56 Sor ut Stay: “The colo stead prs oer lope econonwy and did lie oalterthatstuaian. Butthoe arealtemative maya elas “contol and exploit wih profendldiferentlongtetin csequencey Japanese colonia in Borea, ar we have seen, ook 2 very eileen path ‘hom the Beith usseeaie approwch in Incl This conse snerion te helping lai’ inden or cren co Belpg British investors ie eluforced by the Hid aval of pubic reaensces “lun wlateven Timed instil oe tke place prow tage wa snl pie of ste negli and wen industatlaton ald Sally aceatenetoin he tage, itd on tne of protective legion mode ly ren ier Oy datserte support for indir There were sine ene se cect for Slansin de fat hehe clonal aac eh notuppon Bish eons. ‘numerous indigenous capiiaiin were abet ake shang of wake and Tepisatonnduced oppor Ins ia ae enceged from colonials with eubstada statin ofexpesieaced indigenous enieyreneurs Tho broader eaampertiveotneroone on de egy of eon are slsoin order ia the Bagentedavalass ta thet Indaineritel fom the colonial exparience wasa mich better onganie sit than he pepe osial ste we enemunterix Nigel, bcltmaroa Tot ese ff uin promating socioeconomic change dha the coheaivecaptultt Kovean ste Sieusied above. Tha these politcal tendencies oxighsted in the colonial petind aad nee oslo continued for decades aftervard erties the profound impact of eal) pattens of sare formation on thei dare ey. Totion, And secondo sept the lan econo emerged fon lesa Inui mci lover evel inden than Kores oe Bri hugh nso ahead of met ican ates, neang Nigeria, While Mision not de tiny he fe tht both Roves ad Mra attend ofthe event eontry sere mildisineome counule crea Tngia an Nigeria vere 901 o¥es Something 10 Ue diferent siarting point st mieery. The impact ef ‘he sliggihBist hal of the tyendeth century therefore ousht nett 9e lundecetimaed in analyzing Ind cates ecm prom nthe econ al ofthe cei ” India’s Progmented-Multilass State and Protected Industriatization Sovereign’ expect tole emi growth has prodneed ‘acl eer ean Dance ve a ran rte oo ap pees tected oes perert pet ‘Shum thereater Gee Rble 71), Nonetheks, this prforeannee of the teneeign sate was conse Invent ne the re stage ‘Sil ono, fey he poeton psd eae ie hs rah compares unexory espcly with rat of South Rove Dit ab Fini sppeoung te ned ie srudnae te rle of the state sn ean compete fur nda rot, fotnted fom one 7 percent In the het cen yea, wo bd prem dng sfg-So ad then Back ett to nealy © perce por sana bebe 39E0 md 2000 There mas see aterble truer warsormation over the ve decadee Wiereat pcre coined fre ta Hall and iy ese han (0 erent {Fre nol pron at indepencesce ivy, ted the end che tent Shere nucleon combed! nea one quater and ‘Roser sector sesty oneal of the wha “Ts capes foc on he pola! dterinans of economle peor smanes in inca, epoca ae and Joes of utara, Fn thesionvabouttiedengrand the capac of nda’ hy uceresin ste Chen the mised sion, the pao for ara ae both wy the iri conoty basse wl sche acl wy hasnt doe ete 2 1Uepng wh nc cent ees fe ay He man concer the suc le, special ow the djagieso agettecleaa sate influenced exons clean performance "oe holy ape of ths cheer ond sn seeping In ay neces ang eqs el emcee nl of eontoresi een F Coumur spec foe at he oust lds poll exo can teint reed from at les: vo diac sande, en oe of which Senpbuieed belo: Are meer ineypetaton wold mgs ht Thats aks perosance enamel esoneme Growans Sts ot Soy ante Hen Rede Couch Date 2950200 ah pili pon) Brg e tog ts Ail gc a Grom iveuaeny/6OP 8 reste rs tani a AE see cae cer iments (tin ig Sincere ‘Sitetcepenr te Speed het aay ee uc floved fom the esd sn sat eel of eslopment apie by Indias mgd trait nd soca ears Acne g ttn hiking eat wo Mberating esas meds sone mene Wigherrtesofeconemie gemvand alone ste opener lana’ Whe there ae fluble nights ila pepe ilo ou vol ome vie tes and ele a wie that th dy dese share Tasgo nse tthe Achiles helo Tada pote econony yoo sc ts tat mel of develope the match bewec tata ‘nodal an te Med agi of he sta gui sch apd econ thang. ‘Thee hme ber wast ten ote pat of he ltt Aeeved orca gs, but they were general dete Iyer een lous ste, The eae capa cco South oven aa Bea oth represents f the igh thecobecreloverelan mrcta commas Cina eae on te tet Tying to recom pole petrenes of detand rig iotecontexcofs gested sete the lodans aed both at alia resin and arth eptalinded crs yon Te sci commitment of Indian leaders for evap, was er salon ‘Wile sone toric una oy to bull pote eal pales faa af the poor were vetdom pase geno. Sch seca cme sentsas ese posse ale fern, sk len ated phate veer The avecned eiedies ln nasnlnnes tts Int econo seonih The change nia one the Int to devas gnoso mst tha Seca move itl ta an the ight aloe ing tor move tarenous wate nse reltionsan pene pact on ‘owt, Bote ese ime the pcre! plied excaon ofthe por Ital governance mee dil snd fed eset tendencies ekg thereto of watonsian gint minors " Ove wen citi a way sae hide se Je Abi ak UML. ise arson fern dD Reso Rta Dat Oslo Uieniy head Pritt ucuttetion 200) {iw del the dscustion of modem Inia’ pola economy ata fines chriologcal pases: be Nehru ea (approximately t9pe~4) che of Indira Gand (appronimately1g63 to the cary 0), a the ‘ust wo decns ofthe ewcalicth cen ding which mutmeroxa govern ‘ents have come an game. This dion rests the jxkgment thet peal slanges have infiuenced rates and pattems instal Thy Tag et thatthe tte'scousceraleteitinay and reatnely clea Sconce iovtesin the Nehru pried fitted some eemoms glnB) cane Angra Gani’ pops tt ineesnent and growth, A frall the po. lial deft cova the ight phe ted phage hs been accompanied ty sowing role ofthe prhatesetor inthe eeoncany ad proved econ Devfoumsnce, The Nein Ba {she 1gjoein dinate best howght of the decide whieh Ina mare ‘etranuiion rom¢olonlllse a wovereign democratic republic the Neb ra that followed futur weed ante crete of minder Inde i loving this ra that a stable democracy tuk soot and @ walt model of ‘eennomic delopmcatenienyed hegaone, Indias by now take die democrory ex grad as ie were the most ‘bvions nay of ongoing state ome poor rule, conned nts. Viewed comparative however st wll a aga theese Pop lar theories that tem democracy as + function of economle advance, India’s demoesacy a puzsle™ Ata minimum the sirval of demoreaey In da suggests that under sper conten » contr pol tae {ures eno some autcnay Fem the undething ocean eennowy. The roo/saf lan democracy and oi ragmentomicts sot he ed ‘ove ndersood in temas of imitans conn es, including de ria politcal ibestance a, nares, aelatvelcentalire aad cuherent stir wih i nelleneoped es teateacy. is inied but Fal exper ee of elections and of conatiuora,paamentay gos iment ed ‘sans of independent media and feedom of ch eect os abe Since inertancefsdem destiny, Ind ike many ser poseonil {tities cul realy have squandered tte yluale pata sources, Yee s.did ot. Bete clo! nentanc, therfore, che must underline ‘te constructive pola role of Inds tational: movement pry the * ors er dion of is ys ee Aa Rl the af tip Ds (Ging Conanage Unset en arth, Be ‘mayer Sn tte sport snganen chard nen cusp Unnerany Pa g360 Sut Sted Than National Bangoesy, a of Indi’ leader in the evo othe democrat. Ine questo: [eedom fom rls vue, che Congres Hot on Dros together rvicty of Tin elites tn also exe bbumeteualinks Bebwrencltssand the ane which defined he Fen ‘thin whieh is’ ersocraey advanced India's eaters adopted acs ngs camritled termes. prlimentnyeemacraey, Pernt he siergence aa earetyofpllieal lees ard organiza and condactag {hetero of heir hegemonic party democratic mi! inchsine “Thiscombination ofs protodemocallecalonalintertnce anda genio cacy inclined tas nationalist movement provided the inaiional precondidone forthe emergence of femocry ln Toda But the poi il precandions also lepe to lay dhe Foundation: for the emergence of 2 fragmented atte The Indian cate thus rane te nporane ‘quero: Doss cemocracyia aderlopiny counuy neces lata hag oes power ith aml associa aso Te Inde easesdeed wig fea ang stcration been demoeracy anda Fegrentedevalsica Fine, Bul arno sng cee oi wall hat uch abouts general resto Ship ane must be wary of coaising asocation with causation. Por every Inia foresample, there rauoaMatayl, vib lew frayitented tate auton ‘.atclevenitdemccratistion ina developing esny ends encourage Ehgrenidmnlclea nies ierscnreetitny notes Si per ‘nmanyavhcrtaran sisson ean alo be feyemented andres: on lca ‘lssbate Mostiportantlo hemmed discussion, certain pete Tied depeopencit dita eNotes pee els eonaoie Trdied eniocray wile ako reinforcing hess ragmentedsnulclass ature, "The colo nreveracy that Idi’ leans ihe war fe eae somal toree espctlipte eve CSc, butt rina lw aloes Dbuyeausiey not wel ited wo implement the leaders anbicous develop fiend guia major ensthtl ol the Inveantiacy igh