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41. Understanding the Performance of India’s Manufacturing Sector: Evidence from Firm Level Data

Author:
Radhicka Kapoor
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
India’s overall economic performance over the last fifteen years has been outstanding, with the economy growing at an average of over 7% p.a. Growth has been service-led with the services sector accounting for over 60% of GDP growth over the period. Importantly, India’s structural transformation has been marked by a shift straight from agriculture to services led growth, leapfrogging manufacturing. The problem with this pattern of growth has been that it has generated relatively fewer opportunities of employment generation. The role of the manufacturing sector, ordinarily considered to be an important engine of growth and job creation for low and middle income countries, has been rather limited. Its share in total GDP and employment has continued to hover around 15% and 12% respectively for the last three decades.
Topic:
Agriculture, GDP, Economy, Economic Growth, and Manufacturing
Political Geography:
South Asia and India

42. Opportunities and Challenges for Mozambique From the Indian Expansion in Africa

Author:
Hetalben Haribhai Patel
Publication Date:
12-2017
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
This paper is organized in four main sections. The first one describes the economic relationships between India and Mozambique in the last five years taking into account the bilateral commercial and investment relationships in private and energy sectors. Apart from trade and investments, the first section of this work also presents data on the credit lines opened by India and their allocation in different projects in Mozambique and the donations made by the Indian government. The second section of the paper analyses the opportunities that India’s approximation represents for Mozambique in different areas, since India’s economic growth and its interest in Mozambican resources and location enable cooperation to flourish and the development of strategic areas in Mozambique such as education, health and infrastructure. Even though, the opportunities can only be fully reached when the states become sufficiently prepared with strategic policies and specialized institutions on India. That way, the third section of the paper presents the main challenges that this opportunity represents for the Mozambican State. With the completion of this article, we hope to answer the following question: what are the opportunities and challenges for Mozambique from the Indian Expansion to Africa?
Topic:
Foreign Policy, Bilateral Relations, Partnerships, Economic Growth, and Trade
Political Geography:
Africa, South Asia, India, and Mozambique

43. Factors Promoting Foreign Aid Dependence in South Asian Countries

Author:
Shazia Kousar and Salman Masood
Publication Date:
01-2017
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
This study used panel data approach to investigate comprehensive set of determinant of foreign aid and extent to which these determinants, domestic saving, capital formation, human capital, government expenditure, military expenditure and trade deficit, can affect foreign aid dependence in south Asian countries like Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka. This study used Error correction model to estimate the short run association between defined variables. The results indicate that capital formation, ,trade deficit, government budget deficit and military expenditure have positive and significant association with foreign aid in the long run while these determinant have positive but insignificant relationship with foreign aid in the short run except gross domestic capital formation (GDCF). However, domestic savings, human capital formation has negative and significant relationship with foreign aid in long run. The findings of the study help foreign aid policy makers, analysts, researchers and official donor agencies.
Topic:
Development, Economics, Foreign Aid, and Economic Growth
Political Geography:
Pakistan, Afghanistan, Bangladesh, South Asia, India, Sri Lanka, Nepal, Punjab, and Bhutan

44. Women and Work in India: Descriptive Evidence and a Review of Potential Policies

Author:
Erin K. Fletcher, Rohini Pande, and Charity Troyer Moore
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Sustained high economic growth since the early 1990s has brought significant change to the lives of Indian women, and yet female labor force participation has stagnated at under 30%, and recent labor surveys even suggest some decline since 2005. Using a nationally representative household survey, we lay out five descriptive facts about female labor force participation in India that help identify constraints to higher participation. First, there is significant demand for jobs by women currently not in the labor force. Second, willing female non-workers have difficulty matching to jobs. Third, obtaining vocational training is correlated with a higher likelihood of working among women. Fourth, women are more likely to be working in sectors where the gender wage gap and unexplained wage gap, commonly attributed to discrimination, is higher. Finally, female-friendly policies, including quotas, are correlated with higher female participation in some key sectors. Combining these facts with a review of the literature, we map out important areas for future investigation and highlight how policies such as employment quotas and government initiatives focused on skilling and manufacturing should be better investigated and leveraged to increase women’s economic activity.
Topic:
Gender Issues, Labor Issues, Women, Inequality, Economic Growth, and Public Policy
Political Geography:
South Asia and India

