EconAir

  ECONOMIC DEVELOPMENT AND GROWTH Like China, India's projection of influence and power may partly depend on domestic economic development and growth. India may be increasingly seen by  countries and multinational companies  as an alternative to investing in or trading with China.   India's economic development was retarded after independence by a socialist government that favored state-owned companies and a few very large private companies in key sectors. Private manufacturing enterprise was not encouraged but heavily regulated, especially by labor and tax laws. Foreign investment was also discouraged. The problem in India is not only that firms are small, but that productive ones failed to grow. Rules from past governments rewarded firms for staying small. Tax systems offered preferential rates to tiny businesses; larger companies faced higher rates. A recent study estimates that if India removed such distortions—which Narendra Modi’s government is trying to do—it ...

  This was an existential war for the rebellious Americans. If they lost, leaders would be hung, Tories (loyalists) would retaliate, English rule would be harsh and revengeful. On the other hand, England could sail away and still remain a global power. The Americans did not have to win battles to win the war. They just had to continue to exist until the British decided that the war could not be won and had become too expensive. Opposition to the war in England rose rapidly after 1780. King George’s cabinet was forced to resign and Parliament passed a bill trying to limit George’s unilateral power to fight wars (sound familiar?). England had an average of over 30,000 troops but they had to fight in an area of about 100,000 square miles. England gave up Boston early. Later in the war, English troops could not hold Philadelphia after defeating the Americans and occupying the city. England also could not hold isolated garrisons throughout the colonies, which were exposed to attacks by ...