Is India Fit for a Role in Global Governance? the Predicament of Fragile Domestic Structures and Institutions
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Doing Business in India: What Has Liberalization Changed?
CENTER FOR RESEARCH ON ECONOMIC DEVELOPMENT AND POLICY REFORM Working Paper No. 93 Doing Business in India: What has liberalization changed? by Naushad Forbes * February 2001 Stanford University John A. and Cynthia Fry Gunn Building 366 Galvez Street | Stanford, CA | 94305-6015 * Naushad Forbes is Consulting Professor, Department of Industrial Engineering, Stanford University and Director, Forbes Marshall, India. Doing Business in India: What has liberalization changed? Naushad Forbes Paper presented at the Center for Research on Economic Development and Policy Reform Conference on Indian Economic Prospects: Advancing Policy Reform Abstract The Indian economic reforms that began in 1991 have unleashed progressive forces in the Indian economy in the past decade. During the economic boom of 1991-96, domestic and foreign private investment surged, without significantly altering the structure and operation of existing Indian firms. The ensuing slowdown during 1996-99 revealed the internal weaknesses of Indian industry and started to drive changes. The evolving relationship between Indian and foreign firms reflects the changes ushered in by the reforms. This paper suggests two relatively neglected areas of pending reform: the need for reform to perculate to the local level and the need to build a public lobby for reform. Because technology lies at the heart of international competitiveness, this paper then reviews technology and innovation in the periods before and after 1991. Before 1991, the tremendous investment in R&D, with its heavy emphasis on indigenisation, failed to enhance the efficiency and productivity of Indian industry. The pressure brought by the liberalization of 1991-99 spurred fundamental changes in technology and innovation, especially at the micro-level. -
July 23, 2021 – Friday Key Developments Union Cabinet
July 23, 2021 – Friday Key Developments Union Cabinet approves Rs 6,322-cr PLI scheme for specialty steel The Union Cabinet on Thursday approved Rs 6,322-crore production linked incentive scheme for specialty steel, a move aimed at boosting domestic manufacturing and exports from the sector, Information and Broadcasting Minister Anurag Thakur said.He said that incentives worth Rs 6,322 crore will be provided over five years and it would create over 525,000 jobs. "It will boost manufacturing and help in reducing imports," he told reporters in New Delhi The PLI scheme would cover coated/plated steel products; high strength/wear resistant steel; specialty rails; alloy steel products, steel wires and electrical steel. "These steel products are used in a variety of applications which are both strategic and non-strategic and include white goods, automobile body parts and components, pipes for transportation of oil and gas, boilers, ballistic and armour sheets meant for defence application, high-speed railway lines, turbine components, electrical steel meant for power transformers and electric vehicles," said government in a statement. https://www.business-standard.com/article/economy-policy/union-cabinet-approves-rs-6-322-cr-pli-scheme-for- specialty-steel-121072200863_1.html Indian Finance Ministry officer among 25 global tax experts appointed to UN tax committee Rasmi Ranjan Das, a Joint Secretary in the Ministry of Finance, is among a distinguished group of 25 tax experts from around the world appointed as members of the UN tax committee for the 2021 to 2025 term. The committee, formally known as the UN Committee of Experts on International Cooperation in Tax Matters, guides countries’ efforts to advance stronger and more forward-looking tax policies adapted to the realities of globalised trade and investment, an increasingly digitalised economy and worsening environmental degradation. -
India's Road to Development
India’s Road to Development Roel van der Veen June 2006 NETHERLANDS INSTITUTE OF INTERNATIONAL RELATIONS CLINGENDAEL CIP-Data Koninklijke bibliotheek, The Hague Van der Veen, R.J. India’s Road to Development / Roel van der Veen– The Hague, Netherlands Institute of International Relations Clingendael. Clingendael Diplomacy Papers No. 6 ISBN 90–5031–107-5 Desk top publishing by Desiree Davidse Netherlands Institute of International Relations Clingendael Clingendael Diplomatic Studies Programme Clingendael 7 2597 VH The Hague Phonenumber +31(0)70 - 3245384 Telefax +31(0)70 - 3746666 P.O. Box 93080 2509 AB The Hague E-mail: [email protected] Website: http://www.clingendael.nl The Netherlands Institute of International Relations Clingendael is an independent institute for research, training and public information on international affairs. It publishes the results of its own research projects and the monthly ‘Internationale Spectator’ and offers a broad range of courses and conferences covering a wide variety of international issues. It also maintains a library and documentation centre. © Netherlands Institute of International Relations Clingendael. All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright-holders. Clingendael Institute, P.O. Box 93080, 2509 AB The Hague, The Netherlands. Contents I. The Questions 2 II. The Start 6 III. The Past 16 IV. The Transition 28 V. The Comparison 36 VI. The Future 48 VII. The Lessons 54 1 I. The Questions India is an ancient civilization, rich in the arts and possessing intriguing wisdom. -