45. Learning to Target for Economic Diversification: PDIA in Sri Lanka

Author:
Matt Andrews and Peter Harrington
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Many countries, like Sri Lanka, are trying to diversify their economies but often lack the capabilities to lead diversification programs. One of these capabilities relates to targeting new sectors to promote and pursue through a diversification policy: countries know they are ‘doomed to choose’ sectors to target,1 but lack effective capabilities to do the targeting. This paper narrates a recent (and ongoing) initiative to establish this kind of capability in Sri Lanka. The initiative adopted a Problem Driven Iterative Adaptation (PDIA) process, where a team of Sri Lankan officials worked with Harvard Center for International Development (CID) facilitators to build capabilities. The paper tells the story of this process, providing documented evidence of the progress over time and describing the thinking behind the PDIA process. It shows how a reliable targeting mechanism can emerge in a reasonably limited period, when a committed team of public officials are effectively authorized and engaged. The paper will be of particular interest to those thinking about targeting for diversification and to those interested in processes (like PDIA) which are focused on building state capability and fostering policy implementation in public contexts.
Topic:
Development, Economics, Economic Growth, and Economic Policy
Political Geography:
South Asia and Sri Lanka

46. Land Acquisition in India: A Review of Supreme Court Cases (1950-2016)

Author:
Namita Wahi, Ankit Bhatia, Pallav Shukla, Dhruva Gandhi, Shubham Jain, and Upasana Chauhan
Publication Date:
03-2017
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Context: India faces serious challenges in creating development processes that generate economic growth while being socially inclusive, ecologically sustainable, politically feasible, and in accordance with the Rule of Law. Equitable and efficient acquisition of land by the state for economic development projects, including infrastructure and industry, lies at the heart of these challenges. Simultaneously, securing constitutionally guaranteed land rights to the poorest and most vulnerable communities in India against the state and other dominant communities, has been considered crucial to their economic and social empowerment. Land is not only an important economic resource and source of livelihoods, it is also central to community identity, history and culture. Unsurprisingly then, throughout India, dispute over state acquisition of land that deprives people of their land rights spans various dimensions of economic, social, and political life. How do we mitigate this conflict? The CPR Land Rights Initiative report on ‘Land Acquisition in India: A Review of Supreme Court cases from 1950-2016’, offers some preliminary answers to this question. Not only is this report the first comprehensive country-wide study of land acquisition disputes since India's independence, but also for the first time ever analyses these disputes along various metrics, such as i) public purpose, ii) procedure for acquisition, iii) compensation, iv) invocation of the urgency clause, v) pendency of claims, and vi) tracks trends with respect to distribution of disputes across geography and time, and central and state laws. The Report also analyses litigation under the newly enacted Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) for the three year period, 2014 to 2016. A detailed presentation of the findings from the report can be accessed here. Key findings: Reasons for inequity between state and land losers: The Report concludes that the political and social contestation over land acquisition stems from the inherently coercive nature of the land acquisition process, which creates a severe imbalance of power between the state and land losers. While much of this imbalance was created by the text of the Land Acquisition Act, 1894, a considerable part of it could also be attributed to executive non-compliance with the rule of law. The result is a situation of great inequity for the land losers. Legal reform under the LARR Act should be implemented by government, not subverted to redress these inequities: The Report finds that specific provisions of the LARR Act are steps in the right direction to redress the imbalance of power that was built into the Land Acquisition Act, 1894 in so far as: i) they empower livelihood losers along with title-holders to bring claims for compensation and rehabilitation, ii) bring compensation requirements in accordance with existing reality, and iii) introduce requirements of consent and social impact assessment. The Report shows that litigation helps channelise political contestation of state action into legal as opposed to extra legal disputes. Therefore, by empowering hitherto disempowered land losers to bring claims under the LARR Act, the Act will help preempt extra-legal conflict. Since conflict inevitably stalls or derails legitimate development projects, it is in the interest of the government to comply with, and not subvert the LARR Act. Legal reforms must be supplemented by administrative and bureaucratic reforms: The Report highlights that legal reform is a necessary but not a sufficient precondition for ensuring greater equity and efficiency within the land acquisition process. In the absence of administrative and bureaucratic reforms, the introduction of the LARR Act will not succeed in eliminating inequities and inefficiencies embedded within the implementation of existing land acquisition procedures. In fact, the increase in procedural requirements under the LARR Act implies an even greater need for securing executive compliance with the rule of law, in order to translate the equities intended by these additional procedures into reality for land losers. Types of administrative reforms required: Such administrative reforms include building of state capacity to meaningfully comply with the increased procedural requirements stipulated by the LARR Act, and designing institutional structures that incentivise such compliance with the rule of law. This, in turn, requires a serious mind-set shift within the government toward accepting the reform enshrined in the LARR Act, and not subverting it as we have seen in both the LARR Ordinance, and the state amendments to the LARR Act, as also the rules adopted to implement the LARR Act in the states.
Topic:
History, Reform, Economic Growth, Land Law, Courts, Supreme Court, Rule of Law, and Land Rights
Political Geography:
South Asia, India, and Asia

