ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

LiberalisationSubscribe to Liberalisation

India’s Far from Neo-liberal Economic Order in the Modi Era

India’s economic order is far from neo-liberal. The state, and thus politicians, have retained very substantial powers over market forces. Expectations that the Modi government would liberalise audaciously have been disappointed. Especially since mid-2019, it has used its remaining powers to intimidate corporate interests, in pursuit of its main objective: top-down control over all power centres. Thus, in crucial ways, the economic order has become less liberal (or neo-liberal) than before.

Is ‘Islamic Finance’ Islamic?

Riba could mean usury, interest, economic rent and even surplus value (in the Marxian sense). Riba is “un-Islamic.” Without riba, capital accumulation, and capitalism itself will not be possible. However, those who own capital in the Muslim world have taken charge of defining what is Islamic and what is not. The result? They find ways to multiply it in modes that benefit only themselves, just as their non-Islamic counterparts.

Effective Tax Rates for Indian Companies Post-liberalisation

This article studies the effective tax rate for Indian companies from 1990 to 2010, covering the period just before liberalisation of the economy and tax reforms in 1991 and later. It examines the effect of a declining corporate tax rate on the gap between book profit and taxable profit. A narrowing gap between statutory tax rates and effective tax rates after liberalisation indicates increased voluntary compliance.

National Policy on Education 2016

Any contemporary education policy will need to address the democratic and economic aspirations of the younger citizenry and must declare those concrete steps that would endure the realisation of those aims. But that has not been the case with the National Policy on Education 2016. The new education policy, as proposed, chooses not to address the fundamental issues plaguing the education system but instead, it propagates a corporate, neo-liberal, neo-cultural, a Sanskritised, global and market-oriented education system which is governed by a wholly separate and centralised bureaucracy, where state government power and oversight is minimal.

Bad Bank Proposal for India

There have been two main proposals to tackle the stressed assets problem of Indian banks since the beginning of this year. Both proposals are based implicitly on the financial intermediation theory of banking. The alternative credit creation theory of banking opens up other possibilities. One such possibility is a partial Jubilee financed by zero coupon perpetual bonds.

‘Surgical Strikes’ on Policies of Liberalisation

A response to Amit Bhaduri’s article titled “Danger Zones of High Economic Growth” (EPW, 22 October 2016). Important questions of policy and economic understanding are raised.

Stock Market in a Liberalised Economy

Considerable debate rages about the impact of deregulation on the efficiency of the market. Free market advocates all too often tend to undermine the unruly behaviour of stock markets in the post liberalisation scenario. On the other hand, opponents believe that stock market reforms may lead to over-speculation, financial crisis and even a misallocation of resources at the cost of real sector growth and stability, as has been seen in the case of India. However, there is now an increasing recognition in LDCs that given the competition for foreign funding and limited availability of domestic finance, the equity market can play a beneficial role in providing capital to the productive sector as well as facilitate the process of privatisation.

IMF's Autocritique of Neo-liberalism?

In a recent article published in Finance and Development, an International Monetary Fund magazine, three economists have critically evaluated the policies the IMF promotes. They acknowledge evidence that suggests that economic growth under neo-liberalism is difficult to sustain, that it leads to an increase in inequality, and that continuing inequality is harmful for sustainable (or continuing) growth.

Trade Liberalisation and Income Convergence

This paper analyses the effect of liberalisation on per capita income convergence between countries. The 1980s and 1990s saw many developing countries open up their economies. Some of these economies continued to lag behind; however, most of them saw rapid growth post liberalisation. To identify the effect of trade on convergence rates, a single difference approach is followed, comparing convergence patterns pre- and post-liberalisation. The convergence measure is estimated between a set of developing countries and their most active trading partners. The results do not reflect any significant change in the rates of convergence for the developing countries pre- and post-liberalisation.

Trade in Services: Policy Issues

Globalisation of Services: India’s Opportunities and Constraints by Rupa Chanda; Oxford University Press, Delhi, 2002; npp 276, Rs 595.

Pages

Back to Top