The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat PDF
Preview The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat
The Making of Miracles in Indian States STUDIES IN INDIAN ECONOMIC POLICIES India’s Reforms: How They Produced Inclusive Growth Reforms and Economic Transformation in India State Level Reforms, Growth, and Development in Indian States The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat The Making of Miracles in Indian States Andhra Pradesh, Bihar, and Gujarat Edited by Arvind Panagariya and M. Govinda Rao 1 1 Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Oxford is a registered trademark of Oxford University Press in the UK and certain other countries. Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016 © Oxford University Press 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization. Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above. You must not circulate this work in any other form and you must impose this same condition on any acquirer. Library of Congress Cataloging-in-Publication Data The Making of Miracles in Indian States : Andhra Pradesh, Bihar, and Gujarat / edited by Arvind Panagariya. pages cm. — (Studies in Indian economic policies) Summary: “Examines India's economic growth at the state level”— Provided by publisher. Includes bibliographical references and index. ISBN 978–0–19–023662–5 (hardback) 1. Rural development—India. 2. Local government—India. 3. Economic development—India. I. Govinda Rao, M., editor. II. Panagariya, Arvind, editor. HN49.C6S7698 2015 307.1′4120959—dc23 2014046315 1 3 5 7 9 8 6 4 2 Printed in the United States of America on acid-free paper To Prime Minister Nerendra Modi Chief Minister Chandrababu Naidu Chief Minister Nitish Kumar Leaders who brought relief and prosperity to millions of citizens in their respective states. CONTENTS Series Editors’ Note ix Preface xi Contributors xiii 1. Introduction: Understanding the Growth Miracles of Andhra Pradesh, Bihar, and Gujarat 1 Arvind Panagariya and M. Govinda Rao Chapter 1 References 17 PART I: Andhra Pradesh Mudit Kapoor and Rahul Ahluwalia 2. Andhra Pradesh: Setting the Stage 21 3. Growth and Economic Transformation 29 4. Poverty and Employment 59 5. Microfinance and Employment Guarantee Program in Rural Areas 77 6. Health and Education 88 7. Conclusions 102 Appendix 1: Implications of Bifurcation and Region-Wise Analysis of Andhra Pradesh 109 Part I References 117 PART II: Bihar Arnab Mukherji and Anjan Mukherji 8. Bihar’s Economy in Historical Perspective 123 9. What Went Wrong? 152 10. What Changed? 167 11. Governance and Reforms Matter 199 12. Conclusions 212 Part II References 217 ( vii ) ( viii ) Contents PART III: Gujarat Archana Dholakia and Ravindra Dholakia 13. Growth and Development in Gujarat: An Overview 227 14. Policy Reform in Economic Sectors 246 15. Urban Development 265 16. Fiscal Reforms and Performance 275 17. Elementary and Higher Education 285 18. Primary Healthcare and Medical Education 295 19. Governance, Efficiency, and Effectiveness 311 20. Lessons from the Gujarat Experience 320 Appendix 2: Sardar Sarovar Project (SSP) on the River Narmada 323 Appendix 3: The Earthquake and Its Impact on the Kutchh District 325 Part III References 327 21. Lessons from the States and Looking Ahead 333 Arvind Panagariya and M. Govinda Rao Index 341 SERIES EDITORS’ NOTE The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat, edited by Arvind Panagariya and M. Govinda Rao, is the fourth volume in the series Studies in Indian Economic Policies. This volume follows up on the third volume, which offered an overview of the 18 largest states of India and state-level reform priorities. It analyzes three highly successful states, Andhra Pradesh, Bihar, and Gujarat, in-depth with the view to understand- ing the link between state-level policies and economic outcomes. By implica- tion, it also seeks to glean lessons for state-level policies that can be emulated elsewhere in India and, indeed, other countries with a federal structure of government. Our purpose in launching the series Studies in Indian Economic Policies has been to bring out scholarly studies of the past and future economic poli- cies and their impact on India. We are open to including volumes authored by single or paired authors as well as collections of essays by different authors devoted to closely related themes in the series. We are not wedded to any specific method of analysis or viewpoint but do seek a policy focus and high standards of economic and political analysis. The series has originated in the Columbia Program on Indian Economic Policies, generously funded by the John Templeton Foundation. Beginning on October 1, 2009, the program has undertaken a number of research proj- ects with the participation of leading economists. The first four volumes have come out of these projects. We thank the John Templeton Foundation for supporting the Columbia Program and the Oxford University Press for bringing out the series. Terry Vaughn and Catherine Rae initially helped launched the series, and it is now in the able hands of Scott Parris and Cathryn Vaulman. We are grateful to them all. Jagdish Bhagwati and Arvind Panagariya October 2014 ( ix )
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