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chapter10AlternativePathsamongDevelopingCountriesInthischapter,we’llcover:India:TheElephantWalksIran:ANewTraditionalIsalamicEconomyMexico:RevolutionandReformIndia:TheElephantWalksTraditionalismbasedontheHinducastesystemMarketcapitalismdatingfromIndia’sancienthistoryoflong-distancetradeSocialismandindicativeplanningafterthecountrygainedindependence.India:TheElephantWalksPost-independenceEconomicPoliciesIndia’seconomicpoliciesafterindependencehaveallbeencarriedoutbydemocraticallyelectedgovernments.Thefirstfiveyearplan(1951-55)Thesecondfiveyearplan(1956-1961)India:TheElephantWalksTheIndianEconomicPlanshadtobefinancedandthisoftenmeanttakingresourcesawayfromagricultureandgivingthemtopetindustriesthatwerenotviableontheirown.Moreover,Indiashutoffimportswithhightariffs,lowquotasandoutrightbanning.India:TheElephantWalksEconomicReformsince1991TheIndianreformprocessswitchedtowardsthe“pro-market〞orientation.theBharatiyaJanataParty(BJP)Sincetheinceptionofthereformsin1991,India’seconomicperformancehasimprovedappreciablyIndia:TheElephantWalkstheMahatmaGandhiNationalRuralEmploymentGuaranteeActTheactmandatedtheimplementationofanambitious,demand-drivenemploymentcreationprogramaimingtobenefittheruralpoorwiththeincomeprovidedbyjobspayingasociallyacceptablewageandwithprojectstoimproveproductivityinagricultureandalleviatelanddegradation.India:TheElephantWalksToconclude:Indiapossessesprobablytheworld’slargestremainingtraditionaleconomyandalsooneofitslargeststate-ownedsectorsconnectedwithastill-functioningcentralplanningapparatus.Iran:ANewTraditionalIsalamicEconomyNewTraditionalEconomy.ThemostimportantexampleofpracticalIslamiceconomics。Despitemanycontroversies,coreelementsofIslamiceconomicshavebeenadoptedinIran,suchasinterest-freebanking.Iran:ANewTraditionalIsalamicEconomyIranianRevolutionaryTraditionTheShi’itraditionssignificantlycontributedtotheemergenceoftheIslamicRevolutioninIran.Iran’sexamplehasmadeittheleadingrolemodelforIslamicrevolutionsevenamongpredominantlySunninations.Iran:ANewTraditionalIsalamicEconomytheConstitutionalRevolutionof1905–1907theAnglo-PersianOilCompanyin1909theQajardynastyin1925In1953BritainandtheUnitedStates,whichopposedtheprincipleofoilnationalizationatthetime,forcedMossadeqfrompower.Iran:ANewTraditionalIsalamicEconomyrecoveredfromtheeconomicdisruptionoftheoilnationalizationperiodinthe1960s.aseriesofantigovernmentprotestsin1977andearly1978.Followinganationalplebiscite,theIslamicrepublicofIranwasproclaimedofficiallyonApril1,1979.Iran:ANewTraditionalIsalamicEconomyPost-revolutionEconomicReformThe1979IslamicRevolutioninIranwasthefirstoverthrowofamodernsecularleadershipbyapopularmovementtoestablishafundamentalistIslamicsystemIran:ANewTraditionalIsalamicEconomyFivePhases:TheFirstRadicalPhase(1979–1981):IslamicsocialistapproachTheSecondRadicalPhase(1982–1984:moretraditionalIslamicinnovationsFirstPragmaticPhase(1985–1988)TheSecondPragmaticPhase(1989to1997)ThepresidencyofMohammedKhatami(1997-2005)Iran:ANewTraditionalIsalamicEconomyInterest-freebankingLandreform

theestablishmentoftheImamRezaCompassionFundtheOilStabilizationFund(OSF)theIslamicConsultativeAssemblyIran:ANewTraditionalIsalamicEconomyToconclude:IranisthemostprominentmodelintheworldforrevolutionaryNewTraditionalism,theattemptedcombinationofatraditionalfundamentalistreligionwithmodernhightechnologyinaneconomyindependentofthepatternsofeithertheoldcapitalistorsocialisteconomies.Mexico:RevolutionandReformState-dominatedEconomyafterIndependenceTheperiodfrom1930to1970witnessedthe“MexicanMiracle〞Duringthe1970s,theadministrationstriedtoincludesocialdevelopmentintheirpolicies,aneffortthatentailedmorepublicspending.Intheearly1980s,theinternationalpanoramachangedabruptlyMexico:RevolutionandReformReformsinthe1980sand1990sFiscalDisciplinePrivatizingStateIndustryAgriculturalreformOpeningtoForeignCompetitionMexico:RevolutionandReformChangesafterthePesoCrisisTheausterityplanincludedanincreaseinthevalue-addedtax,budgetcuts,increasesinelectricityandgasolinepricestodecreasedemandandgovernmentsubsidies,andtightermonetarypolicy.Mexico:RevolutionandReformToconclude:Mexicoisopening,marketizing,andprivatizinganeconomylongcharacterizedbyastate-dominated,inward-lookingpolicydesignedtoprotectitfromU.S.domination.StudyQuestionsStudyQuestions1. WhatarethebenefitsanddangersofthedrivetowardregionaldecentralizationofeconomicpolicyinIndia?2. EvaluatetheroleofthecastesysteminIndia’ssocietyandeconomy.Doesithaveanybenefits?3. CompareandcontrasttheeconomicpoliciesandperformanceofChinaandIndia.StudyQuestions4. WhatwastheroleoftheoilindustryintheeconomybothbeforeandaftertherevolutioninIran?5. HasIransucceededineliminatinginterestfromitsbankingsystem?Whathavebeentheresultsofitseffortstodoso?6. TowhatextentdoestheIranianeconomyrepresentaNewTraditionalThirdWaybetweencapitalismandsocialism?StudyQuestions7. HowhasNAFTAaffectedthedevelopmentofthemaquila

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