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1. The Political Economy of India’s Transition to Goods and Services Tax

Author:
Chanchal Kumar Sharma
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
What kept the Goods and Services Tax (GST) from becoming a reality in India for a quarter of a century after the adoption of the structural adjustment programme in 1991? What made it possible in 2016? To what extent the Indian model of GST reflects a compromise between the need to keep fiscal federalism intact and to respond to a more global economic imperative? To what extent India’s transition to a concurrent dual GST has brought about a change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions? This paper investigates these issues and shows that the shifts in the indirect tax regime in India since independence have taken place within the structural context of constitutional rules, the economic policy paradigm and political dynamics. Party congruence after 2014 helped to facilitate the introduction of the GST, but the shape thereof was strongly marked by path-dependent logics and the role of state governments as institutional veto players. In addition, the paper examines the ways in which India’s transition to a concurrent dual GST has brought about a fundamental change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions.
Topic:
Development, Political Economy, Governance, Tax Systems, Institutions, and Services
Political Geography:
India and Asia

2. India's Social Policies: Recent Changes for the Better and Their Causes

Author:
Joachim Betz
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Despite being a consolidated democracy with free and fair elections and having a political system with intense party competition, a relatively vibrant civil society, and a functioning federal set-up, India still ranks poorly in terms of the coverage, generosity, efficiency, and quality of its social protection. This is difficult to explain based on the factors usually advanced for the implementation of generous social policies. A second puzzle is the predominantly protective nature of welfare policies in India in the current era of globalisation, which should necessitate policies enabling workers to participate successfully in a more demanding economic environment. These puzzles may be explained partly by (a) the long-term insulation of the Indian economy from international competition, (b) the low share of industry and modern services in GDP until recently, (c) the precedence of identity policies, (d) the fragmentation of the political sphere, and (e) the meagre empowerment of women in India. We should, however, acknowledge that change is underway and that the picture is not bleak across India as a whole – being supported by economic reforms and growth, a greater degree of decentralisation and party competition within the country, increasingly discerning voters, and progress on female education and employment opportunities.
Topic:
Gender Issues, Reform, Democracy, Social Policy, and Welfare
Political Geography:
India and Asia

3. The Politics of Contestation in Asia: How Japan and Pakistan Deal with their Rising Neighbors

Author:
Daniel Flemes, Georg Strüver, and Hannes Ebert
Publication Date:
09-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Rising powers have attracted tremendous interest in international politics and theory. Yet the ways in which secondary powers strategically respond to regional changes in the distribution of power have been largely neglected. This article seeks to fill this gap by presenting a systematic comparative analysis of the different types of and causes of contestation strategies undertaken by secondary powers. Empirically, it focuses on two contentious regional dyads in East and South Asia, exploring how structural, behavioral, and historical factors shape the way in which Japan and Pakistan respond, respectively, to China's and India's regional power politics. The paper concludes that the explanatory power of these factors depends on the particular context: in the case of Japan, China's militarily assertive regional role has invoked the most significant strategic shifts, while in the case of Pakistani contestation, shifts in polarity have had the largest impact on the strategic approach.
Topic:
Foreign Policy, Arms Control and Proliferation, Development, Emerging Markets, and International Trade and Finance
Political Geography:
Pakistan, Japan, China, and India

4. India's Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change

Author:
Joachim Betz
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
India has long been regarded as a deal-breaker in international climate negotiations; it was at the summit in Copenhagen that India first abandoned its old strategic line and made a commitment to reduce carbon emissions voluntarily. This shift was accompanied by a proliferation of domestic initiatives to save energy, to develop regenerative energies, etc. Traditional IR approaches remain insufficient to explain this policy shift – which is the aim of this paper – insofar as they fail to adequately take into account the fact that climate policies have to confront two audiences: a domestic and an international one, each presenting different tactical necessities for official reaction. On the international front, we argue that globally, India intended to be perceived as a responsible actor, one deserving of a greater say in global governance matters. On the domestic level, shrinking national energy reserves and mounting import dependence made the co-benefit of energy saving in reducing greenhouse gas emissions evident. The shift was made easier because important business associations aligned with a more eco-friendly development perspective and because the reduction commitments made by the Indian government on an international stage did not demand very stringent domestic emission reductions.
Topic:
Climate Change, Development, Energy Policy, and Globalization
Political Geography:
India

5. The Puzzling Decline in Rural Women's Labor Force Participation in India: A Reexamination

Author:
Daniel Neff, Kunal Sen, and Veronika Kling
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Between 2004/2005 and 2009/2010 there was a sharp fall in female labor force participation (LFP) in rural India. Why did this occur? We look at the four standard explanations: that more women in rural areas are now pursuing higher education and are therefore not available for work (education effect), that household incomes are rising quickly enough that there is a tendency for women to withdraw from the labor force to attend to domestic duties (income effect), that employment opportunities for women are decreasing, and that social and cultural factors may be interacting with these three factors and amplifying their effects. Our findings suggest that the decline in rural women's LFP could potentially be due to an income effect and partly due to an education effect. We find no evidence of changes in employment opportunities or of social and cultural interaction effects that could explain the decline in rural female LFP.
Topic:
Economics, Education, Gender Issues, Social Stratification, Labor Issues, and Culture
Political Geography:
India

