How can India simultaneously grow and create jobs, attend to its growing environmental crisis, and proactively address inequality? Conventional thinking holds that these objectives can only be achieved sequentially — grow first and clean up later; or grow first and redistribute later. An emergent set of ideas suggests we can do better.
The core idea emerges from a debate over the role of the government in development policy. Should the government limit itself to providing law and order, fiscal health and enabling well-functioning markets, as argued in the Washington Consensus of the 1990s-2000s? Or should it actively steer the course of development — an approach which resulted in the East Asian miracle growth in South Korea and Taiwan in the 1970s-80s — through the use of industrial policy that targets key directions and sectors? Read More