Question

Select one topic, then post and concisely defend your view. You may post to both topics, but are required to only select one for your initial post. Be careful to identify the positive reasons for your normative position. Read and respond to your fellow student's postings at will. The topics to choose from are:

1. Select a Government Regulation. Identify a particular government regulation of your choosing that in your opinion has either been successful or a failure. Briefly state the original purpose of this regulation and whether it has changed over time. Then, concisely defend your view on whether you favor the expansion or reduction of the enforcing regulatory agency.
2. Anti-trust Measures. Identify a particular market that has experienced government anti-trust efforts or you think should have antitrust efforts. Analyze what type of market structure was in existence at the time of the anti-trust measures or is in currently. Then justify whether the market justified(s) the intervention.

Answer 1

                                                                                                INDIA’S NEW ECONOMIC POLICY 1991

One of the major regulation in the history of India’s economy is India’s new economic policy 1991 which has rescued India from a major financial crisis and gave India a new face in the economic world.

Some of the major highlights of the Regulation:

• To open up the economy for the rest of the world by reducing trade tariffs and inducing liberalization, privatization and globalization in the economy
• It intended the flow of goods and services , capital, human resource and technology without any restriction
• Appreciating private participation in the economy
• Removing of Industrial licensing which previously created much hindrance for private players.
• As a initiative of privatization Indian government started selling shares of public sector undertaking industries.
• Emphasizing reduction in tariffs and foreign trade policy is enforced for a longer term

So undoubtedly it is one of the revolutionary economic reform that showed a new dawn to India. It has recovered India from worst economic scenario. India successfully integrated to global economy after this regulation. There was a dramatic increase in exports which gave a significant boost to the economy. The reforms increased competition and private participation increased. Inflation and poverty were under control and India became one of the attractive destination of investment for developed countries.