47. Without improved public service delivery, women in developing countries can’t take advantage of economic opportunity

Author:
Ammar A. Malik and Jasmina Pless
Publication Date:
02-2016
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
An estimated 1.5 billion people live on less than $1 per day—the majority of whom are women. The “the feminization of poverty,” the worldwide gap between women and men trapped in poverty, has grown during the past decade. As developing countries continue to urbanize, uneven access to public services prevents women from taking full advantage of the newly available economic opportunities. Despite women’s improved overall labor force participation, they often end up with lower paying, precarious jobs—often in the informal economy. In Pakistan for instance, three-quarters of women engaged in non-agriculture jobs work in the informal economy without laws or public policies to protect them. That’s an estimated 8.5 million domestic workers. Governments typically clamp down on informal establishments by shutting them down or simply ignore their existence. The lack of appropriate legal or regulatory systems further increases women’s vulnerability to exploitation through low wages or lack of employment protections. Women are seldom viewed as productive economic agents as they are outside the tax net.
Topic:
Development, Women, Economic Growth, and Informal Economy
Political Geography:
Pakistan and South Asia

48. China-Pakistan Economic Corridor: A Road to Development and its Challenges

Author:
Mubeen Adnan and Bushra Fatima
Publication Date:
07-2016
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
On the world map, Pakistan and China being the neighboring states are inclined to develop and strengthen their relations with each other. These two states can be called as the good neighbors who can assist each other during the time of crisis. Both countries have had always a welcoming attitude towards each other in different situations due to which right from their independence till today in the 21st century, they are cooperative, supportive, encouraging, and friendly states among the other states of the world. This article is based on the fact that apart from the diplomatic, cultural relations, Pakistan and China are making great attempts and efforts for building viable economic relations with each other. It is also to see that how much these two would be beneficial in their economic interests by making the Gawadar project in their journey of making progress in economic capabilities. What challenges are being faced by these states in terms of the economic corridor. It is assumed that However, through this macro-level economic project both Pakistan and China would lead up to reach their destinations along with the attainment of their national interests.
Topic:
Development, International Trade and Finance, Bilateral Relations, and Economic Growth
Political Geography:
Pakistan, China, South Asia, Asia, and Punjab

49. Impact of China Slowdown on India

Author:
Geetima Das Krishna and Ankit Bhardwaj
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
After three decades of double-digit growth, China is slowing as it is rebalancing its economy from export-driven to less-volatile domestic consumption driven economy. The paper looks at the impact of China slowdown on India through different channels. Even though India is usurping China as the fastest growing major economy in the world, Indian economy being a fifth of the Chinese economy and also less material intensive can hardly substitute for China as a global growth driver. China has emerged as the largest trading partner of India but India’s trade still remains less vulnerable to Chinese slowdown directly as India’s services exports account for as much as 50% of India’s overall exports (merchandise and services). On the other hand, China’s total FDI investment in India has been miniscule $1.2 billion till September 2015 and India’s infrastructure sector, with its massive investment needs, can be the natural destination for Chinese investments. India reaped the indirect benefit of lower commodity prices in terms of narrower CAD, softening inflation, lower interest rate, increased government fiscal bonanza, all of which contributed to greater macro-stability in India. It was also found that a 50bps decline in China’s growth rate is likely to lower India’s growth by 30bp in the short run.
Topic:
International Trade and Finance, Bilateral Relations, Economy, Economic Growth, and Regional Integration
Political Geography:
China, South Asia, India, and Asia

50. India’s Reinvigorated Relationship with Africa

Author:
Rani Mullen and Ashish Arora
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
The 21st century is witnessing a substantial re-engagement of India and Africa. Though India and Africa have a history dating back millennia, bilateral relations for most of the 20th century were tepid as each focused inward, first on anti- colonial struggles and then on building up their independent countries. However, since the turn of the century India has re-engage with Africa as both experienced significant economic growth and face similar development challenges on their path towards sustained progress. Acknowldeging the importance of mutual cooperation, both India and African countries have been engaging with each other through bilateral and multilateral initiatives, including the Pan-African e-network, India- Africa Forum Summits, such initiatives signal India and Africa's mutual interest in strengthening their relationship and South-South cooperation. Furthermore, in a changing global order where OECD countries are experiencing low growth trends and with the emergence of new multilateral institutions such as the BRICS countries-led New Development Bank, these rising powers are influencing global governance, geoeconomics, as well as the global development architecture. This report analyzes the changing India- Africa relationship, with a special focus on development partnerships between the two regions and the future potential of the relationship.
Topic:
International Relations, Development, Diplomacy, International Cooperation, Bilateral Relations, Geopolitics, and Economic Growth
Political Geography:
Africa, South Asia, and India