“…One institutional reform that did emerge in 1990 was the creation of the Inter-State Council (ISC), which includes the Prime Minister, state chief ministers, and several central cabinet ministers as members, and has become a forum where political and economic issues of joint concern can be collectively discussed, and possibly resolved. 21 Within this relatively static institutional framework, the 1991 economic reforms, which substantially loosened central government control of foreign and domestic corporate investment, allowed state governments to become more autonomous actors in economic policy (e.g., Sinha, 2004;Singh and Srinivasan, 2005;Singh, 2007), with horizontal competition among (at least some) state governments replacing rent-seeking interactions with the center. In this respect, therefore, reforms that liberalized central 21 The flexibility and breadth of scope of the ISC's possible concerns distinguish it from the much older National Development Council (NDC), which has somewhat similar membership, but focuses only on fiveyear-plan allocations.…”