Making politicians and bureaucrats deliver: decentralization and interlinked tasks

Goyal, Ashima (2010): Making politicians and bureaucrats deliver: decentralization and interlinked tasks. Published in: Indian Economic Journal , Vol. 57, No. 4 (2010): pp. 3-19.

Abstract

The paper analyzes incentive compatible task allocation between bureaucrats, central and local politicians in conjunction with the type of task. If effort in one task is an input in another task, giving the bureaucrat the second task as his objective will ensure the completion of both tasks. Compared to central politicians, lower level politicians may have more local power so decentralization requires a compensatory rise in local monitoring to make them more accountable to the public. Local monitoring is relatively easier, but even with it, local politicians put in less effort than local bureaucrats. Showing how the analysis can improve the provision of durable assets under the Mahatma Gandhi national rural employment guarantee scheme, and more generally improve the quality of public services, demonstrates its utility

• Item Type: MPRA Paper
• Language: English
• Keywords: Politician, bureaucrat, incentives, task allocation, decentralization
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior

References

Alesina, A. and G. Tabellini (2007). Bureaucrats or Politicians? Part I: A Single Policy Task, American Economic Review, Issue (1), Vol 97, 169-79, March.

Alesina, A. and Tabellini, G., (2008). Bureaucrats or politicians? Part II: Multiple policy tasks, Journal of Public Economics, Elsevier, vol. 92(3-4), pages 426-447, April.

CAG (Comptroller and Auditor General) (2007). Draft Performance Audit of Implementation of NREGA, Office of the Principal Director of Audit, Economic and Service Ministries, New Delhi.

Cooper, R. and A. John (1988). Coordinating Coordination Failures in Keynesian Models, The Quarterly Journal of Economics, Vol. CIII, No.3, August.

Dewatripont M. and J. Tirole (1999). Advocates, Journal of Political Economy, 107, 2-39.

GOI (Government of India) (2006). Towards faster and more inclusive growth: An Approach to the 11th Five Year Plan, Planning Commission.

Hart, Oliver, Andrei Shleifer, Robert Vishny (1997). The Proper Scope of Government: Theory and an Application to Prisons, Quarterly Journal of Economics, 112, 1127-61.

Hayek, F.A. (1960). The Constitution of Liberty. Chicago: Chicago University Press

Kojima, F. (2008). Bureaucrats or Politicians? Comment. American Economic Review, Issue (1), Vol 98, 561-562.

Menon, S. (2006). Village ‘dole’ takes baby steps amid apathy, graft, and subsequent series of articles on MGNREGS, Business Standard, August 7.

North, D.C. (2005). Understanding the Process of Economic Change, Princeton, N.J.: Princeton University Press.

Persson, T., and G. Tabellini (2000). Political Economics: Explaining Economic Policy, Massachusetts: MIT Press.

Platteau, J-P, and Y. Hayami (1998). Resource Endowments and Agricultural Development: Africa versus Asia, in Y. Hayami and M. Aoki (eds.) The Institutional Foundation of East Asian Economic Development: Proceedings of the IEA Conference Held in Tokyo, Japan, 357-410. New York: St. Martin’s Press; IEA Conference volume No. 127.

Tirole, J. (1994). The Internal Organization of Government, Oxford Economic Papers, 46, 1-29.

Wohlgemuth, M. (2003). Democracy as an Evolutionary Method, in P. Pelican and G. Wegner, eds., The Evolutionary Analysis of Economic Policy, Northampton, Mass.: Edward Elgar.