Democracy, neoliberalism and growth with equity : lessons from India and Chile

What explains why Chile's new democracy has been able to judiciously combine market-guided or neoliberal economic policies with reformist and distributive programs, while India, the developing world's largest democracy, has failed to combine its far-reaching economic liberalisation program "with a human face"? This case study illustrates that it is the state's organisational and institutional capacities that really matter. Bulding and reinvigorating the state's administrative and institutional capacities are critical for promoting economic growth with redistribution. (DSE/DÜI)