The paper analyses economic and political causes as well as outcomes of the sudden reversal of Indian economic policies in 1991–93, after four decades of autarky and interventionism. It argues that a changing political landscape and the emergence of new interest groups, coupled with a severe balance–of–payments crisis, left little choice to the governing party but to break with the legacy of a patrimonial state. More competition, at political and economic levels, forced the hand of politicians to remove direct quantitative controls on industrial production, imports and access to capital. These reforms remained, however, partial and did not fundamentally change the politico–economic equation. Systemic opposition to reform remained strong enough to capture or neutralise some of the gains of liberalisation. Thus, the reform movement faltered and eventually ceased ...

Ce document analyse les causes économiques et sociales ainsi que les conséquences du retournement soudain des politiques économiques de l’Inde en 1991–93, après quatre décennies d’autarcie et d’interventionnisme. Le changement de l’environnement politique et l’émergence de nouveaux groupes d’intérêt, conjointement à une grave crise de la balance des paiements, n’ont laissé d’autre choix au parti au pouvoir que de rompre avec l’héritage d’un État patrimonial. Davantage de concurrence, aux niveaux tant politique qu’économique, a contraint les hommes politiques à supprimer les contrôles quantitatifs directs sur la production industrielle, les importations et l’accès au capital. Toutefois, ces réformes sont restées partielles et n’ont pas fondamentalement modifié l’équation politico– économique. L’opposition systématique à la réforme est restée suffisamment vivace pour accaparer ou neutraliser certains des gains de la libéralisation. C’est ainsi que le mouvement de réforme a chancelé ...

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Paper provided by OECD Development Centre in its series OECD Development Centre Working Papers with number 155.

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Date of creation: Oct 1999
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Handle: RePEc:oec:devaaa:155-en

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1. Arvind Panagariya, 2004. "India in the 1980s and 1990s: A Triumph of Reforms," IMF Working Papers 04/43, International Monetary Fund. [Downloadable!]
   Other versions:
   • Arvind Panagariya, 2004. "India in the 1980s and 1990s: A Triumph of Reforms:," International Trade 0403005, EconWPA. [Downloadable!]
2. Arvind Panagariya, 2003. "India in the 1980s: Weak Reforms, Fragile Growth," International Trade 0309010, EconWPA. [Downloadable!]
3. Bernardi, Luigi & Fraschini, Angela, 2005. "Tax system and tax reforms in India," P.O.L.I.S. department's Working Papers 45, Department of Public Policy and Public Choice - POLIS. [Downloadable!]

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