6. Security Policies of India, Brazil and South Africa – Regional Security Contexts as Constraints for a Common Agenda

Author:
Daniel Flemes and Alcides Costa Vaz
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
In the course of the last decade, the IBSA states (India, Brazil, South Africa) have increased their weight in the shifting global order, particularly in economic affairs. Can the same be said about the IBSA states' position in the international security hierarchy? After locating the IBSA coalition in the shifting world order, we analyze its member states' willingness and capacity to coordinate their security policies and build a common global security agenda. In addition, we explore the state of and perspectives on bi- and trilateral collaboration initiatives on defense and armaments between India, Brazil and South Africa. A key reason for the mostly modest results of global security agenda coordination and cross-regional defense collaboration is that the prevailing security concerns of each country are located at the regional level. Therefore, the starting point of an assessment of the prospects of IBSA's security cooperation and its potential impact on the strategic global landscape has to be a comparative evaluation of the regional security environments, focusing on overlaps and potential synergies between the national security policies of the three state actors.
Topic:
Security, Defense Policy, and Economics
Political Geography:
Africa, India, and Brazil

7. Who Drives Change? Comparing the Evolution of Domestic Climate Governance in India and South Africa

Author:
Babette Never
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper compares and contrasts the nature and scope of change in the domestic climate governance of India and South Africa between 2007 and 2010. It uses an actor-centered approach to analyze the drivers of change. An exploratory test of fit shows that the concept of "communities of practice" captures the trends and actor relations well for the South African case, while more simple networks could be identified in India. Using data from an expert survey and from semi-structured interviews, this paper finds that both countries have generally not yet surpassed the level of second-order change, or double-loop learning. Differences exist for more specific parts of climate governance. Three resulting hypotheses give conditions for the development of either communities of practice or of networks, as conceptualized in formal network analysis. They target (1) the number of participating actors, (2) the size of the scientific landscape and the degree of competition among scientists, and (3) the centrality of a governmental actor with a certain knowledge and attitude within a network.
Topic:
Climate Change, Environment, Science and Technology, and Governance
Political Geography:
Africa, South Asia, India, and South Africa

8. The G20: Engine of Asian Regionalism?

Author:
Hugo Dobson
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
As a result of the emergence of the G20 as the self‐appointed “premier forum for international economic cooperation”, Asia's expanded participation in G‐summitry has attracted considerable attention. As original G7 member Japan is joined by Australia, China, Indonesia, India and South Korea, this has given rise to another alphanumeric configuration of the Asian 6 (A6). Resulting expectations are that membership in the G20 will impact Asian regionalism as the A6 are forced into coordination and cooperation in response to the G20's agenda and commitments. However, by highlighting the concrete behaviours and motivations of the individual A6 in the G20 summits so far, this paper stands in contrast to the majority of the predominantly normative extant literature. It highlights divergent agendas amongst the A6 as regards the future of the G20 and discusses the high degree of competition over their identities and roles therein. This divergence and competition can be seen across a range of other behaviours including responding to the norm of internationalism in promoting global governance and maintaining the status quo and national interest, in addition to claiming a regional leadership role and managing bilateral relationships with the US.
Topic:
Economics, Emerging Markets, Globalization, International Trade and Finance, Regional Cooperation, and Governance
Political Geography:
United States, Japan, China, Indonesia, India, Asia, South Korea, and Australia

9. The Formation of Preferences in Two-level Games: An Analysis of India's Domestic and Foreign Energy Policy

Author:
Joachim Betz and Melanie Hanif
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper examines the formation of India's energy‐policy strategy as an act of doubleedged diplomacy. After developing an analytical framework based on the two‐level game approach to international relations (IR), it focuses on the domestic context of policy preference formation. India's energy strategy is shaped by a shortage of energy and the scarcity of indigenous reserves; these problems have together resulted in agrowing import dependence in order to sustain economic growth rates, outdated cross‐subsidies, overregulation, and nontransparent bureaucratic structures which are adverse to private investment. The Indian government still dominates the energy sector, but large electoral constituencies within the country exert a considerable indirect influence. The paper analyzes how all these domestic necessities combine with India's general foreign policy goals and traditions to form an overall energy strategy. We finally discuss how this strategy plays out in a competitive international environment where global resources are shrinking (with most claims already distributed) and environmental concerns are on the rise.
Topic:
Diplomacy, Energy Policy, Environment, and Natural Resources
Political Geography:
India

10. Verschiebungen der globalen Machtverhältnisse durch den Aufstieg von Regionalen Führungsmächten. China, Indien, Brasilien und Südafrika im Vergleich

Author:
Robert Kappel
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
A number of regional powers are becoming important international actors and are changing the coordinates of world politics and the global economy. The political and economicshift in favor of these regional powers has been accompanied by the relative loss of importance of the US, Japan, and the EU. The latter countries are increasingly challenged by the economic growth and the geostrategical actions of the regional powers. As the conception of and debates on regional powers have been led by political science, this paper aims to contribute to the discussion from an economics perspective. Based on the discussion of different concepts of economic power–such as those of Schumpeter, Perroux, Predöhl, or Kindleberger–concepts of technological leadership, and the global value chain approaches, the paper develops a research framework for the economics of regional powers. This framework is then tested using descriptive statistics as well as regressions analysis, with a focus on the four regional powers Brazil, China, India, and South Africa. As economic power is relational, the relationship of regional powers to other nations in the region is analyzed. According to the findings, only limited conclusions on the economics of regional powers are possible: a regional power can be described as an economy with a relatively large population and land area which plays a dominant role in trade within the region and in the regional governance. The regional power develops its technological capacities, and its businesses act regionally and globally with increasing strength.
Topic:
International Relations, Economics, Globalization, International Political Economy, and Power Politics
Political Geography:
China, India, and Brazil