eerste, ‘rasriever realy pares, msn because the ellerned bee rea ‘were indspenhiefor governing the new state The se of dv cise, Ineladingte officer ran, ao grew auseanally daring the Neh je, “Theugh roomed the Inckan Aeminiratve Service AS), the mew eaice Fells the stir the CS eid ail ce or stalfingon a nighy com ppd esam dc maily tested general rales ths pecsse knomadge, The smal action f cancdates who passed the exam nate then Gained ce ay fd Wig aN gr om ee as ‘epee cea at an Mende tanya ny gel Prot tbinkatin 361 in more olen he same way as 1S officers had been ~ at na tit ture ane hen ou ihe Jo appre ule rnoe senior officer. To ep np the old expat ce cory, muy ofthe TOS Usons ete malialned Mung the ies tha lite ci sevens cone the steel fare that cored tnd plideal ably, eral promos were ade on the Fesiot ment and senioniy dan ndependerraperisory body kelped tain the bevel podem, sent Ue ve 180, en the IAS beamne ore puizaned The IAS sho doped he cove stare Utuhe old 1G, nancly, dtc officer hat were reoponde for revere {nviw and orden developer etons weve merely mds Upon nependence, Ina cers aed a rel cote: advance sate hers plieal ry orn aac eater tcconamicdeelopiee They opie forthe former which wl hecore S tangeren ead ~prcrzng poltieal needs ver economic oes tnd thu ili nat would evenly become ulnar gp eters the at's capacies andi developmental ambitions A saa mismatch {aloe t charterer the Congress arya sought be mullaneous a pulling yor onan agent Of oat develonent Thesrajoryof Taos va the countryside, ads them pare laa tf prvonclent etaionlips, One realy way to bn pole suppor such a soc seung os fo ulate the ruppore of the patrons genera ihe highea,lndowming ete costes who in ue, could aay the pc Dehuvor of tuir depen cen, generally poor pees. And thi pnecnely hat the party di, bldg ong ait patronagethatenended Town the cen ae periphery, Thisensred a popular bse~etleaet foe decade ovo butcrentuyao le othe apie feeb rower inthis ay mre eaitasan smbitons snc sland ron ‘Ano agniicant pola! devopment concerned the evoliion of ands tall? Soo afer Inia won energy each of Hn dmcrous dine groupe bees dotanng «gress poet These ‘rags cae to a ead in the iat go when arlucem® Neb agreed tong weogiaton of ft federal, Allg te deesion neomiodbtedelnie German aid created spre sable pole wii tos fugmenied te power Toth extent tha evelopment anbions of {earn en Payline Ne Setce (egrr af Chie Pe 6 1 Realy wel orien Ben Sua, da Mss a abe ‘hit a ys eich er ap a JEREZ A Sagan eat Set el Cae Preva St bt Seay a {u's ener found inudooa expreion—auctes the Pang Co disson =the were nemyall ate coer coe, ower goer tentavre nyc wth sigan pnt el esoueee Wile Inds cena tat conned to equ poverty to tr tia federal reagan of crs se dae ese ope Capac to purse Cberent deseo agenda, The rls Weology cf ihe Congres Party Pres anal crample at che miomathbewre capac a ant Cogren come Ie to “national” and sccl"~ Neta ered wih won subs popula aa eghiony for hn andthe py At he sae the, Ser hee esti commitment made i det pursue gers Scofomle rove aga iint Crna tesa ee seeped. In ‘plea hea sheaves raisers ecomomy “Vigorous econemis growth wos be Seas ony cere vere a gern Pte sear Bet he Ina vernon of wlth aan fwd fe a ‘Sirus ts copoacl pn: Nolo dscouryed bel espe inna ane soci nclnason seid ec rations won “den tgeter, tet polical developmen ring the Nei ew seat va conten Fst thre ws sign cnn beeen ‘Slots ate sere lance, rena tere fee ran 0 ‘ocr dcootinsier~ thas the new sate wor overcgn, deposi ad interes The rex of entity nce, wn sng the gn ‘Fiionewchilarie btaio e onatactonaftelegelipeemancottie trae forens.The etwas eopecalyeoneque ial for epg wee hil cent othe easy pial comple sry end thoveope of ssid A mores re of coy the pee thesatalanes wth he properiowning ces he coe ate a ‘evesitpomer it landowing alo etesand general tea good org laonship th naam ies ops Whe Neh lee hat roader socal bu, he poe lass of Ia new ters ht prop ted groupe alte deaionertedreturkshe conduc Wh es tee {uate negate ees sch tthe Maar) ane he aac sete eins he Congres rulers ol awe! or rel poner on and ‘ig eles, abe maler downer a over gery of sors Secon Nehrvandhvcoleagiespace alight ox cousclaing Indian deme Thy ten pae oie powetal an dco some per to demanding regional he tatty aso ema the topes ofthe mass prong elon deve pica the poe A th thew segs ed a otras id's age demos tune w mapibingy enema se oft nin potion ‘hed nat itt eaten ha cee db teu ‘eat nc ates he hse epee aay, Tr Ay ‘nition snipe ose Gray Cree Cla Pop PrtaedIndsoiietion 263 athe same dine, he reali pola deneopaei ao instotoralized Te rane et and mils poliea! tendencies of te nia ie and ‘undermined capac t pura developmen galssgonouly Was di ctzracinedee? “Thisisaeefeule question toauaner nambigoty. Cet he per to undertake some hase changes exe ex there ses voting nenle in the degre ofstae Ragmeattion ad inthe ack of focus in he sae Aoselopaenalprinnties Atthe sine tite, fxneve, he nationals. mre ent was eae staining a Tog ayo ou octets wy ka ‘verse prior wo independence, Neh peeiicdeestinry sted tin taining ble and legitimate demeeracy in a heterogeneity ‘herweakeoed ds pote Ue ponndependease period Manta ng "lw and order” Bureaueracyhust the slae's capita wraertake ceo omic tush direclly; a rorsmitment io want aid socal made i “lit to mabiie private capil and the Congress Pris dependence ‘on regional md rua elites fragment sate power, akg ie Pereira he ura soley dee, Te eeonome model adapted doving the Nehr era vas, ens, the relbknown model oF sateded,importbtating Ladurtaaaton St) Ouice dopted, it endured, eva i tho face of ignfiant flor seca are toward a iferent model. At the el of the ented century, Hn 2ilexhblel sore ofthe core hacer of Ui ast model of dere. pment thus endodning the poitcal nstire of Indi’ ary ronomie choices? ‘Nehn’spotieal preferences, expresid through the Congress Pry be amne Inds donuinant eae and sresied the feng iment Sal sovereignty the ayperirty of Ue state la cering progres cap nit development, andthe reed for Indiv's poor o save inthe us tf developmen. The ationalicomminent of Tl ede assed Inia sunpicion of am open economy ancl preference fr hes instr In spite a tow domestic svg, foreign seater merc by and age dis outnged, ssilybeestne they mlghe have ehceaten sd haré-von mations] Sovereign A sare of lncerens, lading Indi ttsnes group, bene Sted Fem these ienlogical cheeses tes elped sa hem ‘Sawpicon ofan opea trading teghve is more diffe to undead in tenn efndsehing rationals Protection vase! yin tn a pevling economic leas exon ela ina ely Gini pie Hen, he Pf sia nb pei ond a {oem earoy Chakra eye Mang les Bape etn Dili Poe de fantsi Soa but Sted: di Io the Inch eas, however thore nt al something deeply expevien iat al pola abou hese choles, We be we that openness deg te Soon era had becn interpreted by aauenalas, oto linge, indonies htalsnasinhibtingticerrergence oigenensinetial ap als Inan bysinesmen ad insti, wh stad a bene fee relathelyeloed economy in eh competion vonld beliied expres thesepreforences openly Pretecionsm, as wellav an emphasis oieyy in ‘is, as tus oe as See the interests of wasn fang Ho ee according to tc’ leaders, could such an esormoun couniry, with Ws lent chization,reemenge sta poweriase that uss to eas eet to rmniptlation by esterral powers? Willspread! wa the ele In the stat’ aby on guide soca ane co nome change fication athe middle of he teeth century, We he ‘een this io the Korean at Brvaan cates, This ey ba leaning tlt i India, vented by an admiration ofthe Sine Unie’ develope "Success ad by an lyfe the Beh Labor Pays 78 of et, “Thee ideological prclvies were ab consistent with the ence ie sts oF the Tia pola eli, whieh could chanel some of te fis Gf development erates nd ther ofpring, The eat sodel rane Inte ete bth a ret economic role forthe sae sy, for exapy the widespread ereadon of public eutepses ~ and ota mone tect ‘ole in gieag the ett oF pit eapitel vate "eense permit ra regimel!”” What i siepiing in rettonpest sot se each fins aly {ot stan but how lle open dzcsson ook plae concerning the ype of state that could sucessfully underlake such bibisows evonciic ts ‘Wile market mperttclonswere dacs al nase, there nas pal Jel dission of ateimperfeedons from the sauepoint of develop ‘annety One woes whether the dicusson yaa ke because H oul Irae ese aenon on che orcomige of he rulers nally vague commitment t the poor ad the downtrsden perme- ated much of the natin pall denims, Canadian Neti thle ‘9 ways shaved this omaninent laud expen in sooal he oke and in policy ateas sch as abd redistibution andl ts las governing ‘ployment of ban labor Uolke the arananent > nao nl ad Stallion howerey, the comulunen to the poor war eaten lt “uppercase ruler: may-have meant yell, but thes weve no