1. Semester III/IV
2. Number of Credits: 4

Preamble
This course analyses the role of political institutions in shaping reform outcomes. It highlights key political challenges to economic reform. What distinguishes this course from a traditional course in political science is the application of analytical rigor to economic and political behavior. Reforms are viewed as the establishment of institutions that provide incentives for individual decision makers to behave in ways that are collectively desirable. Politico-economic modeling would sharpen our understanding of the process of policy making. The Indian experience of reforms and the various political economy issues are given special attention.

Module 1: The Political Economy of Reform (12 lectures)
Political Economy of Democratic Transitions: The theoretical orientation, general concepts and arguments.
Economic Policy and Political Stability: Authoritarian Regimes and New Democracies,
Institutions and Economic Policy: The Party Systems, Reform of Bureaucracy, Interest Groups and Government.

Module 2: Inaction and Delay in Reform & Strategies for Reform (12 lectures)
Inaction & Delay: The Political Economy of Delayed Reform, Stabilization as a War of Attrition: Alesina-Drazen Model, Resistance to Reform: Fernandez-Rodrik Model.
Strategies: Gradualism versus Big Bang, Sequencing of Reform in the presence of Political Constraints

Module 3: The Transition Experience: Macroeconomic Assessment & Lessons (12 lectures)
From Plan to Market: Understanding transition, the challenge of transition, the challenge of consolidation
Broad Lessons form Transition Experience based on experience of select countries

Module 4: Democratic Politics and Economic Reforms in India (12 lectures)
The Evolution of Economic Reform in India: An Overview of Macroeconomic Policies and Performance since 1991
Political Institutions: Federalism, Informal Networks and the Management of Dissent
Political Skills: Introducing Reforms by Stealth.