Cycles in Indian economic liberalization, 1966-1996

Comparative Politics

Volumn 31, Issue 1, 1998, Pages 43-60

  Denoon, David B H ^a  

^a NONE

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[No Author keywords available]

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EID: 0039506508     PISSN: 00104159     EISSN: None     Source Type: Journal    
DOI: 10.2307/422105     Document Type: Review

References (57)

1. On the agricultural sector, see Ashutosh Varshney, Democracy, Development, and the Countryside (Cambridge: Cambridge University Press, 1995).
2. See Paul R. Brass, "India's Domestic Political Developments," presented at the Conference on India and Pakistan: 50 Years of Independence, Woodrow Wilson Center for Scholars, Washington, D.C., June 3-4, 1997.
3. See Jawaharlal Nehru, The Discovery of India (New Delhi: Asia Publishing House, 1961).
4. See R. G. Agarwal, Price Controls in India since 1947 (Delhi: Federation of Indian Chambers of Commerce and Industry, 1956); and Jagdish N. Bhagwati and Padma Desai, India: Planning for Industrialization (London: Oxford University Press, 1970).
5. See R. G. Agarwal, Price Controls in India since 1947 (Delhi: Federation of Indian Chambers of Commerce and Industry, 1956); and Jagdish N. Bhagwati and Padma Desai, India: Planning for Industrialization (London: Oxford University Press, 1970).
6. See, for example, Manubhai Shah, Export Strategy for India (Delhi: Indian Council of Applied Economic Research, 1969), versus Charles E. Lindblom, "The Rediscovery of the Market," The Public Interest, 4 (Summer 1966), 89-101.
7. See, for example, Manubhai Shah, Export Strategy for India (Delhi: Indian Council of Applied Economic Research, 1969), versus Charles E. Lindblom, "The Rediscovery of the Market," The Public Interest, 4 (Summer 1966), 89-101.
8. See David B. H. Denoon, Devaluation under Pressure: India, Indonesia, and Ghana (Cambridge, Mass.: M.I.T. Press, 1986), pp. 25-53.
9. See Michael Brecher, Nehru's Mantle (London: Oxford University Press. 1966).
10. Mahalanobis, the designer of the "Plan Frame," was a world-renowned mathematician; he used input-output analysis, one of the techniques considered most promising by economists in the 1950s.
11. Although the name of the service was changed from Indian Civil Service to Indian Administrative Service, most of the top individuals remained the same, and standards for admission and promotion were strict.
12. Baldev Nayar, The Modernization Imperative and Indian Planning (New Delhi: Vikas, 1972).
13. Everett E. Hagen, The Economics of Development (Homewood: Irwin, 1975), pp. 194-215.
14. See Hollis Chenery and Alan D. Strout, "Foreign Assistance and Economic Development," American Economic Review, 56 (December 1966). 679-733. This view influenced many policymakers, as Chenery moved from head of the policy planning staff at the U.S. Agency for International Development to the chief economist at the World Bank. See also A. K. Sen, "On Optimizing the Rate of Saving," Economic Journal, 71 (September 1961), 479-95.
15. See Hollis Chenery and Alan D. Strout, "Foreign Assistance and Economic Development," American Economic Review, 56 (December 1966). 679-733. This view influenced many policymakers, as Chenery moved from head of the policy planning staff at the U.S. Agency for International Development to the chief economist at the World Bank. See also A. K. Sen, "On Optimizing the Rate of Saving," Economic Journal, 71 (September 1961), 479-95.
16. See Dani Rodrik, "Understanding Economic Policy Reform," Journal of Economic Literature, 34 (March 1996), 9-41.
17. The four governments were the last two years of Rajiv Gandhi's term, the National Front government, the minority government, and the government of Narasimha Rao.
18. E. Sridharan, "Economic Liberalization and India'a Political Economy: Towards a Paradigm Synthesis," Journal of Commonwealth and Comparative Politics, 31 (November 1993), 1-31.
19. See Herbert M. Simon, Models of Man (New York: Wiley, 1957).
20. On the political role of business, see Stanley Kochanek, Business and Politics in India (Berkeley: University of California Press, 1974).
21. W. H. Morris-Jones, The Government and Politics of India (London: Hutchinson, 1971).
22. Francine Frankel, India's Political Economy: The Gradual Revolution 1947-77 (New Delhi: Oxford University Press, 1978).
23. Paul R. Brass, The Politics of India since Independence (Cambridge: Cambridge University Press, 1990), pp. 99-129.
24. Pranab Bardhan, The Political Economy of Development in India (Oxford: Basil Blackwell, 1984).
25. Deepak Lal, The Hindu Equilibrium: Cultural Stability and Economic Stagnation 1500 BC-AD 1980 (Oxford: Clarendon Press, 1988).
26. See Alexander Gerschenkron, Economic Backwardness in Historical Perspective (Cambridge, Mass.: Harvard University Press, 1966); and Samuel P. Huntington, Political Order in Changing Societies (New Haven: Yale University Press, 1968).
27. See Alexander Gerschenkron, Economic Backwardness in Historical Perspective (Cambridge, Mass.: Harvard University Press, 1966); and Samuel P. Huntington, Political Order in Changing Societies (New Haven: Yale University Press, 1968).
