for a given country year, the presence of terrorism, as well as internal and external conflict is equivalent to as much as a 30 percent tariff on trade. This is larger than estimated tariff-equivalent costs of border and language barriers and tariff-equivalent reduction through GSPs and WTO participation.
Amartya Sen says 'Indian government has been overactive, where it should have been underactive, and underactive where it should have been active.' So true. I guess we can add that a government is underactive in areas where it should be active because it has been overactive in areas where it shouldnt be active. Leaving running businesses to businessmen, and focussing on external security and law and order within, it appears, would be a double blessing for an economy.
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