The Reception of a Concept: 'Governance' in India
Real Governance Change and Continuity in India’s Authority and Power Structures Jos Mooij 1. Introduction Governance has reached India. The country that for a long time was governed by the idea of planned economic development and the necessity of a powerful and omni- present government has been reinvented, as Corbridge and Harriss (2000) described the process. These authors have used this term to indicate that the previous model, which has never been fully implemented but functioned nevertheless as a powerful idea, has been replaced (partially) by a new model: market-led development, with a much smaller role for the state in development processes, and a much larger role for other actors. In other words, a shift from government to governance. The idea of governance, as Gopal Jayal and Pai (2001: 14-5) rightly stated, has different historical legacies. In the developed economies, it referred primarily to a changing political reality. New economic policies, cutbacks in the welfare state and critiques of bureaucratization led to new forms of public management. From a ‘command-and-control’ organization, the state became an enabling regulator. Out- contracting and agentification are just two of the main processes that can be witnessed. The discursive shift from government to governance can be seen as a response to these developments. In developing countries, however, the situation was different. The discourse “first landed on Southern shores as medicine prescribed by the good doctors of the Bretton Woods institutions, to remedy the laggard and inefficient development performance of these states” (Gopal Jayal and Pai, 2000: 14-15). As has been described already in the introduction to this book, for the World Bank and other international donors, governance became a convenient discursive mechanism to deal with issues of public management without giving a major role and responsibility to (often allegedly corrupt and inefficient) government institutions, and, moreover, to do so in a seemingly a-political fashion. -
Roaring Tiger Or Lumbering Elephant?
aUGUST 2006 ANALYSIS MARK THIRLWELL Roaring tiger or Program Director International Economy lumbering elephant? Tel. +61 2 8238 9060 [email protected] Assessing the performance, prospects and problems of India’s development model.1 In the past, there has been plenty of scepticism about India’s economic prospects: for many, Charles De Gaulle’s aphorism regarding Brazil, that it was a country with enormous potential, and always would be, seemed to apply equally well to the South Asian economy. While the ‘tiger’ economies of East Asia were enjoying economic take-off on the back of investment- and export-led growth, the lumbering Indian elephant seemed set to be a perpetual also-ran in the growth stakes. Yet following a series of reform efforts, first tentatively in the 1980s, and then with much more conviction in the 1990s, the Indian economic model has been transformed, and so too India’s growth prospects. High profile successes in the new economy sectors of information technology (IT) and business process outsourcing (BPO), along with faster economic growth, triggered a widespread rethink regarding India’s economic prospects, and a wave of foreign portfolio investment flowed into Indian markets. Perhaps India was set to be a tiger after all. Yet this new-found optimism received a setback in May and June of this year, when there were sharp falls in Indian stock markets. Had the optimism been overdone, and was another re-rating of India’s economic prospects on the cards? Perhaps India was only a lumbering elephant after all? This paper takes a closer look at the new Indian development model. -
A Traditional Institution Surviving in a Modern Setting?
A Traditional Institution surviving in a Modern Setting? The Reinterpretation of Caste in the Indian IT Industry A thesis submitted in partial fulfilment of the requirements of the degree of Doctor of Philosophy in Sociology Benjamin Lindt University of Canterbury 2011 ABSTRACT This thesis aims to explore and understand the changes to the social institution of caste that arise from the ongoing modernisation of Indian society. The research setting is the IT industry in Bangalore and Hyderabad. As the Indian IT industry is the economic sector most exposed to globalised modernisation, it has come to represent a social milieu deemed particularly modern in India. The thesis discusses the social role of the IT industry in India; the rise of the new middle classes, and the specifics of the locality of Bangalore. It is argued that caste as a social institution systematically connects three different dimensions of human existence; the economic (caste-wise division of labour); the biological (rules concerning exogamy and endogamy); and the ideational (various rationalisations for caste). While the economic dimension of caste is increasingly losing its meaning, caste endogamy remains largely intact and is rationalised in forms much more compatible with modernity. This composite model of caste is then contrasted with a model of modernity based arguments presented by the most relevant sociologists, from Max Weber to Peter Wagner. In the analysis here, the contemporary, ‘quasi- ethnic’ reinterpretation of caste appears still to conflict with the implications of modernity. Even though caste provides actual benefits for those who employ the concept and practise it – ranging from political to economic to private – its rationale nevertheless contrasts with the motives that are generally attributed to modernity. -
