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Economic Growth
Why did the economy liberalize? Why did the economy takeoff?
Regional Disparities
Why do some states perform much better than others? Using regional disparities to think about Comparative Politics within India
Growth-Poverty Elasticity The amount that poverty reduces in response to a one unit change in economic growth.
Why is Indias Growth-Poverty Elasticity so Low?
So when thinking about how effective economic growth is in reducing poverty, we should consider what it does to the distribution of income
3.5 3
2.5 2
1.5 1
3.5
4 Rural India 19831993/94 3.5 3 2.5 2 1.5 1 0.5 0 0 10 20 30 40 50 60 70 80 90 -0.5 0 10 20 30 40 50 60 70 80 90 Rural India 1993/942004/05
=> The Evidence shows that the worsening inequality emerged after the 1991-1992 Economic Liberalization Reforms
C0mpare with patterns of growth in the 1970s and 1980s much higher growth-poverty elasticity than in the 1990s
60
India
40
20
Brazil
0 1980
1985
1990
1995
2000
2005
What does India need to do to further reduce its poverty in the future?
Development Schemes? Reform Manufacturing Sector?
POLITICAL HURDLES
REGIONAL DISPARITIES
Further Divergence
Central government distribution of resources to states
Kerala
Explaining Differences in Development: Kerala vs. Uttar Pradesh (Keefer and Khemani)
Initial Conditions of the Poor Kerala: better initial literacy, higher political participation by the poor U.P: lower literacy, active caste discrimination
Party Institutionalization
Kerala: Competition between the Congress and the Communist Party (Institutionalized)
Why do some places have higher levels of social development than others?
What was a reason for Keralas developmental success relative to other Indian states?
For the research paper, you will want (1) to hone in on one of these possible arguments that you will defend through the course of your paper. (2) to hone in on one or more possible arguments that you will control for or rule out. through the course of your paper
Thus, by selecting cases in this way, we are able to rule out or control for a causal factor which is the presence of democratic elections
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