Unshackling India (HarperCollins India), an ambitious new volume on economic reforms by Ajay Chibber and Salman Anees Soz, is remarkably comprehensive in its coverage. It impressively navigates a finely-balanced path between the usual binaries in development discourse: Dirigisme versus libertarianism, state failure versus market failure, growth versus distribution, public enterprise reform versus privatization, and so forth. Also, before getting into the details of reforms in specific factor markets and sectors, the authors lay out what they consider foundationalchanging the role of the state and human development. I entirely agree with them that a dysfunctional state and the snails pace of human development are indeed the two key constraints that have held India back.
In the chapters on government and public enterprises, as in others, the authors first summarize the main findings of a vast body of research on the subject, often along with relevant research on other countries. Based on that, they then present their own detailed reform agenda. The overarching message is simple. The state in India is not too large, relative to the size of the country, but it spreads itself thin in doing too many things. It lacks the capacity to do all these things well, so we end up with poor governance and delivery of essential public services. The first plank of reforming the state is therefore to reduce its scope. Just do the few things a developing-country government must. The second plank is to strengthen state capability to do those things well, whether it be delivery of public services such as education, healthcare, infrastructure development, law-and-order and defence, or regulation to protect the environment and ensure that markets remain contestable, or macroeconomic management.
Another key message is decentralization down to the local government, the level at which citizens encounter the state and at which many public services should be delivered. This will require major reform, even constitutional amendments, to empower local governments politically, enable them to mobilize adequate resources and build their capabilities. On the subject of public enterprises, the authors focus on privatization. But they also carefully sequence which enterprises should be privatized when.
The second foundational intervention they propose is rapid human development. Summarizing Indias abysmal record on learning outcomes and the appalling quality of health services, underlined by the collapse of our healthcare system in the second covid wave, the authors emphasize that no country can aspire to be a major global player without a skilful and healthy workforce. And none of that is possible without a sound foundation of basic education and high quality basic healthcare. The real commanding heights of an economy are not steel mills, power plants and heavy industries, as early planning models assumed, but education and healthcare. This theme runs through the book.
The authors then nutshell the literature, draw lessons and present their reform proposals for all factor markets and major sectors. In their tour de horizon, some proposals are inevitably more compelling than others. Let me select a couple which struck me as the most important.
In agriculture, apart from other proposals like replacing product support with more income support, PM-Kisan and MNREGA, and incentivizing crop diversification away from water-guzzlers like rice, wheat and sugarcane, the authors focus on the emergence of farmers producer cooperatives, as shown by Amul in the case of dairy. This is a major institutional development thats gaining traction in several states. Perhaps it is the only way of making agriculture viable when farmland is mainly owned as tiny plots by millions of farmers.
In the case of industry and trade, the authors propose that instead of raising protectionist tariff barriers, which are self-defeating, the government should pursue a light-touch industrial policy,which played a major role in the rise of the East Asian miracle economies, including China. This approach has already helped Indian firms penetrate global markets in sectors like automobiles, auto parts, engineering goods, electronics and pharmaceuticals. Such support could also be extended to defence equipment, green technology, etc, to ride the fourth industrial revolution driven by digitization, artificial intelligence and robotics. In this context, they feel the recently-introduced Production -Linked Incentive (PLI) scheme has great potential.
I could pick many examples. However, there is perhaps an internal inconsistency in the authors approach. Reforms are also interventions requiring state capability and they suggest reform measures for everything from government and privatization to education, health, raising womens labour force participation, social safety nets, labour, land, the financial sector, agriculture, industry and trade, services, climate change, emerging technologies and even disaster management. Yet, their foundational proposal is to reduce the scope of our capacity-constrained state.
In that light, it would be better to focus on a few key reforms, strengthen state capacity to do those reforms well, and leave the rest to the invisible hand of the market.
Sudipto Mundle is chairman, Centre for Development Studies, Trivandrum. These are the authors personal views
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!
