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The Political Economy of Recent Economic Growth in India

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Raghbendra Jha ()

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Abstract

The political economy of India’s economic growth is an issue of abiding interest. Higher and sustained economic growth has, all over the world, been the surest and most time tested means of raising living standards and reducing poverty. Further, given that it is a functioning democracy, economic policy in India can often be dictated by political expediency as political parties indulge in competitive populism in the face of improvements in social indicators such as literacy, infant mortality and the like lagging behind rises in the rate of economic growth. Thus the political economy of policy formulation is an important area of concern. Finally, an analysis of what policies can be undertaken given these constraints is an important indicator of potential welfare implications of policies for such a large section of humanity. Several recent reviews of India’s recent growth experience exist (Rodrik and Subrahmanian, 2004, Kelkar, 2004, and Thirlwell, 2004 are three examples). The value added of the present paper is to place India’s growth experience within a broader political economy perspective. It documents the broad contours of economic growth in India; it then analyzes some emerging obstacles to higher economic growth and finally the prospects for accelerating the economic reforms program to place India on a sustained higher economic growth path.

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Paper provided by Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2004-12.

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Length: 22
Date of creation: 2004
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Handle: RePEc:pas:asarcc:2004-12

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  1. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Working Papers 04/77, International Monetary Fund. [Downloadable!]
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  2. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2008-10-29.


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