Economic Times ⁽²¹⁸⁾

The embrace of pro-market reforms by the Left Front government of West Bengal notwithstanding, anti-reform scholars continue to express skepticism towards them. Distinguished Princeton political scientist Atul Kohli has fired the latest shot on their behalf. The anti-reform scholars hold that the Indian economy grew 6% per annum during the ‘80s and that the development strategy then was pro-business, not pro-market. Read full article Abstract: The embrace of pro-market reforms by the Left Front government of West Bengal notwithstanding, anti-reform scholars continue to express scepticism towards them. Distinguished Princeton political scientist Atul Kohli has fired the latest shot on their behalf in an article in the Economic & Political Weekly (April 1, 2006). Virtually all sceptics rest their critique on a syllogism. Their first premise is that the shift in the growth rate to 6% took place a decade before the 1991 reforms. For example, Kohli opens with the assertion, “For the last quarter of a century, India’s economy has grown at an average rate of nearly 6% per annum.” The second premise of the critics is that the development strategy in…

On GDP growth, India seems to be bridging the gap with China. But in the world markets, the story is dramatically different. Economic Times May 31 2006 With India now growing between 7% and 8%, a central question on the minds of many is whether it is now poised to match the accomplishments of China. The mood is generally optimistic In view of the impending demographic transition that will substantially raise the proportion of the young in India's population in the coming years, entrepreneurial talent and the forces of competition already unleashed by the liberalisation to-date, some see the shift in India's growth rate to the Chinese level inevitable. n view of the impending demographic transition that will substantially raise the proportion of the young in India's population in the coming years, entrepreneurial talent and the forces of competition already unleashed by the liberalisation to-date, some see the shift in India's growth rate to the Chinese level inevitable. More cautious observers say that catch-up in the growth rate with China is certainly possible provided India undertakes major labour-market reforms, trims…

The fight against corruption is surely a worthy cause on moral grounds. But the case for turning it into the principal instrument of development policy rests on much weaker foundation. The claim by Wolfowitz in the speech in Indonesia that corruption is 'one of the biggest threats to development in many countries' is just as hard to substantiate as the assertion by his predecessor, James D Wolfensohn, that rich country subsidies constitute the most important barriers to the development of the poorest countries Read full article Abstract: The World Bank president Paul Wolfowitz has placed the fight against corruption at the top of his development policy agenda. Citing allegations of bribery in the award of government contracts, he has gone on to block loans on projects in Bangladesh, India, Kenya and Uzbekistan. In a major policy speech delivered in Indonesia on April 11, he has announced a long-term strategy to deploy the Bank's resources to tame corruption in the developing countries. Under the strategy, he plans to place anti-corruption teams in many World Bank country offices and require Bank staff…

The recent best seller titled Freakonomics by Steven Levitt, winner of 2003 Clark Medal awarded to the best American economist below forty years, has sparked the interest of economists in providing surprising explanations of the phenomena observed in everyday life. This column is about a similar surprising explanation of a relatively recent experience. Read full article Abstract: The recent best seller titled Freakonomics by Steven Levitt, winner of 2003 Clark Medal awarded to the best American economist below forty years, has sparked the interest of economists in providing surprising explanations of the phenomena observed in everyday life. For example, crime rates in the major US cities fell significantly during the 1990s. Most past analysts had attributed this decline to increased incomes, better employment opportunities, ageing population and improved enforcement.

In their reply (Dec 23, 2005), WDR authors Francisco Ferreira and Michael Walton question my critique. Among other things, they point out that whereas the WDR 2006 is concerned with equality of opportunity, my critique focused on equality of income. This is puzzling since the bulk of my critique focused on policies that impact opportunities directly, not just through income. Read full article (adapted on FT)