GEPPS

Canada and India Comparison

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Canada and India Comparison

It does not matter which system of government is prevailing in any country when we assess its economic development in comparison to another country’s. Canada has a parliamentary democracy as a system of government which is guided by the Constitution Act of 1867. Law making and enactment is in the hands of specific people who have been selected by the general public. Canada is also a monarchy in terms of constitution with its executive power vested with the queen.

India is a federal republic with the system of government based on the UK model. In order to form a government, a party or coalition can make a government if it is able to get more than half the seats of Lok Sabha. The other house of system is the Rajiya Sabha which is called the council of states. The country has implemented democracy in its true sense by keeping all institutions within its limits.

Just like there are differences among Canada and India in terms of their respective economies, both the countries showed a deficit in terms of budget. Canada is very much like the US in terms of its economic system which is market oriented. On the other hand, India is a developing economy which is transforming into an open-market economy. The consistency of democracy has allowed the country to rise in the economic arena. The economic growth of India measured just under 7% per year since 1997 CITATION Nat18 \l 1033 (NationMaster, 2018). The Canadian economy plays an important role in the overall international trade. Although India is also an important trading partner for many countries, most of this trade is done as imports to India. The basic difference between the government systems is the allocation of resources. India is not able to control population growth which does not allow it to allocate its resources properly. This huge population also creates many other problems such as lack of proper training and education for people.

The internet has played an important role in the development of economies of both Canada and India. Canada has been more affected by this aspect because most of its economy is technology based. The geographical span of the country is vast, however, the population is low CITATION ITA13 \l 1033 (ITAC, 2013). This compels the country to indulge in those processes which are technology intensive. In India, on the other hand, there is a very high density of population. Thus, there are labour intensive techniques applied by Indian businesses. The internet has played an equal part in the development of these businesses in both countries. The businesses in Canada have used internet to cover the lack of availability of human resources. Most businesses are automated in the country and customers also prefer to use online systems. In India, there isn’t common usage of internet in businesses due to the lack of infrastructure and customer knowledge. One of the Indian cities has become the hub of information technology but the situation all over the country is not satisfactory. The industrial sector relies mainly on labour intensive techniques because labour is inexpensive. There is a considerable difference between Canada and India in terms of impact of internet on businesses. The Indian society can use the internet to improve business networking. This means that more and more businesses should have an online presence so that resources are freed up. Education of people is also very important because they will understand their rights and obligations when doing business CITATION Eri99 \l 1033 (Biel, 1999).

Capitalism is defined as a system in which factors of production are owned privately by people. There are no means of production owned by the workers in this system. They have to work for people who have the resources because they cannot have any other source of income at hand. The people in Canada can have some other sources of income because of technological development. In India, people are compelled to work for those who have owned the resources because they are not literate enough to work for their own self. If some people do their small business, it is not enough to provide bread and butter for them. The resource owners become wealthier with every passing day because they have more human resource at their disposal. The lack of infrastructure and dependence of economy on a small number of sectors results in increase in wealth for a few. The businesses in India work with a profit motive which means that they have their own interest in sight. The doctrine was forwarded by Adam Smith. With large scale production, producers are able to reduce costs of production but the ultimate benefit from this reduction goes to owner’s pockets rather than to benefit the workers. Another aspect of this system is that there must be a huge incentive of profit for the businessmen to carry on operations. There are no options available to workers in India to increase their income because they do not have enough knowledge. On the other hand, Canadian workers have better chances to increase their income through investing in shares. Capitalism is more severe in countries like India where differences between rich and the poor are already very high. This allows people with resources to take advantage of ignorance of the majority to increase their income. In Canada, it is not possible for resource owners to exploit those who do not have any resources because they are much aware as compared to people of third world countries.

Some aspects of personal freedom are closely related to democracy. This is because it allows masses to react to the performance of their leaders after a specified period of time. There is a clear contrast between India and Canada in this regard. In India, there is a huge population which votes to bring people in power but there is not a very high level of personal freedom available to these people because they are basically not aware of their rights under various laws. These people are also not educated enough to raise their voice for the sake of any freedom. In Canada, the story is quite different. It is rated as one of the best countries when it comes to human freedom index. This is partly due to the high level of education attained by the peopleCITATION cat19 \l 1033 (CATO, 2019). These people are also a part of many networks which helps them to know what to do under certain situations. There is no specific relationship between democracy and personal freedom but the characteristics of the system describe the level of freedom enjoyed by masses CITATION Nan18 \l 1033 (Chand, 2018). In order to improve the situation, India will have to develop the infrastructure of basic necessities so that more people are able to enhance their living standards. With the injection of these necessities, people will start knowing their rights which comes under personal freedom. The government will then be forced to provide these facilities to the masses and human freedom index will improve. The masses will then be in a position to question their leaders regarding various issues and rulers will have to answer them properly. With the passage of time, both governments and masses will be prepared to play an active part in a society where freedom is available to all without any exception.

References

BIBLIOGRAPHY Biel, E. R. (1999). The impact of Technological Change on Developing Countries. Canada-United States Law Journal.

cato.org. (2019, December 31). https://www.cato.org/human-freedom-index-new. Retrieved from https://www.cato.org: https://www.cato.org/human-freedom-index-new

Chand, N. (2018, December 28). https://thepolicytimes.com/india-ranked-110th-on-human-freedom-index/. Retrieved from https://thepolicytimes.com: https://thepolicytimes.com/india-ranked-110th-on-human-freedom-index/

ITAC. (2013, November). http://itac.ca/wp-content/uploads/2013/11/2013-11-Canadas-Networks-and-the-Digital-Economy.pdf. Retrieved from http://itac.ca/wp-content: http://itac.ca/wp-content/uploads/2013/11/2013-11-Canadas-Networks-and-the-Digital-Economy.pdf

NationMaster. (2018). https://www.nationmaster.com/country-info/compare/Canada/India/Economy. Retrieved from https://www.nationmaster.com: https://www.nationmaster.com/country-info/compare/Canada/India/Economy