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The Politics of Reform in India

Arun Jaitley, India’s minister of finance, addresses a ubiquitous problem: How can government balance the need for economic growth with the political realities of staying in office and being reelected? Minister Jaitley’s June 2015 speech was sponsored by the India Business Initiative at the Chazen Institute of International Business, Columbia Business School.

Columbia Business School

8 years ago

and there's always been an important issue which frequently emerges particularly when governments in developing economies are pushing reform programs how do you balance your economic reform program with the political requirements of staying on in office 1991 when they started after the first one or two years questions were raised in the then ruling party as to whether they were politically losing out on account of the reform programs I think we had a similar experience when the first NDA governm
ent under mr. watch PI was in power the popular impression was we ruled well we governed well and yet we lost the election and therefore all these experiences have taught us one elementary point parties which don't govern well abound to loose mere popular slogans now can't make you win but it's good governance in India a good reform program itself enough to make you win and we found the answer to that that any form of good governance and economic reforms will always have to be blended with prude
nt and clever politics and that's how in a complex country like India where you still have about 25 to 30 percent people below the poverty levels unless this blending is done then to continue to push the programs itself a recover challenge and I don't see any contradiction in the tools and its bearing that in mind and the pressure of initial years not being extensively election years that the government embarked upon its program in the last one year

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