Social Consequences of New Economic Policies-With Particular Reference to Levels of Living of Working Class Population

This paper discusses some of the likely consequences of the new economic policy measures being pursued since July 1991, particularly their impact on the living conditions of the working class. The author first reviews the theoretical literature dealing with the distributional effects of stabilisation and structural adjustment programmes. This is followed by a brief survey of the empirical experience of countries in different parts of the world with respect to the social consequences of economic reforms. Finally, with the help of these theoretical and empirical insights, the issue is discussed in the context of the Indian economy using whatever limited data are available.