{"id":106477,"date":"2021-05-13T09:40:38","date_gmt":"2021-05-13T04:10:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=106477"},"modified":"2021-05-13T09:40:38","modified_gmt":"2021-05-13T04:10:38","slug":"links-between-crisis-and-economic-reforms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/links-between-crisis-and-economic-reforms\/","title":{"rendered":"Links between Crisis and Economic Reforms"},"content":{"rendered":"
<\/h5>\n
Synopsis: <\/strong><\/h5>\n

The 1991 economic crisis indicates that the crisis is a good opportunity for economic reforms. But that is not true, specifically in the case of 2021 crisis. Thus, not all crisis results in economic reforms.<\/p>\n

Introduction:<\/strong><\/h5>\n

2021 marks 30 years of 1991 economic reforms. The 1991 reforms permanently altered the production and distribution structures of the Indian economy. But during the pandemic, the government introduced few reforms as well.<\/p>\n

Both 1991 and 2021 have one thing in common. Both reforms came after the economy faces a severe growth crisis<\/strong><\/a>. This raises a few important questions.<\/p>\n

    \n
  1. Is the crisis a prerequisite for reforms?<\/li>\n
  2. Are reforms capable of stimulating the economy?<\/li>\n<\/ol>\n
    The link between Crisis and economic reforms:<\/strong><\/h5>\n

    Big economic policy reforms often face hurdles in terms of rules and routines. This is because these reforms generally depart from existing economic policies. So the fundamental shifts will always face criticisms.<\/p>\n

    But the Crisis<\/strong> situation provides an opportunity for the government<\/strong> to introduce radical economic reforms due to the following reasons,<\/p>\n