Summary Of Andrei Shleifer's An Uncertain Glory

An Uncertain Glory and Andrei Shleifer

The argument from An Uncertain Glory, by Dreze and Sen, and its supporting evidence indicates that Andrei Shleifer is wrong in his argument regarding free trade. India is currently a significant force in world trade. As a country, India has sustained incredible economic growth rates, averaging at about seven percent over the past five years. However, underdeveloped infrastructure and low social rights progress threaten to diminish overall development. This economic growth rate also does not account for the extensive involvement of the state through public-sector enterprises. An over regulative government discourages broader private-sector growth, which may be a key piece to the flourishing of India.
Free market policies would include protection of individual rights, such as property rights, rule of law, non discrimination and democracy (Shleifer, Figure 6). According to Shleifer, “the last quarter century has witnessed remarkable progress of mankind” (Shleifer 123). These major gains in human welfare in many regions of the world include declining poverty, increased health and life expectancy, increased education as well as an increase of freedom and individual rights. Figures 7 through 11 analyze political and economic reforms during the last decades of the twentieth century. In India, their political reform of 1991 transformed it from one of the poorest countries in the world to one of the world’s fastest growing economies. Shleifer would argue that this political reform as well as acceptance of free trade led to increased welfare, reduced poverty, and improved standards of living in India. Therefore, free trade helped India to accomplish these
They must find a balance between the “constructive role of the state” and the “constructive role of the market” in order to succeed greatly as a country. To begin, India has experienced great economic achievements. For example, India has the fastest growing economy in the world through their market economy, has established itself as an innovative center of some departures of the world economy, information technology and the largest supplier of medicines. However, even while India has experienced extraordinary achievements economically, they also contain sharp contradictions which may undervalue that success. The sharp contradictions of India are that while they have seen great economic growth, they have also seen limited results in terms of human welfare and the reduction of human deprivations. Concerning issues for India are food supply and nourishment, health care and the failure to provide it, and the fact that nearly half of women are illiterate in their country. Overall, these indicate low social progress in India. In addition to the limited increases of human welfare, it is a contradiction that with all India’s economic growth, they have not yet had comprehensive privatization. This is due to the fact that the constructive role of the state is missing in India’s market reform. The state should install effective public policy along with its market reform policy. These