Link:
Unshackling the Indian economy will be a tall order - Mint
- Serfdom Reform vs. Liberty The Future of Freedom Foundation - The Future of Freedom Foundation - April 12th, 2024 [April 12th, 2024]
- N.Y. Libertarian Party launches petition drive for ballot - Spectrum News - April 10th, 2024 [April 10th, 2024]
- Arizona voters question petition for Libertarian candidate: Not even close to my signature - Washington Examiner - April 10th, 2024 [April 10th, 2024]
- Understanding Freedom and Faith in Freedom The Future of Freedom Foundation - The Future of Freedom Foundation - April 10th, 2024 [April 10th, 2024]
- Henry Simons And The Libertarian Night Watchman As Tax Collector - ProMarket - April 2nd, 2024 [April 2nd, 2024]
- Why libertarians don't trust RFK Jr. - UnHerd - April 2nd, 2024 [April 2nd, 2024]
- Learn from Libertarians | Commentary | thestatehousefile.com - The Statehouse File - March 10th, 2024 [March 10th, 2024]
- Review: Sheriff in 'Fargo' Gives Libertarians a Bad Name - Reason - March 10th, 2024 [March 10th, 2024]
- Why Libertarianism Is Not Mainstream (But Should Be) | Henry Gardella - Foundation for Economic Education - March 10th, 2024 [March 10th, 2024]
- Donald Rainwater to lead Indiana Libertarian ticket as party chooses its 2024 nominees - WFYI - March 10th, 2024 [March 10th, 2024]
- Could the Libertarian Party nominate RKF Jr.? - NewsNation Now - March 10th, 2024 [March 10th, 2024]
- 2024 election: These Libertarians will be on Indiana's ballot - IndyStar - March 10th, 2024 [March 10th, 2024]
- Why Do All These Homosexuals Keep Sucking My Cock? - The Onion - January 4th, 2023 [January 4th, 2023]
- Russell Kirk - Wikipedia - December 21st, 2022 [December 21st, 2022]
- Maj Toure: Why Black Gunsand LibertarianismMatter - December 12th, 2022 [December 12th, 2022]
- Georgia's 'blank ballot' voters | Who are they? And why did they do it? - 11Alive.com WXIA - December 12th, 2022 [December 12th, 2022]
- Exclusive: No official records of personal meeting between Institute of Economic Affairs and Jacob Rees-Mogg - NationalWorld - December 12th, 2022 [December 12th, 2022]
- Markets Fail. . .And Libertarianism Still Works, 10/16 - November 25th, 2022 [November 25th, 2022]
- The Bill of Rights: A Transcription | National Archives - November 7th, 2022 [November 7th, 2022]
- 'Centre, states need to work together for a developed India': FM Sitharaman on 'Atmanirbhar Bharat' - The Economic Times - November 7th, 2022 [November 7th, 2022]
- Libertarianism: Definition & Examples | StudySmarter - October 21st, 2022 [October 21st, 2022]
- In N.H., its live Free State or leave thats libertarianism? - The Boston Globe - September 11th, 2022 [September 11th, 2022]
- Cryptos Libertarianism Is Running Headfirst Into Reality - The Atlantic - September 11th, 2022 [September 11th, 2022]
- The 'red wave' was such a sure thing, of course Republicans are blowing it The Nevada Independent - The Nevada Independent - September 11th, 2022 [September 11th, 2022]
- Jim, Sigal, and Michele just living their best lives - Nevada Current - September 11th, 2022 [September 11th, 2022]
- Long Live the King (My President)! - Econlib - September 11th, 2022 [September 11th, 2022]
- How Housing Is Captive to Investment Demands - Santa Barbara Independent - September 11th, 2022 [September 11th, 2022]
- Arkansas governor candidates hitting the campaign trail - 4029tv - September 11th, 2022 [September 11th, 2022]
- Aaron Rodgers Sounds Off On Government: NFL World Reacts - The Spun - September 11th, 2022 [September 11th, 2022]
- David Boaz - Wikipedia - September 7th, 2022 [September 7th, 2022]
- Arlington Heights board gets petition from Koch brothers-backed group calling for law that may impact Chicago Bears' stadium plans - Chicago Tribune - September 7th, 2022 [September 7th, 2022]
- Georgias Senate Race Is Much Closer Than The Governor Election. Will That Hold Until November? - FiveThirtyEight - September 7th, 2022 [September 7th, 2022]
- Letter: The threat against democracy | Letters To Editor | berkshireeagle.com - Berkshire Eagle - September 7th, 2022 [September 7th, 2022]
- Vote in the State Primary - mysouthborough - September 7th, 2022 [September 7th, 2022]
- Group catering to nonpartisan voters launches ahead of the election The Nevada Independent - The Nevada Independent - September 7th, 2022 [September 7th, 2022]
- Libertarian Party of Wisconsin: Wisconsin Libertarians oppose student loan forgiveness ideas as theft - WisPolitics.com - September 2nd, 2022 [September 2nd, 2022]
- Guardrails of Democracy, Extended: Comparing Notes On The Team Libertarian Report - Reason - September 2nd, 2022 [September 2nd, 2022]
- Attempted Murder Arrest; Libertarians On The 2022 Ballot? PM Patch NH - Patch - September 2nd, 2022 [September 2nd, 2022]
- Chase Oliver could send Georgia's Senate race to a runoff - he's OK with that - The Atlanta Journal Constitution - September 2nd, 2022 [September 2nd, 2022]
- Rep. Stephen Handy, ousted at GOP convention, to wage write-in bid - Standard-Examiner - September 2nd, 2022 [September 2nd, 2022]
