RECENT EMPLOYMENT TRENDS IN INDIA AND CHINA: AN UNFORTUNATE CONVERGENCE?

Both China and India, considered generally to be the "success stories" of globalization with relatively high growth rates in output over last two decades or so, have experienced slower expansion in employment, especially in the organized sector. Moreover, the bulk of new employment is in lower productivity activities under uncertain and often oppressive conditions. This paradoxical situation has characterized both the countries essentially during the period when they have opened their economies to trade and investment. The major factors behind this are changes in the pattern of demand for goods and services in the developing countries as well as adoption of labour-saving and productivity-enhancing technologies in the production process. The authors strongly argue for a change in the policy regime in which generation of good quality employment is the most critical variable. Another important requirement of this strategy is public expenditure, especially in the social sectors. [ABSTRACT FROM AUTHOR]