In their thought-provoking book, Acemoglu and Robinson argue that institutions, and they alone, determine the prosperity of a nation. The goods and services tax (GST) council can be an example of the inclusive political institution that Acemoglu and Robinson talk about. With India too poor for its level of political institutions and China too behind in its institutions for its level of income, Subramanian says Acemoglu and Robinson fail to explain the development trajectory of “one-third of humanity”. But when speaking of organizations as institutions, Modi will also have to focus on institutional design. Should India focus on building inclusive institutions?

Source: Mint September 06, 2016 21:45 UTC