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The last 17 years of reforms have transformed India, but we still have a long way to go. There are different areas where reforms are still needed. As we approach the next general elections, it is pertinent that we take stock and identify 'second-generation reforms' that would have the highest multiplier effects. So what are these second-generation reforms all about? The first 17 years were about withdrawing an overextended state. 'Liberalisation' and 'reform' meant the same thing in this stage. There is still some unfinished business from the first generation, but second-generation reforms are a fundamentally different set. They are about adjusting institutional arrangements in order to support the 'market-based' economic system that has emerged . This is about building a healthy relationship between the state and civil society in general, and the economic system in particular. Perhaps the most important role that the post-liberalisation state fills is ...