ren}onarie. Banington Moore’ apt dewtpdon of Welt as "ihe geile Betrajer of ‘pe Seapets hte lap - Pl Pan 85 suse" proba applies a vel to a sy bros spectrum oF fdas po Tal clay chogh ata of them vere leaps an gene” Hw ese woul be exit sted pol energy devoted co a! en fo Tt ‘hater en psmoting widespread aces fo primary education "Wie war tbe Spach of Slit eetcenpproac, which eax in intentand emphaned pubic isesiment in hey bucisuyt Thence ‘remem sacera ofthe prod brings back fo Use tin question Wh fh aplte of Ladi fgmented-mlielas sate, as stat model able to suhtve some suces and why aa che performance ot better? ‘Were by stating oe’ nial comctions in counpaatve perspec tie India's soelecstonic conltons at mideenry were probly sone nest etucen the mich mote favorable stating elat of Korea, oe Braid ee coosieraby worse conditions lyn, Nigeria On the pas juke side, India ad undergone some iwi sna It sg Trane peop af ndigenons enreprenei win pez: banking nn thee finaoeiaadrucons eed ad technically ened manpency, though Dot abundant, wav nota cares ars inary Arlen ad Mie auc ‘ountues The gra an economy: contan hal not roma much over the presnarseveral decay Literal dena dra tied acne were low: Desience with managing complex madera production was felatve eres {nde heal and educational enone othe working population were byomal, Gren thes eoncons, ow well designed wae the develop ental pproach of soteeigh Inca’ leaders? Tint dhe agucaliral sector Nebr appcoach othe sector wes wala “intional in the seve athe and Idle oconomie planes hoped tha by kevin wth agrarian relations (ia ane reforms. for example) and bbpedueiting the pensnty (a extenlon programs, for exarple), Inds aged prndtion woul improve Atx someaign feat pb Teinvewnens, espe in vga, he asinlira sector was therfore nore or kes ignoted ote expense f Indust, The remit elected Ns elect Agrietual growth was bach ale to ty ala of popoation fFoth, Move seriou nae tha cof this tent was extense and ot Tics one ewe the resul of brnging ore Sand nde culaion, ‘al previ prot. "Teme increase hragiculws production dowrelleciedincresing laboc pat grvring populsdon and teu of adonal land faied in part Byte pubic osestnesin vigaton, Beyond this he repeal ef ‘rretyofcoloniaerataxes an agente may ave cealedacme Mceates bana ior Jn ag ean ry nd al a ce Nandan oo Pan ieighec weet eee nije 0,98.06 Sta Sed I a TOT tnt. nin id mi Nein nt Pes et adbeast Nah ic, ae foe unger aoke oe Uy Pmt tet oy omni poliealincrference hy averse! pois wh rate py Hector indies as one move resource nei patronage netwat, The Highly protetodervirnment win which tee ners operated a Soutien to te nc ienlting eee, ‘The Indian sates aemts to guide the pehato sero hove aso been oni rele. These vicky over nee oh Reptin pes tke Becate the ole of private api Hndzy at hit eu age 8a otal tat sgnibeant Me prominent ra igo tthe pa ctor leur ansdertodas provid abt or alagad pvt sects Aller tl Anal’ price soto nad Randy Dourshed in te psindcpenence pe fia ner nea ree market conditions, That sd, were, he soiliie ‘Nehnnian ste~ ane te Sond: Koveansate—sowghemorevo ae tan tm encourge private sector development Sate intention hn 9 dei ful regulatry cat: sea of stg snes what it ould do and how be fate could help che staze amized wat pate busoes ene not do snd then mised meron hamers taint ecole lnplementaon, oe, was haphsual and ineflene: Eor example, ploy nds were noc aaye ‘be ones that enjoyed msximum protecion, xd overbearing burearats lncharge of Feensing after detetied priate inesns. The growing mize of bureaucale obstacles ta pate sector developneat led oer ti Lo oorpion on fo meficient lloeation of rate wer resus, “The examples of he sicel ah cexile lndveues lp oll out hs brs secon the Nehruvianstae' ole in promoting pulicand prnatesecor Fisre, espctvely We tae eer ia Chapter @ thal the indigenous el Sndustey ws ated a he half Wreath centry ty the Tae Tendvmce ther atari gon Neh ana his pti eailages prided the developnent of een tbe iggos aun South Raven Se rn sate eter four the priate eeeor not fothcoasing, Ki tre tbat isndasome prnatesectinditis suchas tha le Tat cote Mai, but gisen te se, comple and vse ised oer priate seclor att ups Rereap/an the hoszon." Ste, theteare emerged asthe Teadlng cnet for pblleseciordevclopmen. ‘hein Src ht indy Cmaps Pope Dae ne Us a wg. 4 are bee 4 fon eB ny of als (Cb Hal Unveiy Pom gh Pon el Tee Sr eS) "stein nue aso orld 7) db at, Ae a ete ay iy a ‘Erciqnes of elie ate aor Sr Page, thn oe Dg Se08 ws at Std Ii ‘But is nia ule in South Notea nd al, the ste! indy grey up elaively neice, os very compedhiveoterratloally A ake eon Alermnalion of puieecor cher leary oto, arses nal nee mere levslopetinthe pulisector Kaen theenlpritna ileting ature of ates sd patter of vate lez yention. Moceover the problews finda dectoped anyone ie, Under Nehru, sabaal public nese entewere deve tn el ane frei ella was sagt ee xabllh aad manage there plans, Competent senior baroeratsat the Pinning Cominisson weve vespoosiie or steal pole, and eve were good snatageenpracicera the pnclevel.The overall protected enremenent generated by te impoctsubsiation policy regimensired a ready market fan economy nhl ndissalizatos Had begun hearst, The result ‘wat that oe production i india beevean 1950 and 1g ave apa Fans nealy ti peteent perm "The eal press he stel insu date the ada Gand pri ‘ven i nat saved of now ivstmens and this of new teeology an tnodemnzain.Teyes en Dat he ragmentedsnulclas ncuron Aeyelopmental sate came ote fore eause prose for the soe indus tei oeaonal asses thot were pce by ne’ federal struture were enarerbated dining ics Gandhi's pelod. Second, pols making wee In thchande of neta, the LAS bursancr, ve relations ith plant level matagememt were at best reno at worst condeseni nd dlemoralizing for the wemoorats. Third, pricing ad dsteibonal pei ‘vera politicized, sith especialy damaging conseqionten, Se pies Eept below market price and became 2 puble bay o 4 valety of fn duties including prvare acer disses. Althovgh juried in tern of the nce of rap ndanriaieation, the policy el be ised cy ae long ae ample publ resorces 1 suppor och subsidies were salable A zh eantcin eas theese’ nite capacoy to wndertake eet ix tion, especialy in the eoirnide where orml plea! pension wat rininel, Contoled prece ware alos coustesiton tel irdusey prods, ecing is cape for sellaosanng sentient As Tong te st ‘prong Sector ring he Nevin peso wth continsetasion afer Furst thote problems semaines manageable. aseFsiy imprest goth ‘contin, By conta, largeseale textile prediction pertormed nuluer paosy in [Nebr Indi, eves dhough atthe tine of independence te exe nus ‘ny, concentrated In palate hands a wesc fo, was ot eabena Wis posible that ath probusnes state intervention aad sbi foro ord Indias textile proiacion could have bec atet alles poe Ie, This was nocw beso, owevet andthe ste’ lelimocy ave ply thhojeas were the oot eaice** We hive see that Neh way nt expel 9 cc te SRM eae, Dots Ten Co tty ‘chan goog) New Dl ge Pelion, gaol ug Prout Pesan 26g supe pate ener. And within thi Fron tees ace sortil cbcackes Recall that the ews of he destrction of eal scale household textile precheton atthe has of sede tees. played cel ae le indie nationalist imagination, Gan woefully expe hao: Hansapin coun, a6 2 too of policeal moslization, os wnesed io the ‘ytibolt ofthe Congres elie docning thadiwnforns and eae WW he paitealinheritancesyoukihwebeen ty ifbeatte urea modern ex le mmatrny gestae pocion. Mabatsmn Gand pop- Uist coritment to lve of te sal people” eat fong pala shadow ‘Inc's texle policy (While championing Pad, howeet, Gane was ‘Sultan ecinly collecting large dies ar the Congiea fom hs close fend, tease manuctiver GD, Birk) A to ths Nebr ee rookies, hich nee hn nau a avr of proc cheap clot fo mass cn. ‘umption, snd the pole fators molding polly choker sat to boconte tonprehensbe, ‘Nein ad Ns clleagoet rected production of textile mills axed thos hight and exen priced prt of ther onpat Below maser piles so svi prenideciap eas fo poor consumes. Contos hi patern on {errenton pic te one enecuateed In Kove ad Bell here ate ier ‘eatlon ws often supportive of producers, tvough the pote framework neces or that support was ako uch narower and more repre ‘Ths eontaet ko wdesiness central anguen! of he 4, namely eat ‘avlalionsinpoternsofsine intervention ae hat matter mosthen tying to acest varying ole tha states yh aeace-deelopaent. Ths ‘ets tene policies idennined prea arg sale externa tavog nls but evecraged taacate texte papain, Feith nang lone an then ath poser loos, Support aes wat for anya ‘hata ess than aren text rl ith ennernutte consequences upotaflargerls neatly stagnated, ule datatstales prodacesgiew sharply The ler were tale for the lessens met casumrpton but fot fr