191 research outputs found
Financial Crisis and Its Impact on the Economies of China and India
Full text linkThe study will focus on the current financial crisis and its impact on the growth, trade and employment in emerging market economies (EMEs) namely China and India. The emerging market economies are characterized as transitional, which means that they are in the process of moving from a closed to an open market economy. It is said that by adoption of neoliberal policies, the economy will suppose to lead to a better economic performance levels, as well as transparency and efficiency in the capital market.
The proponents of the ‘neoliberal economic policies’ always maintained that it is working and as a consequence, for example, the Indian economy is growing at high rates, the stock market is booming, foreign reserve is at a comfortably high level. The ‘free trade’ policy is making availability of a variety of goods unimaginable earlier as a mark of the benefits of globalization. The ‘invisible hand’ of the market, tries to pretend that market operates in isolation. On the basis most recent available data and studies the author has examined the impact of financial crisis on the economic growth and various sectors of the economies in China and India.
Finally, the author finds the argument that China emerging as the alterative engine of growth for the world economy is too ambitious. Some have suggested that a ‘decoupled Asia’ through its own growth and expanding domestic demands would ensure higher imports demands for its growing economies and thus limit the economic slowdown in the developed economies. But this is unlikely due to: the US, EU and Japan together account for more than half of China’s exports, and as recession deepens, it is bound to affect export sector and overall economic activity in China
Globalisation and Neo-liberal Economic Reforms in India: A Critical Review
No full textThe objective of this study is to analyse the impact of neo-liberal economic reforms also known as ‘pro-market’ reforms in India. It is widely believed that India’s growth acceleration has taken place mainly due to changes in the government’s attitudes towards business and export orientation rather than earlier domestic policies. This paper shows that the turnaround growth took place in the early 1980s rather than the early 1990s as portrayed by international financial institutions and media. We find the current discussions overlook other aspects such as inter-sectoral and inter-regional imbalances. The importance of the manufacturing sector is not properly examined, which could play an important role in creating jobs, and its crucial role in employment generation is being underplayed.
This research presents the broad macro parameters of the growth of the Indian economy in both periods, i.e. pre and post reforms period, and also very briefly comparison is made with the colonial period, however, simply looking at the economic growth figures might be misleading. Therefore, we decided to analyse other variables, such as inter-regional and inter-sectoral changes and also look at the issue of poverty during pre and post-reform periods. The author critically examines the issues of foreign direct investment, particularly during the neo-liberal period in India, also focusing on cross region evaluation, drawing out the patterns discernible from available data. The study provides an overview of the on-going debate on the components of Indian-growth and the relative importance of government policies. The study has questioned some assertions concerning neoliberal reforms and growth in India in particular the argument that poverty has been reduced, is problematic
Japan’s Economic Recession
Full text linkJapan, the world’s second largest economy, is experiencing the worst economic crisis since
the Second World War and the government is attempting to avoid a return to the “lost
decade” of the 1990s when it was stuck in a deflationary spiral. To fight back recession, the
Bank of Japan has kept the interest rate to 0.1 %, even lower than Bank of England’s 0.5 %.\ud
Japan’s economy has grown only at an average of 1% annually since 1992. Equally, the
country’s recovery of 2003-07 did not have any long term effect on the growth.
