| Abstract: | This paper examines the evolution in a few public institutionsover time in India. It presents three types of evidence: oninstitutional outcomes (such as losses in power generation,backlogs in disposal of court cases); on perceptions-based measuresof governance, some going back to the 1960s; and, finally, oncustoms administration and whether it has been more effectiveat detecting evasion over time. All the evidence suggests thatinstitutional quality has not improved over time. It then addressesthe two-way relationship between growth and institutions interms of two apparent paradoxes. The first is why growth hasturned around so dramatically in India despite the relativelylimited nature of reforms, especially compared with other countries.The second paradox is why, despite nearly 30 years of rapidgrowth, institutions have not improved. The paper offers someexplanations that might help explain these paradoxes. |
