Briefly Compare the Political Regime Type in China and India. Which of the Two Would You Prefer to Do Business in and Why?

As PBS (2007) reports, a new legal revolution is underway in China which promises a new form of interest articulation and perhaps aggregation: "Today's way forward is to build the idea of individual rights of the citizens…and that means changing the habits of the last few thousand years," The People's Court documentary states. What it essentially shows is a kind of democratic transformation in Communistic China. Indeed as nations become increasingly capitalistic (even in supposedly socialistic societies), the trend towards political democracy increases. India and China are both examples of such a trend. This paper will analyze the political systems of the two nations, including their political environments, structures, and functions; their political cultures, including their process and policy levels with an illustration of how political socialization occurs and the agents of that socialization; how interest articulation and aggregation occur; how public policy is crafted; why it seems the direction both nations are headed for is one that is more democratic; and what the future holds in store in terms of political culture, public policy and interest aggregation for both India and China.

As we all know, Canada is a democracy with parliamentary government; Canada has tenth largest economy in the world and Canada is a member of OECD and the G-8; nowadays, Canadians have a satisfying income, a good education and most of whom dominated middle class or higher; Canada is the leading nation in science and technology especially the internet and digital communication. India is a democracy government and the political environment is influenced by government’s policies, politician interest and so on, which means the business environment is affected by the political factors; the economy in India is exceedingly stable due to the industrial reform policies; the social factors of India comprise of a multitude of social trends and changes such as values, languages, belief, demographic features and so on; even though India posses one of biggest IT sectors in the world, most of technology sectors in India is far behind other powerful nations.

The Communist Party of China is based on ideology and politics, where the majority of policies are derived from the people’s will. The Communist party tends to be made up of high ranking officials in a tight net community with a lot of power. (Chinatoday Resources, 1997) This government is known for needing to be in control of everything including; education, media, and business to name a few. Recently the Chinese president has

In addition, China 's politics and economy have great differences with western countries because of the special national conditions, that the political power (or government) may have a prominent or even overwhelming strength relative to the economy (or business), which may have a decisive influence on economic development. First, the government-lead economy has caused excessive pursuit of economic development but neglect the quality of development (Zhou, Zhang & Shen, 2015). Second is the government 's control and allocation of resources and the dominant mode of development of the state-owned economy have caused a series of problems like the loss of economic benefits to a certain extent (Dollar, 1990). So the excessive concentration of political and administrative power caused by the low degree legalization and democratization in Chinese economy may have resulted in some obstacles in the economic development to enterprises, and this kind of rent-seeking which has political power to control economic resources and the right of examination and approval maybe one of the reasons caused China’s corruption and damaged the normal order of the market economy. In western countries, companies could hire a lobby group to lobby government in order to gain some benefits and a lot of countries such as the United States have the Federal Regulation of lobbying act that make constraint on lobbying (Hansen & Mitchell, 2000). But for enterprises in China, to develop good relations (“Guanxi”)

Currently, China remains the world 's second largest economy. However, the Chinese economy in the two phases of communism (Mao and Deng) differs as to its position facing the foreign market, its economic plans and the socio-economic characteristics of the population. The first phase, which under the rule of Mao Tse-Tung, was characterized by China’s isolation from the Western - being in trade and political relations; by a predominantly rural and impoverished population; the existence of a centralized economic planning; by the government control of the means of production; and the adoption of plans which, in turn, emphasized the development of basic sectors of economic activity, such as mining, steel, oil, and agriculture (Lam et al., 2015). It was clear that if China wanted to experience real economic growth, major reforms would need to take place in order to achieve such milestone. In that sense, China should consider easing its acceptance of international investors, which would broaden international business possibilities, increase income for their small businesses, and increase inbound investments.

When India got independence in 1947, India inherited a shattered economy. The economy was completely damaged. This damage was largely done by the exploitative policies adopted by the

India has been a popular choice and a major destination point for expansions and the economic outlook is extremely encouraging. Despite past complications in the economy, the country has improved dramatically. Corporation earnings have increased while unemployment rates are declining. India’s government has been proactive on passing regulations for business. There is however, quite the “black market” in India that they have not been able to regulate which can possess issues to any new business entering the market.

agricultural sector where in 1991 it equated to 30% of all GDP (Rudolph, 1987, Table

India’s privatization program has had a bumpy record and was often slowed by political opposition; in 1999 some 240 state-owned enterprise were still scattered across many sectors of the economy and accounted for 15 percent of India’s GDP. But the program was progressing at a fairly rapid price in the early 2000s with 30 state-owned enterprises privatized in 2002.

Under this system, Nehru sought to strengthen the agricultural and power sectors, providing agriculture 45% and industry 5% of the resource during the first Five-Year Plan. It initially gave India an increase of 3.6% (Exhibit 10a) on its gross domestic product during the first five years. Following this the government isolated the country from foreign investment (as nationalist leaders feared a dependency on it) and trade in an effort to promote domestic production and as a strategy to reduce imports. Since the government had also created a complex system of licensing through the Permit Raj, resources became scarce, the complexity of its bureaucracy fostered corruption and became a reason of delay for companies. This made it hard for other important areas of the country to help increase its economic growth. Also, the government gradually came into possession of most of the private sectors: By 1956, it already had control of commercial banking, oil, insurance and some important resources such as steel and mining. The government, along with the large family conglomerates controlled almost all Indian economy and could arbitrarily choose how each industry would be ran; it regulated the where, the how, the how much and the whether or not a company would be given permission to produce. Price regulation and

Showing utmost political maturity, India shoved aside decades of sloth and signed major agreement with China a country earlier thought of as a backstabber and talk with it was a big no. Our country has now refused to be trapped hopelessly in the remains of a bad yesterday, proving once again that this is a nation hardened by history, that it suffers only to renew itself the other day and that it keeps pace with the changing needs so as to be in consonance with the ever changing time. Talks with Pakistan, restoration of the Muzaffarabad bus service, the historic exchange of prisoners etc are the cases in point. Another important factor which radiates the flourishing of India is its successful and smooth functioning of democracy. Right from its start, it allowed Universal Adult Franchise, a unique achievement in itself. Many scholars at that time predicted that a country as poor, illiterate and diverse as India, could not survive on Universal Adult

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade

Let us start with the old challenges. Foreign policy of each country is driven by its national interest. Both India and China prefer a seamlessly friendly government in Kathmandu, which is not possible given their strategic contest and territorial conflict.

India is a new emerging economic power in the world. Though the 21st first decade saw a global level financial crisis, India didn’t wilt under its pressure due to it’s the Government’s progressive policies and full-fledged reforms. Particularly, nationalization and liberalisation were the real saviors of India from the recession. Also, the national sectors and global raid helped to maintain the economy in proper way.

Political: India was initially a closed economy there was numerous restriction and laws imposed on foreign companies in order to carry out business there, the reason because British also came as traders and then occupied whole India, making them slaves for more than a century. Also there was also an opposition to FDIs, they shut down the wal Mart, as the time pass the government realized that they have slowed