ompestine exports The story of indus im Neh tac thes ied, erates laedby notable achiesements but ae stipendovs fois fs dma IH exaples o€ steel and tons, bo these recon ad Haas ‘explicable in tng ofthe undedjeg patieras of sae interven. ‘Ths Tits 7 percent tadutial grows tae per anna i tis petiod sa espetable, but Brain tke sme period one of the Sen gtowels Inthe world ad lio democracy wit & set imporesubsation policya St Sr sg nda tt tne perm. Ti lat aperor perfomance abo telleted underbing poll ant poly Aiexece: The eof yetinent is Ura an Tanne phe ‘nore orl compare, Thera dilerenoe ths wait capil oetes fay orin the ete eee) with whlch capi ms inet he contin Tc ent ofticiferenseinisnnem heared back lhe Uae Broan dency vas considerably ln naivalst aad neasbanee than ava tad. Sean fades ts wore les than Tas eee otc tginary nes of onal orelluaituton, The earn none Fesatngoftivateat poles ocasformancuesin Baalveretie sty ‘ooperisn et the ste ad bes nl We hewy dependence favegn imesent 9 fiatefnporemeltston mia lean Whe hk sae a8 tat thot 58 ans problems thease cena ‘nd yamagemen hat fre yn investors rough wo Binal va an reece feason fr aes move pi nde gronihn sea pe 1. The India Gant Bea 1 democracy aes waa wel of economic deepen took root In ind dng the Nea er, the paiel economy ede Indo anh hat follow i best ene ss one in which Inds demas became ore popult and dettitationalzd, economic tetas med Siti othe letancte gap betwen the e's Uelopment caps and economic pons widened een further, to the deuttent of inane sete. Meh sth nig more ihe son utes depart of tie fit generation of national leaders tum the poll] sees A ‘tion ephimae deine merous overeat pacsepeoog Ganges hesemory eerge. The pers ld ulingfocols teas ‘fiche rmination and log eae ot patronage Ed fy sai ineeasing Incapable of generating corel majors, Tes Congies ‘halo come up sith «nem ving era ov iepould he way neice ores va li Grav teppei nd roel he ning ‘satya evived Congres’ agp Sees Bt pops ty ove sinsiationalennt the poly Partha aeenuatedixtingneed ‘und mulls character, wk siglcant devciopmcnal coneeueens der Nera, india hod undergone nad ndusraaon soceapexk ce modest een gon athe poor bd aol beni ety eel oles te spread of commerce and dvaocacy ta sued plone ses making ine poor ge fore spies moblaaon Asay he Ain Gan udestod chev changes and epee there tg Gefen. ATR gp ean Rocens poled Pap eb hss (Gah mney ee te Pracs Proved indesieiation m “poeyalleviation"nto ber cent potica slogan" te ee in Indias piel dscouse welded andsose sorters poli iidencs Indi Cand became nearing of nits dere, iter pp in unlte ber fuer’, wan wt acationalizd. Where he ha presided fer anatonlistpar de dcughle found hereelé oppose bythe odes ttenched Congres ete, Her souton: Label ihe ld eve eeinies of the oor, expla her popular to undermine Weir power, anc appoint oy Irinionstopontions nf responsi Aslnla’seliceal yarn seco Inerestngly peronaliti,welhesblahed patirns ot auchorky win the party were undermined and the broader proces of sinaional develo ‘ent in Jn democracy was derailed "The loge ofthis proces of personalization of power aa inesocaby de \ostitionniing. Challenge! nan increasingly ceteris li nie GGathfnovonlyelinted ter dhallengers but also weakened the nt ‘ion shat enabled rach challengers o error: She lapered wath appoint rts fn the ele verve mel the cours xml eoutteonie’ ch ‘nines, and damarided ab cpl from mpportet. Ata reel, the profesonalsm of the bareauctoey, the indeperdence of the Iga se, ‘he Cuncloning of he rational patiamens, apd the stony of the re ‘ional wnt wthin the national federation were il acer fete "Thechamging atin ofthe oueaieraey espa oceyohy, Though ow and uot dramas the changer neve nevertiles unifies, siya the dxection of undermining the professionali ofthe ev erie that Tn Inlatted thom the Bish The se ofthe IAS costtnved ta gam throughowt this pecod, guadruping betacen iggo and 1g8g* Thi te ected the overall growth othe put wei, n whieh employe ren ‘Som some fur milion fn 2699 fo ten millon in 8, By seca a hi psu the IAS employed some 4.00 olfices, abet 15 pee oho ‘Served in New Dell, 25 peteent thease, some te perce fn puch * Seetor enterprises, nd the romalning go portent n vaso sae eas The tabiestruture ofthe [AS erie uit xe win the oval plc serves or invert of es eisuonton sere various ype a abe (aa the Signicantaseepton af public sector enteprtes, of cone) i not Aesgo ay dramatic anges fom eartie tines, Whetchunged nstead ye thelminishing degree to Whlch tbe LAS was alte fromm the bros society the erosion of profesional eieia fr ternal pracion awl a ‘cepa Dayoan hes ng ay ‘tao gf Chg Sainay Bo con NJ Poe Vahey Pe {oe er ssomeat een trate Lay bp naan Pa a eit a tay ar Cat= St Sn ns reser etm paced on somnectonean oppo pola forme thgdedrabie pions Tosoneexent those chongese lected incexee inigniaion os clonal ine, bt ty above de porides oh pote cl, ald ont poner berms an endin ae Sot, na Gand Teed lesson ars economia mare py soanting poner Nebr ste model of economic development iey see eon whos nor change. Wii the foment ooo Si econcie py change dng the ra were oily of 0 Gre Siler hk ngicneal pec haba bong long {os production and ava of ltcaning change hatte ac Gandhi peacalens bt ile nels econo prow nar te tsbton ookel ot broly ik ane of hn enone opportuni Indien er couse explted puch opporvenees. rom ‘goon the lecoomy Seem more cpa to manulacted ee prtftom descpig cours nl conte as verses South oe Inc Bow cughw te adage cf each aba sa These conse fens, are to beled by mila dtmtrs nko pod exon fxcooh wd waghtexpont pron soa anal act By eng tha er tiation ath evan 394 mune ely a ppt dite, becoming moe ai me olmted wk poe {Gata Gants porate governance et Ina dav pal on wich feinoesey oa insne thavgh tems, bese anole po tisbecane Cher polieed, Aud tegp between the fais eons ‘ete an eae implement gre ont, “eto age pies pied i he hf eventually po duce ine een ection estas tere policassaug ta conse ta prsation insta in he anton dingo nse cn cf el shed not vend Be nw Lia Cay popula degre ‘Wyand hon vere hae polis adopted?™ Fu, ey nee nope ee ‘nag jn btn ara Confers of erty Alen Inibstite ase Moreponan laa face erereoodchor agri 9 tte sg ich ade the contr moncopenseking nate bone jppebeti ced emeearly es depron on hed 90; Syed oad the United Sen Ihe Urted Sits Iced green revlon ples al pestd i adopt hem exchange Fv ate apo "Sento Aree Lee eo eid ha ‘Mf tlm etek te yt ae se We feta tee opts ee > ete ta atc Dt on 0 impatt og Pret! Paden rg fest policies won sae a paliicallysenalive matte in erm of both (Grremal Gependence an! poanble distin consequences, that pa {es were exsentally adopted bya hand ofthe polital ete as excel tests rather than tho sty open paieal dscsion. ‘Vaslous oer roca and econouie poles adopeed by Toda Gana i he ngpos weve aimed st leginizing populist politics. ile the sgn feroce frome of these waarmee eters tured out to be quile eonomsaly contoqvental, Among the more ame ~ aud thus polite tal conseunial =e he vemos ef puaveyes that Indian government uit proved o naan peacen Move ecomanlcally conse junta. ie tira Gandhi (nena the retrial to ome extent ise as plement landetores. Lard reset naval cent component teh ner powerlines dough he seta nnpat as lie Finks Silay he naionalzaucn ofthe banks was supposed 10 ae frocruze fering ase x0 was popula soa Ta Gand eons ‘Among the economically mort eonsoguentsk poy developments, the following hat an sthere incon ecomonie grenth, Es, Indira Gane ‘ek hee popali easkon together by cannelng pale resouees to nie ineous inverest gop — 8 ase of large that cit into public investment sie hart econorate grou." Secon, the sdeal politcal hese some Seemingly radical poe and anew oyelof labor atin sllensted priate investors bo neste a oregn These plies need yesreing he frowthotpeste heres andr eaonaizadonoftals,andthieas {Datlonalice ober inaustes, And third, nes eloser poi Iaks ith fhe Soviet Unn an parallel ctancing ror tke West mae cif for tie Ladicn economy to derive ene that mighe come fom Free Iegratfon wilt more dyna econo With Ince Gandivauion of popula o desist node feel ncn he ap between the sates arbitinsane capaci tht had lend tripe Netu'sdla gee eve de, nin rag ened hss Sevelopmetal ete became eve less developmental. For example, dra (Canal ised the expeeiatons hater policies would ep t aleate orery a demanding tok that would have requed high rates of eo omic growth, ome eet resin and Me cap) penetrate ‘ul reongunice de oral wockety. Th dealing aim, woul Date ‘ered cohesive polticifpaand bureaueray.Lnéra Gar ahi anwee Adicve the ppc, by further deittaionalcing the Consees Pay, father agucenting the ace’ auchodty sins, ad widermising the profestionati of the boreaucra. And instead of ehatced publ vest ‘rent in agitcueetaftasimatine, pole