![]() A Multi-disciplinary ApproachSiddhartha Mukerji POLITICAL ECONOMY OF REFORMS IN INDIA By Rahul Mukherji Oxford University Press, New Delhi, 2014, pp. 204, Rs. 275.00 VOLUME XXXIX NUMBER 9 September 2015 Part of the Oxford Series of short introductions
Political Economy of Reforms
in India by Rahul Mukherji runs over
200 pages. The book’s four compact chapters
addressing the major themes of economic
reforms and social change in a chaotic democracy
delineates both the success of India’s
growth model in the post-liberalization period
as well as the predicaments of poor infrastructure,
inefficient public delivery system
and low literacy levels that it produces.
The forces maintaining status quo and the
forerunners of change are found to exist simultaneously.
The political economy perspective
in this book envisages that the pace
of policy change is determined by the relative
strength of the economic actors illustrating
that the slow pace of economic change
in 1980s could be explained by the unwillingness
of the industrialists and middle class
professionals. It also posits the critical importance
of ideological propensities of the
governing authorities especially when the
government is required to respond to economic
crisis. But, more importantly the author
establishes a causal link between the
growth model and public welfare in his political
economy approach and rightly cites
the process of economic growth as only a
necessary condition for welfare of the underprivileged
and poor. This argument stands
particularly relevant in view of the emerging
public concerns like displacement, poverty,
undernourishment, environmental degradation
associated with the developmental policies
of the government. To cite an example,
the relaxation of land acquisition norms by
the present government has resulted in a
political uproar particularly challenging the
elimination of the social impact assessment
requirement in the amended law and inadequate
compensation that the displaced poor
would get.
The first chapter explains economic
change after 1991 in the framework of the
‘tipping point transformation model’, a
model of gradual change that develops over
a period of time and ends up in radical transformation
primarily for endogenous reasons.
The tectonic shifts after the emergency and
especially since the early-1980s are observed,
to demonstrate the ideational change in
favour of liberalization and globalization. The
author argues that the government recognized
the deleterious effects of import substitution
on India’s industrialization and therefore felt
it necessary to liberalize by removing undue
restrictions on private trade and investment,
not because there were pressures from private
business. The tipping point model appears
to provide a half-hearted explanation
of the nature of ideational change. The perspective
of the PMO may not hold true for
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