The study of economics gives us the opportunity to reappraise our own thinking, in order to comprehend beyond our own prejudices. John M.Keynes encapsulated this theory through his criticism of the neoclassical system; it was restricted by a number of specific axioms that were required to demonstrate the self-rectifying tendency of the free market economy.
I am intrigued by the development of capitalism, which creates opportunities for future generations and economies to prosper. My extended reading, such as “Creating Modern Capitalism” by Thomas K. McCraw fascinated me by its reference to specific economies, exhibiting growth and the adaptation of corporations to changing conditions and market demands. This stimulated my research into the restructuring of the Indian economy after the implementation of neoliberal policies in 1991. I learnt how this structural adjustment allowed India to embark on the most radical program of economic liberalisation since its independence in 1947. This enabled trade to adapt to an export oriented growth strategy, led by the IT outsourcing market.
Taking frequent trips to India since I was a child, I was able to encounter the country’s rapid growth first hand by the witnessing some of the wealth being created and enjoyed by the Indian middle class. Reading Pete Engardios ‘Chindia’ solidified my observations as he wrote of how the immensely skilled IT workforce in Bangalore was vital to the future of one of the USA’s most profitable companies, in not only ‘saving costs but to speed innovation and generate growth for IT companies’. This description demonstrates how India’s IT powerhouse could now potentially take a lead in colonising the cyberspace, surpassing economies such as China by the early 2020’s.
During trips to India, I was unable to disregard the mass of poverty that remained in the undeveloped rural regions. An argument put forward by Stiglitz in the ‘The Price of Inequality’ suggested that...