growth pattern. This paper contributes to the literature on comparative studies on China and India in two ways. First, most of the existing literature is based on aggregate data. We focus on the determinant of firm-level productivity, which has been omitted by most of the existing studies. Second, the positive nexus between external openness and firm productivity is tested by using the comparable data set in China and India. We expect these two ways to allow us to examine the firm-level heterogeneity, which affects the divergent growth pattern in China and India The rest of this paper is organised as follows. In Section 2 we discuss the model and estimation strategy for analysing the relationship between external openness and productivity. In Section 3 we describe our data and main variables. In Section 4 we report our empirical evidence and in Section 5 we provide a summary of the main findings with some remarks.
Poverty and Vulnerability in India and China
Poverty and Vulnerability in India and China
(Poverty and Vulnerability in India and China)
- Author(s):Katsushi Imai
- Language:English
- Subject(s):National Economy, Supranational / Global Economy, Socio-Economic Research
- Page Range:97-128
- No. of Pages:32
- Summary/Abstract:“Reporting an 80-million drop in extreme poverty in the two years to 2004, the Bank said the improvement was entirely due to the rapid expansion in Asia's two most populous countries” (Guardian, 16 April 2007 ). “With an average annual growth rate of 10 percent, China has lifted over 600 million of its 1.3 billion citizens out of extreme poverty—those who earn less than $1 a day—since 1981. In the same time period, India's 6.2 percent average annual growth rate has brought an estimated 300 million of its 1.1 billion people out of extreme poverty…The World Bank estimates that the number of poor increased by at least 100 million as a result of the food and fuel crises” (Newsweek in November 2008). The first quotation suggests that poverty reduction in India and China is important simply because of the large share of the poor in these two countries, in particular in India in the world’s poor. Economic growth in these countries has driven the poverty reduction of the world in recent years. The graphs in Appendix 1 suggest that i) higher income growth has a close association with poverty reduction, ii) poverty reduction and income growth are higher in China than in India, and iii) higher income growth seems associated with higher income Gini. That is, while income growth led to the poverty reduction in absolute terms in China, the relatively rich benefited more in relative terms. The second quotation suggests the fragility of poverty reduction outcome as those above the poverty line would fall into poverty as a result of food and fuel crises. This signifies the importance of addressing vulnerability as opposed to poverty. While it would be difficult to cover all the aspects of poverty in China and India, this paper focuses on a few important aspects to analyze poverty and India and China drawing upon my research
Is Russia’s Economic Growth Pro-Poor?
Is Russia’s Economic Growth Pro-Poor?
(Is Russia’s Economic Growth Pro-Poor?)
- Author(s):Yuka Takeda
- Language:English
- Subject(s):National Economy, Socio-Economic Research
- Page Range:129-144
- No. of Pages:14
- Summary/Abstract:This study examines whether economic growth is pro-poor in Russia, using regional data from Rosstat (the Federal State Statistical Service of Russia) for 1995–2006. Although there have been only a few studies on income convergence in Russia, some studies have highlighted the slow convergence rate in the country (Yemtsov 2005; Lugovoi et al. 2007; Kholodilin et al. 2008). A significantly low convergence rate can cause a differential impact of economic growth on regional poverty. This study is one of the first attempts to address this issue (Takeda 2004a; 2004b; 2006). If Russian economic growth does not benefit the poorer regions much more, that is, if the growth is not found to be pro-poor, the government will need to seriously consider formulating economic policies directly aimed at pro-poor growth. This study aims to shed light on the significance of pro-poor growth policies in Russia. Section 2 briefly discusses the trends in Russian socio-economic indicators. In addition, we examine the relationship between the regional poverty rate and gross regional product (GRP). Section 3 discusses the data and methodology employed; Section 4 mainly describes the empirical results on the elasticity of the poverty rate with respect to GRP; and Section 5 presents the conclusions.
