CAS EC 102 Lecture Notes - Lecture 12: Narendra Modi, International Trade, Microfinance

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Bruce Watson

Document Summary

Real gdp growth rate: 6. 7% (2017 est. ) India does not have china"s debt problem, but. Emphasis on 1950-1960s on socialists, the state. The economy is too complex and unpredictable to reduced to central planning, or any planning. The mathematical model is what private markets achieve on their own. All countries all over the world follow similar path. Currently know how (badly) it didn"t work out. A country can get away for socialist economy for so long; only matter of time before things will implode. Trade colonial rule for bureaucrats and red tape. 1-2 years and 50 trips to capital to license for important. Can"t work with the system so many worked around the system. 15 years to buy a car; controlled and give incentive to increase productive. Reason why no growth and stayed poor for 50 years after independence. Planned by bureaucrats and cut off from world trade, india filed bankruptcy. State control was reduced, tariffs reduced, introduced more competition.