In many respects Japan remains very unique among the developed countries. The country’s
economic miracle of the 1950s and 1960s has encouraged debate among the scholars to the
significance of Japan’s economic past. It is widely seen as due to different model of
development in areas such as industrial organisation, the role of the state, social institutions
and history. Her appeal lies in the dramatic growth rates and economic transformation. Japan
was first Asian country to break the western monopoly of modern industrialisation. Less than
a generation ago, Japan was viewed an exemplary success story in terms of rapid economic
growth and a model to be emulated by other developed and developing countries. Here I will
argue that the Japanese economy suffers from severe problems that are not cyclical but
structural in nature. Such structural problems are the most serious impediments to economic
dynamism and the future long-run economic success of the country
Experiences of Capitalism in India and Pakistan
Full text linkThe objective of this study is to examine the economic policies and socio-economic changes which have taken place in South Asia for the last six decades. However, my focus will be mainly on India and Pakistan to try to examine how capitalism has been developing differently in these two countries. It seems to me that this study is important because the proponent of free-market polices (i.e. mainstream economists) ignore the poverty issues and emphasise mainly growth rates and unquestionably assume that ‘trickle down’ would solve poverty problems. We should also not forget that India is home to the largest number of poor in the world, and as such is an obvious test case for whether pro-market reforms work or not. The ruling elites cite high GDP (gross domestic products) growth rates as indicative of economic development and consequently the well-being of the people.
Growth is seen as a panacea and in order to achieve higher economic growth rates both countries had earlier adopted import-substitution-industrialization (ISI) and later on neo-liberal (i.e. ‘free market’) economic policies. The study will also analyse the impact of neo-liberal economic reforms on socio-economic situation both in India and Pakistan and its impact on reducing poverty. In Pakistan these reforms were launched in 1988, while in India in 1991 under the IMF supervision. As a result both economies have witnessed an upsurge in GDP growth rates (especially in India). Despite the high GDP growth rates for the last two decades in India, for example, over all employment has not been growing. The service sector, which witnessed a rapid economic growth, accounts for a much smaller share in employment relative to their contribution to GDP. The study finds that capitalism has failed to remove poverty and inequality despite its long history of penetration in South Asia under colonial and neo-colonial regimes and in spite of being backed by the new technology and increased amounts of credits. The experience of Pakistan clearly illustrated this fact. There is a lack of discussion about the presence of a large proportion of people living in sub-human conditions and lack of overall and holistic development of human being
Growth and Crisis in India’s Political Economy from 1991 to 2013
No full textSince the pro-market reforms were launched, the Indian economy has grown from 4.7% in the 1990 to 9% in 2011 before slowing down dramatically to nearly half of that rate in recent years. From launching of reforms until 2011, it did manifest some vivid and impressive signs of India moving towards high growth and increase in living conditions of its population. The purpose of this article is to access the likely effects of reform measures on the society, because the mainstream approach suggests that the reforms can be expected to increase economic growth and incomes. However, this study finds that the mainstream economists ignore the role of domestic aggregate demand and inequality. India’s growth was led by the services sector, which included real estates, IT, telecommunications and banking, and contributed nearly 50% to the GDP in 2012. Manufacturing, which experienced remarkable growth and transformation in the East Asian economies, had rather grown much slower. The agriculture sector, which still employs nearly two-third of India’s workforce, remains stagnant. The study suggests that education and health have been neglected in India and this will compromise productivity and growth
Pemikiran politik Kalim Al-Siddiqui tentang Nation-State (Negara-Bangsa)
No full textSkripsi ini bertujuan untuk mengetahui dan menambah referensi pada pandangan Kalim al-Siddiqui mengenai nation-state (negara-bangsa) yang berhubungan dengan nasionalisme. Menurutnya nation-state (negara-bangsa) merupakan simbol kemunduran, kekalahan dan keterpecah-belah Umat Islam bahkan ia adalah produk ketundukan dari penjajahan bagi mendapat sebuah kemerdekaan. Penelitian ini menggunakan metode deskriptif dan analisis yang mana penulis menggunakan data primer dan sekunder, kemudian menganalisanya secara komprehensif yang berhubungan dengan nasion-state (negara-bangsa). Hasil penelitian ini, menunjukkan Kalim al-Siddiqui menolak dan tidak setuju akan nation-state (negara-bangsa) yang berlaku di negara-negara Musli
Higher education in the era of globalisation
No full textThe article will analyse the impact of globalisation on higher education. Some have argued that globalisation will
provide equal opportunities. While others claim that globalisation would mean the McDonaldisation of the university and
also worldwide inequality. The current pressure on higher education mainly due to neoliberal globalisation has increased
the role for private sector in higher education. The paper examines the realities of globalisation in higher education to
highlight some of the ways in which globalisation affects the higher education in developing countries, particularly India
and China.
