Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. There is a strong connection between bolstering democracy and achieving a better functioning financial system. Elaborate. (250 words)
Reference: Business Standard
Why the question:
A great debate has surged, in recent weeks in India, about democracy and “tough” economic reforms.
Key Demand of the question:
To bring out the links between vibrant democracy and a proper functioning financial system.
Elaborate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Begin by developing a link how in the field of finance, the main path of reforms is intertwined with deepening of democracy.
Establish connection between rule of law and a flourishing economy with examples to substantiate it. Cite studies and examples, to substantiate your point.
Make note of how a functioning democracy helps the financial sector in investments, organizational building and increase of personal wealth etc.
Write about regulation of financial sector and the need for it be independent as well as how a democratic setup bolsters it.
Summarize as to how more democracy is good for financial development.