unacademy 22nd January 2019 Important Editorial Discussion(Justice Delayed is Markets Stymied) Presented By: Prabhakar Jha
In a market economy like India and especially since the 1991 economic reforms, the country has improved tremendously in almost all economic indicators, and is now one of the fastest growing nations in the world Various economic policies of the current government have enabled the economy to move faster than ever before. Background These include tax reforms leading to the introduction of the Goods and Services Tax, reforms making India more competitive in the 'Ease of Doing Business' index, and implementation of the Insolvency and Bankruptcy Code
Why We Need AnTransparency Efficient Judiciary in information Efficient dispute settlements Contract enforcement
What HappensCorruption: Don't Have An.Crony When We Efficient Capitalism Judiciary?
Issues Related To Economic Theories and Markets There is a problem with the economic theories we follow in India (currently) because unlike our policymakers, those in other countries seem to have realised the importance of the judiciary in the efficient functioning of a market economy. .The proponents of reform (in India) belong to the school of neoclassical economics*, and are taught that transactions are costless. However, in reality, the rules and regulations that affect economic activity determine whether transactions are costless or not. . This theory of new institutional economics questions the two crucial assumptions of neoclassical economics - costless transactions and perfect information- and stresses the role of institutions in facilitating market exchange by reducing transaction costs, providing a predictable framework for exchange, and overcoming imperfect information. e In India, there are few practitioners of new institutional economics and that could explain why this aspect has not been addressed in the past decade.
GS And GA faculty @ Mahendra's Coaching Institute. Teaching Polity, and international relations for 7 years