Surjit S Bhalla: Small-state myths

There is no evidence to show that small states grow at a faster pace

The UPA government decided to make Telangana a separate state, and then decided against it, and then decided to set up a committee to study it. Since those eventful days in early December, there has been heightened interest in a very old question — do small states, or small administrative units, actually perform better in terms of governance and/or economic growth? In other words, is there an economic basis for splitting the large state of Andhra Pradesh into two? Several commentators have felt that such a case actually exists, but the evidence presented by them has been mostly of an ad ...