ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Sudipto MundleSubscribe to Sudipto Mundle

Governance Performance of Indian States

Building on a methodology developed in an earlier paper, the results of an exercise in ranking Indian states based on five sets of criteria--infrastructure, social services, fiscal performance, justice, law and order, and quality of the legislature--are presented to show how states have fared relative to each other between 2001-02 and 2011-12. What emerges is that five of the six best-performing states of 2001 were also the best performers in 2011. Similarly, four of the six worst performers of 2001 were also among the worst performers of 2011. A consequence of such stickiness of rankings at the top and the bottom is growing regional disparity between the more- and less-developed states.

The Quality of Governance

There is a core concept of good governance, the combination of authority and responsibility to pursue the common good, that has remained stable over millennia. Building on this concept the paper develops several indices of the quality of governance and applies these indices to rank major states in India. The governance indices have been derived from the three main pillars of the government, i e, the legislature, the judiciary and the executive. Performance on each dimension of governance has been measured using indicators that are all based exclusively on factual data, not perceptions. The paper shows that there is a strong correlation between governance quality and the level of development in a state. When we correct for the effect of development on the quality of governance, it turns out that some of the poorer states significantly improve their rank, implying their governance performance is much better than would be expected at their level of development.

Stimulus, Recovery and Exit Policy: G20 Experience and Indian Strategy

There are large variations among the g20 countries in their deceleration experiences, transmission mechanisms and their current macroeconomic outlook. In an integrated global economy, it is essential that the major economies coordinate their policies. But coordination does not imply simultaneous stimulus withdrawal from all g20 countries. Indeed, a phased withdrawal is probably the best guarantee against the risk of a negative global shock leading to another recession in the event of a simultaneous stimulus withdrawal from all g20 countries. Hence, this paper argues that each country needs to set the timing, scale and composition of its stimulus withdrawal keeping in mind its own macroeconomic outlook.

Practices in Fiscal Federalism

Federalism and Fiscal Transfers in India by C Rangarajan and D K Srivastava (New Delhi: Oxford University Press), 2011; pp xxii + 257, Rs 695.

Redefining the Discourse on Fiscal Federalism

that has only begun to change recently following the 73rd and 74th constitutional Redefining the Discourse amendments. on Fiscal Federalism Transfers to States Political Economy of Federalism in India by M Govinda Rao and Nirvikar Singh; Oxford University Press, India, 2005;

Policies, Paradigms and Development Debate at Close of Twentieth Century

at Close of Twentieth Century Sudipto Mundle Economics of development emerged in a milieu of market failures following the great depression and new deal of 1930s when societies in the east as well as the west and the north as well as the south embraced the idea of the interventionist state. It is now generally recognised that apart from making macro-economic stability, governments in developing countries must intervene in sectors like health care, education, infrastructurat develolpment and conservation of environment.

Unemployment and Financing of Relief Employment in a Period of Stabilisation India, 1992-94

Unemployment and Financing of Relief Employment in a Period of Stabilisation: India, 1992-94 Sudipto Mundle A democratic government must actively intervene, and be perceived to be so intervening, in order to protect disadvantaged groups and social classes during a period of stabilisation. This is necessary especially when it is widely recognised that the government itself has been largely responsible for bringing about the current economic crisis through its profligate spending, imprudent borrowing and dysfunctional regulatory policies of the past.

Protection, Growth and Competitiveness-Study of Indian Capital Goods Industry

Study of Indian Capital Goods Industry THE Nehru-Mahalanobis strategy of state- dominated industrialisation within high protective barriers, which India has implemented for over 40 years, has come under increasing criticism in recent years. One view is that the strategy was simply a mistake- that it has blocked rapid, efficient, industrialisation, thereby leaving India behind in the race to achieve higher standards of living in the developing countries. An alternative view recognises the achievements of this strategy, especially compared to conditions prevailing during the colonial period, but maintains that the strategy has outlived its usefulness and should now be replaced by a more market-oriented, open economy approach for the next phase of development. The rationale for much of the ongoing policy reform in India is provided by these views. Their analytical underpinning is provided by traditional trade theory which demonstrated that under certain conditions 'free trade' is the best policy for all countries. Indeed, this has been perhaps the single-most influential and enduring theorem of economics since the time of Ricardo. Recently a significant literature has emerged which even attempts to measure the costs of protection [Corden, 1985]. Second best variants of this theory recognised a positive role for protective tariffs, etc, as devices necessary to support second best results when the best outcomes were preempted by domestic distortions. Though learning effects and increasing return were recognised as a possible justification for protecting infant industries, as advocated originally by Fredrich list, they remained outside the cropus of formal theory.

Volume and Composition of Government Subsidies in India, 1987-88

Volume and Composition of Government Subsidies in India, 1987-88 Sudipto Mundle M Govinda Rao This paper attempts to measure the volume and composition of subsidies provided by the Central government and major State governments and concludes that a substantial proportion of GNP, much larger than the explicit subsidy as revealed in the budgets or as computed even by the broader National Accounts definition, is being distributed in the form of subsidies through the Central and State budgets, much of it invisible, and that it is not at all clear that these subsidies are flowing to the intended beneficiaries.

Inflationary Implications of Resource Mobilisation through Administered Price Increases

This paper discusses a crucial aspect of the strategy of mobilising resources for financing the Seventh Plan, namely, the inflationary implications of administered price increases. The authors' analysis shows that the contribution of administered price increases to past inflation has been considerably greater than what was suggested in the discussion paper on administered prices prepared by the Finance Ministry ft a high rate of inflation, then, a price which the government must pay for following the Seventh Plan's financing strategy? Not necessarily for there are, the authors find, a number of major administered prices which could be raised substantially without triggering much extra inflation. The prices of a range of public sector products, such as coal and lignite, fertilisers, non-ferrous metals and rail transport services, fall in this category A policy of judiciously selected administered price increases would, therefore, go a long way in closing the Seventh Plan resource gap without generating very high rates of inflation.

A Disequilibrium View of Growth

A Disequilibrium View of Growth Sudipto Mundle Theory of Growth and the Tradition of Ricardian Dynamics by Badal Mukherji; Oxford University Press, 1982; pages x +132, Rs 55.

Effect of Agricultural Production and Prices on Incidence of Rural Poverty-A Tentative Analysis of Inter-State Variations

on Incidence of Rural Poverty A Tentative Analysis of Inter-State Variations Sudipto Mundle Three broad groups of factors determine the incidence of rural poverty. We have, first, factors like distribution of land which directly affect the income of cultivating households and, second, factors, like rural wage rates and wage employment which affect mainly the income of rural labour households. The following analysis deals with the third set of factors, agricultural prices and production, which affect the incomes of both segments of the rural poor directly.

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