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The Political Economy of India's Economic Reforms *
Author(s) -
MUKHERJI Rahul
Publication year - 2008
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/j.1748-3131.2008.00118.x
Subject(s) - technocracy , economics , politics , conviction , state (computer science) , economic reform , private sector , washington consensus , economic policy , development economics , political economy , economic system , economic growth , political science , algorithm , computer science , law
This paper analyzes the history of the relationship between the state and the private sector in India. It concludes that India's economic reforms, which made development policy more dependent on international trade and private initiative, depended on the evolution of technocratic and political conviction. Reformers needed the support of financial crises for overcoming the powerful vested interests opposed to reforms. Successful reforms involved largely homegrown strategies of policy and institutional change. They have produced impressive growth rates and have benefited the rich and the middle class. The challenge for development and sustainable reforms is to make it more inclusive for poor farmers and unorganized workers.