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Preferential Resource Spending under an Employment Guarantee: The Political Economy of MGNREGS in Andhra Pradesh

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  • Megan Sheahan
  • Yanyan Liu
  • Christopher B Barrett
  • Sudha Narayanan

Abstract

Are ostensibly demand-driven public works programs with high levels of safeguards nonetheless susceptible to political influence? We investigate this conjecture using expenditure data at the local level from India’s National Rural Employment Guarantee Scheme. Focusing on one state where accountability and transparency mechanisms have been employed and implementation efforts have been widely applauded, we find no evidence of partisan-influenced spending before the 2009 election and find that the political leaning of a mandal played only a small part in fund distribution after the 2009 election. Most variation in public works expenditures is explained by the observed needs of potential beneficiaries, as the scheme intended.

Suggested Citation

  • Megan Sheahan & Yanyan Liu & Christopher B Barrett & Sudha Narayanan, 2018. "Preferential Resource Spending under an Employment Guarantee: The Political Economy of MGNREGS in Andhra Pradesh," The World Bank Economic Review, World Bank, vol. 32(3), pages 551-569.
    • Handle: RePEc:oup:wbecrv:v:32:y:2018:i:3:p:551-569.
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    1. Gupta, Bhanu & Mukhopadhyay, Abhiroop, 2016. "Local funds and political competition: Evidence from the National Rural Employment Guarantee Scheme in India," European Journal of Political Economy, Elsevier, vol. 41(C), pages 14-30.
    2. Songqing Jin & Yanyan Liu, 2013. "Welfare and Poverty Impacts of India’s National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh," Working Papers id:5530, eSocialSciences.
    3. Zimmermann, Laura V, 2012. "Labor Market Impacts of a Large-Scale Public Works Program: Evidence from the Indian Employment Guarantee Scheme," IZA Discussion Papers 6858, Institute of Labor Economics (IZA).
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    6. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    7. Khera, Reetika (ed.), 2011. "The Battle for Employment Guarantee," OUP Catalogue, Oxford University Press, number 9780198070627, Decembrie.
    8. Aparajita Dasgupta, 2017. "Can the Major Public Works Policy Buffer Negative Shocks in Early Childhood? Evidence from Andhra Pradesh, India," Economic Development and Cultural Change, University of Chicago Press, vol. 65(4), pages 767-804.
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    Cited by:

    1. Das, Upasak & Maiorano, Diego, 2019. "Post-clientelistic initiatives in a patronage democracy: The distributive politics of India’s MGNREGA," World Development, Elsevier, vol. 117(C), pages 239-252.
    2. Das, Ritanjan & Dey, Subhasish & Neogi, Ranjita, 2021. "Across the stolen Ponds: The political geography of social welfare in rural eastern India," World Development, Elsevier, vol. 146(C).
    3. Narayanan, Sudha & Das, Upasak & Liu, Yanyan & Barrett, Christopher B., 2017. "The “Discouraged Worker Effect” in Public Works Programs: Evidence from the MGNREGA in India," World Development, Elsevier, vol. 100(C), pages 31-44.
    4. Chau, Nancy H. & Liu, Yanyan & Soundararajan, Vidhya, 2021. "Political activism as a determinant of strategic transfers: Evidence from an indian public works program," European Economic Review, Elsevier, vol. 132(C).
    5. 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.

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