Urban Affairs Vary In India and China
From THE ASIAN WALL STREET JOURNAL
There is a substantial difference between India and China in the distribution of income among urban households.
In China, the overall distribution is quite close to a bell curve. This is good because it means there isn't a disproportionate number of really poor or really rich households and the middle class is thriving in urban China.
In India, however, there is a significant urban poor class and a significant affluent class but no real middle class.
In China, 4.4% of urban households earn less than $1,000 -- in India 45.1% of urban households earn less than $1,000. At the other extreme, just 1.4% of urban households in China earn more than $7,000 per annum, compared with 11.5% in urban India.
The implication of these differences is significant. China, with its more equitable distribution, has a middle class that is effectively driving the development of a domestic consumer market and thus giving the overall economy a level of resilience. India doesn't have the same engine to drive its economy, although this may change as the government allows greater freedom in the economy.
In both countries, urban is defined as living in city or town jurisdiction, with a town defined as a nonagricultural population greater than 2,000 persons.
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