Market-based supply-side policies - case study (1)
Watch the following video on the state of the Indian economy prior to the introduction of liberalization policies in the 1990s
Read the Washington Post article Air India strike sparks debate over privatization considering the case of privatization in India. (You can read the article in the web window below, or follow the previous link to read the article in a new web window)
Answer the following questions:
- Identify the areas of production highlighted by the video as important if the productive efficiency and the supply-side of the Indian economy is to be improved.
- Examine the problems highlighted by the article associated with government owning and controlling business.
- Describe the supply-side policy measures to improve efficiency advocated by some sectors of the India media. Analyse the economic arguments for, and against, such measures.