India's Aborted Liberalization-1966
Bibliographic Data
| ID | 2827539 |
|---|---|
| Authors | Rahul Mukherji (0000-0003-0223-7135, Centre for Policy Research, corresponding author) |
| Year | 2000 |
| Volume | 73 |
| Issue | 3 |
| Pages | 375 |
| Publication date | 2000-01-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Pacific Affairs (JOURNAL) |
| Journal identifiers | ISSN: 0030-851X • E-ISSN: 1715-3379 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2672025 |
| OpenAlex | W2314624234 |
| Language | EN |
| Citations received | 8 |
W Ad thy did India not sustain its trade liberalization after devaluing its currency in 1966? Exogenous shocks (such as wars and droughts) leading to balance of payments crises can generate the transition from import substitution (ISI) towards export promotion.' When governments do not have much foreign exchange left to pay for their imports, they need the help of the International Monetary Fund (IMF) since commercial lenders are not easily persuaded to lend to such risky customers. The classic dependence argument would suggest that dependence on the IMF for precious hard during a foreign exchange crisis should enable the IMF to dictate a policy of trade liberalization on the borrowers.2 The Indian devaluation of 1966 challenges this view of economic transition. India bowed to external pressure in the immediate aftermath of a severe foreign exchange crisis, a foray into liberalization that was short-lived, however, and India reverted back to an ever more stringent form of import substitution after 1969. 1 examine the political economy of a reversed liberalization in this paper. India's decision not to sustain liberalization after the initial 1966 rupee devaluation constitutes an important decision sequence in India's trade policy. It meant that India had decided to forego the growth opportunities provided by international trade that Europe, Japan, Taiwan and Korea had exploited so effectively. Second, for a student of political economy, it provides the insight that it is difficult to engineer economic transitions in developing countries as large and self-contained as India, purely on the basis of external pressure. This goes against the literature on economic transition that credits
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| Unique citing works | 8 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2002 - 2026 (25) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 5 |