Stabilisation and Economic Reforms

  • A. S. Bhalla


In Chapter 3, we briefly discussed the most recent development strategy of economic liberalisation adopted in both China and India. This chapter attempts a more in-depth analysis of this on-going process, accelerated since the early 1990s in both countries. In China, after a temporary slow-down of the reforms subsequent to an overheating of the economy and social unrest in 1989, the process has once again accelerated. On the other hand, in India, the pace of implementation of reforms which were effectively launched during 1991, seems to have slowed down, not for reasons of rapid growth or overheating, but largely because the Government enjoys only a narrow majority and faces opposition from such vested interests as bureaucrats, trade unions, political parties and some businesses.


Foreign Direct Investment Foreign Investment Public Expenditure Money Supply Economic Reform 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes and References

  1. 1.
    Abhijit Sen, Agriculture in Structural Adjustment, paper presented at the seminar on Agricultural Reform in India, Indira Gandhi Institute of Development Research, Bombay, January 11–12, 1993.Google Scholar
  2. 5.
    See S. D. Sawant and C. V. Achuthan, ‘Reflections on the Current Fertiliser Price Policy’, Indian Economic Journal, January–March 1992.Google Scholar
  3. 6.
    See I. P. Singh et al., ‘Indiscriminate Fertiliser Use vis-à-vis Groundwater Pollution in Punjab’, Indian Journal of Agricultural Economics, July–September 1987.Google Scholar
  4. 7.
    See William A. Byrd, ‘The Impact of the Two-Tier Plan/Market System in Chinese Industry’, Journal of Comparative Economics, September 1987.Google Scholar
  5. 8.
    See S. Guhan, Centre and States in the Reform Process, paper presented at the Conference on India’s Economic Reforms, Merton College, Oxford, 27–29 June 1993.Google Scholar
  6. 9.
    Cited in Deepak Nayyar, ‘Economic Reforms in India: A Critical Assessment’, ILO/ARTEP Working Papers, New Delhi, December 1993.Google Scholar
  7. 10.
    See Shahid Yusuf, ‘China’s Macroeconomic Performance and Management During Transition’, Journal of Economic Perspectives, Spring 1994.Google Scholar
  8. 12.
    See S. Guhan and K. Nagaraj, Adjustment, Employment and Equity in India, Geneva, ILO, December 1993 (draft manuscript).Google Scholar
  9. 13.
    S. P. Gupta and P. S. Raman, ‘Economic Liberalisation and its Social Impact’, in S. P. Gupta (ed.), Liberalisation — Its Impact on the Indian Economy, New Delhi, Macmillan India, 1993.Google Scholar
  10. 18.
    Jyotsna Jalan and K. Subbarao, ‘Adjustment and Social Sectors in India’, paper presented at a conference on India: The Future of Economic Reform, Oxford July 1993.Google Scholar
  11. 20.
    S. Mundle, ‘The Employment Effects of Stabilisation and Related Policy Changes in India — 1991–92 to 1993–94’, in ILO, Social Dimensions of Structural Adjustrnent in India, New Delhi, 1992.Google Scholar
  12. 23.
    See Shujie Yao, Agricultural Reforms and Grain Production in China, Chapter 7, London, Macmillan Press, 1994.Google Scholar
  13. 24.
    See Lynne O’Donell and Alexander Nicoll, ‘China Closes Down 1,000 Local Development Zones,’ Financial Times, London, 13 August, 1993.Google Scholar
  14. 25.
    See Athar Hussain and Nicholas Stern, ‘Effective Demand, Enterprise Reforms and Public Finance’, Suntory-Toyota International Centre for Economics and Related Disciplines, (STICERD) Centre Paper CP. No. 10, London, March 1991; and Athar Hussain and Nicholas Stern, ‘Economic Reforms and Public Finance in China’, Centre paper No. 23, London, June 1992.Google Scholar
  15. 26.
    See Tony Walker, ‘Long Slog to a Smooth Landing, London’, Financial Times, London, 5 August, 1993.Google Scholar
  16. 27.
    United Nations, World Economic Survey 1993, New York, 1993, p. 67.Google Scholar
  17. 28.
    B. R. Datt, ‘Public Sector and Privatisation’, Indian Economic Journal, January–March 1992.Google Scholar
  18. 29.
    Government of India, Ministry of Finance, Economic Survey 1992–93, New Delhi, 1993.Google Scholar