28. See Robert Bates, Markets and States in Tropical Africa: The Political Basis of Agricultural Policies (Berkeley: University of California Press, 1981); and Mancur Olson, The Rise and Decline of Nations: Economic Growth and Social Rigidities (New Haven: Yale University Press, 1982).
29. See Robert Bates, Markets and States in Tropical Africa: The Political Basis of Agricultural Policies (Berkeley: University of California Press, 1981); and Mancur Olson, The Rise and Decline of Nations: Economic Growth and Social Rigidities (New Haven: Yale University Press, 1982).
30. See Adam Przeworski, "Economic Reforms, Public Opinion, and Political Institutions: Poland in the Eastern European Perspective," in L. Pereira, J. Maravall, and A. Przeworski, eds., Economic Reforms in New Democracies (Cambridge: Cambridge University Press, 1993).
31. See Girilal Jain, "Freezing the Status Quo: Consequences of the Nehru Model," Times of India, Mar. 7, 1974, p. 8.
32. Bernard Bell et al., Report to the President of the I.B.R.D. on India's Economic Development Effort (Washington, D.C.: International Bank for Reconstruction and Development, October 1, 1965). The report was so critical that it was kept confidential, even from Indian staff members of the World Bank.
33. Blitz, July 23, 1966, p. 1.
34. Inflation was 18 percent in 1966-67; real per capita income dropped; and real investment declined.
35. In the 1962 elections Congress won 46 percent of the vote and had a plurality of 115 seats in the Lok Sabha.
36. Ashok Mehta was moved out of the planning ministry and was so disillusioned with Mrs. Gandhi that he later helped form a splinter group of the Congress Party, the Congress (O) Opposition. Subramaniam was dropped after criticism of food distribution during the second year of drought.
37. Aid disbursement levels were $1.4 billion in 1968-69, $1.5 billion in 1967-68, and $1.1 billion in 1968-69. See I.B.R.D., Economic Situation and Prospects of India (Washington, D.C.: I.B.R.D., SA-32a, May 10, 1972). However, India did not receive the increased aid in the form of general purpose import funding (called program aid), as it had hoped.
38. This optimism in 1985 contrasts sharply with the pessimism that pervaded the last years of Mrs. Gandhi's leadership. See Ashutosh Varshney, "Political Economy of Slow Industrial Growth in India," Economic and Political Weekly, Sept. 1, 1984, pp. 1511-17, for an overview.
39. Vijay Joshi and I. M. D. Little, India: Macroeconomics and Political Economy, 1964-1991 (Delhi: Oxford University Press, 1994), pp. 62-63.
40. See, for example, the white paper entitled Long-Term Fiscal Policy (New Delhi: Government of India, 1985).
41. The states were also running significant deficits of about 2 percent of GDP, so the combined deficit for the first time went over 10 percent of GDP.
42. John P Lewis, India's Political Economy: Governance and Reform (Delhi: Oxford University Press, 1995), p. 318.
43. Furthermore, in an attempt to garner support from the Other Backward Caste (OBC) vote, V. P. Singh reintroduced and advocated the recommendations of the Mandai Commission Report, which urged a highly controversial affirmative action program to require additional set-asides of government positions for disadvantaged groups. This position lost the National Front its support in the middle class.
44. Eighteen industries were still controlled, and polluting industries that wanted to locate plants near major cities were placed under environmental restrictions.
45. See Jagdish N. Bhagwati, India in Transition: Freeing the Economy (Oxford: Clarendon Press, 1993), pp. 84-87.
46. Manmohan Singh had held a long series of top economic advisory appointments beginning under Mrs. Gandhi in the early 1970s.
47. Robert S. Jenkins, "Theorising the Politics of Economic Adjustment: Lessons fom the Indian Case," Journal of Common wealth and Comparative Politics, 33 (March 1995), 14.
48. Lewis, p. 310.
49. V. M. Dandekar, "Role of Economic Planning in India in the 1990s and Beyond," Economic and Political Weekly, June 11, 1994, p. 1457.
50. Lance Taylor, "Economic Reform: India and Elsewhere," Economic and Political Weekly, Aug. 20, 1994, p. 2209.
51. See Ajai Chopra et al., India: Economic Reform and Growth (Washington, D.C.: IMF Occasional Paper #134, December 1995), pp. 54-70.
52. For a highly favorable review of the 1981 economic policy package, see Arjun Sengupta, Economic Reforms of Mrs. Indira Gandhi (New Delhi: R. Gandhi Institute for Contemporary Studies, 1996), pp. 17-23.
53. John McMillan, "Markets in Transition" (mimeo, August 1995).
54. See Shuhe Li and Peng Lian, "On Market Preserving Authoritarianism" (mimeo, February 1996), on why nondemocratic regimes can more successfully implement market reforms.
55. Ashutosh Varshney, "India's Political Economy: Issues, Non-Issues, and Puzzles," Journal of Commonwealth and Comparative Politics, 26 (November 1988), 236-39.
56. Eastern Europe and the former Soviet republics have encountered similar problems. See Stanley Fischer et al., "Stabilization and Growth in Transition Economies," Journal of Economic Perspectives, 10 (Spring 1996), 45-66.
57. See Lloyd Rudolph and Suzanne Rudolph, In Pursuit of Lakshmi: The Political Economy of the Indian State (Chicago: University of Chicago Press, 1987).