Sunday, 19 August 2012

Mumbai Consensus

The Mumbai Consensus is a term coined by Lawrence Summers (noted economist) in 2010 underlined the significance of India’s economic strength in the coming decades. The Mumbai Consensus is a particular model of economic development which emphasizes: 

- "people-centric" approach to managing its economy 
-  relied on its domestic market more than exports, 
-  boosted domestic consumption rather than investment, 
-  pursued service-oriented industries rather than low-skilled manufacturing industries. 

The strength of the model lies in domestic demand driven inclusive growth in a robust democratic framework.  The Mumbai Consensus model of economic development remains distinct from the:
Beijing Consensus: state driven export-led growth paradigm of East Asia (also called Shanghai Consensus) 
Washington Consensus: of liberalisation, privatisation, deregulation with faith in the market to deliver the best possible outcomes. 


The following principles have been outlined as core to the Mumbai Consenses in order of relevance:
  1. Pluralistic Democratic (Polity)
  2. Gradualism and decentralization (Policy)
  3. Grassroots development and empowerment (Social-economic)
  4. Domestic demand driven and services dominated (Economy)
  5. Private entrepreneurship and innovation (Business)
  6. Non-expansionist, internationally status quoist (Geopolitical)
http://www.gatewayhouse.in/publication/gateway-house/features/mumbai-consensus
www.cumberlandplace.co.uk/.../7CF8-

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