sector Sindee, ad eucatinn > Sera Baron Tefen eet Pai Ox Uneon ‘Sku tnt: nd ad health, the ate’ reouress were increasingly directed a buying poi Calmupport. With groning polscuation, the bureaucracy eit pul enter Dseysimply deteriorated. Al inal the wate simpy wot support the Divas scetorand bec lneveasingyandcaptal ih predictable negatne Feral for invesinent ae grant ‘Asrevident inte Agus a Table 74, lcs sexoncny dd 8a peetorm ‘espn berneen and 1979. Aswe hare sben Andra Cand pops ‘specially huetindansial goth Teeiatereninglinlsnred io beetarited, Iya fst aw commcnir om de agricultl sein. lira Cone’ ages lal strategy opted ner cones ef eit exer] prewurey eonecnt ated letra aves ening beer seedeand erties terion with seve gation sche the Fon, Price appr wee ako peorided oro produces, husshifing Wie ern of rade mela, Inthe fivor ofthe eonnraide3* While the dabalonal conequences were deciealy mixed, the new polices id telp to imprene ager reduction, ‘On the face oft, the sggnegste figures Table ja do not eupport hie view Agieal grows between 1935 and 1979 was lower ha Inthe thilee pestod, However mul of tls new pron waa bused higher yids. With the possi of bringing mere nnd nde: culation move oe Lest eshte) eevallywiiont nor plicit tga produsritsbated food grr wos eet to foc the growing pope tion Dramatic inezetacain nbent producto indergised thenew rom poli lel ck om te rink of nine ane ware starstlon. The sate Incervned musty tosupportose proper osningalitesvkowere an Iii eaieaisne over gr nih benign cmeinoes pee Aion While ste intervention nae ari of crus end tog the aie ‘eae as canecniated ine agtarian ther than te inal ei thvallance of esti apd the prope cen f emsneoene the Hat ‘Asia eoheske capitalist tae, Oer Lime even the fds sert mune ils sits beenot herent papal negrqoun ast ag whoo eng pessed by yet oer eeonomie cue, ‘usta grows a details ply ering 1985-79, leading some olnervets tb this aera of saguadon”= The unde ee ‘as wainly declining invent, but deze Were duo securing nel ‘etter cline ic fien canbe exe it to rena pion ‘Wl the ate of mente Fr pred fue Table.) cae ger than inthe eather period, s mere dsaggegatd pita clicies the appre ioc eaeefins a re nen 10 Seren tone Ant fs Gt de Spun ace ‘i nd ey 8) Pretoted adits 6 couvadleion. The igh aggregate ate most effected sings (al vimed investment) the hovel sero, where the major) oP ne onsimed restvesweremaacalasd is the frm of phil setae er theretore no! realy avant into vestments wilh high rte ret More sigue: wat thus she behavior of ple ad carport svg ‘hh pniod, bth o which decclersted ‘The decline in public ines reflected os a fe so wt dhe revenue base (for exams, by sang new aia incomes 7 By ge crt wirphaes in pbc enterprise) and groming pul expenaes in sich *nondevelopental” arets a side ined ac seeurig polls ‘al support This pater wo nec fonction af Indira Gana’ grow Ing populism: She eseily drew publ cexouress ar numerous sel apis she sought so mobllze. As publi invesmente docined nati) fowth vas hure on bath the supp} and the deman le (afer fredevelopmencsitered, fr example, essing eriovs wuppiybondenechs foc ndusital production. And inte tel industry reduced publi vex went rt predction dicey. On the deme! abe so, yven he weg Sf the public secioe Indies indi! economy, rede investment Shvank the demand for aac f industrial oxy herby dicouraging production, ‘Since puiichvertments in India hae ot goon in sosent yeas but snd gronth has, t's alto important consider the te Of eorpo ‘us hnestnen in Soda deceleration ching the Incies Gana era. Corporate investment ska sloxed dows in this perio, expecially in Re pial formation The ndesjing cases ae ifcuh to dice but ca be ted hk fo declining profitably. Decline i eran in Whe es ilk econoniy mas probably partly fesporaible Abo’ at play iouese, eve ‘nore dicey pital tors Popul a clas poli ad woerpe foxporats tks and to labor seri vn yest, and higher wages “probably cating nto profiabiliy There val the more dle impact of ‘Seema lftvara turn i nsons poles on srvestor behav, Wile Aitieul to docutent decisively, investor nap hate been Ticnaged Hy ‘he guning talk matonaling busines (anche rely of uslona aia fone bans}, by nav poise tha snug e oi heir gremth ane meas oF Investment and by de adoption of jeveal anti sine Fone inal whatever invesment wos hing place wa Hot als lone. Since there i Lie vdence thot prosuthity grome in this period wns rome than during dhe Netw pertiaa® rich of the Midustl dcelra fon under dleeveon eatnot be atta to ses of eiency. Rather se reeme tn yDa6 Sle Sod ain ‘he inn east nas reduced ievestnent, bots polic al pate. Ney thelr, eanclnulng nefcencis were cetainy at least a pat of te ‘reall eroncmic scene, A poorly managed nd inetcin public setay Tepes filed to generte imental surpass sus conrad tora sling dow of dusuial owt A plleyhamework tht dil mot fncourage Homes competion leo mitallocaion af resurces burs Inggarosth Capialcurpue ais, ough iiesor af efficiency, latener ‘ding Wis potlod, especialy in anudcering, dering that bese the dadewn in invesiment, ivesameat yas snphy not being ied tfc, ‘The evolution of the stool and ontile industries en fnther cai he lhanges mider Indi Gandhi Aller eondilerable powrth in the eater pe Fiod stl produaion in tbe ube sector sagnnted dutag her tere, pecially Betvech 3964 and 197 Levels of elcene’i he sie nu try ah semaine tlatcy aw Again, te ros of many of dese probe blew out of the ner popalst poles, Por example, nition to sutering [om a wer nth Pak and droga inthe mika pines ‘ecine swell because of nda Gad new poles poten The fulsnehaes decining investnen i established tel pnts I hc sds ine ate tet dene alleen speed becae the matey lack fiesmea in elalo gic upgrading and pla sintensnce ae oor plantmanagement'* The poblemsolan insestinenttarved uy tree cxacestated by low, gnermmenicinpned see prices = apotn juatifed Inna of retain" that depron ofintesnaleningfor inves mt stl nadernization, Ana fill among the piel soot of te pubes ste! sy vas he pover of pulcaed bor el angenee unions listed ith and empowered by tha uling pers eserally sues the gulsngeas o€ pale srl Tay eligi tnertun gles sa Ineflencte, "The problems in textile production, dominate bythe priate seta ‘ested inh pesed and weve pcbubly exacerbated Controls oa the [point ofthe organized mil este etstted and wine mode een mre Festive inthe name protecting and loons al nal preueet Te Fame gle wat extended co power lass, a hiberto growg agment of the indus, that Nad started ng the producsion pare Leiwee il tl band Tome, Large mil, moet were led to protide a igi ft pros oC ual bapa pou: comiomere at eonoled prices Whe Icselfetent pices falter, Indira Gotti naicnsie then These nls nox perform bauer i dhe ple sect, tleas a pat because bo src oA Sy ea a i de Del 7 Prete Insiotin an thoy wore burdened with procicng veelatcl lath for the ow en of te nave Import af new tehnolgy wo lo reseed ert dl wth {lnce-ojayinent probleins, The pola context ar priate weal betes Ws thus dcoutaging a contribute to ed groin ot jpostctsity anl proton ‘ill «comment ought tobe made about the confining “close tars ofthe Indian ecnromy: Inespectve of whether amet abot port pesniniom or about the nee fa protet ufc ladustee were eer fechaleallysupporuble or no such ates vere mrlerstandable ding the Nehri period, gen the peeling poliiea whist poyoler exe one dectines ofthe ne. By he wos, hone, many of there sap tis were being globalyeballenged. Countries sich 2s South Kotea and Bra weve agyresiely corning ua] export promosian aad 1 C0 ae tract foelgn invests, India Cana legitvacyctrnen poles ea her iasrnd to adopt a sharply aniesern and nativalt pelical sete pushing Ta eeonovnke pales neatly the opposite iesctlon. Ava Fh India contved Wo embrace import sibitition rogime Revel 2 ‘ella to resist foveigninvestnent, agin urtng gen lip mye Tlnltd expons, for example, veinlned a hey winery, eto per tie tance opment cree. Moreones by nm puing xpos nina noting adrantagecl is key resource, ches laos aso Mned pacs of pe technology and dlscouraged economics of ral. Enhance foreign investment mightaluo base elated prt, no only intra ves ‘ets, bucalo and move lnpariady by contibuding coer technology, rmagenent nd expor promotion Popa may he pola expedient and, ou aceaio, even a pala recent o lelance coufietg stents under conditions of weak polit {a1 meio, bt it economic mat om grow slam eng The Indian age Bess broader pre. A more genie sock democratic In India one at weld have reeled better growth sid mosest edit ation, would have rehired a wengaiaed socal desnocate pty ed ddrablerallng ecalton sete belinofs sive effec ae Inte wan ‘noon hae required a cohesive mics sate sai hn ragiented auiiclss late Shon of that unlikely ouseome,acharkaalleaneé popular ‘endo, promisicg radial easton win the contest ofr apmeied ‘muh site sia gel poonte-entenise econ wa recipe filme. Popul harmed econcnie owt doubly by hark public sss ineestments and by tuner poilezing the sais ard lod eo Sila pale ML The Probusiness Dit Following gina Gana recur paver In 1q80 and especialy folving herasasination in 2984, luda donioeracyenereda ne poe market)a Ste Shey adn ‘he mtn east nas reduced favetnent both publican pate. New theless, conning eclences were ceraihy leas 2 part of the reall exonemie scene. A poory manag and ineliint puéic stay epee alled to generate onenable suave sw thu contd tera Howing Gown of Indusuial ow A poy framework tht did wat fmnconrage Homeite competition lea o miallocation of rescues. hut ingaronth Copial-ourpu aio, gh incator of efficiency, lense ‘ming is patlod, especialy ia mnanusctaring, ering that, bei the alowdowm in investment, smetment wat snply not Being wed fice “The evolution ofthe soe! ane eve industries ca fnther clei the changes under India Gandhi, Aer eonserable growth i dhe earlier pes ‘od, tel preduaion ithe public se vagnnted dutog her tne, ‘pecially Besween 1964 and 972" Levels of eleney ie steel ind frp ao remained telultely aw. Aga, the taots many of tess problems ‘stew out ofthe net poplst polite. For example, in adtion to sulering {om a wer ith Paki ad drone inthe wun plc lestes ‘eclned wal because of Indra Candis new pola! ponies The we tolls snekies decining ivestmentin etl stel plants Ih he woe Htoneacalyt tiestedinkoty eller io ipesod counsel heats lack of avesunen i ecsloga upgrading and pla tiniensnce aa poor plantmanagenent" The problensotaninvestineatarved dustry free exacted by low gonerninenicin posed steel prcer = aot justibeg laters of toca" that pried firs osntexnal angio ies std oodernizaon. And Gall among the polial soot ofthe ptems fe! hudsuy asthe power of paldelzed Ior Wel ongane unions Milinted wit and empowered by the ling party ese) surest the managers o€ puble socio Cm eal so narnerous rigs acl Inefence. "The problems intext prnduchon, dominated bythe piace ecw oaaned intl pete ad were pally exacerbated. Gantels on the [sna oF the onjanizes mill ecoe preted and were made ex tone Festive inthe name of proterting and locos wl all produces The fame lople war extended Lo power fg arto grewg segment of "he indus, that Pad sated fig the production pace bewween malls uid Lard Loos, Lae rl, noreass, ere abige fo prone sg fant parton of thelr epi to poor consumers at controlled pies When Tewelfctent prices falter, Inara Cet national the, These rls id wt perform beer the publi ecto, lest pat becate fas hg vce IU Say he re ty de (Oe Oa hei Prtetet Indias ay thoy wore burdened with producng regulated coth fr thelow ond of the navel Import of new technology ws alo este ens to del fplanceot ayes probes, The pollical cotext fr paate teal man. ‘bcrusors Wes thus dteouraging ad contrite tailed growth a Both nodctty alprodsion pal ernment ought tobe made about the coniaing “lose lars ofthe Indian esnom: Inespectve of whether argument bot port penmisn® or about the need te protect af aes” ware ever feskaieally supportable a na, ue: alutaes weve mdertnndable daring the Net pened, gen the prewiing polieal wae al poole eo oie docunes af the ne. By he s/o, ones many of there seen hone wore being globally challenged. Countnes seh es South Kote ne Bra were agressive org tema expo procs myig toat teat fovelgn Invostos: Indica Candas legitacysven police Il her invrnd to adopt a shoeply anise and ntiovali palisl tote Pshing Indi’ economic plies in neatly the oppose dren. Ara Fh dla conttued to embrace ie mportsubytion rogime Revel ‘elo to ret foreign investment, gan urtng gc ple wa oted export, for example, remained a key wnersliy, creating pet te balance of payment cree, Moreoner by nosing exports in wt hotthing enrages ey resoee cheap lors aso lad por of ne teehnolog ana dscouraged ceonomita of sale, Enhanced foreign, investment might also hase fated gt, no ony vi el ona vent ‘ents, but abo abd sve nporianh by contibutng to betes enol, nanagerent and espor premotion Populism maybe poltialy expedient and, on ocean, even a pote! etsy o balance config interest under contions of peak polit {a1 inetiony, bt economic impact om grow kom enn The India age Mths broader pater A mote enue socal democratic tt In India one tat weld have recoiled better growth and modest edit aston, wont ve reir a welerganzel socal dernocat pat ad durable ruling celia athe hein ofa aoceafTecivestate neler ox, ‘toil have required a eohesive mits sot ahr tha a eagmente. auc sate Shon of te unley execane, a charkavate ad poplar Jeador promising radical reawabisdon via the cent of agente ‘mult estes a gel prateenterpise seo we recipe fr Ble Populi harmed reononie rowth douby: by buvkag publ and pris inestments aod by further poitezing the aa ar lied co nomic pai tein IHL The Probiviness Dat Zelloning tia Gants rem to Zoe in x98 ane eepeclaly ola herassintion nag, ludir cesaoracy ented ane phise marked8 Stet Se indi aslow and nerdy decine of Congres’ hegemony and bj emer lrg ‘of worsable stern, cunating nthe enengeace oa phading Feligousoatonale party he lc While the 1g8osandthe Legon wok ‘araceraed ya facamount of goverment natailyandesen peal last eepcrially by ethnic ad soimsneal lence Inds economic policies took on a more couetent crac general tending mn nore probusines section ~a process dubbed by sine olververs a economic Bheraizaton. During his phase de gup between goerntnenal economic mbiionsand capacteenaromedsomenhiatnolss mach cto enhanced ‘ne enpartes asta the sang ek of biti, bet inthe producto ‘ud the vesutbuuve spheres Over the tet two decades of the tenet entunin other yords, India’s timgancated nica sate became not fick more cence ware tse oe, Talia Gaus depesine from the police sei et fod whet chavsnatie leader capable of Kolding tether an inevessagl cies ‘nd heterogencous puileal voce. Her flare to sake a dent ca India over als cafe to her sueseior (and evento er inthe ery gf) the limits of ess pac in Tdi who nelganloed soca dem {ade pat appeal o the lower ces i Ina gichy devoid in ies sponse po lism that sultan ly fat economic grwth and failed Aleve este econoouke reditsoaton Sebeequest temps to dione, ‘eirfermulasfor ulin have mavedin one ofthe diretons seme tlh snecessl: mataping the Neb-Candlt fay sul, Zang new caste calidon, and encouraging etre poles expecially wobilaig Hint rabonalism. The Gengiest Paty purse the fst stsesy ane 4 at ff opposition pales fllawet the second and the tite. Since none ok these ategies endy arsed Ino enduring ononal leona vin Inatsvegionalo gained aoc polleal signee bye geo ien governments ihe center The most signieant potcal development ose heb oda has bes the emergence of te Bhariys fata ary (BP), a rigieleaning re ‘gious naonalst patsy, a8 amar allematne to the Gangrene. The emerged as Inia ulig paty tomar the end of he 1g and remains Jan power ads book gore vo pre (2009), The ste ofthe BJP news 0 ‘beludersiood in tena of i abit Bs growing pia! vacua The sssnaton of Fira Gandsson, Raj Cond an er apparent ctor Aepided Congees ofthe opporamiy o continue to eaplalze ma "dye opulrig:* With the aia af ding an alternative ote Congzes a eres ‘Stes hares are enc lntny pg eC Pe sar Gr itt Cen Rogen et Seomleinrnmnys Chr iwi Fae = Proc Indsiiition 29 ot oppastion pares ough w mobic hitherto incorporated mide fate groups bur fled Ave 1 fationaln aes les, not mention the absence of any lear poliea! program. ‘Aba heeroryanized par the BJP stepped ins iswncnn and sought to une Indian's Vind vlan resi 4 naonalst pole block [a program renfiseen’ of European cet atvere nt hs party sought pelea convenient enemies, both yithin India Inda'sretigin nine tes especialy Moses —snd beyond ino’ onde, The ef lation of {alan eadosalsn along celisiove lines paid off handsomely fr te BP but not enough 1 ia & national eeceoral majorly. Te pare appeal re ned anced in doe cena aves of India whee memories ad symbols of rule by Musi remsin mobilzable Cone alignment at rellasenpetience with lemacrate governance, sftned tie moze exterpe Hleneus of de BP, enabling ite provide a viable atsnatire to the old ‘Congress at eastover te shor er, Hom the RJ wil eva ne ae, omer vemahican open qveeion onthe standpoint of his diaion is important o he hat sie ing governments aed coalesce at to decades Lave tana ‘nishatp economic poley ines, While tere ve been tan ‘aopomie pois ver the st tn deals lave generally anon ai ‘aleng of nore precisely probusines divectiogs both dismantling some ofthe inherited sete conta on pra eennomieaettes ad dstane Jag dhe sate from the rhetoric of risa ad papain, How ean ‘one explain ss shift as Well ates constency, ne ce of government Insablig? few eommenes il hep to roa ont he soy Deter