Why Growth Matters

In its history since independence, India has seen widely different economic strategies from Jawaharlal Nehru's pragmatism to the rigid state socialism of Indira Gandhi to the brisk liberalization of the 1990s. Bhagwati and Panagariya argue forcefully that only one strategy will help the poor to any significant economic growth, led by markets overseen and encouraged by liberal state policies. Their message has huge consequences for economists, development NGOs, and anti-poverty campaigners worldwide. The lessons are vital not only for Southeast Asia but also for Africa and Eastern Europe—anyone committed to eradicating poverty through growth.