Deepak Nayyar

The Internationalization of Firms From India: Investment, Mergers and Acquisitions

This paper analyses the rapid expansion in outflows of foreign direct investment from India and the spurt in foreign acquisitions by Indian firms, during the past decade, situated in the wider context of international investment from developing countries. Much of the investment was in manufacturing activities and most of the acquisitions were in industrialized countries. The economic stimulus and the strategic motive for the internationalization of firms from India were provided by a range of underlying factors driving the process, which differed across sectors and firms. The rapid growth in investment and acquisitions by Indian firms were partly attributable to factors implicit in the liberalization of the policy regime and the greater access to financial markets; but it must be recognized that Indian firms could not have become international without the capacity and the ability to compete in the world market. The attributes of Indian firms, which created such capacities and abilities, are embedded in the past and have emerged over a much longer period of time.

India's Unfinished Journey Transforming Growth into Development

This paper situates the economic performance of independent India in historical perspective to evaluate the past and reflect on the future. It shows that the turning point in economic growth was circa 1951 in the long twentieth century and circa 1980 in India since independence. Thus, it is not possible to attribute the turnaround in Indias performance to economic liberalization beginning 1991. During the period 1950–1980, economic growth in India was respectable, for it was a radical departure from the past and no worse than the performance of most countries. During the period 1980–2005, economic growth in India was impressive, indeed much better than in most countries. The real failure in both these periods was Indias inability to transform this growth into well-being for all its people. And Indias unfinished journey in development cannot be complete as long as poverty, deprivation and exclusion persist. Even so, with correctives, it should be possible to reach the destination.

Learning to Unlearn from Development

This paper sketches a picture, with broad strokes on a wide canvas, of thinking about, and outcomes in, development during the second half of the 20th Century, to stress the importance of learning and “unlearning” from experience. In doing so, it questions the caricature distinctions between success and failure at development, in a world where outcomes were mixed. This is illustrated vividly by a tale of two countries: China and India. In this time span, thinking about development witnessed a complete swing of the pendulum, from the Development Consensus to the Washington Consensus. These shifts in paradigm, which reshaped strategies of development, were influenced strongly by history and conjuncture, reinforced by the dominant political ideology of the times. However, changes in development strategies did not lead to the expected outcomes. In fact, there was a discernible mismatch between turning points in thinking and performance. Of course, experience of the past 50 years did lead to some rethinking about development. This learning from experience, however, was selective; and it differed across schools of thought, for it was shaped only in part by outcomes. It was also influenced significantly by priors in thinking and ideology in perspectives. Thus, attempts to unlearn from development, which questioned beliefs or changed previous beliefs embedded in ideologies, were few and far between.

India's Exports and Export Policies in the 1960s

List of tables Preface Abbreviations A note on statistical tables Introduction Part I. General: 1. An outline of the approach 2. Export performance in the 1960s: an overview Part II. Empirical Analysis: A Micro Approach Section 1. Traditional Exports: 3. Jute manufactures 4. Cotton textiles 5. Tea 6. Cashew and tobacco 7. Minerals Section 2. Non-Traditional Exports: 8. Leather and chemicals 9. Engineering goods Part III. Policy Analysis: A Macro Economic View: 10. Export policies in the 1960s 11. The impact of devaluation 12. Bilateral rupee trade and export growth 13. Concluding observations 14. Postscript - the early 1970s Select bibliography Index.

Development through Globalization

Globalization, which gathered momentum during the last quarter of the twentieth century, has created unparalleled opportunities and posed unprecedented challenges for development. Yet, the virtual ideology of our times has transformed globalization from a descriptive word into a prescriptive word. But the reality that has unfolded so far belies the expectations of the ideologues. The exclusion of countries and of people from globalization, which is partly attributable to the logic of markets, is a fact of life. Even so, there is a strong belief and an influential view that globalization is the road to development during the first quarter of the twenty-first century.1 In a volume that seeks to think ahead about the future of development economics, development through globalization is an appropriate theme. It is even more appropriate, perhaps, with a question mark at the end.

International labor movements, trade flows and migration transitions: a theoretical perspective.

This article presents a theoretical analysis of how the processes of industrialization and development interact with international trade in goods or services to influence a countrys turning point from labor exporter to labor importer. It is concluded that trade in goods complements capital movements but substitutes for labor movements, whereas trade in services and labor movements complement each other. The proposed analytical framework suggests that both international trade and migration may contribute to, but cannot lead to, a development process that brings about a migration transition in surplus labor economies.

Rethinking macroeconomic policies for development

The global economic crisis has created an opportunity to rethink macroeconomics for development. Such rethinking is both necessary and desirable. It is essential to redefine macroeconomic objectives so that the emphasis is on fostering employment creation and supporting economic growth instead of the focus on price stability alone. It is just as important to rethink macroeconomic policies which cannot simply be used for the management of inflation and the elimination of macroeconomic imbalances, since fiscal and monetary policies are powerful and versatile instruments in the pursuit of development objectives. In doing so, it is essential to the overcome the constraints embedded in orthodox economic thinking and recognize the constraints implicit in the politics of ideology and interests.

BRICS, developing countries and global governance

Abstract This article analyses the implications and consequences of the rise of BRICS for the developing world and for global governance. In doing so, it examines BRICS’ increasing importance among developing countries and their growing significance in the world economy, situated in historical perspective, and considers the factors underlying the evolution of the group as an economic and political formation. This is followed by an analysis of the possible economic impact of future growth in BRICS on other developing countries, which could be complementary or competitive, positive or negative. In conclusion it discusses the potential influence of BRICS, extending beyond economics to politics, in the wider global context, with reference to international institutions and cooperation among developing countries.

The Millennium Development Goals Beyond 2015: Old Frameworks and New Constructs

This paper seeks to analyse Millennium Development Goals (MDGs) in prospect rather than retrospect. In doing so, it begins with a critical evaluation of their conception and design to focus on limitations that must be addressed. In contemplating the future of MDGs beyond 2015, it suggests that such a framework is necessary but should not be more of the same. Thus, it explores possible options, such as structural flexibility at the national level and cognition of inequality in outcomes, which could provide the foundations of a modified framework or alternative construct. The paper argues that developing countries also need to reformulate policies, redesign strategies and rethink development in their respective national contexts for attainment of the MDGs. In the international context, where the focus has been narrow and the progress has so far been slow in the MDGs, there is need for cooperation among developing countries, through better bargaining and collective action, which provides an opportunity to reshape unfair rules in the world economy that encroach upon policy space so essential for development.

Macroeconomics and Human Development

This article analyses the interactions between macroeconomics, in terms of objectives and policies, and human development, which is about the well-being of people. Each can, and often does, exercise a significant influence on the other. Macroeconomics matters for human development because it determines the level of employment, the degree of social protection and the public provision of services such as healthcare or education. Human development has implications and consequences for macroeconomics, for it can mobilize or claim resources to enlarge or diminish space for macroeconomic policies. The relationship exists, and matters, not only in poor countries but also in rich countries. Employment, even if neglected, provides the critical link. The paper shows that the causation runs in both directions and could be either positive or negative. It also reveals similarities and differences between developing countries and industrialized countries. The political context is significant, everywhere, as interests, ideology and institutions influence economic policies in both spheres to shape outcomes.