Are Coalitions the Villain in Modern Democracy?

This paper attempts to study the influence of coalition politics on modern welfare democracies. Government instability, which can be a cause of economic distortions, is also of particular relevance in India today. Unstable coalitions or governments that are not likely to remain in power for an extended period of time are liable to introduce policy distortions. The political dynamics of coalition governments and the compulsions of electoral politics impact policy formulation and implementation in India. In the history of independent democratic India policy formulation has been motivated and shaped by political factors, especially by compulsions of electoral and coalition politics. The linkage between politics and economics leads to policy distortions, and economic policies have their intended results diluted. It is imperative to focus on the analysis and understanding of these distortions and their adverse impact on policy process with specific reference to the goal of inclusive growth, and to analyze and understand the link between policy formulations and politics in the wider perspective on the political economy of reforms, especially in the context of electoral politics in India.