- J. R. R. Tolkien among the Illiberals Catholic World Report - Catholic World Report - September 2nd, 2022 [September 2nd, 2022]
- We Made It Through The Primary. Now It's On To The November General Election - Honolulu Civil Beat - September 2nd, 2022 [September 2nd, 2022]
- The Great Separation: Why American Politics Is Coming Apart at the Seams | Cornell Chronicle - Cornell Chronicle - August 30th, 2022 [August 30th, 2022]
- Palfrey eyes the exits- POLITICO - POLITICO - August 30th, 2022 [August 30th, 2022]
- Armstrong: Behind those misleading headlines on Colorado teacher pay - Complete Colorado - August 30th, 2022 [August 30th, 2022]
- What is a Libertarian? Beliefs & Examples | Study.com - August 29th, 2022 [August 29th, 2022]
- Libertarian Vs. Liberal (Whats The Difference?) - The Cold Wire - August 29th, 2022 [August 29th, 2022]
- Libertarianism Philosophy and History - Study.com - August 29th, 2022 [August 29th, 2022]
- Republican effort to remove Libertarians from November ballot rejected by Texas Supreme Court - The Texas Tribune - August 29th, 2022 [August 29th, 2022]
- Media organizations and civil libertarians sue to stop a law that restricts recording videos of cops - Arizona Mirror - August 29th, 2022 [August 29th, 2022]
- How a Tiny Minority Can Lead the World Toward Liberty | Dan Sanchez - Foundation for Economic Education - August 29th, 2022 [August 29th, 2022]
- GOP Candidate Saying it's 'Totally Just' to Kill Gay People Resurfaces - Newsweek - August 29th, 2022 [August 29th, 2022]
- Third Party Candidates: Alabama Libertarians to appear on general election ballot - WHNT News 19 - August 15th, 2022 [August 15th, 2022]
- Sick and tired of the two-party system: Pa. Libertarian Party sees surge in interest | Today in Pa. - PennLive - August 15th, 2022 [August 15th, 2022]
- Voter registrations in North Carolina continue to trend mostly unaffiliated and slightly Republican - The Mountaineer - August 15th, 2022 [August 15th, 2022]
- After Koch's Kinder, Gentler Rebrand Attempt, He Spent Over $1 Billion On 2020 Elections - Daily Kos - August 15th, 2022 [August 15th, 2022]
- Libertarian, Green, and Independent Candidates not Invited to Gubernatorial Debate The Amarillo Pioneer - The Amarillo Pioneer - August 15th, 2022 [August 15th, 2022]
- Runoffs to decide final nominations begins with early voting next week - Yahoo News - August 15th, 2022 [August 15th, 2022]
- Podcast: Muddling Through the Mar-a-Lago Mess - Reason - August 15th, 2022 [August 15th, 2022]
- The Story Behind the Wrenching Finale of 'The Anarchists' - WIRED - August 15th, 2022 [August 15th, 2022]
- The Search of Trumps House + the 5th Amendment - Econlib - August 15th, 2022 [August 15th, 2022]
- Libertarians see opening to gain ground in Georgia 2022 elections - The Atlanta Journal Constitution - August 4th, 2022 [August 4th, 2022]
- State Libertarian Party asks for 'relief from oppressive ballot laws' - The Albany Herald - August 4th, 2022 [August 4th, 2022]
- Election 2022: Primaries clear Michigan fields; more will come at conventions - The Center Square - August 4th, 2022 [August 4th, 2022]
- The Industrial Revolution and the Colonial Conundrum - Econlib - August 4th, 2022 [August 4th, 2022]
- School choice is the free market solution to failing public schools - Washington Examiner - August 4th, 2022 [August 4th, 2022]
- The primary is over Here's who you can expect to see on JoCo ballots in November - Shawnee Mission Post - August 4th, 2022 [August 4th, 2022]
- Climate change and the Supreme Courts version of police abolitionism - The Hill - August 4th, 2022 [August 4th, 2022]
- Discontent Is Never Enough - by Jonah Goldberg - The G-File - The Dispatch - August 4th, 2022 [August 4th, 2022]
- Progressive Conservatism: How Republicans Will Become America's Natural Governing Party - The Ripon Society - August 4th, 2022 [August 4th, 2022]
- Local News: Donnie Brown elected as 149th representative (8/2/22) | Standard Democrat - Standard-Democrat - August 4th, 2022 [August 4th, 2022]
- Former TV anchorman wins GOP nomination in Missouris 4th Congressional District - Missouri Independent - August 4th, 2022 [August 4th, 2022]
- Penn Jillette: Did His Libertarianism Survive Trump and COVID? - Reason - July 29th, 2022 [July 29th, 2022]
- Libertarian and Anti-functionalist: What Is the Memphis Design Movement? - ArchDaily - July 29th, 2022 [July 29th, 2022]
- 11 Pick Up Lines For Libertarians To Use If They Ever Meet A Girl - The Babylon Bee - July 29th, 2022 [July 29th, 2022]
- Nudged into the oncoming lane - Econlib - July 29th, 2022 [July 29th, 2022]
- Quebec's Conservative party surges in the polls as some of its candidates spread conspiracy theories - CBC News - July 29th, 2022 [July 29th, 2022]
- Accusations of racism and abortion politics- POLITICO - POLITICO - July 29th, 2022 [July 29th, 2022]
- Zeldin's Fraudulent Independence Party Signatures Show How Difficult it is to get on Ballot in NY - Yonkers Times - July 29th, 2022 [July 29th, 2022]
- How Republicans can build on Trumpism and become the party of progressive conservatism - The Hill - July 29th, 2022 [July 29th, 2022]