A Blueprint for India’s State Capacity Revolution

Grand Tamasha

Over the last five years, Milan has interviewed authors of big books, that have brought innovative new ideas to the India policy debate. And he’s also interviewed authors of lengthy books. On the show this week, he sits down with an author who’s written a big book in every sense of the term.

It is no stretch to say that Accelerating India’s Development: A State-Led Roadmap for Effective Governance is one of the most important books written about the political economy of India’s development. Over 600 pages and 200 pages of notes, it takes readers on an exhaustive deep dive of India’s governance challenges, especially in delivering essential public services. The book draws on a wealth of research and practical insights to offer actionable, evidence-based strategies for reforms.

The author of this new book is the economist Karthik Muralidharan. Karthik is the Tata Chancellor’s Professor of Economics at the University of California San Diego.

He is one of the most prolific economists of his generation and his works spans public finance and development economics, with a focus on education, health, welfare, and public service delivery.

Milan and Karthik discuss the book’s origin story, Karthik’s framework for thinking about state capacity, and how to change the incentives of politicians and bureaucrats. Plus, the two discuss some of the book’s big ideas, ranging from data collection to public sector contracting and cash transfers.

Episode notes:

1. Karthik Muralidharan, Niehaus, Paul, and Sandip Sukhtankar, "General Equilibrium Effects of (Improving) Public Employment Programs: Experimental Evidence from India," Econometrica 91, no. 4 (2023): 1261-1295.

2. Karthik Muralidharan, Paul Niehaus, and Sandip Sukhtankar, "Integrating Biometric Authentication in India’s Welfare Programs: Lessons from a Decade of Reforms," Center for Effective Global Action Working Papers, University of California, 2022.

3. Karthik Muralidharan, Paul Niehaus, Sandip Sukhtankar, and Jeffrey Weaver, "Improving Last-Mile Service Delivery Using Phone-Based Monitoring," American Economic Journal: Applied Economics 13, no. 2 (2021): 52-82.

4. Karthik Muralidharan, Paul Niehaus, and Sandip Sukhtankar, "Building State Capacity: Evidence from Biometric Smartcards in India," American Economic Review 106, no. 10 (2016): 2895-2929.

5. Karthik Muralidharan, “A New Approach to Public Sector Hiring in India for Improved Service Delivery,” India Policy Forum 12, no. 1 (2016): 187-236.