Why Not Push for a 9 Per Cent Growth Rate

Sebastian Morris One quite indisputable gain of the reform has been the increasing openness of the economy. The rise in the openness ratio began in the mid-1980s and accelerated in the 1990s, following the depreciation of the currency in 1990-91. However, the 1997-98 budget and the current exchange rate policy, it is argued here, will lead to a stagnation in the openness ratio, unless corrections are made. A bolder investment programme and a fairly large depreciation of the currency would lead to a sustainable growth in excess of 9 per cent. Without such correction, growth is likely to fall after a year to less than 6 per cent and would bring back the situation of a