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Ekonomista
|
2010
|
issue 3
373-394
EN
The article describes the development experience of India since its nascency as a democratic state in 1947. The early adopted economic system of the so-called 'Indian socialism', which included both elements of a free market and of central planning, failed to bring the expected results. The Indian economy experienced slow growth. and India's share in the Asian and world economy was systematically decreasing. In the early 1990-ties India introduced radical reforms aimed at liberalization of the economy and its opening towards the world. The reforms positively influenced the process of modernization of the economy and accelerated its development. The Indian economy has become one of the biggest and fastest developing in the world. The paper includes an international comparison of competitiveness of the Indian economy. It shows that India has great chances of dynamic development in the future.
EN
Following the Constitution of 1949, India is a democratic republic, a federation of states. However, in the early years of independence, the democratic rules of organising and functioning of the state applied to only two tiers – the federal one and the state one. The local tier remained undemocratic, which resulted in India being a semi-democratic country. Such a situation could not last long. It was necessary to launch reforms to democratise the local system of government and make India a fully democratic country. Numerous attempts at setting up democratic local self-government had been made, but all failed. It was not until the early 1990s that sustainable legal grounds were established for three-tier governance and its implementation began. Thirty years have passed since the Indian decentralisation. This fact induced the author to present the premises, determinants, and effects of the local government system’s democratisation and attempt to evaluate its role in the life of contemporary India.
EN
In the literature on the subject of economy there are three functions of public finance described: stabilazing, redistributing and allocating. Effectiveness of realization of the abovementioned functions depends to a large extent on the political system of a given country, especially on the degree to which it is decentralized. In the article the author embarks on an attempt to identify the advantages and disadvantages of decentralization of particular public finance functions and in effect to show which of the functions can be more effectively realized by the central authorities and which of them can be decentralized that is transfered to the local authorities.
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