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Poor states that spend public money more wisely improved people's lives quite quickly: Madhya Pradesh and Rajasthan illustrate the value of better governance;Other measures of development, such as the Indian Human Development Index (which includes literacy, infant mortality, access to safe water and durably constructed housing, as well as formal education, poverty ratios, and per capita expenditure), do not show increased inequality;Exclusive focus on the states ignores problems that are concentrated at lower levels: available evidence, albeit limited, suggests that decentralizing policy-making power that is currently exercised at the state level could lead to further improvement in overall economic performance.
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