Clearly, there are many differences between developed nations and developing nations, particularly when it comes to economic development and infrastructure development. Nations that are still developing may have problems with infrastructure development because of economic concerns and government fiscal policies. In this discussion, growth, poverty, education levels, health conditions, population growth, geographical location, regional development differences, aid opportunities, and political structure are used to compare and contrast India, which is a developing nation, with Japan, which is considered to be a developed nation. In addition, the analysis will use the main economic indicators-- for example, inflation, unemployment, investment and so on-- to determine potential future outcomes for both nations.
Both India and Japan are nations with long histories. However, for the purposes of discussion regarding their current economic state, the focus will be on recent history. Both India and Japan are victims of the era of colonization, but India undoubtedly had a worse time with colonization, as the British colonized the country for many years (Tapponnier, Peltzer, and Rarmijo). In the late 1850s, India was colonized by the British and the British East India Trading Company, and remained a colony of the British for a century (Tapponnier, Peltzer, and Rarmijo). India finally obtained its freedom from the British in 1947, and completed its constitution in 1950 (Tapponnier, Peltzer, and Rarmijo). However, the end of the British rule also meant that the nation-state of India was split apart, with part of the territory becoming Muslim-controlled Pakistan (Tapponnier, Peltzer, and Rarmijo). Tensions between India and Pakistan remain high to this day, and India and Pakistan have nearly come to nuclear war a number of times since the partition of the Indian territory in the late 1940s (Tapponnier, Peltzer, and Rarmijo). India remains one of the only post-colonial nations in the world that has maintained a functioning democracy since the inception of the constitution. At this time, India adopted a parliamentary democracy with a multi-party system, which has multiple houses of government and a Prime Minister (Tapponnier, Peltzer, and Rarmijo).
Japan was never colonized in the same way that India was; instead, Japan remained independent from colonial forces, although it opened up its economy to the world around the same time that India became a colony (Mccargo). Prior to the 1850s, Japan had a closed economy, but after 1850, the Meiji Restoration brought Japan into the industrialized world (Mccargo). It was in the late 1850s that Japan first began to adopt a democratic form of government. Japan became embroiled in World War I on the side of the Allies, and World War II on the side of the Axis powers; it was this participation that led to the Americans dropping two atomic bombs on Japan, one in Hiroshima and one in Nagasaki (Mccargo). After the loss of the Axis powers in World War II, Japan began to rebuild its country into a constitutional monarchy, which has an emperor and a bicameral parliament that controls the political and economic direction of the nation (Mccargo).
Japan is considered today to be an industrialized nation, and is one of the only nations in Asia that is not currently considered to be still “developing.” The Japanese government is stable, and not currently under any threats for a coup or overturn; this is important when considering the economic state of the country as a whole. According to the International Monetary Fund, Japan’s economy has demonstrated:
government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors and the guarantee of lifetime employment for a substantial portion of the urban labor force Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. (“Report for Selected Countries and Subjects: Japan”).
In short, in the years following World War II, Japan has built a stable economy that has grown steadily, although it is not immune to the ups and downs of the market. It has become a large economic power in the world. however, despite its small size.
On the other hand, India was much slower to integrate an open-market approach in the years after colonization. As a result, growth in the mid-1900s was slower than that of Japan’s, although the Indian economy did indeed grow (Report for Selected Countries and Subjects: India”). Because of India’s sheer population size, necessity prompted India to open its doors to open-market competition in the mid-1980s to early-1990s (“Report for Selected Countries and Subjects: India”). In addition, India has been having many problems with poverty in both rural and urban areas. While Japan has poverty-stricken areas, there are not as many poor people in Japan as there are in India (Tapponnier, Peltzer, and Rarmijo). India is unique because it has such a large population, and the gap between the rich and the poor is still so great within the country itself.
Healthcare in Japan is very extensive, and mostly covered by the taxpayers of the country (Mccargo). Unfortunately, healthcare in India is not as good as it is in Japan. Although healthcare in India is available, it is mostly out of reach for the poorest people in the country, who are often the people who need healthcare the most (Tapponnier, Peltzer, and Rarmijo). This lack of healthcare is a large problem facing the Indian subcontinent, especially in rural areas where people lack access to clean drinking water, nutritious food, and medicine (Tapponnier, Peltzer, and Rarmijo). Approximately 9.4% of India’s GDP comes from taxes, which is very different from Japan’s 33%; because so many of India’s poor people do not have work and thus do not pay taxes, India suffers from an inability to implement important humanitarian programs, like healthcare and literacy programs in the poorest and most rural areas of the country (Tapponnier, Peltzer, and Rarmijo). Japan’s rural population, by comparison, is much less poor, and much more self-sufficient than India’s; Japan’s level of unemployment is also much lower than India’s, perhaps due to the low birth rate in the country (“Report for Selected Countries and Subjects: Japan”).
It is disingenuous to compare India’s gross domestic product (GDP) with Japan’s, because their economies are so different and varied. However, the GDP per capita is very helpful to look at. According to the International Monetary Fund, India’s per capita GDP in 2012 was $3,900 while Japan’s was $36,900. This indicates that there is a large difference between the type of work and the payment for that work being done in the Japanese industry versus the Indian economy. The Indian economy, according to Tapponnier, Peltzer, and Rarmijo, is a service economy; Mccargo writes that the Japanese economy is based on technologies and development-- it is an idea-based economy. Indeed, Japan is famous for its technological advancements in automobile technologies, cell phone technologies, and other high-tech equipment; while India is excellent with technology and development, the level of achievement for India has not reached the level that Japan’s has.
Both India and Japan are not without their problems, but they seem to be inverse problems. Japan faces a slowing birth rate and an aging population, while India faces a population explosion that it cannot control. While India makes attempts to employ more of its poor and underemployed people, Japan is fighting to ask some of the eldest in the country to retire to make way for those in the younger generation. Both countries face difficulties in the global economy, but they are similar in that they have faced down extraordinary difficulties and maintained stable, relatively-democratic societies for a significant amount of time. Although Japan is considered to be a developed nation, they never had to face the sheer number of people that India has had to deal with; India’s poverty problem is large, but over time and with international aid, the problem will be lessened. This will allow India to continue to grow economically and globally.
Works cited
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Mccargo, Duncan. Contemporary Japan. New York, N.Y.: St. Martin's Press, 2000. Online.
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