The State And Economic Development
The constitutions of the nations direct the requirement of the state's involvement in the economic development of the countries of the world.
The state's involvement is very high for the underdeveloped and the developing nations.
The recent economic problems in India are due to lack of proper governance, in other words, according to some experts the governance deficit too is responsible for the economic woes of India.
Though, India has been privatising several sectors, the role of government or state in several sectors seems to be necessary to achieve the constitutional goals.
Thus the political parties which come to power will determine the destiny of the economic development of the economies of the world.
India's economic development: Soon after the independence in 1947, the leaders of the national freedom movement of India decided to adopt the mixed economic system for the economic development of India.
According to this system, both the Public sector and the Private sector play a role to produce goods and services.
The private sector was not given a major role to play at that time, as the country was in need of huge investments for the social and economic development of many people living below the poverty line.
The state had many other responsibilities such as the development of agriculture, industries, infrastructure, research and scientific activities, services sector, etc.
The state thus played a dominant role in the establishment and enhancement of facilities such as the credit, marketing, irrigation, electricity generation, transportation, communication, education, health, housing, rural, urban development, and other civic amenities.
The state had to reform the earlier economic policies in 1991 due to high inflation, slow economic growth rates, unemployment, huge gap between the imports and the exports, etc.
This policy is responsible for increasing the role of the private sector in the economic development of India.
Several sectors were privatised.
Investors from abroad are being encouraged to invest in India.
The state had also liberalised certain policies which would facilitate the economic development.
According to this policy, the state would also have minimum possible restrictions in economic relations with other countries of the world.
This includes the free movement of capital, goods, ideas, labor, technology, etc.
Thus the state played an important and a major role in the economic development of the country for several years after the independence.
The role of the state for a nation like India seems to be inevitable for many more years as there are still many social and economic challenges to be resolved.
The state's involvement is very high for the underdeveloped and the developing nations.
The recent economic problems in India are due to lack of proper governance, in other words, according to some experts the governance deficit too is responsible for the economic woes of India.
Though, India has been privatising several sectors, the role of government or state in several sectors seems to be necessary to achieve the constitutional goals.
Thus the political parties which come to power will determine the destiny of the economic development of the economies of the world.
India's economic development: Soon after the independence in 1947, the leaders of the national freedom movement of India decided to adopt the mixed economic system for the economic development of India.
According to this system, both the Public sector and the Private sector play a role to produce goods and services.
The private sector was not given a major role to play at that time, as the country was in need of huge investments for the social and economic development of many people living below the poverty line.
The state had many other responsibilities such as the development of agriculture, industries, infrastructure, research and scientific activities, services sector, etc.
The state thus played a dominant role in the establishment and enhancement of facilities such as the credit, marketing, irrigation, electricity generation, transportation, communication, education, health, housing, rural, urban development, and other civic amenities.
The state had to reform the earlier economic policies in 1991 due to high inflation, slow economic growth rates, unemployment, huge gap between the imports and the exports, etc.
This policy is responsible for increasing the role of the private sector in the economic development of India.
Several sectors were privatised.
Investors from abroad are being encouraged to invest in India.
The state had also liberalised certain policies which would facilitate the economic development.
According to this policy, the state would also have minimum possible restrictions in economic relations with other countries of the world.
This includes the free movement of capital, goods, ideas, labor, technology, etc.
Thus the state played an important and a major role in the economic development of the country for several years after the independence.
The role of the state for a nation like India seems to be inevitable for many more years as there are still many social and economic challenges to be resolved.
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