Economic Policy in a Democratic Polity: Reforms-from Rajiv Gandhi to the Twenty-first Century

Abstract

This paper seeks to assess the economic reforms in terms of the goals and methodology of reforms. It is argued that 10 years of reforms-driven economic mallagement has failed India economically, politically and socially. Analyzing the gap between promise and performance in different sectors, the paper reflects on the performance of synthetics fibre industry in the manufacturing sector. Political empowerment of the dominant element in fibre manufacturing and spinning has matched political disempowerment of the most affected sections of the population in the decentralized cotton growing, spinning, and cloth weaving sector. If the synthetics industry is a pointer to the future of reforms, its implications for the health of our democratic polity needs to be fully understood. It is argued that economic reforms should not remain divorced from the concerns of the people. Panchayati Raj should become the center-piece of the reform process in order to ensure an economic policy that is responsive to people's needs.