ABSTRACT
The impacts of government intervention on the allocation of land across income groups can only be assessed on the basis of a rough description of such allocation. This chapter argues that both the strong, distributive role reserved for the government after independence and the 'colonial' administrative structure proved conducive to the development of a patronage-inspired polity based upon older forms of exploitative (village) leadership. In 1985, a National Ministry of Urban Development with a partly national policy assignment was created. The AP Urban Development Department followed the directive strictly according to the central guidelines. The international response was overwhelmingly positive. India was regarded as one of the best emerging markets. While these developments can be regarded as positive in themselves, the annual growth rates of the Indian GDP between 1991-94 all were significantly lower than those achieved in the previous decade.
