The 1991 economic reforms were all about dismantling a highly dysfunctional system of government interference with what was much better done by the market. This needed to be accompanied by the government playing a much stronger role in critical areas, notably the delivery of high-quality public services such as education and health, and also the rule of law. These are areas where our performance needs to be greatly improved if we are to achieve the objective of inclusive growth leading to high income status. In this magisterial book, Karthik Muralidharan draws on extensive research and practice to tell us how this is best done. Since these issues are Constitutionally state subjects, the book highlights the importance of state-level actions. Since much of what needs to be done in the years ahead lies primarily in the realm of the states, the book also recommends much greater decentralisation from centre to state, and from state to local governments. It sets an ambitious national agenda for evolving a well-considered programme of centre-state cooperation, which will be essential if we are to make progress in these areas.

Montek Singh Ahluwalia: Former Deputy Chairman, Planning Commission of India; Former Finance Secretary, Govt. of India

In a context where rapid technological change, global crises, and international capital markets have captured the headlines about the world economy, Karthik Muralidharan reminds us that at the heart of economic growth and welfare of nations is state capacity. Karthik’s message is not a simply a rediscovery of the role of state in economic development. It is a comprehensive reimagination and recrafting of the concept of state capacity and why and how it affects the welfare of nations. For political leaders and policy makers, this book is a clear guide on what drives national development. For students researching the economic growth paths of nations, Karthik’s treatise offers a powerful analytical framework, based on decades of meticulous research. To his credit, Karthik has intelligently drawn from beyond the usual narrow boundaries of RCT analysis to reflect on the larger story of national development. For those interested in the transformation of nations and those who follow the global footprint of India – this book is a “must-read”.

Junaid Kamal Ahmed, Vice President Multilateral Investment Guarantee Agency (MIGA); Former World Bank Country Director for India

Karthik Muralidharan’s wonderful empirical work has made us understand provision of public goods better, especially in social sectors. He brings that wealth of research experience and his incisive lens to bear in crafting this ambitious book on India’s future development trajectory, with an emphasis on state capacity, and ideas for improvement. This is a major contribution in an area often neglected, and will make us think about reinventing the Indian State, as we embark on our journey towards a developed India.

Bibek Debroy, Chairman Economic Advisory Council to the Prime Minister
There is a trove of simple policy reforms in India that could go a long way in improving people’s lives. However, they are not easy to find, let alone initiate. Karthik Muralidharan’s sustained quest for evidence-based reforms is an important contribution to this effort. This book presents a rich application of an approach to policymaking that cannot be ignored even when we differ.

Jean Drèze, honorary professor, Delhi School of Economics; and co-author of
Hunger and Public Action, and An Uncertain Glory: India and Its Contradictions

A well written and enjoyable read for both laypeople and experts. The solutions to building stronger state capacity are practical, recognizing that ours is a highly stratified society, and within that suggesting solutions which would work in everyone’s interest. For me, an important part is understanding the role for civil society and the ways in which a broad social coalition can be built to further this goal.

Renana Jhabvala: Chairperson, SEWA Bharat

This wonderful book by Prof. Muralidharan is a seminal contribution to the theory and praxis of economic transformation of a large country. Every country is of course unique in its own ways, but the sheer size of India makes the tasks facing the policymakers rather daunting. In coming years these challenges are getting more complex while the urgency to meet them is becoming greater as that the growth accelerator called “demographic dividend” is slowing down with every passing day. Fortunately, this is precisely where Prof. Muralidharan’s policy insights offered in this book are almost heaven sent to our policymakers. I hope they will “just do it.”
Vijay Kelkar: Chairman 13th Finance Commission; Former Finance Secretary, Govt. of India; co-author of In Service of the Republic

Karthik Muralidharan is the Tata Chancellor’s Professor of Economics at the University of California San Diego. His research spans public finance and development economics, with a focus on improving education, health, welfare, and public service delivery, and has been published in many of the world’s leading academic journals. He has also actively engaged in policy advising and capacity building in India at both Central and state-government levels, and in public communication of research insights through several op-eds and podcasts.

Professor Muralidharan is also the co-founder and scientific director of the Centre for Effective Governance of Indian States, a non-profit organization that works with multiple state governments across India to improve state capacity, governance, and service delivery. Born and raised in India, he holds a bachelor’s degree in economics from Harvard, an MPhil from Cambridge (UK), and a PhD in economics from Harvard.