Summary and Conclusions: Enhancing the Social Sectors, Reforming the State

Baldev Raj Nayar

in The Myth of the Shrinking State

Published in print April 2009 | ISBN: 9780195699395
Published online October 2012 | e-ISBN: 9780199080526 | DOI:
Summary and Conclusions: Enhancing the Social Sectors, Reforming the State

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It is well established by now that the removal of many physical controls over the functioning of the market, following the introduction of economic liberalization in India, has led to a resurgence of the private sector. Contrary to the fears or expectations of the critics, liberalization has not made for the erosion of the state. Instead, liberalization has been ‘empowering’ for the state; it has strengthened state capacity as a result of the increased resources that the state has been able to gain access to because of the growth acceleration that has accompanied liberalization. As economic growth accelerated sharply in the first decade of the twenty-first century, the state made a significant shift to giving priority to its welfare role. This chapter endorses some modest proposals for institutional reform.

Keywords: economic liberalization; Indian state; India; economic growth; welfare role; institutional reform; public goods

Chapter.  7053 words. 

Subjects: Political Economy

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