aaleled econcanfe growth wor patel efor atrediatbutlon and pore alleviation have prose to be expeiliysucesl nan State aati to push either the Korea type of hgh eerie growth oF the Chinese pe of dies] poverty allevaton is ingly heen aussi The * more his understanding of pe ines seein the gest if Tai’ pollical co, hemes the mote eubraselprobusinets clus to i Ahiselopment problems. Sn Inia Gane ner later yeas qe deem Puszed poverty allevingon at slogan aod atte the new chs she had alienated eater on. Her soo, ale Gandhi, embraced the thetic of ‘conemleHberazation, though practice eaten tc cote ain ‘atin sin into namveros oiaces* Soburguent hua goverment hive inane les sinned 2 eerie commiuent to Uber the canons, moving in ts and stat pean crema gre dt ‘isa lage, complex democracy. Wien quoned ato why apie of ts Re secnen eA agnor sho si Rb Js, atefo Sle bt Sac Pia ‘atone onenttion, se BP sought co erase and open Tas eon, ‘omy Indi eureat ime minister, BiariVsipaves epee "Ney, fe apprenc wor not all that serail Tia J aa never sicete: What ‘heen we do 04" The growing wise atong leaders dat past soategies were not ence oly succes a0 that there ao sternathe but to Merle prey sy the diving free behind te sift Is development strategy. A Inotnent of efecian, howevey, sng thal pat fares could Have bem inerpretd deren wth efferent spllcaios for poly For example Tnditslexlersconldkineembsaced more lly the model of ast Asian "de: Selopmiental sues" 6 le ke bat ote qucaion, they cou hve embraced a more genuine eco democratic model bated what hy thaw ied in sich dn states West evgal and Kel, The fot tha they did aon sr, points 9 ser ey Tacha hes pase tne economir choices: The boraizing wend is consistent with doniant ess td eas, ork iit Tain aed abroad, inspite offi scent Toure, Kai's wate prone a amevor for the emergen of a argely capitalist exonomy it dia Te more Ian ‘opal has matured ones te at ew desades, he more Mc ha Ircome finds leaders to maintain aici polite porn. Bien Inclescomusistjartenacn aceeptnatketteaiiesnd seek tse pre ‘ateinvetorn Teshifingnatsreo! te peiicaleoxomyhashusbourded the range of enone choices ajailable to India’s leaders. ternational pron ba Totes vendor! Wea bene, iva nes ar tin appeared t bea natoal pth to adopewordvie, oward teen fhe century the vitue of markets appear ney hegerna nic. Inc’ leaden cou have ested hese tal al fern constean, bat that woul have eed comserablepoltial ohesion around altersive ‘alocy Having tt de sn, haweter: easy all af Tine pola pate Ine sought to work eth poner nierests snd des, espotaly anda retains les thos naeowing the range of waable options in the eco Somlesher Nonetheless, despite a comamionent to sconomie Hhetalbation, ladle poeleconorny sill exin uitestatit global anda oie Saath poteeen ene cey nat ee ne eet ee ce ene ia Ht Scomstariartente tan Protect Indo atetion 8 Korea o Brat the 1915 there nas ask at nae develope trodel io the gies Thus, pile entsprives remained very sgnitea, tnrifreame de bere fi from nll the rl of ove nvenest inthe economy wax minima, rarer avs gover rapa owen iv and out ofthe county and a sare of lbor avs made the econary sything bats movil of Reali, This nett an emdomenent wor & fe of ie tate of aes. The atic! pote tha, rng th ast fom dean the enon cent Inc ees ght a besalizs the a cepy ay tn ltt eran We eal, ena Iaksd a ined rue conse with perfil pals! forces naa, nce movie ofinteret groups expecially biriness alerted tnsomens pect fancier ofa radkal policy vil Weak governments (a ny css, were folseant tn dere major policy reveling The polly sits This Feds better serstor 3 probes cif rather thay ay ecoinie Hoerallaton, but a policy dit chat as nonedees failed leprae fatesofeconniir growth Todas rate of esonanic grow improved between 98 ad xeon see averaged neadp 6 percent per annum (Table 7.1. Ths higher rte was In pata satisieal ec far efit the grin sae i se salons economy ofthe fsterarawing industri and serview seins of the economy. Neverthe, ageeultual grovth ener the lat aro decaden Inust he ded taeactory, and both isty and sevicen grew 2 seme 5107 percent por anucim, propeling lala ino a group of relatively fost ower in the world, [How does ne explain this improtes perfomance, ipeckly night of our focus onthe tote ofthe sate and ofiate plies? The seiko etgubivn betwen the higher gt rats inde 19803 aunt hose in the agg Groth in the agen na eile, expecially Dr a frovkg publ debe Sd growth inde igqoe nae den Uy higher te of iveriment in the prt corporate sete (Other underyingaceore hat may hae Ao cotibased wo this asiemne ‘ought tobe noted. Doring the Nehru period Indi invested is heyy inde ryan higher technologies aac to fees thin ny. Revs om ‘ese setment pal fake en lia ay cote being en ‘hese air dections Rektedentvepeneuealand masagedtalsits hare ec sol it enlace el nil pb coated (8 beter ecogomle performance, There ial some exec tat Use st ‘ye ofl endl shifing ona coscunerintasieswherecapia faputatioare gemeralipowet lnlisyaln kane ust be ily ove Inst ono cesar, wih a tte of god wether, gomingYerniaiosn ‘mersis lida, aid beter incsnational terms ol banning ad tae ‘a finaly ae ted inthe case of Brass wel, po la daiationcre sue it onm eficionis for fire aerizaton oy providing 4 Walned ror force deme supplier etary demand for gods anda sponte ‘aca,but ea: ain santa ji Patras ef Cpl enti, 198 to98ermmingy of iP) ‘eal poeple) Ratenorpome Sree ior Pie at oo u 1 lia a pole kt bt sy Sibi, rn ul ometing ghar wo expla Ae clean Tle, higher growth Fats over the ato decades ete accompanied by hight rates of vee mentees chat eriginated to the pule sec the 19804 in ts priate conporne sector inthe 19Q0e. What expe thes higher rates of Frventmeat? Also at role, any have atemp to iberalise the econo lye in this improved economic pesformante? The Intra Cand who Felused to power in tg vas cocsiderably es populist than aie wae the tos She thus an era ~ spec a key mone potas ‘pest Maul Policy Revolution im 1988 ~ that ineresnly eae to be Slarateried by rovingelcnes aes of deliberate pene aleve ‘by grestepublcatenson dete tovard the promotion af econonie tgoveh, The agproprnt rae for promoting growth has been ering ‘Poors oma cof alk of Hheralting he eccnony nthe second Naot te 190m es Rajiv Gandhi vein power Woilesome probusines poke me tneyeh naa econ fn eaeprine Mie wereEdeed el cre bration nat ly nite for example, Ube average te of tai Indian 1gg0 was sl ose 169 pee Follouligatutanceopajneat cise igo, chete sen some sigiicant liberaization, especllof the ingerol economy fom ate conta bute pate of ching, expec of openhig' the economy tothe ww slowed (ithe second hao the decade: Tarte nas atthe ond of toe ent al renged lose to 4o pee, and feign este yas mi ‘nscale compare day i China, What contiaued steady diego de ‘two decades omen wot movecicy Irom poplin and toward a foes ‘om econine rem, and cents tears a warmer embrace between the ‘nt and naonal snes Te agoment Tam propodiag ie cat di sit [nate prides and aliances an sporantingeesienti proved 2 omni performares Esl Proce Iasliton 283 ‘Av suse above, dese was eens eden ia Mien he 9708 ‘of allink betveendectning publi iavesincntsand deerleracon of nue tial growth With changed ponies, subuqoen (governments decided at fone say to improve growth vs o Boot lie ecor nvesiments This 3 precisy hae happened ding thr igen? The government cha eld die inentients ito promoting radrueasreand nasties that proves ‘cy inputs for intermediate and final goal hich promoted higher tes fgronth, We the diect cntetbution ofan nereass ofsome tot tree pefeence pnts public iestnens ta overall noth ay beady sal fen the signiRennee of such ekencehs me idrotentte, he ndkecceon {buon ofthis new unestnet for groves inal ikelinoad mich sore sgitcan How wos ths new publetnestnene financed Real thatthe econo ‘spaces ofthe Inaian tae ding the lea Gana peor nd desi fated, as poitcltion ofthe burcaverary made diet co collect ore Luxesorwoinprove the performance of publicseccrentepracs Some new public reources were found in f¥thes sng intentional race (hay ‘outet mprevingceonoinc performance’ bute the mot pare le ne resources was mite, Tho goxerment aio didnot nithack om the ‘are ofitsnondeveloprentalespendsirs ach apis, ven weak Doll pte ~ seni, peconaisic groupings ~ fea inereesingy Asc bold coger rig cations Puen conte pay ‘key role in buying aid malnafsing politcal suppoce The goreenstent thus prsued te ony option cchought tha namely, bostensng many incemaly but also externa Gen sha this bortoved tose we beg lavested In atea i ow Sanda returns and etonthneugh inefcent publi firms, he sess included accomlsing deb it crate! he Win ‘ses ofitersal ahd exteinial debs in tag ‘Meanie, the aconomy grea a adsame rate of rest 6 percent throghont the ofr, Incening public exer kesunent