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Allocation of village public goods at community level: does political reservation help?

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Abstract

It has been empirically observed that reserving seats for leaders belonging to disadvantaged social groups at the local level improves targeting of household public goods to households belonging to these groups. However, it is not clear whether a similar result holds for the allocation of village public goods that have limited spillover effects across households in a village, such as repair and maintenance of access roads to households, streetlights, sewer lines, etc. The present paper uses locational data collected from a sample of Indian villages and applies spatial econometrics to test whether political reservations for elected representatives increase allocations to households belonging to the reserved community, especially when they are in the minority. The results show that for certain types of village public goods, political reservations produce favourable allocations for the reserved community when locational clustering of the communities is present.

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Notes

  1. See Mookherjee (2015)

  2. When only members belonging to the reserved community can run for office.

  3. Though papers like Duflo et al. (2005) and Bardhan and Mookherjee (2012) claim to find similar evidence, as we discuss later in this section, they fail to see that such results are dependent on locational clustering of deprived community households and the extent of spillover associated with the good as we do in this paper.

  4. The SC community lies at the bottom of the hierarchical caste system prevalent among Hindus, who constitute 80.5% of Indian population (see http://censusindia.gov.in/Census_And_You/religion.aspx).

  5. See Besley et al. (2004), Bardhan et al. (2010) and Bardhan and Mookherjee (2012).

  6. See Talen and Anselin (1998) and Lundberg (2006).

  7. A Left coalition ruled the state for 34 years from 1977 to 2011.

  8. In a recent paper Dasgupta and Pal (2019) cites IHDS 2 data for India to show that by 2012 in India across all the states on average 24.3% households practiced untouchability between the upper caste Hindu and backward caste Hindu. In contrast, only 0.9% of the households practiced untouchability in West Bengal.

  9. Intermediate administrative unit between the districts and villages.

  10. Unlike West Bengal, some states like Karnataka, Andhra Pradesh do not allow the use of party symbols in local elections. However, even in these states political parties play an important role in mobilisation of votes by supporting candidates affiliated to it and providing campaign finance (Dunning and Nilekani 2013).

  11. For example, if the GP has 30% of its population belonging to SC community, out of 10 village constituencies of the GP, 3 will be reserved for representatives belonging to the SC community.

  12. In India, according to “Rural Local Body Core Functions and Finances” (2014), a study for the Fourteenth Finance Commission by the Centre for Policy Research, New Delhi reports that the share of own revenues in total revenues of village Rural Local Bodies in 20 selected states across India is 11% only for the year 2012–2013. While it is higher in Maharashtra, Karnataka, Andhra Pradesh, Tripura and Goa, it is low in West Bengal, Orissa, Manipur, Kerala, Assam, Rajasthan and Uttarakhand.

  13. Currently West Bengal has 23 districts.

  14. By Constitution of India, GP elections are held every 5 years. Since in no GP the post of Pradhan is reserved at two consecutive elections, the reservation status of Nimdaria-Kodalia has changed in the election held in 2018.

  15. This was done to rule out any influence the proximity to Pradhan’s village constituency may have had on public good allocation.

  16. Besley et al. (2004) found positive significant effect of location of the GP headquarters on allocation of village public goods across villages.

  17. A negligible fraction of household members relocated due to jobs or marriage (mostly women), but the household did not. This trend is consistent with Indian migration data of 2007–08 (NSSO 2010).

  18. See Hengl (2006) and Boots and Getis (1988) on the choice of optimum radius.

  19. We thank one of the referees for suggesting this hypothesis.

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Acknowledgements

The paper has benefited from its presentation at Indian Institute of Management, Kolkata, Institute of Social Studies, the Hague, LICOS, Katholik University of Leuven, Jawaharlal Nehru University, New Delhi, Ravenshaw University, Cuttack and the Political Economy Conference, Silvaplana, 2019. We thank Mr Bhaskar Bose for his guidance during the data collection and processing of locational data used in this paper. The insightful comments from two anonymous reviewers and one of the editors of the journal are acknowledged. The usual disclaimer applies.

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Mukherjee, V., Bose, S. & Roy, M. Allocation of village public goods at community level: does political reservation help?. Const Polit Econ 31, 363–393 (2020). https://doi.org/10.1007/s10602-020-09309-3

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