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Connectivity, Clientelism and Public Provision
Published online by Cambridge University Press: 04 October 2017
Abstract
In many developing countries the rural poor often depend on patrons to act as brokers in order to get public provision from the government. The broker facilitates provision in return for securing peasants’ votes for politicians. Yet, low bargaining power of peasants allows patrons to appropriate public resources for themselves. I propose increasing peasants’ bargaining power by connecting them to markets outside their village. Making use of a natural experiment found in the construction of a motorway in Pakistan, I find public provision to be significantly higher in connected villages when compared to those which are isolated. Moreover, I find that the beneficial impact of connectivity is felt most strongly by the lower classes, who are most vulnerable to exploitation when isolated.
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Footnotes
Department of International Development, London School of Economics and Political Science, Houghton Street, London. WC2A 2AE, UK. [email protected] I would like to thank Dr Jean-Paul Faguet, Lauge Poulsen and Hadia Majid for extensive comments on this article. I would also like to thank the Leverhulme Trust for funding part of this study. Replication data sets are available in Harvard Dataverse at: https://dx.doi.org/10.7910/DVN/SC5UIN and online appendices are available at https://doi.org/10.1017/S0007123417000254.
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