Bureaucratic connections and local development: A study of Palwal district in India

Numerous countries have established local elected governments to improve public goods delivery and reduce information asymmetry between the state and citizens. These governments remain dependent on upper levels for funding which has been found to be influenced by patronage politics and partisan alignment. In this paper, we show that the networks of locally elected officials and bureaucrats determine the allocation of discretionary funds and resources to local governments. Villages whose elected heads reported stronger connections with local bureaucrats were more likely to win a one-time inter-village competition for funds organized by the district administration of Palwal - a district in the North Indian state of Haryana. Locally elected officials in the district also report that bureaucratic connections are at least as necessary as political ties with higher-level politicians to obtain funds for their villages. This centrality of bureaucratic connections can be partly attributed to the institutional design in India.