Conclusion

Abstract

In this concluding chapter, we set out to do five things. First, we present key stylized facts that summarize the current realities of India’s political finance regulatory ecosystem. Second, we briefly review an important recent development on the policy front: India’s sudden and dramatic decision to ‘demonetize’ the rupee. Third, we discuss the motivations for pushing for deeper changes and outline the central tenets of a ‘grand bargain’ for electoral reform that combines both carrots and sticks in order curb some of the most distortionary impacts that money is having. Fourth, we briefly assess the question of whether the upstart Aam Aadmi Party (AAP) represents a new model of politics that combines internal party democracy with greater transparency in electoral funding, as some analysts have argued. Fifth, we conclude with some thoughts on a future research agenda.