{"id":211318,"date":"2022-10-20T19:31:16","date_gmt":"2022-10-20T14:01:16","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=211318"},"modified":"2022-10-20T19:31:16","modified_gmt":"2022-10-20T14:01:16","slug":"durable-and-robust-institutions-are-amust-for-long-run-growth","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/durable-and-robust-institutions-are-amust-for-long-run-growth\/","title":{"rendered":"Durable and robust institutions are amust for long-run growth"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cDurable and robust institutions are amust for long-run growth\u201d <\/strong>published in the <strong>mint <\/strong>on <strong>20th October 2022<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian economy. GS2- Governance<\/p>\n<p><strong>Relevance<\/strong>&#8211; Importance of institutions.<\/p>\n<p><strong>News-<\/strong> The article explains the need for the right set of institutions to achieve economic growth in India.<\/p>\n<h5><strong>Why are institutions important for economic growth?<\/strong><\/h5>\n<p>Economic growth depends on the outcome of many factors. An important factor is institutions.<\/p>\n<p>Growth depends upon the capacity and durability of institutions. The most cited example is the role played by resilient institutions in South East Asian economies.<\/p>\n<h5><strong>What are the institutions?<\/strong><\/h5>\n<p>Institutions are rules of the game in society. These rules of games are constraints that shape human interaction. These constraints are both formal and informal.<\/p>\n<p>Institutions reduce transaction cost from imperfect and asymmetric information.<\/p>\n<h5><strong>What factors should be considered while designing institutions?<\/strong><\/h5>\n<p>Institutions are dynamic forces. They are continuously shaped by the environment in which they operate. Economic performance depends on efficient institutional design. States have a very important role in ensuring it.<\/p>\n<p>Institutions have a high level of inertia to change and adapt to new environments. Hence, utmost care must be taken while designing and reforming institutions. Robust institutional design requires a level of reflexivity in terms of their ability to change and adaptation to shocks.<\/p>\n<h5><strong>What is the way forward for India?<\/strong><\/h5>\n<p>An important element for achieving the Vision for Indian Economy in 2047 is institutional design.<\/p>\n<p>The unique aspects of the Indian economy must be assimilated while designing institutions. We must incorporate federal realities to achieve synergy between centre and states.<\/p>\n<p>The challenges to achieve it are two folds-<\/p>\n<p><strong>First<\/strong> is related to the <strong>creation of new institutions<\/strong> to address rapid structural changes in the Indian economy. It requires clarity of vision and objectives.<\/p>\n<p><strong>Second <\/strong>is related to <strong>reforming existing institution<\/strong>s. It requires consultations and engagements with participating agents.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cDurable and robust institutions are amust for long-run growth\u201d published in the mint on 20th October 2022. Syllabus: GS3- Indian economy. GS2- Governance Relevance&#8211; Importance of institutions. News- The article explains the need for the right set of institutions to achieve economic growth in India. Why are&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/durable-and-robust-institutions-are-amust-for-long-run-growth\/\">Continue reading <span class=\"screen-reader-text\">Durable and robust institutions are amust for long-run growth<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,11126],"class_list":["post-211318","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704701128},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=211318"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211318\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=211318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=211318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=211318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}