Political Economy
 
The economic and political consequences of India’s demonetisation
Abhijit Banerjee , Namrata Kala
Posted on: 26 Jul 2017

The ruling party at the centre won the Uttar Pradesh state election despite its demonetisation policy having some negative economic impacts on the Indian economy. By combining primary data from surveys of wholesale and retail traders, with secondary data on wholesale markets, this column seeks to analyse why this was so.
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India’s slum leaders - II
Adam Auerbach , Tariq Thachil
Posted on: 21 Jul 2017

The second part of the two-part column on slum leaders discusses who these leaders are - their age, professions, and relationships with political parties - and how they build support within their communities.
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India’s slum leaders - I
Adam Auerbach , Tariq Thachil
Posted on: 20 Jul 2017

India’s demographic shift to cities has been accompanied by a number of pressing governance and developmental challenges, among the most serious of which is the rampant spread of slum settlements. Within these poor urban neighbourhoods, certain residents rise to prominent positions of local authority. Based on resident and leader surveys conducted during 2015-2016 in Jaipur and Bhopal, this two-part column provides insights on these informal slum leaders.

The first part focusses on the range of activities slum leaders perform for residents, and the ways in which leaders emerge from within their communities.

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Language and development
David D. Laitin , Rajesh Ramachandran
Posted on: 05 Jul 2017

Language choice is central to organisation of society, transmission of knowledge, and interpersonal communication, and hence, has implications for socioeconomic inequality. This column examines the consequences of language policies on developmental outcomes in post-colonial States.
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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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