Who said coalitions were bad for the economy?

Venkatesan Vembu in DNA:

“Conventional wisdom has it that weak coalitions at the Centre are bad for the economy because an excessive preoccupation with political survival and with keeping coalition partners in good humour impedes any attempt at initiating bold economic reforms or offering good governance….

“But, in fact, India’s experience of coalition governments at the Centre and with economic growth demolishes that argument — or, at the very least, underscores an important exception to that rule.

“It’s no coincidence that the time-cycle of India’s move into a higher orbit of economic growth matches pretty closely the period when coalition arrangements have come to occupy centre-stage at the Central level.

“Virtually all the economic opening up and reform programs that enabled this speedier growth were carried out when motley, multi-party coalitions were in power: this is just as true of Congress-led arrangements as of those led by the BJP or the extremely nebulous and politically malleable “United Front”.

Read the full article: Shaky coalitions make good economics