FP had a great article months ago about India and China. If I remember correctly, the money was on India out-growing China, mainly due to corruption in China.
I put my money on systems that iterate and have the ability to be wrong often. As a rough example, in the U.S., we just elected a new guy and we'll be heading in a new direction. For about half the country, we were wrong and now we've changed course. We never stick with the same guys and the same policy: we're always mixing it up.
I don't see that kind of radical change-up of leadership and policy in China, but I do see some of it in India. So my money's on India as having a brighter future.
Corruption is as big a problem in India as it is in China. Deregulation however means that the Indian media is much more open and competitive. This, while resulting in tabloid sensationalism, also means that government scandals are highlighted and often magnified which help keep them in check.
As far as choosing a direction goes, anti-incumbency always triumphs because the disgruntled are always in sizable numbers. That, however, does not affect corporate policies much more that changing the governmental cogs that need to be greased.
In a nutshell, this is India's formula for growth: A patchwork democracy that moves slowly and clumsily, and sustainable corruption that allows enough breathing space for far more nimble corporate entities.
This reminds me of what is said of Italy: the economy grows at night while the government sleeps.
I put my money on systems that iterate and have the ability to be wrong often. As a rough example, in the U.S., we just elected a new guy and we'll be heading in a new direction. For about half the country, we were wrong and now we've changed course. We never stick with the same guys and the same policy: we're always mixing it up.
I don't see that kind of radical change-up of leadership and policy in China, but I do see some of it in India. So my money's on India as having a brighter future.