Restructuring Development to Address the Global Financial Crisis: Lessons from India

The world continues to reel under the impact of the global financial crisis, notwithstanding the recent reports of ‘green shoots’ signalling recovery. The initial thinking that developing countries would be ‘decoupled’ from the global crisis is no longer accepted. The extent of the impact has depended on the nature and extent of globalization of the economy, on the one hand, and the weaknesses of the development policy framework or development model of the country, on the other. The former has determined the strength of the channels through which the global crisis has been transmitted to the economy, while the latter has shaped the vulnerability of the population to the global crisis. In effect, the recent financial crisis has once again sharply highlighted the structural weaknesses in many countries while revealing the shortcomings of the development paradigm being followed. 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.