India is firing on just 10 per cent of the engines

INTERVIEW - KARTHIK MURALIDHARAN ECONOMIST

- K. SUNIL THOMAS

It is unusual for an economist to make heads turn for his theories and philosophies rather than his politics or insider revelations. But that is exactly what Karthik Muralidharan seems to have achieved with his just-released book Accelerating India's Development. The reviews have ranged from 'outstanding' to 'essential reading! THE WEEK caught up with this Tata Chancellor's Professor of economics at the University of California, San Diego. Excerpts from an interview:

Q/ What is your theory about development and where India is going wrong?
A/ The grand debate in development has been about growth. [Economists] J.N. Bhagwati and Arvind Panagariya will say that if you manage to get faster economic growth, everything else will follow. On the other hand, Amartya Sen and Jean Dreze will say that the purpose of development is to improve human life and therefore things like health and education should be a priority.

Now my point of departure in this debate is to say that at some level they are both correct. Because more growth helps human development, more human development helps growth. Then it becomes a fight about what you should focus on. The growthwallahs will say we need to do capital expenditure. The developmentwallahs will say we need to focus on the social sector. This is fundamentally a fight for budget allocation. But if you look at how inefficient the government is in the delivery system, then it doesn’t matter what you’re spending on, you’re spending it very badly.