ABSTRACT
The very fast growth of the Chinese economy compared with the Indian economy, since the early 1980s can be explained by two sets of factors, some geographical and historical, some societal and political. In addition, some common and basic difficulties should be taken into account. One basic factor is frequently forgotten when comparing China and India. Over many centuries Chinese peasants have been used to employing highly intensive techniques in irrigation, seed selection, the use of organic manure (including human excreta) and compost, and inter-cropping. The decollectivization of China’s agriculture, together with cooperative and private trade, private transport, and cooperative small industries, boosted agriculture in the early phase of the reforms. After the big mess created by the Great Leap Forward, the Chinese promoted a systematic and rational policy in favour of small industries in large villages and district towns, usually under collective or township ownership.
