

Ep 375: Karthik Muralidharan and the Bureaucrat's Burden
131 snips Apr 1, 2024
Karthik Muralidharan, an expert on Indian state reform, delves into the challenges of bureaucracy in India with Amit Varma. Topics include state capacity in development economics, the bureaucratic maze, challenges in the Indian state bureaucracy, and the impact of government salaries on recruitment scams and staffing quality.
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Poverty Trap
- Development economics is unique due to the poverty trap concept, where individuals or nations get stuck in low-level equilibrium.
- Interventions can improve equity and efficiency, unlike the usual trade-off in public finance.
Development Economics Approaches
- Early development economics ignored state capacity, leading to project failures highlighted in books like 'The White Man's Burden'.
- Later approaches sidestepped the state by using PMUs for specific projects, complemented by RCTs to identify effective interventions.
Third Approach to Development
- The third approach focuses on improving state capacity as the core of development, emphasizing quality of expenditure over simply increasing spending.
- This approach aims to improve how governments convert budgets into outcomes, offering a higher return than just increasing program budgets.