The role of the sub national state in delivering welfare in rural India

1. The role of the sub national state in delivering welfare in rural India Deepta Chopra (IDS) and Kunal Sen (ESID – University of Manchester) Paper presented at DSA Annual Conference, Birmingham 16th November 2013

2. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) • Provides 100 days of employment a year • To every rural household that demands work • At state minimum wages • Rights based welfare measure • Livelihoods + asset creation objectives • Budget of 8.91 billion USD (1.3 per cent of total central government spending) • World’s largest social security intervention in terms of household coverage (about 50 million households in 2012-2013)

3. Implementation structure • Centrally financed (90%) and monitored through the Ministry of Rural Development • Implemented by State Departments of Rural Development • Involvement of administration at various levels – state, district and block • At village level, implementation happens through Gram Panchayats • Team of technical experts (engineers, accountants, data entry operators, MIS experts) at all levels.

4. The research puzzle • Same design; same implementation structures • Varying implementation performance (outcomes) across states and within states (district, block and GP level variation) • (Implementation Performance measured by the proportion of person days generated in each state out of the number of rural poor)

5. Selection of states • Four ‘high implementation’ states: Andhra Pradesh, Tamil Nadu, Rajasthan and Chhatisgarh • Four ‘low implementation’ states: Orissa, Bihar, Maharashtra and Assam

6. Working hypothesis • The role of the sub national state is critical in explaining variations across states • Two ways in which implementation can be affected: • Capacity for implementation • Political will or commitment towards the Act

7. Methodology • Desk based literature and statistical analysis • Elite interviewing with sub national and provincial bureaucrats and other state-level personnel • Elite interviewing with political party leaders • Selected field visits to worksites and interactions with front line staff and workers

8. State Capacity • Path dependency • Extractive capacity • Physical and Organisational Competence • Relational Capacity • Territorial reach

9. Path Dependency • Existing structures and experience in similar programmes can signal existing capacity to implement employment programmes

10. Extractive Capacity across four states • Required for initial investment in administrative capacity • Required for co-financing 10% contribution from states (25% of material costs) • Disbursements from centre (based on MIS) required for implementation

11. Physical and Organisational Competence • Good physical and organizational infrastructure implies good state capacity for implementation • Integration possibilities ensure maximising resources and positive spill-overs • Ability of bureaucrats to resist pressures from political and local elites is important, yet complete autonomy may be counter productive too. ‘Inverted U-shaped relation’ between state capacity and bureaucratic autonomy (Fukuyama 2013)

13. Relational Capacity • Civil society assisting implementation, generating awareness, ensuring accountability; M&E • Capacity to deal with criticism shows constructive engagement for improving the programme and positive learning capacity

14. Territorial reach • Capacity of the state to provide information to the poorest and most marginalised is critical for generating demand and fulfilling the rights based ethos of the MGNREGA

15. Expressions of Commitment • Locus of Initiative • Degree of analytical rigour • Mobilisation of support • Application of credible sanctions • Continuity of effort • Political feedback and legitimacy

16. Locus of Initiative • The extent to which sub national actors take initiative over MGNREGA indicates their willingness to adapt/ change/ use

17. Degree of analytical rigour • Reflects the extent to which MGNREGA is taken seriously • Can be seen from the analytical steps taken to resolve problems, preparation for implementation, changes in administrative structure, trainings etc

18. Mobilisation of support • From within the state governments (politicians/ state structures); within department; from civil society and local power holders (Sarpanches)

19. Application of credible sanctions • Recognition of positive actions, punishing negative actions can send strong signals and motivate • The role of social audits in identifying actions is critical

20. Continuity of Effort • Personnel continuity and regular financial resources can be critical for ensuring continuity of initiatives and actions

21. Political feedback and legitimacy • Extent of political competition – higher the competition, more the responsiveness • Perceptions about political feedback from good implementation

22. Capacity + Commitment in four states

23. Conclusions • Sub national state as a critical actor influencing implementation performance and outcomes – this influence operates through variations in capacity and commitment • Commitment and Capacity are interlinked and feed into each other • Political economy aspects play a major role in the ways in which welfare policies are implemented • Actors • Interests and motivations – commitment • Resources