The Political Economy of Mahatma Gandhi National Rural Employment Guarantee Scheme Spending in Andhra Pradesh

48 Pages Posted: 3 Oct 2014

See all articles by Megan Sheahan

Megan Sheahan

Cornell University - Dyson School of Applied Economics and Management

Yanyan Liu

International Food Policy Research Institute (IFPRI)

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR)

Date Written: September 10, 2014

Abstract

While government spending on pro-poor community asset creation and income-transfers could have compounding positive effects on poverty reduction, it is important to first study trends in the allocation of funds, particularly as they relate to the susceptibility of the program to political clientelism. This paper uses expenditure data at the local level in Andhra Pradesh from India’s National Rural Employment Guarantee Scheme, a rights-based program distributing both public and private goods, to investigate the relationship between voting outcomes and program intensity in the seven years straddling a major election. By focusing on one state where accountability and transparency mechanisms have been employed and implementation efforts have been applauded, the authors do not find evidence of blatant vote buying before the 2009 election but do find that patronage played a small part in fund distribution after the 2009 election. Indeed most variation in expenditures is explained by the observed needs of potential beneficiaries, as the scheme intended.

Keywords: India, South Asia, Asia, Public Policy, Governance, Poverty, Rural Areas, Rural Population, Social Safety Nets, Social Protection, Political Economy, Clientelism, Project Allocation, Mahatma Gandhi National Rural Employment Guarantee

JEL Classification: D73, H41, H42, H53, H54, I38, O12

Suggested Citation

Sheahan, Megan and Liu, Yanyan and Barrett, Christopher B. and Narayanan, Sudha, The Political Economy of Mahatma Gandhi National Rural Employment Guarantee Scheme Spending in Andhra Pradesh (September 10, 2014). IFPRI Discussion Paper 1371. Available at SSRN: https://ssrn.com/abstract=2504118

Megan Sheahan (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Yanyan Liu

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Mumbai, Maharashtra 400065
India

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
114
Abstract Views
587
rank
258,370
PlumX Metrics