Would you agree that unlike the US, India is less inclined to incentivise bad business management?
I think the high-powered incentives that the US has are present only in some areas in India today. There’s a good side and a bad side to it. The good side is that every once in a while, you get some really good performance. The bad side is it can go as haywire as it went. If you can incentivise performance through culture rather than through remuneration, that’s fantastic. But often, cultural norms tend to be insufficient. It may be that as India becomes more competitive, it gets some of what the US has. But we have to be careful about not going overboard. In Fault Lines, you discuss the importance of developing human capital to narrow the gap between the rich and the poor. This is especially true in the case of India. I think it’s absolutely important for India to focus on human capital and improve secondary school and tertiary-level education. We keep thinking we have enough people going through colleges. But the numbers themselves are relatively low compared to the size of our popul
