The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat (Studies in Indian Economic Policies)

Growth miracles typically have been studied at the country level. In The Making of Miracles in Indian States , internationally-renowned economists Arvind Panagariya and M. Govinda Rao bring together a team of six leading scholars to break from that tradition and study three growth miracles in India at the level of the state: Andhra Pradesh, Bihar, and Gujarat. These are three large and diverse states in India: Gujarat has the third-highest per-capita income among the largest eighteen states, Bihar is the poorest, and Andhra Pradesh falls in the middle. Despite vast differences among the states, all three have grown at rates exceeding 8% for an entire decade in the twenty-first century. Each section of this three-part book offers a historical perspective on the state's development and the specific factors that improved its economic fortunes. The three case studies are backed by extensive quantitative documentation. They demonstrate the critical role that leadership, translated into improved policies and implementation, plays in stimulating growth and development. The Making of Miracles in Indian States is essential reading for students and scholars alike, as well as policy makers, NGO workers, and employees of international institutions. Growth Miracles Typically Have Been Studied At The Country Level. The Making Of Miracles In Indian States Breaks From That Tradition And Studies Three Growth Miracles In India At The Level Of The State: Andhra Pradesh, Bihar, And Gujarat. These Are Three Of The Largest And Most Diverse States In India. Andhra Pradesh Is Situated In The South Of India, Bihar In The East, And Gujarat In The West. Bihar Is The Poorest Among All States In India, Gujarat The Third Richest Among The Largest Eighteen States, And Andhra Pradesh In The Middle. Andhra Pradesh And Gujarat Have Long Coastal Lines While Bihar Is Landlocked. Yet, All Of These States Have Grown At Rates Exceeding 8% For An Entire Decade In The 21st Century. Despite Many Differences In The Initial Conditions, Several Common Threads Tie The High-growth Experiences Of The Three States.^ First, Accelerated Growth Has Permitted Acceleration In The Growth Of Development Expenditures In All Three States, Which Has Helped Improve Connectivity To Markets. Alongside This Growth, Poverty Has Seen Accelerated Decline. Second, The Composition Of Growth Matters. Growth In High-value Commodities Such As Fruits And Vegetables, Commercial Crops, Dairy, And Animal Husbandry In Andhra Pradesh And Gujarat Has Led To Accelerated Reduction In Rural Poverty. However, The Failure Of Labor-intensive Industry Has Stunted The Migration Of Workers Out Of Agriculture Into Industry. Third, The Quality Of Leadership That Brings Improved Governance With It Is Central To Improved Outcomes In The States. Visionary Leaders--chandrababu Naidu In Andhra Pradesh, Nitish Kumar In Bihar, And Narendra Modi In Gujarat--played Critical Roles In The Making Of All Three Miracles. Fourth, The Three Studies Also Bring Out The Importance Of Pro-market Reforms And The Adoption Of Technology In Development.^ Finally, The Studies Show That Good Economics Is Also Good Politics: Voters Reward The Chief Ministers Who Bring About Significant Improvement To The People's Lives-- Examines India's Economic Growth At The State Level-- Machine Generated Contents Note: -- 1. Introduction: Understanding The Growth Miracles Of Andhra Pradesh, Bihar, And Gujarat -- Arvind Panagariya And M. Govinda Rao -- Chapter 1 References -- Part I: Andhra Pradesh -- Mudit Kapoor And Rahul Ahluwalia -- 2. Andhra Pradesh: Setting The Stage -- 3. Growth And Economic Transformation -- 4. Poverty And Employment -- 5. Microfinance And Employment Guarantee Program In Rural Areas -- 6. Health And Education -- 7. Conclusions -- Appendix 1: Implications Of Bifurcation And Region-wise Analysis Of Andhra Pradesh -- Part I References -- Part Ii: Bihar -- Arnab Mukherji And Anjan Mukherji -- 8. Bihar's Economy In Historical Perspective -- 9. What Went Wrong? -- 10. What Changed? -- 11. Governance And Reforms Matter -- 12. Conclusions -- Part Ii References -- Part Iii: Gujarat -- Archana Dholakia And Ravindra Dholakia -- 13. Growth And Development In Gujarat: An Overview -- 14. Policy Reform In Economic Sectors -- 15. Urban Development -- 16. Fiscal Reforms And Performance -- 17. Elementary And Higher Education -- 18. Health -- 19. Governance, Efficiency, And Effectiveness -- 20. Lessons From The Gujarat Experience -- Appendix 2: Sardar Sarovar Project (ssp) On The River Narmada -- Appendix 3: The Earthquake And Its Impact On The Kutchh District -- Part Iii References -- 21. Lessons From The States And Looking Ahead -- Arvind Panagariya And M. Govinda Rao. Edited By Arvind Panagariya And M. Govinda Rao. Includes Bibliographical References And Index. This volume studies three Indian states that grew in excess of 8% per year for a decade in the twenty-first century: Andhra Pradesh, Bihar, and Gujarat. Despite differences of geography, size, resource endowments, and initial levels of development, several common features tie their experiences together The Making of Miracles in Indian States studies three Indian states at very different levels of development, all of which grew in excess of 8% per year for a decade in the 21st century: Andhra Pradesh, Bihar, and Gujarat.