Prospects of Institutional and Policy Reform in India: Toward a Model of the Developmental State
Ahrens, Joachim | June 1997
Abstract
India’s recently launched economic reforms will only be sustainable if they are accompanied by political reforms, which create the foundations of economic development. Establishing a Weberian-type bureaucracy adequately embedded in society will be useful, but not sufficient to enhance the incentive compatibility of public policies and economic performance. Due to the heterogeneity of the Indian economy and society, this institutional arrangement should be complemented by the concept of Participatory Market-Preserving Federalism, which combines the notion of embedded autonomy with the concept of Market-Preserving Federalism and the principle of subsidiarity. This induces a self-enforcing governance structure that reduces collective action problems, directly involves social groups and subnational governments into political decision making processes, and creates the political foundations of economic growth.
Citation
Ahrens, Joachim. 1997. Prospects of Institutional and Policy Reform in India: Toward a Model of the Developmental State. © Asian Development Bank. http://hdl.handle.net/11540/5378.Keywords
Development
Finance
Development Challenges
Development Issues
Development Problems
Microenterprises Finance
Commercial Finance Companies
Enterprise Financing
Financial Analysis
Banking Finance And Investment
ADB
Project finance
Development plans
Strategic planning
Business Financing
Investment Requirements
Insurance Companies
International Monetary Relations
International Financial Market
Exchange Rate
Insurers
Insurance stocks
Insurance holding companies
Insurance carriers
Insurance agencies
Business subsidies
Investment companies
International banks and banking
Stock exchanges
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