Growth and Poverty Reduction in China, India and Mongolia Essay

Growth and Poverty Reduction in China, India and Mongolia - Essay Example Although Mongolia's growth is rather modest in comparison, it did register a 7.5% growth rate in 2006 due to an increase in copper prices and in the volume of gold production. China is now second only to the US in per capita purchasing power (PPP) and is projected to surpass it within a decade. It is also projected to become the world's largest economy by 2025. (Economic Strategy Institute) Third. Their concrete experience and lessons learned in the relation between rapid growth and poverty alleviation. Recent economic developments have freed millions of Chinese, Mongolians and Indians from the poverty trap, but hundreds of millions more continue to be impoverished. In many cases growth only increases the gap between the poor and the "newly rich," and between coastal cities and farming communities. China's poor have been especially hit by the privatization of many erstwhile state enterprises and consequences such as the loss of jobs, security of tenure, and other benefits. Fourth. Their long history of interaction and currently changing relations. India and China, and China and Mongolia share common borders; 2,800 kilometers long in the first case, and 1,900 kilometers in the latter. (CIA) Border related hostilities erupted into the 1962 China-India Border War. It was only in 2005, 43 years later, that the two countries forged an agreement for what was called a strategic partnership that could pave the way into a total resolution of border issues and fruitful cooperation. (US AID) Relations between China and Mongolia have also improved recently. In the past, Mongolia's fears of annexation by China and its close relations with the Soviet Union (now the Russian federation) blocked such efforts. Relations between the two countries have improved in the past two decades and by 1994, they had concluded a Treaty of Friendship and Cooperation. (Rossabi) II. Do Higher Growth Rates Ensure Less Poverty and More Equality The research paper will focus on the relationship between growth and poverty eradication. It will also touch on the interaction between economic growth and observance of political rights in China, India and Mongolia, though to a lesser degree. This is the thesis. Rapid double-digit economic growth has not and does not automatically guarantee prosperity and economic equality. This is illustrated by the experience of China, India and Mongolia. In fact, in too many cases, economic growth has been and is still achieved at the expense of the basic economic and political rights of particular sectors and areas. The responsibility of any and all governments is to develop the specific policies and programs, structures and mechanisms, and clear yardsticks that will ensure not only economic growth, but just as important, the realization of the economic and political rights of each and every citizen. III. Resources for Poverty Alleviation India and China are large and populous countries with resources in the form of their population, work force, land, minerals, infrastructure, technology, and other natural and man made reserves. (CIA) Mongolia's population of 2.5 million is exceedingly small