Economic Performance the Indian Economy Achieved a Gross Domestic Product (GDP) Growth Rate of 8.1% in FY2005 (1 April 2005–31 March 2006)
India The Indian economy grew by 8.1% in FY2005, according to official estimates. Price pressure has been building as the authorities are unlikely to have the resources to cushion domestic fuel prices from the full extent of fuel import price increases for much longer. On the supply side, growth will continue to be fueled by the opening up of space for private investment. India faces two key policy challenges as the economy undergoes a structural transformation. First, it must continue consolidating its fiscal position. It will have to do so while ensuring both adequate hard infrastructure improvements to support industrial and high-skill services development, and public investment to advance rural productivity and human development. Second, it needs to improve the investment environment by lowering the cost of doing business. Growth rates of 7.6% in FY2006 and 7.8% in FY2007 are forecast. The annual average growth rate over 2006–2010 is unlikely to exceed 8–8.5%. Economic performance The Indian economy achieved a gross domestic product (GDP) growth rate of 8.1% in FY2005 (1 April 2005–31 March 2006). On the expenditure side, the economy was lifted by broad-based domestic demand growth. 2.16.1 Business confidence index While aggregate expenditure data have not yet been released, consumption May 1993 = 100 160 growth is estimated at 8.0%, driven by a good monsoon, which supported 150 rural incomes. Gross fixed capital formation grew at an estimated rate 140 of 8.5%, reflecting rising investor confidence (Figure 2.16.1) in the face 130 of strongly entrenched demand growth and as a consequence of the 120 expansion in credit and companies’ initial public offerings. -
Edited by Accelerating Growth and Job
2 Cont’d from front flap ‘In this excellent volume, Ejaz Ghani and Sadiq Ahmed have invited GHANI Accelerating Growth and the world’s leading scholars to apply their talents to understanding the Timely and relevant in the context of the economies of South Asia. They cover a wide range of topics. Scholars AHMED Job Creation in South Asia ongoing global crisis, this book will be useful interested in South Asia will find the volume most illuminating.’ for policymakers, NGOs, development agencies, —Arvind Panagariya, Columbia University In recent times, South Asia has attracted global and industry strategists. It will also be of interest attention for demonstrating rapid growth. What to students and scholars of economics and ‘The importance of this book cannot be overestimated. It powerfully explores is not so well known is that this is the least the link between regional integration, economic growth, and job creation. Public Disclosure Authorized South Asian studies. integrated region in the world. South Asia has It has several imaginative proposals that can be debated and discussed. It is opened its door to the rest of the world but ambitious but not unmindful of the difficult political economy of the region …’ Accelerating Growth Ejaz Ghani is Economic Adviser, Poverty remains closed to its neighbours. Poor market —Pratap Bhanu Mehta, Centre for Policy Research Reduction and Economic Management Job Creation in South Asia integration, weak connectivity, and a history Accelerating Growth and and Job Creation of conflict have created ‘two South Asias’. The Department, South Asia Region, The World Bank. ‘This book … usefully turns the spotlight away from India to the regional context. -
India's Long Term Growth Potential and the Implications For
India’s long-term growth potential and the implications for Australia Ben Ralston, Wilson Au-Yeung and Bill Brummitt1 After 20 years of economic reform this article discusses India’s long-term growth potential and canvasses some of the challenges that Indian policy makers will need to overcome to realise this potential. Some of the consequences of India’s growth for Australia are also explored.2 1 Ben Ralston, Wilson Au-Yeung and Bill Brummitt are from International & G20 Division of Macroeconomic Group within Treasury. This article has benefited as a result of comments and input from Matt Crooke, David Lowe and Nghi Luu. The views expressed are those of the authors and do not necessarily reflect those of The Treasury. 2 This article is based on a speech that was presented by Bill Brummitt to the Australian National University’s India Business and Economic Update on 19 September 2011. 1 India’s long-term growth potential and the implications for Australia Introduction It is 20 years since India embarked on its economic reform and liberalisation journey. These reforms have done much to unlock India’s economic potential and the Australia-India bilateral economic relationship continues to blossom. India has also become an important member of fora, including the G20 and the East Asia Summit, and Australia works actively with India in these contexts. This article assesses India’s long-term growth potential, briefly surveys some of the challenges that India needs to overcome to realise its potential and finally discusses some implications for Australia. A remarkable transformation Today India is the fourth largest economy in the world in purchasing power parity terms. -
