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Social Audits and MGNREGA Delivery: Lessons from Andhra Pradesh

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  • Afridi, Farzana
  • Iversen, Vegard

Abstract

Using unique panel data assembled from official reports, we study the impact of social audits on Mahatma Gandhi National Rural Employment Guarantee Act delivery in Andhra Pradesh. Within a dynamic framework where beneficiaries, auditors, and transgressors interact and learn, we find a positive but insignificant impact of audits on employment generation and a modest decline in the leakage amount per labor-related irregularity: outcomes with high beneficiary stakes. This occurs alongside an increase in material-related irregularities with lower beneficiary stakes. Although we find evidence suggestive of beneficiary “learning” and of audit effectiveness in detecting irregularities, repeated audits did not deter irregularities. This highlights the need for a time-bound process where transgressors are punished and responsibilities for follow-up of social audit findings laid out and credibly enforced.

Suggested Citation

  • Afridi, Farzana & Iversen, Vegard, 2014. "Social Audits and MGNREGA Delivery: Lessons from Andhra Pradesh," India Policy Forum, National Council of Applied Economic Research, vol. 10(1), pages 297-341.
    • Handle: RePEc:nca:ncaerj:v:10:y:2014:i:2014-1:p:297-341
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    Cited by:

    1. Afridi, Farzana & Dhillon, Amrita & Roy Chaudhuri, Arka & Saattvic,, 2022. "Measuring performance: Ranking state success over two decades in India," Journal of Asian Economics, Elsevier, vol. 83(C).
    2. Afridi, Farzana & Dhillon, Amrita & Solan, Eilon, 2016. "Exposing Corruption: Can Electoral Competition Discipline Politicians?," IZA Discussion Papers 10396, IZA Network @ LISER.
    3. Deepta Chopra, 2015. "Political commitment in India’s social policy implementation: Shaping the performance of MGNREGA," Global Development Institute Working Paper Series esid-050-15, GDI, The University of Manchester.
    4. Feba Varghese & N C Narayanan & S B Agnihotri & Girija Godbole, 2019. "Transparency, Accountability and Participation through Social Audit: Case of MGNREGA in Sikkim, India," Proceedings of the 13th International RAIS Conference, June 10-11, 2019 015FV, Research Association for Interdisciplinary Studies.
    5. Peter P. Houtzager & Arnab K. Acharya & Julia Amancio & Aheli Chowdhury & Monika Dowbor & Suchi Pande, 2021. "Social accountability in metropolitan cities: Strategies and legacies in Delhi and São Paulo," Development Policy Review, Overseas Development Institute, vol. 39(1), pages 59-81, January.
    6. Jeong, Dahyeon & Shenoy, Ajay & Zimmermann, Laura V., 2023. "De Jure versus De Facto transparency: Corruption in local public office in India," Journal of Public Economics, Elsevier, vol. 221(C).
    7. Sabina Schnell, 2023. "To know is to act? Revisiting the impact of government transparency on corruption," Public Administration & Development, Blackwell Publishing, vol. 43(5), pages 355-367, December.
    8. Afridi, Farzana & Dhillon, Amrita & Chaudhuri, Arka Roy & Kaur, Dashleen, 2020. "Efficacy of Top down audits and Community Monitoring," OSF Preprints akpdy, Center for Open Science.
    9. Afridi, Farzana & Dhillon, Amrita & Solan, Eilon, 2019. "Electoral Competition and Corruption: Theory and Evidence from India," CAGE Online Working Paper Series 423, Competitive Advantage in the Global Economy (CAGE).
    10. Deininger, Klaus & Nagarajan, Hari K & Singh, Sudhir K, 2020. "Women's political leadership and economic empowerment: Evidence from public works in India," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 277-291.
    11. repec:osf:osfxxx:akpdy_v1 is not listed on IDEAS
    12. Meena Yadav & Shiv Prasad Yadav, 2022. "Performance efficiency measurement of MGNREGA 2018-19 in Indian States and Union Territories based on DEA," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(4), pages 1714-1721, August.
    13. Kyando, Doreen Nico, 2022. "Social accountability initiatives in the delivery of public services in Sub-Saharan Africa: a systematic literature review," IOB Discussion Papers 2022.03, Universiteit Antwerpen, Institute of Development Policy (IOB).
    14. Sofia Amaral & Siddhartha Bandyopadhyay & Rudra Sensarma, 2015. "Public work programmes and gender-based violence- the case of NREGA in India," Working papers 176, Indian Institute of Management Kozhikode.
    15. Afridi, Farzana & Bhattacharya, Sourav & Dhillon, Amrita & Solan, Eilon, 2024. "Electoral competition, electoral uncertainty and corruption: Theory and evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).
    16. Farzana Afridi, & Sourav Bhattacharya, & Amrita Dhillon, & Eilon Solan,, 2021. "Electoral Competition, Accountability and Corruption:Theory and Evidence from India," CAGE Online Working Paper Series 569, Competitive Advantage in the Global Economy (CAGE).
    17. Deininger, Klaus & Liu, Yanyan, 2019. "Heterogeneous welfare impacts of National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh, India," World Development, Elsevier, vol. 117(C), pages 98-111.
    18. Deepta Chopra, 2016. "Demand Shortfalls or Supply-side Constraints," Journal of South Asian Development, , vol. 11(2), pages 175-202, August.
    19. Afridi, Farzana, 2017. "Governance and Public Service Delivery in India," IZA Discussion Papers 10856, IZA Network @ LISER.

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    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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