Accelerating And Sustaining Growth: Economic and Political Lessons
IMF Working Papers, July 1, 2012
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Bibliographic details
- Authors: Arvind Virmani
- Published: July 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475505337.001
Overview
- The paper reviews and draws lessons from the experience of fast growing economies, including a sub-set termed High Growth Economies (HGEs) with a decadal rate of over 7 per cent.
- It reviews the history of the Indian growth acceleration following the reforms of the 1990s and assesses future prospects given the recent slowdown.
- The paper analyzes potential dangers and reasons for India’s growth slowdown and proposes policy reforms for sustaining fast growth.
High Growth Economies (HGEs)
- Definition and focus:
- HGEs are identified as economies with a decadal rate of over 7 per cent.
- Purpose of the review:
- To draw lessons from the experience of fast growing economies that can inform policy design and sequencing.
India: Growth Acceleration after 1990s Reforms
- Historical review:
- The paper reviews the trajectory of India’s growth acceleration following the reforms of the 1990s.
- Assessment of prospects:
- The paper examines India’s future prospects in the context of a recent slowdown.
Dangers and Reasons for India’s Growth Slowdown
- Analytical focus:
- The paper analyzes the potential dangers and underlying reasons for the observed slowdown in India’s growth.
- Areas of concern (as characterized in the paper):
- Political economy and policy sequencing implications for sustaining growth.
- Risks associated with balance of payments, exchange rate, and international trade dynamics.
- Issues linked to public goods provision, land market constraints, and natural resource management.
Policy Reforms to Sustain Fast Growth
- Core objective:
- Proposes policy reforms aimed at sustaining fast growth in India, drawing on lessons from HGEs.
- Policy directions emphasized in the paper:
- Structural reforms to enhance productivity and production.
- Reforms to the political system and timing and phasing of reforms to manage political economy constraints.
- Reforms affecting foreign direct investment, capital goods imports, and government debt management.
- Measures addressing land market reforms, public goods delivery, and natural resource management.
Arvind Virmani, "Accelerating And Sustaining Growth: Economic and Political Lessons", IMF Working Papers 2012, 185 (2012), July 1, 2012.