Growth, Development and Happiness           2.21
     of this is not that banks in that country will make        It is not known precisely how these values
     large losses. The implication is that banks will not  can be inculcated in society. But, hopefully,
     give loans; and the housing market will remain        writing about their importance will catalyse
     severely underdeveloped and the total number of       change, as ordinary people realise that for
     houses will be few and far between.                   economic advancement these social qualities are as
          Enforcing complicated or large contracts,        important as policies that concern directly with
     especially ones protracted over a long period of      the economy—like operating the stock market or
     time, is the responsibility of the state. The state   setting the rules of market competition.
     provides the laws and enforcement to enable                Further, basic literacy and better education
     people to sign contracts. However, economic life      are helpful since people can then, on their own,
     is full of everyday ‘contracts’ (for example, you let reason and reach these conclusions. Literacy has
     me ride in your taxi, and I will pay you at the       the added value that it implies ordinary people
     end of it; I pay you money now and you paint          will demand policies which are truly better,
     my house over the next two days; or you paint         rather than those that merely look good on the
     my house over the next two days and I will pay        surface. In a democratic setting like India, this
     you after that). In these everyday situations it is   will incentivise politicians to adopt better policies.
     too cumbersome to bring in the state or the law       Finally, if political leaders and policymakers act as
     courts. Here the main guarantor has to be the         role models in terms of these qualities of honesty,
     people’s personal integrity and trustworthiness.      integrity and trustworthiness, that can set the ball
     Societies that have successfully nurtured these       rolling. Inclusion of the behavioural dimension of
     qualities have done well; societies that have done    human existence in policymaking has potential to
     poorly on these fronts, tend to do poorly in terms    play a huge role in promoting well-being.
     of economic progress.