The aim of this paper is to understand the nature of transformation of the Chinese economy. China’s approach to the process of economic development in the aftermath of the reforms in the late 1970’s has been a success story and a phenomenon of great significance. It helped millions of people move out of poverty and achieve an acceptable standard of life. The economic policy of China was more effective than India’s; we measured this effectiveness in terms of two fundamental approach: first, growth was fundamental for ensuring and increasing the wellbeing as it increases total output in China compare to India; second, growth was pro-poor in China, but not in India, during the period 2000-2011. In this paper, we seek to explain how China reduced extreme poverty through reforms, and this reform experience of China stands out for three reasons. The first is renewed thrust on the rural economy and private sector, second is decentralized planning, and third is investment in human resource development. This experience of China’s reform success offers a significant lesson for most of the developing countries, especially India, since India has more similarities with China. Therefore, this experience is particularly insightful for India.

Abstract
1. Introduction
2. Relevance of Comparison between Chinaand India
3. Comparative Policy Effectiveness
    3.1. Sources of Growth in China and India
    3.2. Data
    3.3. Results Growth Accounting for Chinaand India
    3.4. Was Growth Pro-Poor in China and India:Measuring Pro-Poor Growth
    3.5. Measuring Pro-Poor Growth
    3.6. Results of Measurements of Pro-Poor Growth
4. Lesson of China’s reforms for India
    4.1. Agriculture/Rural Centric
    4.2. Decentralized
    4.3. Human Resource Development
5. Conclusions
References

• Ishfaq Ahmad MAlIK(Department of Economics, Faculty of Business and Economics, Mettu University, Ethiopia) Corresponding Author
• Ajaz Ahmad RATHER(Directorate of School Education, Government of Jammu and Kashmir, India.)
• Tibebu Alemu TEKLE(Department of Economics, Faculty of Business and Economics, Mettu University, Ethiopia.)