Developing Countries’ Experience with Neoliberalism and Globalisation

World Review of Political Economy

2018

A quarter of a century has passed since neo-liberal economic policies were first adopted in India in 1991 and it is timely to review their outcome. The study is important because there currently seems to be a gap in the literature, since most published research has highlighted India's overall GDP growth rates. In the post-planning reform period, India reduced the role of the state and public sector, and dismantled controls, while increasing the role of the market and private sector within the economy. As a result, foreign capital investment and foreign exchange reserves improved. The study intends to examine what happened to the industrial sector after neoliberalism was adopted. This article primarily focuses on the discourse about neoliberal economic policy and its effects on Indian economy, especially in the context of sectoral change. The article centres on a critical review of the available literature and a contribution to the substantive topics indicated in the title. The study contributes to the existing literature by focusing on the industrial and the agricultural sector, which has been neglected by the mainstream economists, who have focused largely on growth rates.

Section: Discussionmentioning

confidence: 99%

Section: The Performance Of the Agricultural Sectormentioning

confidence: 99%

The Political Economy of India's Postplanning Economic Reform: A Critical Review

World Review of Political Economy

2018

“…Developed countries (in the name of openness and globalisation) are trying to legitimise capitalist relations and also to legitimise social and economic problems of dependency that capitalism may bring (Siddiqui, 2012b). As accumulation becomes more global, developed countries require laws to protect private property and investment, and also harmonisation of laws, regulation and institutions that govern financial markets.…”

Section: Discussionmentioning

confidence: 99%

Foreign Capital Investment into Developing Countries: Some Economic Policy Issues

2015

RWE

Self Cite

This paper analyses the role of foreign capital in the economic development of developing countries, particularly South Asian and East Asian countries. Mainstream economists suggest that foreign investment would benefit developing countries by increasing the availability of capital, and through their positive impact over productivity and the general economic wellbeing of the host country. After the Second World War, the rapid economic growth first of Japan and later on of South Korea, Hong Kong, Singapore, and Taiwan has been widely cited in support of foreign capital. It is true when we look at the records in terms of the removal of poverty, job creation, educational achievements and improving the overall living conditions.

“…Thus, historical evidence concerning successful industrialisation confirms that building an industrial base in the developing countries would require state support, which would also put a limit on imports ( (Siddiqui, 2012a). Otherwise the nation in question would be trapped into focusing on exports of raw material and low value products as is the case for the majority of the developing countries, a sector that is characterised by diminishing returns and often over-supply and negative terms of trade.…”

Section: Economic Reforms Of 1991 and Industrial Growthmentioning

confidence: 99%

Challenges for Industrialisation in India: State versus Market Policies

2015

RWE

Self Cite

The study is important because there currently seems to be a gap in the literature, since most published research has highlighted India's overall GDP growth rates. Little academic research has been done on the importance and performance of industrial sectors in a developing economy like that of India. The industrial sector there has languished at around 16% of GDP, which is much less than that of China or of any other country at India's stage of economic development.The neoliberal reforms of 1991 in India removed tariffs and barriers to foreign trade and investment. India reduced the role of state and public sector, and dismantled controls, while increasing the role of the market and private sector within the economy. As a result, foreign capital investment and foreign exchange reserves improved. However, job expansion did not occur and there has been no corresponding decline in the share in agricultural employment. Even the much heralded IT sector's dramatic expansion over the last two decades has provided jobs directly to less than a million people.This study argues that it would be misleading to think that a large country like India could industrialise and modernise its economy whilst the unequal distribution of land and rural assets, and the dismal performance of the agricultural sector remains. This study concludes that more than two decades have passed since the neoliberal reforms were launched, but industrial growth has still not witnessed rapid expansion, especially in manufacturing areas. It seems, then, that neoliberal policies have failed to create jobs and thus improve the living conditions of a significant proportion of the population.