The rapid economic development of the Asian countries is worthy of study and emulation. Countries like China, India, and the UAE have established strong economic powers, lifted the majority of their citizens out of poverty, and are making great strides in the international market.
While the availability of natural and human resources plays a huge role in the economic development of a country, the impact of the leaders of the country can’t be undermined. This article discusses the leaders of China, India, and the UAE, and how they’re improving the economic power of their countries in the global market. You’ll also get to know the ease of doing business in those countries and the recent government policies that are improving them. Let’s get to it.
India
India, with a population of 1.4 billion and a GDP of US$3.1 trillion, is the second most populous country and sixth-largest economy in the world. Over the years, different presidents have made great transformations to the Indian economy. Worthy of note are presidents Abdul Kalam, Late Shri Narayanan and others.
The current president of India, President Droupadi Murmu, was voted into power on July 25th, 2022. Let’s look at the history and current state of economic affairs in India.
The economic history of India in the last ten years
Over the last ten years, India has experienced ups and downs in its economy. From 2012 to 2019, the country had a positive economic growth rate. The economy grew from a GDP of US$1.8 trillion to US$2.8 trillion. That’s a massive 64% growth in the space of seven years.
However, in 2020, the country witnessed a decline in its GDP growth rate. India recorded a US$2.67 trillion GDP, which is a 5.79% decline from the previous year’s GDP of US $2.83 trillion. Then, in 2021, India recorded a GDP of $3.1 trillion, consolidating its place as the sixth-largest economy in the world.
Despite the effect of COVID-19, India recovered from the economic shock of 2020 with a 15.54% GDP growth rate in 2021.
What is the ease of doing business in India?
According to the World Bank, India ranked 63rd among the 190 countries examined for their ease of doing business in 2020. This is a massive improvement from their ranking in 2014 as the 142nd country, which made it one of the hardest countries in the world to run a business in.
This improvement is a clear indicator of the impact global leaders can have on the economic power of their countries. The Indian government implemented regulatory reforms in 2014 and reduced the 25,000 compliance requirements for doing business in India. Currently, the government is also working to ensure it’s extremely easy to register and run a business in India, even as a foreigner.
New government policies that have helped boost the economy of India
The government of India has set up policies and conducted over 7,000 business-oriented reforms in the past decade. The objective is to foster economic growth through inclusive growth and financial empowerment. To encourage foreign direct investment (FDI), the government is committing resources to building a digital and technology-based economy.
Its goal to make India the second-largest economy in the world by 2050 has led the government to set up these policies:
- Industrial policy of the department for promotion of industry and internal trade
- Standard operating procedure (SOP) for processing FDI proposals
- Consolidated FDI policy of the department for promotion of industry and internal trade
- Foreign trade policy of directorate general of foreign trade
- Guidance and provisions for exports issued by federation of Indian export organization (FIEO)
- India’s duty-free tariff preference (DFTP) scheme for least developed countries
- Relaxation of Cabotage law, etc.
China
China’s rapid economic growth since its economic reform in 1978 is unmatched in the world. China’s economic reform which began under the leadership of Deng Xiaoping saw China move from a command to a mixed economy. Deng Xiaoping’s leadership set the “four modernization” goal, which comprises development in agriculture, industry, defense, and science and technology in China.
China’s current paramount leader has also made great strides to foster economic growth and increase China’s global economic power. So, how has China fared in the last ten years? Let’s find out.
The economic history of China in the last ten years
Over the last ten years, China has witnessed a slow economic growth rate. However, this decline is expected as the country averaged a GDP growth rate of 9.4% from 1978 to 2012. Having attained economic stability, it’s expected that the economic growth rate will slow down. That’s why economic growth went from 7.86% to 2.24% in 2020. However, that doesn’t mean China’s is declining, it only means it’s growing at a slower pace.
