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This paper uses new survey data to measure the government's capacity to deliver goods and services in a manner that includes: high coverage of the population; equal access; and high quality of service delivery. The paper finds variation in these indicators across and within Indian states. Overall: (i) access to government provided goods and services is low-about 60 percent of the surveyed population are unable to apply for goods and services they self-report needing; (ii) inequality in access is high-women and poor adults are more likely to report an inability to apply for goods and services they need; and (iii) less than a third of the respondents who did manage to apply for a government delivered good or service found the application process to be easy. Access can be improved by reducing application costs and processing times, simplifying the application process, and providing alternative channels to receive applications.

Access To Services --- Inequality --- Poverty --- Public Goods --- Service Delivery --- State Capacity

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In 2019, an Independent Evaluation Group review on the growing use of social contracts terminology by the World Bank concluded that social contract diagnostics are useful analytical innovations with relevant operational implications, particularly in situations of transition and social unrest. But it also found that the World Bank had no formal, conceptual framework or shared understanding of social contracts, leading to uneven quality of use. This paper proposes a framework and quantitative measures to describe social contracts. First, the paper presents a literature review on social contract theory and its applications in development. Second, it proposes a conceptual framework based on three core aspects of social contracts: (i) the citizen-state bargain, (ii) social outcomes that form the contents of the social contract, and (iii) resilience of the social contract in terms of how citizens' expectations are being met. Third, an empirical measurement strategy is described to quantify these aspects through six dimensions and 14 subdimensions using available indicators from multiple sources. An empirical analysis then successfully tests some of the framework's predictions and finds indicative evidence for an operationally interesting result: that state capacity without civil capacity is often not sufficient to generate thicker and more inclusive social contracts, and that these better outcomes lead to less misalignment with expectations and to less social unrest. Fourth, the quantitative measures are used to present three comparative maps for the general characterization of social contracts at the cross-country level.

Civil Society --- Governance --- Institutions --- National Governance --- Political Economy --- Social Accountability --- Social Capital --- Social Contract --- Social Development --- State Capacity

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The relative return to input-augmentation versus inefficiency-reduction strategies for improving education system performance is a key open question for education policy in low-income countries. Using a new nationally-representative panel dataset of schools across 1297 villages in India, this paper shows that the large investments over the past decade have led to substantial improvements in input-based measures of school quality, but only a modest reduction in inefficiency as measured by teacher absence. In the data, 23.6 percent of teachers were absent during unannounced visits with an associated fiscal cost of USD 1.5 billion/year. There are two robust correlations in the nationally-representative panel ata that corroborate findings from smaller-scale experiments. First, reductions in student-teacher ratios are correlated with increased teacher absence. Second, increases in the frequency of school monitoring are strongly correlated with lower teacher absence. Simulations using these results suggest that investing in better governance by increasing the frequency of monitoring could be over ten times more cost effective at increasing teacher-student contact time (net of teacher absence) than hiring more teachers. Thus, at current margins, policies that decrease the inefficiency of public spending in India are likely to yield substantially higher returns than those that augment inputs.

Education for All. --- Education. --- Educational Populations. --- Effective Schools and Teachers. --- Governance. --- Monitoring. --- Primary Education. --- State Capacity. --- Teacher Absence. --- Teacher Absenteeism. --- Tertiary Education.

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Using multiple sources of national- and firm-level data around the world, this paper investigates how the effects of the business environment depend on whether themeasure is de jure or de facto, and how business environment effects differ by ownership and size. The paper compares estimates of business environment effects from three data sources, and modifies the priors on the relative importance of various elements of the business environment. Among four aspects of the business environment, at least two sets are robust and a third set does not contradict the other two: access to finance, electricity, internet, and human capital. The effects of de jure business environment indicators on firm performances depend on measures of contract enforcement. Foreign-owned firms benefit more from the maintenance of physical safety and ease in obtaining construction permits, and gain competitive advantage in productivity when domestic infrastructure or access to finance is worse. Relatively small firms benefit more from corruption control, basic and modern infrastructure, human capital, and land access. Relatively large firms benefit more from physical safety. Access to finance is important for the expansion of smaller firms and the productivity of large firms.

Access to Electricity --- Access to Land --- Business Environment --- Corruption --- Enterprise Development and Reform --- Firm Size --- Human Capital --- Infrastructure --- Internet Connectivity --- Ownership --- Private Sector Development --- Small and Medium Enterprises --- Small and Medium Size Enterprises --- State Capacity --- State-Owned Enterprises

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This paper argues for a novel approach to financing infrastructure needs in Arab countries. It first describes the context of rising public debt in the region, contrasting it with the vast infrastructure needs. It then discusses the challenges in meeting these needs with traditional financing. The paper then makes the case for maximizing finance for development, by using public-private partnerships, and presents a few successful examples in Arab countries. Finally, the paper explores the way forward and concludes on the need for strong state capacity and integrity to promote the maximizing finance for development approach.

Development Finance --- Energy --- Energy Policies and Economics --- Finance and Development --- Finance and Financial Sector Development --- Financial Economics --- Infrastructure Finance --- Macroeconomic Management --- Private Sector Development --- Private Sector Economics --- Public Debt --- Public-Private Partnership --- State Capacity