From another perspective, India: India and China profit from a dollar contrast, a large gap raspberry

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Lead: an article with you another point of view India!

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recently in India
crisis, many readers want to know how India is a country in the end, they and we have no difference, today I talk about the real gap between India and China from a dollar profit.

I do not know whether you recall, a few years ago it was reported that certain stand-alone profits of domestic mobile phone exporters only one dollar.

So, everyone’s mind might show a picture of the so-called sweatshops: the cost of the phone components imported into China as much as $ 99, Chinese people working so hard, hard busy for a long time, leaving
under a lot of pollution and waste a lot of resources, and finally derive $ 1.
Xiaohe Americans took $ 99.

However, if we understand the “profit” and “value added” are two different concepts, will be able to understand this picture has great mistake.

Some analysts are given below:

We assume that this phone factory owner eventually got from the hands of buyers is 600 yuan, can profit only six yuan, the cost of certain high as 594
Further analysis of what it would cost in the end is this?

Some people said it was “the core of the” foreign, “high-end” and “advanced” electronic components, do not deny that phone really need some of the core component parts, but they can never account for the total cost
of 99%, but in fact the highest total costs generally three Dao Sicheng.

Let us assume for the half, or 300 yuan paid to component suppliers, as well as 294 yuan it?
The boss needs to pay wages many dollars, many dollars needed to pay the rent, to pay electricity bills several dollars, need to pay some tax dollars, to pay agents a commission of several dollars, need to pay the logistics costs several dollars, need to pay several parts supplier yuan ……
this constitutes the largest part of the cost of handsets.

We traced further down, which cost a few hundred dollars is not for nothing disappeared it?
Obviously not, it represents some of the RMB is transferred from the hands to the hands of others.
And both sides are Chinese people.

parts supplier to provide accessories, there is no doubt they need to manage their own labor, rent, utilities, logistics, warehousing and so on; Power Supply Bureau to power, we need power grid construction, power station construction, and even coal mining
; logistics company to provide a guaranteed stream, you need a vehicle, requires drivers to pay highway; then the next step, you also need roads, steel and concrete need, need ……

It can be seen, only one US dollar on the surface, bones need is strong support for the raw materials industry, the energy industry, infrastructure, logistics network, supporting industries, the market system of an entire country.

One might ask, huge system combines the raw materials industry, the energy industry, infrastructure, logistics network, supporting industries, the market system become, in the end what is intended to do?
What is the meaning, I dunno, I just want to say that all of the industrialized world, have these.

however, such as India, Africa, Vietnam, the Caribbean group of countries, Bangladesh and so on and so on are not these.
This is why, although they have cheaper labor than China, but did not become the fundamental reason of a major exporter.

said the Chinese, then look back to India.
India have a small group of so-called high-end industrial and high-end crowd.
They write in the office software, English-speaking, highly educated, Western-style life too.
But this industry is almost completely without supporting facilities, in other words, as if floating above a backwater of a beautiful castle in the air.

In the few high-end of the other side, a large group of extreme poverty, without work, a large agricultural population by class original state survival.
They live in “rural Indian style” Gandhi advocated, the grain yields only one-third of China’s industrial hand state, the illiteracy rate is much higher than China, the world’s highest infant mortality, life expectancy is far lower than China

From a purely physical measure, India and China, the gap is even greater than the gap between China and the United States.

The most important, India’s rural and small number of high-end industrial and high-end crowd is isolated, as two of the world have nothing to do.
Indian farmers can not go to work in software companies, when the driver would not be able to make a living by drawing software, the software can not do supporting small business.

The Chinese, from the lowest end to the most high-end, the whole of integration, many farmers are not educated, working from the beginning, gradually becoming a middle-level technician, or salesperson, then start your own business
There are companies, from small start agents, with annual sales of billions of dollars.
They are as a whole during the operation ……

from the least rational, educated Indian elite view, China does have much to envy parts of India, then what is the factor preventing India as China do?

A lot of people are said to be ethnic factors, national character factors, climatic factors and so on.
I would say that this attribution is the most lazy easy, but also the most likely superficial.
Nature of the fact that very little difference in people, but in a different environment, especially the institutional environment, will react differently to it.

We assume it, when did this low-end factories into India, its ballot system and the parliamentary system, this will respond to what is?

I think there will be so few angry politicians, delivered a speech to the people, accusing the evil export industries, “it is the low-end, evil, predatory, colonial, ………
… pollution of the environment, take away resources …… “, these words will be able to evoke a strong response to many of India’s poor.

It’s hard applause, tears in the eyes of flowers, shouting slogans, from the bottom of my heart happy.
People say that this is the real conscience of people, not just people singing the praises of.
Those who only play with some of the people watching do not understand complex formulas and charts to explain the set of his theory of comparative advantage, “the importance of scale chain …… …… …… infrastructure”, but people dislike this Zhuangqiang
for the transfer, which is considered to fool the people, angry oust him go …… people finally won.

any possible so that people heart hell of labor-intensive enterprises have turned out.
State approved only absolute green, advanced, high-end enterprise.
But in fact, in line with this standard and taking care to India over behind the fact that this industry too difficult to find.

I would say that the Indians, after all, is not easy.
They eventually find such an industry —- the software industry.
But the size of the software industry is too small, only India working so hard to achieve billions of dollars in exports.
The reason why we must export, because India is almost no demand for such high-level software stuff.

This is tens of billions of dollars, can only feed a few thousand people, the rest of the more than one billion people in extreme poverty can only continue groping in.
Indians are not bad for the poor, the poor in India economist, there are Nobel Peace Prize winner, they are trying hard on the poor little better.
But their efforts, but ultimately the poor people a decent death, or keep a cow, can a cup of milk a day (in India there is a “torrent of milk plan” so that every Indian milk drink).

keep going along this road, it is not the same as it can become very powerful?
Objectively speaking, the Indian software does bring a number of related industries, such as consulting, legal, financial, training, industry and so on.
But all software in India is completely dependent on the developed countries, and demand their own country has nothing to do.

In contrast, although China did not deliberately development of the software industry, but software sales have more than India.
Because China’s huge domestic manufacturing sector, producing its own internal needs.

If an entire economic system compared to a basket of flowers, the Chinese caught a glimpse of one of the most important of several skeleton is humble, weaving together the first frame, and then will be attached to other components, will be out
on the internal market of power generated out spontaneous.

India, only to see the most beautiful flower baskets flowers, and he took this little flower baskets itself is no relationship, hoping that some day may become out of thin air to a basket of flowers.
I think this is the difference between China and India.

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