## 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

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### 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.*

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