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FOOD , LAW AND POLITICS IN INDIA The Political Economy of the Essential Commodities Act

If there is one issue prominent these days in (political) economy and economic policy, it is the relation between state and market. Liberal neo-classical economists such as the Nobel prize winner James Buchanan or Deepak Lal have certainly succeeded in taking the lead in this debate. Their ideas on liberalisation and deregulation have influenced economic policy in many countries now, although there are also influential critiques and counter positions (eg Cornia et al, 1987; Drèze and Sen, 1989). A general problem with many of the contributions to the debate is the dichotomy drawn between the state and the market which are conceptualised as separate social phenomena that develop independently, obstructing each other's development rather than mutually reinforcing it. The debate is highly influenced by ideological notions. Assumptions about the freedom of the market or the rational character of state regulation take the place of detailed empirical analysis about the actual interconnectedness and interrelations between the state and the market (Gould and von Oppen, 1994).