Pro bussiness model of development economics

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TYBA---Economics-Paper---V---Growth--Development-Eng-University-of-mumbai-notes-->View question

Pro bussiness model of development economics

Explain pro business model of development which India adopted during 1960s economy


Asked by:soumya

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neenu2

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Atul Kohli of Princeton gives India’s growth reform story a different twist..He looks whether India’s reforms were pro-market or pro-business. He says they were mostly pro-business and govt tried to stimulate growth  making policies favoring business interests..The distinction between pro-business and pro-market:
Whereas a pro-market strategy supports new entrants and consumers, a pro-business strategy mainly supports established producers [Rodrik and Subramanian 2004]. A pro-market strategy rests on the idea that free play of markets will lead to efficient allocation of resources, as well as promote competitiveness, hence boosting production and growth. This simple but venerable idea inspired the so-called “Washington consensus” on development during the 1980s and the 1990s [Williamson 1990].


Answerd By:ratika

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