With a current GDP of $17.7 trillion, China has the second-largest economy in the world. In 2015, China announced a ten-year plan tagged “Made in China 2025” in which it plans to raise its manufacturing capacity by developing ten high-tech industries. These industries are electric cars, next generation information technology, advanced robotics and artificial intelligence, agricultural technology, aerospace engineering, new synthetic materials, advanced electrical equipment, emerging bio-medicine, high-end rail infrastructure; and high-tech maritime engineering.
China has in the last decade secured its place as the world’s largest exporter by being the major exporter to many countries.
What is the ease of doing business in China?
Among the 190 countries examined by the World Bank for ease of doing business, China ranks as the 31st. This means China is one of the easiest countries to start and run a business in. The drop from the previous ranks of 78 and 46 in 2017 and 2018 respectively shows the effort China has made in attracting foreign investment to its country.
In 2019, China carried out eight business reforms, especially in the area of construction permitting. The goal is to improve the domestic business environment for small and medium enterprises in the country.
New government policies that have helped boost the economy of China
China’s rapid economic growth and rise to global economic power are the aftermaths of powerful reformatory policies. Since 1953, the government of China has set up five-year plans to improve economic and social development. The most recent policies that have seen China maintain its global economic dominance are:
- Providing direct subsidies on interest loans for made in China 2025 industries
- Tax breaks to investors in the made in China 2025 industries
- Forced technology transfers in exchange for market access
- Market access and government procurement restrictions for foreign-invested enterprises
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UAE
Since the first oil export was made in the United Arab Emirates in 1962, the country has experienced progressive economic growth and development. The first UAE president, Sheikh Zayad bin Sultan Al Nahyan, ruled from 1971 until his death in 2004. He saw to the transformation of the UAE using its oil resources. The succeeding president, Sheikh Khalifa bin Zayad Al Nahyan, also saw to economic reforms and strengthened the UAE. He made sure to diversify the economy of the UAE as the country made huge investments to raise its tourism-generated revenues. The current president, Sheikh Mohammed bin Zayad Al Nahyan, has also followed suit in his plans to make the UAE an economic powerhouse. Let’s look at the economic history of the UAE in the last ten years.
The economic history of the UAE in the last ten years
The UAE has been a major supplier of petroleum and natural gas to many countries, including China, India, and Iran. With its economy heavily dependent on crude oil, the UAE has the 5th largest economy in the Middle East. Between 2012 and 2014, the GDP increased from US$374 billion to US$403. However, in 2015 the GDP dropped to US$358.1 billion, and dropped further by another one billion in 2016.
With a current GDP of US$501 billion, the UAE is on course to become a global economic powerhouse.
What is the ease of doing business in the UAE?
According to the World Bank, the UAE ranks as the 16th country in about 190 countries examined for their ease of doing business. This means it’s easier to start and run a business in the UAE than it is in China and India.
The UAE has created an enabling environment for business establishment and success in the country. With just your mobile phone or computer, you can register your business in the UAE. The Companies Law was amended to reduce government compliance and regulations restricting business advancement in the country.
New government policies that have helped boost the economy of Dubai
These policies were laid out to boost the economy of Dubai and other provinces in the UAE:
- Vat subtraction on gold and diamond products
- Government fees have been put on freeze
- Lenient company ownership rules and visa provision for professionals
- Economic incentive packages in Dubai and Abu Dhabi
- Waiving of 4% registration penalty imposed on land developers and purchasers who didn’t inform the Dubai Land Department of unit sales
- Extensive changes to the UAE employment and visa rules
- Reduction on hotel sales fees, etc.
Conclusion
The economies of these three countries listed here indicate the massive transformations that can happen with the right leaders in power. This is attainable anywhere in the World, provided the leaders have the plans to make their country an economic power.
If you’re in power, or plan to be, I hope this article has opened your eyes to the ripple effects a single economic policy can have on an entire country. And I hope you’ll do your best to foster economic growth in your country, thereby reducing its poverty rate and that of the world.