An Inquiry Into the Development of Nations
OUP CORRECTED PROOF – FINAL, 05/08/19, SPi Asian Transformations OUP CORRECTED PROOF – FINAL, 05/08/19, SPi UNU World Institute for Development Economics Research (UNU-WIDER) was established by the United Nations University as its first research and training centre and started work in Helsinki, Finland, in 1985. The mandate of the institute is to undertake applied research and policy analysis on structural changes affecting developing and transitional economies, to provide a forum for the advocacy of policies leading to robust, equitable, and environmentally sustainable growth, and to promote capacity strengthening and training in the field of economic and social policymaking. Its work is carried out by staff researchers and visiting scholars in Helsinki and via networks of collaborating scholars and institutions around the world. United Nations University World Institute for Development Economics Research (UNU-WIDER) Katajanokanlaituri 6B, 00160 Helsinki, Finland <www.wider.unu.edu> OUP CORRECTED PROOF – FINAL, 05/08/19, SPi Asian Transformations An Inquiry into the Development of Nations Edited by DEEPAK NAYYAR A study prepared for the United Nations University World Institute for Development Economics Research (UNU-WIDER) 1 OUP CORRECTED PROOF – FINAL, 05/08/19, SPi 1 Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © United Nations University World Institute for Development Economics Research (UNU-WIDER) 2019 World Institute for Development Economics Research of the United Nations University (UNU-WIDER), Katajanokanlaituri 6B, 00160 Helsinki, Finland The moral rights of the authors have been asserted First Edition published in 2019 Impression: 1 Some rights reserved. -
Capital and the Hindu Rate of Growth: Top Indian Wealth Holders 1961-1986
Capital and the Hindu rate of growth: Top Indian wealth holders 1961-1986 Rishabh Kumar The New School for Social Research∗ October 25, 2016 Abstract Did India's stagnant growth performance until the 1980s increase or decrease the wealth of the elite? Using estate tax data I compute a series which highlights the relative importance of top wealth holders in India between 1961-1986. I find that a combination of policies and shocks were able to significantly depress the personal wealth of the Top 0.1% over this period. A portfolio decomposition by asset categories for the rich reveals that there was a U shaped trend in the average value of movable assets while wealth invested in land significantly declined. Disparity within top wealth groups also follows a shrinking and swelling, consistent with the intervention of the state in private capital. These results have implications for the equalizing forces inherent in tax policy vis-a-vis the rich and the role of the state in regulating capital in poor nations. JEL Classification: H1, N3, O1 Keywords: Wealth, India, Estate Multiplier ∗Department of economics at the New School for Social Research (New York). For contributions and comments, I am grateful to Jan Keil, Mark Setterfield, Duncan Foley, Tom Michl, Thomas Piketty, Sanjay Reddy, Paulo Dos Santos, Vimal Balasubramaniam and participants at the NSSR macro lunch, UMass-New School workshop, CUNY Stone Center and other seminars. I am indebted to Suranjali Tandon for assisting with compilation of data utilized in this project and to anonymous members of the income tax department for their insights on tax policies. -
70 POLICIES THAT SHAPED INDIA 1947 to 2017, Independence to $2.5 Trillion
Gautam Chikermane POLICIES THAT SHAPED INDIA 70 POLICIES THAT SHAPED INDIA 1947 to 2017, Independence to $2.5 Trillion Gautam Chikermane Foreword by Rakesh Mohan © 2018 by Observer Research Foundation All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from ORF. ISBN: 978-81-937564-8-5 Printed by: Mohit Enterprises CONTENTS Foreword by Rakesh Mohan vii Introduction x The First Decade Chapter 1: Controller of Capital Issues, 1947 1 Chapter 2: Minimum Wages Act, 1948 3 Chapter 3: Factories Act, 1948 5 Chapter 4: Development Finance Institutions, 1948 7 Chapter 5: Banking Regulation Act, 1949 9 Chapter 6: Planning Commission, 1950 11 Chapter 7: Finance Commissions, 1951 13 Chapter 8: Industries (Development and Regulation) Act, 1951 15 Chapter 9: Indian Standards Institution (Certification Marks) Act, 1952 17 Chapter 10: Nationalisation of Air India, 1953 19 Chapter 11: State Bank of India Act, 1955 21 Chapter 12: Oil and Natural Gas Corporation, 1955 23 Chapter 13: Essential Commodities Act, 1955 25 Chapter 14: Industrial Policy Resolution, 1956 27 Chapter 15: Nationalisation of Life Insurance, 1956 29 The Second Decade Chapter 16: Institutes of Technology Act, 1961 33 Chapter 17: Food Corporation of India, 1965 35 Chapter 18: Agricultural Prices Commission, 1965 37 Chapter 19: Special Economic Zones, 1965 39 iv | 70 Policies that Shaped India The Third Decade Chapter 20: Public Provident Fund, 1968 43 Chapter 21: Nationalisation of Banks, 1969 45 Chapter