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Why Does the Indian State Both Fail and Succeed?

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  • Devesh Kapur

Abstract

The Indian state's performance spans the spectrum from woefully inadequate, especially in core public goods provision, to surprisingly impressive in successfully managing complex tasks and on a massive scale. It has delivered better on macroeconomic rather than microeconomic outcomes, where delivery is episodic with inbuilt exit than where delivery and accountability are quotidian and more reliant on state capacity at local levels, and on those goods and services where societal norms on hierarchy and status matter less than where they are resilient. The paper highlights three reasons for these outcomes: under-resourced local governments, the long-term effects of India's "precocious" democracy, and the persistence of social cleavage. However, claims that India's state is bloated in size and submerged in patronage have weak basis. The paper concludes by highlighting a reversal of past trends in that state capacity is improving at the micro level even as India's macro performance has become more worrisome.

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  • Devesh Kapur, 2020. "Why Does the Indian State Both Fail and Succeed?," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 31-54, Winter.
  • Handle: RePEc:aea:jecper:v:34:y:2020:i:1:p:31-54
    DOI: 10.1257/jep.34.1.31
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    Cited by:

    1. Tarlok Singh, 2022. "Economic growth and the state of poverty in India: sectoral and provincial perspectives," Economic Change and Restructuring, Springer, vol. 55(3), pages 1251-1302, August.
    2. Dasgupta, Aditya & Kapur, Devesh, 2021. "The Political Economy of Bureaucratic Overload: Evidence from Rural Development Officials in India," SocArXiv 2qvwb, Center for Open Science.
    3. Vyas, Sangita & Gupta, Aashish & Khalid, Nazar, 2021. "Gender and LPG use after government intervention in rural north India," World Development, Elsevier, vol. 148(C).
    4. Himangshu Kumar & Manikantha Nataraj & Srikanta Kundu, 2022. "COVID-19 and Federalism in India: Capturing the Effects of State and Central Responses on Mobility," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2463-2492, October.
    5. Chhibber, Ajay, 2021. "India's Interventionist State: Reduce Its Scope and Increase Its Capability," MPRA Paper 105711, University Library of Munich, Germany, revised 01 Feb 2021.
    6. Ajay Chhibber, 2021. "India's Interventionist State: Reduce Its Scope and Improve Its Capability," Working Papers 2021-02, The George Washington University, Institute for International Economic Policy.
    7. Bose, Sukanya & Noopur, A. & Nayudu, Sri Hari, 2022. "Intergovernmental Fiscal transfers and Expenditure on Education in India: State level analysis, 2005 to 2020," Working Papers 22/377, National Institute of Public Finance and Policy.
    8. Agnihotri, Anustubh, 2022. "Transfer preferences of bureaucrats and spatial disparities in local state presence," World Development, Elsevier, vol. 159(C).
    9. Lazzarini,Sergio G., 2022. "The Right Privatization," Cambridge Books, Cambridge University Press, number 9781316519714.
    10. Anupama Roy, 2022. "Institutional ‘Presence’ and the Indian State: The Long Narrative," Studies in Indian Politics, , vol. 10(2), pages 185-200, December.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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