ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Overcoming Political Obstacles to Economic Reforms via Redistribution

Political obstacles to the reforms process is a genuine problem in most reforming economies. Such obstacles, it is feared, shackle a reforming government, which is then unable to complete the reforms agenda. This paper argues that the magnitude of political economy problems may be exaggerated and that a way out of the impasse is possible. An approach to political calculus is developed that sets out the conditions under which broadbased reforms may be introduced by the government without electoral dangers. This approach is tested using Indian data.

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