The episode ends on one question: if India could make a single reform for long-term growth, what should it be? Ajay's answer is to remove barriers to trade, capital, services and people, and to have the state treat foreign and domestic firms the same.
Before you read his reasoning, decide for yourself. You have 100 points of political effort. Spread them across the reforms below according to how much each would matter.
Spend your 100 points
Lower tariffs and make importing and exporting easier.
Make it easier for money to flow in and out of the country.
Fewer barriers to offering services and to people working across borders.
The same rules for every company, wherever it comes from.
Better education and training for the workforce.
Quicker resolution of disputes and contracts.
100 points left to allocate.
There is no correct split. Notice which reforms you weighted most, and what that says about what you think holds growth back.
Compare and defend
- How close is your split to Ajay's answer? Where do you differ, and why?
- Which group of people might oppose the reform you weighted most? How would you answer them?
- Can opening up to the world be risky for a developing economy? When?