Where Has All the Oil Gone? Contradictions among Russia's Socio-economic Development, Political Legitimacy and Corporate Profits
Where Has All the Oil Gone? Contradictions among Russia's Socio-economic Development, Political Legitimacy and Corporate Profits
(Where Has All the Oil Gone? Contradictions among Russia's Socio-economic Development, Political Legitimacy and Corporate Profits)
- Author(s):David Dusseault
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies, Socio-Economic Research
- Page Range:145-172
- No. of Pages:27
- Summary/Abstract:There exists a body of evidence suggesting that Russia's energy sector-based interests are not monolithic. On the contrary, and quite intuitively, Russia’s political economy is fractured along institutional, temporal, and informational lines not just at the various levels of the country’s federal system, but also along the economic value chains that define the Russian energy sector. In order to tease these political, economic and social nuances out from the context in which they are embedded, it is felt that current research needs to move away from the shadow of neo-Kremlinology and expand its scope to reconsider the existence of fissures among political and economic interests, identify competing elite groups within the federal institutional structure, and understand the structural conditions that contribute to strategic decision-making process of the Russian Federation. Based upon several years of research conducted at the Aleksanteri Institute, four separate deficiencies concerning the nature of the structure of Russia’s political economy have been identified and will be discussed in turn below.
China’s Energy-Environment Problems and Some Issues Related to the Post-Kyoto Arrangement
China’s Energy-Environment Problems and Some Issues Related to the Post-Kyoto Arrangement
(China’s Energy-Environment Problems and Some Issues Related to the Post-Kyoto Arrangement)
- Author(s):Jun Pang
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies
- Page Range:173-185
- No. of Pages:13
- Summary/Abstract:China is a country with a large population, and by the end of 2007 this population had reached 1.321 billion or approximately one-fifth of the total world population. Since the beginning of reform and opening up, China has achieved rapid economic growth. The GDP of China in 2007 reached RMB 24.95 trillion with a growth rate of 13.0%. With the in-depth implementation of reform and the gradual improvement of the socialist market economic system, China’s social vitality and the development of China will be further stimulated. As described in The Outline of the 11th Five-Year Plan for National Economic & Social Development of the People’s Republic of China (SCPRC, 2006), or the 11th FYP in short, the total population of China will be kept under 1.36 billion by 2010, and the annual growth rate of GDP will be maintained at 7.5 percent during the 11th FYP period to double the 2000 per capita GDP by 2010. However, China is still a developing country, and must make development the top priority. Maintaining a relatively high economic growth rate is an important principle of China’s sustainable development policies; at the same time, some policies such as environmental standards, the emission charging system and emission trading system have also been adopted in the development process in order to protect the environment and promote China’s sustainable development. This is determined by the reality of China at this stage. Currently, a higher rate of economic development in China is conducive to many development targets, such as poverty reduction, increasing the socio-economic sustainability, overcoming various macroeconomic risks, maintaining economic stability, creating a larger middle class and coordinating the gap between the rich and the poor, thus enhancing the payment capacity of the people and cultivating more efficient market demand, which is beneficial to reducing social conflicts and improving investment & consumption demand, and is also beneficial to the implementation of the scientific development philosophy and the strategic thinking of building a harmonized society.
Japan in the Midst of Multilateral Negotiations on the Future Framework for Climate Change
Japan in the Midst of Multilateral Negotiations on the Future Framework for Climate Change
(Japan in the Midst of Multilateral Negotiations on the Future Framework for Climate Change)
- Author(s):Yasuko Kameyama
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies
- Page Range:187-199
- No. of Pages:13
- Summary/Abstract:Much of the literature suggests that the foreign policy aspect of decision-making on climate change brings about a positive influence on the country’s position in terms of environmental consciousness, but this proposition proved to fit only partially for Japan. The first type of Japanese foreign policy on climate change is to view national decisions as a result of organizational behavior. This can be applied to explain the activity of MOFA in the context of involvement in climate policy-making. Whenever MOFA exerted its influence, it respected the U.S. involvement in the scheme, as MOFA considered the United States to be the most significant partner for Japan. On the other hand, the actions and decisions taken by Japanese political leaders were difficult to explain by various theories on foreign policy. This is a kind of cultural shock, which is experienced by political leaders individually, and that can alter their mindsets in a short period of time. Political leaders, once they became aware of climate change debates, sought political leadership in the negotiations, which resulted in shifting Japan’s national position towards the pro-environmental direction.
