GDP per capita is one way to measure an economy’s growth. China and India began to progress when they allowed private ownership, around __. Since then, there has been steady, strong growth in these economies.
Group of answer choices
2000
1970
1980
1990
1960
The correct answer and explanation is:
The correct answer is 1980.
Both China and India experienced significant economic growth starting around 1980 after they implemented reforms that allowed for private ownership and market-oriented policies.
In China, the turning point came in 1978 when Deng Xiaoping introduced major economic reforms that began in 1979 and 1980. These reforms aimed at transforming China’s centrally planned economy into a more market-oriented one. The government allowed limited private ownership, encouraged foreign investment, and gradually opened up to global trade. Special Economic Zones (SEZs) were established in coastal areas to attract foreign investment and technology. These reforms shifted China from an isolated, state-controlled economy to one of the world’s largest and fastest-growing economies. By the 1980s, China had experienced steady industrial growth, increased productivity, and rising living standards.
Similarly, India implemented economic reforms in 1991, following a balance-of-payments crisis, but the early signs of liberalization and growth were already evident by 1980. Before the 1980s, India’s economy was characterized by heavy regulation, limited trade, and slow industrial growth. However, in the early 1980s, India began to open up its economy by allowing greater private sector involvement, reducing tariffs, and gradually dismantling some of its strict regulatory controls. This helped lay the foundation for the economic boom India experienced in the 1990s and beyond.
In conclusion, the economic transformations in China and India began around 1980 with the introduction of market reforms and private ownership, which has led to their sustained economic growth over the past few decades.