Essay The Anti Liberal Cum Pro Market Strategy

3297 Words Feb 27th, 2015 14 Pages
In 1991 India adopted a pro market strategy that liberalised its internal regulatory framework, reduced tariffs, adopted appropriate exchange rate policies, and allowed foreign investors to play a significant role in the economy (kohli, 2006). Atul Kohli argues that the growth witnessed in 1990s is due to the reforms and policies taken in the 1980s and cannot be solely attributed to the 1991 reforms. Thus the neo liberal cum pro market interpretation of the growth in 1990s clearly ignores the empirical evidence provided by the growth witnessed in 1980s. Through Atul Kohli article it is evident that economic growth in India has boosted before the1991liberalisation policy; it is also evident from his writing that industrial production in India did not accelerate after 1991 reforms; also a common policy which was framed to benefit all but it hasn’t; only few states had benefited from such policies. On this context it is important to take into account policies and conditions around 1980s which caused robust indigenous industrial sector and the state had low foreign debt. Another major area of concern is pro-market model a right choice and did international aid actually contribute to country’s growth process; who are getting benefited from it?
So at this point it is important to take into account policies and condition around 1980s. Atul Kohli makes a strong argument that that due to state intervention it is possible for a developing country to boost their economic growth rate…

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