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India's Interventionist State: Reduce Its Scope and Improve Its Capability

Author

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  • Ajay Chhibber

    (George Washington University)

Abstract

This paper lays out a two-part strategy to improve the effectiveness of the state in India reduce the scope of the state and then improve its capability. It argues that the state tries to do too many things and ends up doing many of them badly. It must reduce its scope and change the way it does things - reduce their complexity. It must also strengthen the capabilities of the state institutions - especially those dealing with administrative functions and rule of law. The state must also build up the capability of local administration and increase its financing. It must also get out of the business of business by privatizing state -owned enterprises.

Suggested Citation

  • Ajay Chhibber, 2021. "India's Interventionist State: Reduce Its Scope and Improve Its Capability," Working Papers 2021-02, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2021-02
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    References listed on IDEAS

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    More about this item

    Keywords

    Role of the State; State-Owned Enterprises; Devolution; State Capability;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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