The case for a deeper democracy

There is a strong connection between bolstering democracy and achieving a better functioning financial system

A great debate has surged, in recent weeks in India, about democracy and “tough” economic reforms. In the field of finance, the main path of reforms is intertwined with deepening of democracy. This is what has been observed elsewhere in the world, in the early experience of India with reforms, and in the way ahead for financial economic policy. The essence of democracy —  dispersion of power, and the rule of law — generates the precise conditions for the flowering of the market economy, of which finance is the core.

The NITI Aayog CEO, Amitabh Kant, reportedly said that “tough” reforms