China and India had similar levels of poverty 50 years ago. How come China today is so different from India today? In terms of cleanliness and poverty elimination specifically. I know China liberalized in the 80’s and India in the 90’s. So you could say that’s a 10 year difference. But China 10 years ago was still very different from India even today. Does anyone have any ideas?
You can read professor Vivek Chibbers book "locked in place". I highly recommend it (any book of his actually). It's an account of why India's economy was and still is an utter failure. China also didn't succeed due to "liberalization". How come the absolute majority of capitalist economies in the world (Latin/South America, Africa, Asia etc.) are still dirt poor then?
Just allowing the existence of private enterprise doesn't mean much when institutions are weak or corrupt. If you know everyone isn't playing by the rules, the most you can accomplish is rent-seeking while everyone tries to make each other suckers.
If all you have is a strong ML-style government and no liberalization, however, then there's not much of a point in finding opportunities to invest because everything you have is at the mercy of the Party.
China succeeded because investors gambled correctly that liberalization would be accompanied by credible governance, and it can all go away if and when the credibility for investors and entrepreneurs is replaced by Xi's neo-Maoism.