Political Economy
 
Impact of disinvestment policy on public sector enterprises in India
Ritika Jain
Posted on: 12 Jun 2017
Topics:   Political Economy

To address operational inefficiencies in PSEs without comprising on their social objectives, disinvestment policy is often used. However, there are concerns regarding the extent of impact on firm performance since disinvestment may involve transfer of ownership but not control. Analysing data from 1991-2010 on all manufacturing PSEs owned by the central government, this column shows that the average annual efficiency score of disinvested enterprises rose by almost 20%.
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How the American dream led to India’s IT boom
Gaurav Khanna , Nicolas Morales
Posted on: 29 May 2017

In the context of the ongoing global debate on migration policies, this column shows that the H-1B visa programme of the US had a powerful impact on the US IT sector, and played a prominent role in spreading the boom to India.
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Consumption spikes and election days
Shabana Mitra , Anirban Mitra , Arnab Mukherji
Posted on: 20 Apr 2017
Topics:   Political Economy

There is ample anecdotal evidence on political parties bribing voters with cash or consumption goods prior to elections, in India and other developing countries. However, there is an expected lack of hard evidence on the extent and form of vote-buying. Using data from Indian states, this column analyses consumption patterns of households around elections, and finds a spike for some items just before elections.
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Do Gram Panchayat leaders favour their own constituencies in MNREGA fund allocation?
Subhasish Dey , Kunal Sen
Posted on: 19 Dec 2016
Topics:   Political Economy

Political incentives are known to play a role in the allocation of public resources from upper- to lower-tier governments. This column seeks to examine whether ruling parties in local governments favour their own constituencies in allocating MNREGA funds, if they target their core supporters or swing voters, and if this has any electoral returns.
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Governance performance of Indian states: 2001-02 and 2011-12
Samik Chowdhury , Sudipto Mundle , Satadru Sikdar
Posted on: 13 Dec 2016
Topics:   Political Economy

Defining governance as service delivery, this column develops a measure of the quality of governance – also adjusting for the impact of the level of development - and provides a ranking of major Indian states. The analysis suggests that there are two distinct paths of development in the less- and more-developed states.
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Politician’s pain is poor man’s gain: Income distribution in close-election constituencies
Shabana Mitra , Anirban Mitra
Posted on: 09 Nov 2016
Tags:   democracy

Studies have highlighted the role of electoral competition in directing the flow of public funds. Analysing data from India, this column finds lower income inequality and polarisation in tightly contested constituencies, implying that the poor gain more from electoral competition relative to the rich.
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Can the female sarpanch deliver? Evidence from Maharashtra
Mithila Biniwale , Stephan Klasen , Jan Priebe , Dhanmanjiri Sathe
Posted on: 23 Oct 2016

One-third of all seats in village councils are reserved for women. The government has proposed an increase in quota to 50%, and in the period of reservation from five to 10 years. Based on a survey conducted in Maharashtra, this column finds that availability of basic public services for women is better in female-headed villages - when the female head has been in the job for 3-3.5 years.
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Building connections: Political corruption and road construction in India
Jonathan Lehne , Jacob Shapiro , Oliver Vanden Eynde
Posted on: 13 Sep 2016
Tags:  

Rural infrastructure programmes of the government create new opportunities for growth but also for corruption. This column studies India’s flagship rural road construction programme and finds evidence that local politicians favour members of their caste or kinship networks in the allocation of contracts. This raises construction costs, adversely affects road quality, and increases the likelihood of ‘missing’ roads.
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W(h)ither the State? 25 years of economic liberalisation
Parikshit Ghosh
Posted on: 26 Jul 2016
Topics:   Political Economy

24 July 2016 marked 25 years of liberalisation of the Indian economy. In this article, Parikshit Ghosh, Associate Professor of Economics at Delhi School of Economics, contends that liberalisation did not mean the State should wither away and let markets rule the roost; it redefined complementary roles for the State and markets, making each more important than before.
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Does good governance reduce foodgrain diversion in PDS?
Sohini Paul
Posted on: 24 Jul 2016

In 2011-12, various states undertook measures to curb leakages of foodgrains from the Public Distribution System. Some of the pioneer states also implemented the National Food Security Act - a rights-based approach to food security - in 2013. Against the backdrop of these reforms, this column analyses whether there is any marked difference in the leakage pattern of foodgrains across states.
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