  19. 33.
    P. Bardhan, ‘Economics of Market Socialism and the Issue of Public Enterprise Reform in India’, in M. Majumdar et al. (ed.), Capital, Investment and Development: Essays in Memory of S. Chakravarty, Cambridge, Mass., Basil Blackwell, 1993.Google Scholar
  20. 35.
    See Ashok V. Desai, ‘Output and Employment Effects of Recent Policy Changes’, in ILO/ARTEP, Social Dimensions of Structural Adjustment in India, New Delhi, 1992.Google Scholar
  21. 36.
    See Guhan, 1993, op. cit.Google Scholar
  22. 37.
    See François M. Ettori, Possible Options, for Restructuring of Central Government Public Enterprises in India, paper presented at the International Workshop on Comparative Advantage of Public and Private Enterprise Models, organised by the Centre for Industrial and Economic Research, New Delhi, 11–13 March 1991.Google Scholar
  23. 39.
    G. H. Jefferson and T. G. Rawski, How Industrial Reforms Work: The Role of Innovation, Competition and Property Rights, paper presented at the World Bank Annual Conference on Development Economics, Washington DC, April 28–29, 1994.Google Scholar
  24. 40.
    Dilip Ratha, Gary Jefferson and Inderjit Singh, Profitability and Capital Productivity in Chinese Industry, World Bank, Washington DC, 1994 (mimeo).Google Scholar
  25. 41.
    See Athar Hussain, ‘The Chinese Enterprise Reforms’, STICERD CP. No. 5, May 1990; and Gangzhan Fu et al., Unemployment in Urban China, STICERD CP. No. 21, March 1992.Google Scholar
  26. 42.
    K. Chen et al., ‘Productivity Changes in Chinese Industry: 1953–1985’, Journal of Comparative Economics, December 1988.Google Scholar
  27. 44.
    See V. K. Chetty, Dilip Ratha and Inderjit Singh, ‘Wages and Efficiency in Chinese Industry’, World Bank Research Paper Series, CHINA, CHRPS No. 30, February 1994.Google Scholar
  28. 45.
    Inderjit Singh, Dilip Ratha and Geng Xiao, ‘Non-state Enterprises as an Engine of Growth: An Analysis of Provincial Industrial Growth in Post-Reform China’, World Bank Research Paper Series, China CH-RPS, No. 20, 1993.Google Scholar
  29. 47.
    See Athar Hussain, ‘The Chinese Enterprise Reforms’, Suntory-Toyota International Centre for Economics and Related Disciplines, STICERD CP. No. 5, London, May 1990; and Keith Griffin and A. R. Khan, ‘The Chinese Transition to a Market-Guided Economy: The Contrast with Russia and Eastern Europe’, Contention, Vol. 3, no. 2, Winter/1994. Dwight Perkins has noted that by the end of 1992 in Guangdong province fourteen companies had applied for bankruptcy (see Dwight Perkins, ‘Completing China’s Move to the Market’, Journal of Economic Perspectives, Spring 1994).Google Scholar
  30. 48.
    See Athar Hussain and Nicholas Stern, ‘Economic Reform and Public Finance in China’, 1992, op. cit.Google Scholar
  31. 52.
    See John McMillan and Barry Naughton, ‘How to Reform a Planned Economy: Lessons from China’, Oxford Review of Economic Policy, Spring 1992.Google Scholar
  32. 55.
    Dwight H. Perkins, ‘China’s “Gradual” Approach to Market Reform’, Discussion Paper No. 52, Geneva, UNCTAD, December 1992.Google Scholar
  33. 56.
    See A. R. Khan, Structural Adjustment and Income Distribution — Issues and Experiences, Geneva, ILO, 1993.Google Scholar
  34. 57.
    D. Rodrik, ‘Promises, Promises: Credible Policy Reform via Signalling’, Economic Journal, September 1989.Google Scholar
  35. 58.
    See Jagdish Bhagwati and T. N. Srinivasan, India’s Economic Reforms, Ministry of Finance, Government of India, New Delhi, July 1993, p. 11.Google Scholar
  36. 60.
    See Guoguang Liu, ‘A Sweet and Sour Decade’, Beijing Review, No. 1, 1989.Google Scholar
  37. 63.
    Yingyi Qian and Chenggang Zu, ‘Why China’s Economic Reforms Differ’, ST/CERD CP. No. 25, July 1993.Google Scholar
  38. 64.
    Ibid., and Yingyi Qian and Chenggang Xu, ‘The M-form Hierarchy and China’s Economic Reform’, European Economic Review, Vol. 37, 1993.Google Scholar

Copyright information

© A. S. Bhalla 1995

Authors and Affiliations

  • A. S. Bhalla
    • 1
  1. 1.CommugnySwitzerland

Personalised recommendations