Krptonite
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I think I understand what you say. This is quite true but unfortunately at least for Chinese government and education department, they have a lot of people to school and cannot promise high standard for everyone especially in poorer provinces. So they come solve the problem with what you say is one size fits all approach. This really does make most students into valueless individual but good for factory work and smaller duties. While the schooling system looks for promising talent and they do reward them with scholarship and move them to better classes, it is rare and most country side students do not get such privileges even if they have good talents at young age.
Unfortunately this is true more because of money and how to spend money on schooling. While the government knows schooling is important to get right, they do not solve the problem with right procedure even if their attitude is acceptable. A lot of funding does go into schooling but there is a huge difference between schooling quality in high end and low end. This isn't true for western countries where the quality is quite standard and of a decent standard. If China has the luxury of creating an efficient machine for selecting talent and cultivating talents while maintaining decent standard for rest of youngsters, it would. But for many reasons this isn't really done until university level. I feel the government is confident the current system is good enough just because there are so many people anyway. They fail to understand the unrealized potential that still exists and creating new industries maybe can expand these public policies into becoming more open minded about what changes to make in education. It is still thinking in terms of "where to get large population to do the factory work and manufacturing."
I'm not sure how India is like but both countries seem to share the common large population but the difference is India's young are growing in numbers while China's generations are not having as many children anymore. This means in future, there will be diverging directions for both countries. I think Chinese government's plan for this is to wait until same resources can be given to smaller number size and improve quality that way.
Its not entirely about our polity (on both sides) which does not recognise the untapped potential, at the end of the day it boils down to 'needs must'. With such a gigantic population combined with such a large landmass to govern, the number of challenges our respective governments face, they cant really afford to allocate more resources than absolutely needed in one particular sector. Specially if the available reasources are meagre (comparitively).
Now add personal agendas and general greed into the mix and you have an idea as to magnitude of the problem.
As for how each respective governments approach this problem, China seems to have implemented a step wise approach with segments of the populace being pushed up, one at a time, while India has opted to let the market forces decide.