India - The Political Economy of Growth, Stagnation and the State, 1951-2007

by Mccartney; Matthew

• ISBN13: 9780415476638
• ISBN10: 0415476631
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-06-09
• Publisher: Routledge

Summary

Understanding the drivers and inhibitors of economic growth is critical for promoting development in less developed countries, including India. This book examines economic growth in India from 1951 to the present, challenging many accepted orthodox views. It argues that growth and stagnation should be considered over the medium term, and that the precise role of the state in relation to particular historical and political-economic circumstances is more important than the overall level of state involvement or disengagement. The book uses an empirical approach to contend that the state has an important role in several key areas including: mobilising a surplus; allocating the surplus in an efficient way to productive investment projects; and in building institutions (including political parties) through which conflict can managed between the different losers and rent-seekers affected by economic changes. It shows how, over time and in periods of growth and stagnation, the state in India has acted in key areas, and how the actions of the state has had a profound impact on economic outcomes. Overall, the book makes a major contribution to understanding the economic history of development in India and to understanding the role of the state in economic development more generally.

Table of Contents

PrefaceStructure of the BookAcknowledgementsChapter 1: IntroductionKey Themes and Empirical Ideas in this BookA Focus on the Medium-term and Methodological Problems withCross-country Growth RegressionsComplementarity and HysteresisThe Economic and Political Schools of the Developmental StateThe Theoretical Framework: The Role of the State (Finance)The Theoretical Framework: The Role of the State (Production/ Learning)The Theoretical Framework: The Role of the State (Institutions)Development and ConflictMeasures/ Descriptions of State CapacitiesChapter 2: A Methodological Critique and FrameworkIntroductionEpisodes of Growth and Stagnation in Developing CountriesThe Historical (Long-run) Experience of Developed CountriesThe Take-off into Modern Economic Growth: An Insufficient TheoreticalConcessionThe Historical Experience of Developing CountriesPublic Policy and Endogenous Growth ModelsThe Robustness of Empirical ResultsAnd Theoretical Problems...Complementarity Among PoliciesThe Relation Between Different Theories of GrowthGrowth as an Endogenous ProcessGrowth and Hysteresis EffectsCross-Country Growth Regressions and DynamicsUniversalism in Cross-Country Growth RegressionsThe Prosposed ModelComplementarity is ImportantHysteresis is (potentially) ImportantThe State is Important (Finance)The State is Important (Production)Institutions are Important for Episodes of Growth and StagnationThe Relation Between Different TheoriesThe Case-Study Approach: Growth as a Historical ProcessChapter 3: Empirical FrameworkIntroductionMethods of Measuring Episodes of Growth and StagnationEpisodes of Growth and StagnationPhases of Growth and Stagnation in IndiaComparative Episodes of Growth and StagnationComparative Episodes of Sectoral Growth and StagnationEpisodes of Growth and Stagnation at State LevelAn Episode of Growth, 1951 to 1964Economic Growth 1951 to 1964Structural Change, 1951 to 1964An Episode of Stagnation, 1965 to 1980The Nature of Growth: ProductivityThe Nature of Growth: Patterns of Industrial StagnationA Slowdown in Growth or a Structural Break in 1965?An Episode of Growth, 1980/81 to 1991GDP Growth, 1980/81 to 1991Sectoral Growth, 1980/81 to 1991The Qualitative Pattern of GrowthAn Episode of Growth, 1991 to 2007GDP Growth, 1991 to 2007Sectoral Growth, 1991 to 2007The Qualitative Pattern of GrowthWhy is 1991 to 2007 a Separate Episode of Growth?Chapter 4: A Theoretical FrameworkIntroductionThe Economic and Political Schools of the Developmental StateThe Economic SchoolThe Political SchoolAn Integration of the Economic and Political SchoolsStylised and MathematicalAnswering Different QuestionsThe (Economic) Role of the State: FinanceThe Allocation of the SurplusDomestic Capital: The Financial System and Economic DevelopmentTax, Transfers and SubsidyRetained Earnings and ProfitabilityInternational CapitalProductionNeo-classical Economics and ProductionInstitutionsDevelopment and ConflictConflict is Bad for Economic GrowthMeasures/ Descriptions of State CapacitiesInstitutions can Reduce ConflictWhich Institutions?Other InstitutionsChapter 5: The Role of the State and the Episode of Growth in India, 1951/52