Nas one Com ponent of Wis grow, Piste nveriment alo grew, chsh not by mac There, however. evidence of inprovemenin the petiy oF ivese nents, opel private manutscuring The uaderhig cates are 404 “sen fr engin, ade Mate, Cmte Teo Chow Bs ose sec ts pment wtp ea “Sr lorenampl i fi IM Dit, lis uti al id ang (Shope MG Wal sep hp fol 6 Le oe et mere Incense weal xp tg othr wep no Uerwneaee Geos) ple dar beatae Fy pen ais Cortese Sa mga cen rnd ae24 Ses Stay ti ayn. Lie concider she 1d say bea hapa pa of he enon fa noe {Git of isos ie ed mae a peepee Tikes eee snd w geen Lol Oa Geko orig th 390 el wl he before ate were cea ‘hermit recent pe sae a essing der ninanet cond igh roth beet ces Son anc ar aenty eae Sewer The of opts irene pose ti he Tas cinerea ithe eo prensa piven dete shel for aa fen auliae e ole pon wre prin the pesernanee plete we toc bs on tert ‘Spore sees rie aa ssn for debt manage isthe evdenn Ie. ometmdeinng pie ec vee Thistrent my hore gosh and detent he uw epeely Cane of the noe ie of dat scare bul ae bee Frese mele ey nore anc eter ad ee Trap ots erie plese evel economic did nota ny bette pata oor meson py md ay ofcorrenic heansisin be CU ecectiserpad aah pea ‘rcliesanent (et Tble 7). Petco nda eset fem yupsnnly gueieeheiy heap irlnacee nuhiaed innew indies Atle ina ct, pea manuecog sz etm ata hanna i he 19g The el lors go ated ima to lan teglted evie tay cecal ote ‘nerasonechnogyarisescu ag anpowertematesn it tte found nici in the otal ware The meno ls fomputer nosy incadng cf expoc provers good exanpls of thts brace: mngng pater of ae Sivorriona? Tero linomrmentne tres tacd po ‘ange eae yor ten ep o8yunder a Gos ‘ha pote he fe pont Renin eatin ca Erato Korea, the on gents ving the cron th ope ‘laced egos and ceogrsmen fori ny rete tore dates me mencial cae pan oprcaie mevtetog loo ore hom fe ostuenieeenperaeuanicct ‘areteehloy pars acronis vie ae tpt lide ted chiged in pe ot neanton eral wore Sina Teer ie ate aad ey ae ee ES aD ces hh Nk a Prt Induction 8 inert lag Th sag om lu aloe ad ‘ena component ofthe remarkable performance of testa nds which ger ata rat of:nre than gn percent pe ani hg Mh oe Beyo! helionacion etiology try te Actor thst lp to ee slain groninig poate soctor ieaunenis and pockets of eyoamin move Sroudaetiestate'sincaeanngy probuaen poles, verte la dade torso, Inds various goverment have cut corpse tines reve av rity of suppor to burs, eect exports, sot to tee Ibo ‘tient i the substan decline of maida on due to he*~ 4d ‘elbied poble controle on enty, ext and experson. Ti reform hove included actossthednard reductions in rate and alien of price ines for paying dest and indirect tte, lati of mpi by ‘moxenoshie berseen 1990 an 998, dispensing nds enti greementsformostindutres alls eve taite— latest, ‘ad forelan~ ino the banking atom ana pial markets, and opening sectorsaueh ag pover and trceommoicaon that ha prea ets it ‘ted w the publeseecor Whe ehumplone of Wiersbzaton ray sae al thece ‘measure a evidence ofa groving foe market in Innit remains the ease ‘hats state tll hemi iterventni ad hat he Lud ecocmy ssl rele lve 0 exteal goods, oases an investors. The policy ‘fend s ths beter interpret av igh stn which she embrace fstate ad bodes contest grow weer, ana ay olen oun the cid 1V, Conclusion India’s guest foe indusralization over the lst haley bas odor psed results On the one hal, string fron ery le, Ila oa $html and dhersifed incusal base, eansderbiy more sophie than, sy tha found In mh of Ala, tne Méddle Fat, or even pats of atin Aerea Oa Ue he a when compaced wit a South Kates or lr the progress of ndusalzation in tai hasnt en all ht rapid and lees eceney hate generally Bee lo. Ind nr perforant to Yale over dae moderteysxttctory kn bol the beni the ending periods ond punctate by aa acleser interregnum ca ing Kira Candis rule. The chapter hse sught to anche the pelea Udrplnnings of thle economic record, Keomcmisoutcanes in Una thushote ae of omaisea rect f micro nom plea actos Neve theless, the pac of he Sales nate and cue othe pater of eee280 See bot St ta indtaation signa ale steal ero esa nee Aine viii abe The a sem phi the pac of Inds Saget ante rates and patio iniakacon Te ladin tte ley ontrel he teraary govern, proidnmoerste pol aay Wr Ckeape by pai inte leaders and reer ac habe {toed among mp posts pronoun of inst ad earn {gowth Noreen the wat hs ntnencd ay the Fem ou erate pratncn decay ani wo prowl Ss txpenous enteprenons inom loa! eampeuton These ok te end ding ine Nei peed ate inereasngly sipped he pra secon i ln wo decd fe Convers Howey the Inn te ten Inked he piel e course tren orm sconaiseamiins nt gutcomes Genta oh ‘neapcty is eagmente authonty character ly bah rele a tlicoramchesand ling elie ate orc wuldc Lede insect asute mony penis abou ea egy nelning tem 24optcconomic pices based on wteter thy ean helo eae the palin pation ther tan en vhether ity nearly rode tepid induration and gone. Te pet thre leg tina concert ‘or ot vio digi eo aes a ta cnason, the hapa of nds gman ate te sieting scl prtrmance sy be ely compat wih de wet ‘Guess diay. hen japoned ont Nig at nd uti the ceanomicimpertce of asodsily eect stent jenn ot protet pate propery aperatersecling wo be tle o a and proces bv ance wits edicum o pie eooaninen ahd fonetene, an tas forges aoe oe tes crepe aad foctet copromrig indy. Ati aie maital eapolie tne vase a Niger tesides mockery of planned ecosomie development wih cna sie Ine, Idin spe ony agin Ta beng gorernd tkenaner fbinar-ueAgieiin lad tomntentand Be psline onion of te ceil nda seo nd satiation ‘Coxhoe wheal or So ores ones Indl econnnl ener suance aren been neon though ind ating point athe wer tsryt nts avn sti Rance “te hate ey ‘the idan ecco an deper dence at tr to 0 perent ber wc eny 0 percents both Kore sod rs flowing he Second West ‘Was Thierence wis connect eto way Bi the eae ta (ele lsu spouse oon nde, ta me dd Santaged. dd second, Inia wel have lal Yo fia een mae ‘apy hin Koes oc a achlw the ves of prosper tat these une noweoy. Asin owes ie pe of nao on Pres Partition by ‘yas siower the question, then, what roe the tian state hae page in the process. Alto T have studied de subec exten thc ipa simonowy aol confident answer ees me ates, ony lsginentsefeag ‘hainsofeasiion suggest emackes Taken gether, dieweway cosine A complen ansnes A eorpatkion wth Brazil rape nee Boh Tia and Bia raed import aut the iggen iin desnecatie roqQnes and yor Baas industry gree Eater and ecient: Clea bianing mpoctsnbsatuton poles perses aot anadecnateexplation Instead, deseo diferen ypes of tates therwo countess can Signcan- The Hvaiian ate mn hisporod rasconsicerablers nants faut witb Gas the of lc ing Renin ales Toc ere tm nds don, wine fregners eo ea the was tocaoperate doaely With bases groups, and to pues bos. All of use polities diferences Wereeconorllyonseqiensal, producing wone rapid sd os fe Inport svbatstton i dutialeton in Baa Alter fhe niceigBon eal won of cine cok vey lle ee ive! pat, wid tsi eonomieconregrences. Indira Gand sap poliucued cennomie pois i Las, nih negative hnpaet on dst Tita ly corsa ihe tghvatng pity gine Io rie erly mors obestecopialis in tz makeup and orlenutlon, emphasized ceonamle igh incre lene Ri thet perked dcp sa prac ecto both domes and feel nd borrowed key ing wo boest expr 0 a 0 pay offs growing des. Baxi aratgy hil backed ut sot before Bint acc ral” gro rate indy. Tut a India Capdhs tai, by contra, neay saghatod. Ts economic tua tio i nia changed sgt inthe Sen and ng, tt on wen ‘onal polite ibo tarned mare propia wit. greater exrphss on, eenemie oth cer eopertin hie ht eer ng Fiaalhy the compasion betwee tndia and Sous ovea b vemad South hres’ coesiveapial state ential Ey sharply with Ini’ Aineteseeas ete, Tse we evident io How sate autos nthe to counties onganized ~ coho vera ragmentre ar wells ine see sechseroari etait ed rent barter and precaytode cae ‘bond and mule the othe, The South ace state nder Pak Cn ect emncenats poner atthe apr defines op nial eaten esse for tinal ecu, enerrced dom, baie lene rl tons wit busines, conse and iid labo tid evopeste closely8 Sh et Sled le ‘st Japan wie ceating dbilating dependencie, While Hore es {eid eat pie in ernvofrepreon and ack See dos Koes Caletvo capitalist itervered Lv nthe geosoaty w promnow bth Import sobaiation andesports of momuactired goods ane ndged at est ty art esl ld a0 rater suentily. Ins Hagmente mails sate, by contra. puted several gals smuleneous, cooperted yh Isis only spinal fare corserale nor ace ei oes avo to ee gla economy ~elter for eapha a the Bras de, Dror ada te Koneans and as onl acy ened 0 & moze de. ‘elopienaldnection, tut nt wathoot a cammenssate rie in comms alana as the new lgldenacy fost, fa broad tras, Tod’ fling ieual performance has seo rlested these underlying political pater,