Economic Liberalization Essay Example | Topics and Well Written Essays - 2000 words

Economic loosening - Essay ExampleThough both have now become a real palmy case of FDI channe lead development model but the structure of economy of these dickens nations are at the two ends of any of the economic theory. In China, being a one party communist state and real strong central government economic decisions are taken irrespective of what is actually the people at ground wish duration in India, being a secular democratic nation with multi-party semi policy-making system decisions related to economy are often taken while considering the compulsions like electoral promises and is very much populist in nature. The governments which includes both central and states are always under pressure from both opposition parties and popular public demand and many a times the decisions get affected out-of-pocket to this factor. At the same time, Indias economic stand for more than forty years of its independence had been protective and least(prenominal) connected with the world ( Bromley, Mackintosh, Brown & Wuyts, 2004, p. 196). Its neutral stand during the cold war and strategic military birth with USSR caused very less interation with western world led by ground forces. The country continued to pursue its free-living political stand and entered 21st century, its economic structure saw extreme changes and the country now boasts of having the USA as its largest trading partner and at the same time, US has also found great fill in worlds largest democracy and the recently signed nuclear treaty between the US president George scrubbing and Indian Prime Minister Dr. Manmohan Singh clearly underlines the growing interest between the two. So the new India or better to say the liberalized India post reforms presents a beautiful case where Kenneth Waltzs theory of International Relations which states that the effect of a state can often get affected due to pressures being exerted by foreign forces and thereby limiting the options available to them(1979). Th e neorealist or structured model has been developed with the aim to explain the iterate patterns of state behavior and power and its extent which is the combination of its capacity to resist external influence while influencing others to behave according to its wishes (Extra Material, p. 6). The liberalization process in India began in early 1990s in the raise of the Prime Minister P. V. Narashimha Rao under the leadership of then Finance Minister Dr. Manamohan Singh. The reform process and Indias integrating into world economy was astray appreciated with International Monetary Fund or the IMF calling it a long term corrective measure. The reform process which began with India signing GATT and becoming a part of WTO was widely appreciated by almost all economic quarters (Bromley et. al, 2004, p. 173). But still the opposition led by communists and the BJP were dead against the proposal. The Narashimha Rao govt. continued with his reforms though slowly while destroying the opposi tion unity by do non BJP opposition parties believe that the fall of the government will make way for BJP to grab power at centre. BJP at that time was regarded as a communal political party and there was a general fear that once coming into power this party will make solid changes to the current political structure of India and might convert India into a single party ruled state. This fear helped the Narashimha Rao govt. to complete its dependable term and during this period, the Indian economy became irreversibility liberal (Bromley et. al,