Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries by Jagdish Bhagwati & Arvind Panagariya
In its history since Independence, India has seen widely different economic experiments: from Nehru’s pragmatism to the rigid state socialism of Gandhi to the fast-paced liberalization of the 1990s. So, which strategy best addresses India’s, and by extension the world’s, greatest moral challenge: lifting a great number of extremely poor people out of poverty? This book argues that only one strategy will help the poor to any significant effect: economic growth. This radical message has huge consequences for economists, development NGOs and anti-poverty campaigners worldwide. There are vital lessons here for anyone who cares that the effort to eradicate poverty is more than just good intentions.
“Bhagwati and Panagariya are two of the great intellectual lights behind one of the greatest miracles of economic history: the economic reform of India, and its subsequent takeoff. It is not just the well-to-do who have benefited, but, especially, the poor. The lessons from the spirit of 1991 are not just relevant for India today; they are also of prime importance for the billions of citizens of low income countries around the globe.” – George Akerlof, Nobel Laureate in Economics, 2001