It is argued here that the business needs are changing both at national and international levels. And there is
increased demand from corporate sector to change the courses to meet their interests. Higher education is facing cuts in
funds and declining investments thanks to the neoliberal policies. The recent attempt to include higher education within the
framework of WTO through the General Agreements on Trade in Services (GATS) seeks to establish “open markets” for
knowledge products of all kinds. Finally, the current neo-liberal globalisation supported by IMF, World Bank and WTO is
very different than previous experiences as it provides increased role of transnational corporations (TNCs) and foreign
academic institutions in the developing countries
The Political Economy of Growth in China and India
No full textThis paper attempts to examine the growth performance and its impact on inequality and poverty in China and India. The recent upsurge in growth rates in China and India is seen widely as the “success” story of globalisation. It is also claimed that these developments will make a significant impact on the reduction of global inequalities and poverty.
Although a number of scholars have analysed the recent economic performance of China and India, however, these studies have not taken into account the past policies and its impact on current performance. We find there is a gap in the current discussion, which overlooks historical and economic factors on the recent performance.
This article critically asses the claimed fall in global poverty due to mainly the rise of China and India in recent years. The article questions the “pro-globalisation” argument, which suggests that there is a link between ‘market liberal’ free market polices and falling poverty. It is argued instead that the evidence concerning poverty reduction is ambiguous, and is not that the most successful economies have adopted pro-globalisation policies.
Studying the developmental changes taking place in these two countries is important because they together account for 37.5% of the global population. These populous neighbours, regarded as symbols of poverty and failure until two decades ago, contain large numbers of people are living below the officially defined poverty line
The Political Economy of Development in Singapore
No full textSingapore has gone through a rapid transformation during the last forty-five years. From an entrepot predominantly towards commerce and services in the mid-1960s into an economy, which presently specialising in high value manufacturing activities, and regional financial hub for business services in East Asia. This paper aims to overview the issues of the role of state and foreign investment, which has played an important role in achieving rapid economic growth. For instance, in 2002 Singapore’s GDP was 24 times compared to 1965 levels. The average annual growth rate for GDP between 1965 and 2006 was nearly 8 % and GNP increased slightly higher over this period. The study examines the international environment and how it contributed to achieve higher rates of growth. It seems that these aspects are overlooked by the researchers. And with the end of the Cold War and with the recent surge in globalisation of production Singapore’s economy is being affected. The study will also argue that the historical factors seem to be important in determining a country’s development strategie
Economic Policy – State versus Market Controversy
No full textThere was wide ranging debate in the 1950s and 1960s in the developing countries about the role of the state in their economy when these countries attained independence, with developing their economies and eradicating poverty and backwardness being seen as their key priority. In the post-World War II period, the all-pervasive ‘laissez-faire’ model of development was rejected, because during the pre-war period such policies had failed to resolve the economic crisis. Therefore, Keynesian interventionist economic policies were adopted in most of these countries.
This is a theoretical paper, which is based on review of published papers in the field of economic policies, especially about the debate of the role of the state and market. In this study a wide range of sources of data are presented, which includes statistics generated by a number of organisations that are not agencies of a particular government. This is useful since data are compiled by a wide range of organisation such as IMF, World Bank and WTO. Secondary data would help our study to answer the research questions. There seems to be greater potential for examining statistical data produced by various organisations that are relatively independent of the national government.
The study finds that more than two decades of pursuing neo-liberal policies has reduced the progressive aspects of the state sector. The on-going crisis in terms of high unemployment, poverty and inequality provides an opportunity to critically reflect on past performance and on the desirability of reviving the role of the state sector in a way that will contribute to human development
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