India's economic reforms of 1991 served the nation well but need to be sustained by a second generation of economic reforms, which have been stalled for decades now. In recent years growth rates have been sluggish, poverty elimination has been underwhelming. A lot needs to be done.
The absence of a strong state has weakened public institutions. The current coalition government has faced a number of challenges at attempts to move towards further economic reforms. How can the Indian government sell reform to the masses and the opposition? How can they respond appropriately to the political constraints in unleashing economic reforms? Is there much hope for reform until, and even beyond, the next elections in 2014?
Economics and politics are interrelated in many ways. Some people say that it is related together in the management of the country. It is also true that if the economics of the country is good then the politics of the country is good as the economy of the country will decided it's poverty level, it's level of response in a situation and due to which, it will directly cause a change in the politics of the country.
Poor politics will lead to poor economics, there by social discontentment increases: there by geographical divide and economic growth hampers.
Many political parties in developing countries promise the populism schemes during the election campagin to achieve victory by any means and defeat the opponents. Once such political parties come to power, the implementation of freebies leads to empty coffers and failure of the system in the long run.
The problems and demons like balance of payments, current account deficits, pollicy paralysis, unemployment, corruption, low productivity rule the country nd society.
Politics and economics are connected. If someone is good at running a country, city, or other body, then the economics should follow. If the economics of an area is good, then that would generally indicate that their politics are good, because it implies a solid structure with laws, policies, and governing bodies.
When our country is doing well economically most of its citizens are doing well also. There is not a sense of hopelessness or despair and people can have a reasonably good life. A country that is economically strong can promote progress for its citizens. Politics is simply a question of whose theory and whose beliefs will actually attain that goal.
Sound economics have very rarely, if ever, been enacted into law through the political process. As such, it is impossible to tell whether real life sound economic policy would benefit a society. It has proven too much for politicians to let the free market work, and rampant government intervention skews true economic policy.
I see economics and politics as independent entities. Just because someone is good at "playing politics" does not mean he or she is able to effectively enact economic policies. On the other hand, just because someone is great in the political realm, that doesn't mean he or she is able to understand and lead in economics. Politics is more about leadership and dealing with a wide range of ideals and morals, and leading the country one way or another. Economics is an entirely different beast.
Good politics is an oxymoron, good politics are something that do not exist. Good economics is more grounded in common sense and what is going to be best for the money that one person or organization has and what they are able to do with it and how they use it. Most of these decisions are based on common sense.