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

Ajay Chhibber

Working Papers from The George Washington University, Institute for International Economic Policy

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.

Keywords: Role of the State; State-Owned Enterprises; Devolution; State Capability (search for similar items in EconPapers)
JEL-codes: H00 H11 H2 H4 H5 H7 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2021-02
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Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2021-02

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