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Building State Capacity : What is the Impact of Development Projects?
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Although research has established the importance of state capacity in economic development, less is known about how to build that capacity and the role of external partners in the process. This paper estimates the impact of a typical development project designed to build state capacity in a low-income country. Specifically, it evaluates a multilateral development bank project in Tanzania, which incentivized investments in local state capacity by offering grants conditional on institutional performance scores. The paper uses a difference-in-differences methodology to estimate the project impact, comparing outcomes between 18 project and 22 non-project local governments over 2016-18. Outcomes were measured through two rounds of primary surveys of nearly 500 local government officials and nearly 3,000 households. Over the course of the project, measured state capacity improved in project areas, but due to comparable gains in non-project areas, the project's value-added to change in state capacity is estimated to be zero across all the dozens of relevant variables in the surveys. The data suggest that state capacity is evolving in Tanzania through endogenous changes in trust and legitimacy in the country rather than from financial incentives offered by external partners.


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Measuring the Effectiveness of Service Delivery : Delivery of Government Provided Goods and Services in India
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Year: 2017 Publisher: Washington, D.C. : The World Bank,

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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.


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Building Trust in the State with Information : Evidence from Urban Punjab
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Year: 2020 Publisher: Washington, D.C. : The World Bank,

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Can communication designed to increase support for government policy and shift perceptions of state capacity redress deep-rooted mistrust in state institutions? This paper finds providing information on past state effectiveness, highlighting citizens' cooperation in enabling past effectiveness or appealing to religious authorities' support for government policy have limited impact on support for policy, perceptions of state capacity and trust in the state in Pakistan. This holds true on average and across important dimensions of heterogeneity after accounting for experimenter demand. This paper highlights the limits of using information to build trust in state institutions, and the importance of measuring experimenter demand.


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Social Contracts in Sub-Saharan Africa : Concepts and Measurements
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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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.


Book
Crippling Leviathan : How Foreign Subversion Weakens the State
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ISBN: 1501748378 150174836X 1501748386 9781501748370 9781501748387 9781501748363 Year: 2020 Publisher: Ithaca, NY : Cornell University Press,

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Policymakers worry that "ungoverned spaces" pose dangers to security and development. Why do such spaces exist beyond the authority of the state? Earlier scholarship—which addressed this question with a list of domestic failures—overlooked the crucial role that international politics play. In this shrewd book, Melissa M. Lee argues that foreign subversion undermines state authority and promotes ungoverned space. Enemy governments empower insurgents to destabilize the state and create ungoverned territory. This kind of foreign subversion is a powerful instrument of modern statecraft. But though subversion is less visible and less costly than conventional force, it has insidious effects on governance in the target state. To demonstrate the harmful consequences of foreign subversion for state authority, Crippling Leviathan marshals a wealth of evidence and presents in-depth studies of Russia's relations with the post-Soviet states, Malaysian subversion of the Philippines in the 1970s, and Thai subversion of Vietnamese-occupied Cambodia in the 1980s. The evidence presented by Lee is persuasive: foreign subversion weakens the state. She challenges the conventional wisdom on statebuilding, which has long held that conflict promotes the development of strong, territorially consolidated states. Lee argues instead that conflictual international politics prevents state development and degrades state authority. In addition, Crippling Leviathan illuminates the use of subversion as an underappreciated and important feature of modern statecraft. Rather than resort to war, states resort to subversion. Policymakers interested in ameliorating the consequences of ungoverned space must recognize the international roots that sustain weak statehood.


Book
The Fiscal Cost of Weak Governance : Evidence from Teacher Absence in India
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Year: 2016 Publisher: Washington, D.C. : The World Bank,

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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.


Book
Stationary Bandits, State Capacity, and the Malthusian Transition : The Lasting Impact of the Taiping Rebellion
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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The Taiping Rebellion (1851-1864) in China was the deadliest civil war in history. This paper provides evidence that this cataclysmic event significantly shaped the Malthusian transition and long-term development that followed, especially in areas where the experiences that stemmed from the rebellion led to better property rights, stronger local fiscal capacity, and rule by leaders with longer-term governance horizons. More than one and a half centuries after the rebellion's end, population increases from pre-war levels remain 38 to 67 percent lower in areas that were affected by the rebellion than in those that were unaffected. Moreover, areas that were affected by the rebellion have, on average, greater fiscal capacity and modern economic sectors to the present day. Two channels for the effects of the rebellion are stationary banditry (manifested by varying property rights and the rebellion area's proximity to the Taiping capital), and the wartime strengthening of fiscal capacity. The analysis shows evidence of complementarity between wartime state capacity and local institutions, and of the long-term benefits of fiscal decentralization in a large country. Furthermore, initial human capital is strongly associated with long-term development.


Book
The Fiscal Cost of Weak Governance : Evidence from Teacher Absence in India
Authors: --- --- ---
Year: 2016 Publisher: Washington, D.C. : The World Bank,

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Abstract

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.


Book
Becoming Legible to the State : The Role of Detection and Enforcement Capacity in Tax Compliance
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Tax revenue in many low-income countries is inadequate for funding government investment in infrastructure and public services. This paper examines two dimensions of low state capacity that hinder tax collection: the inability to ascertain the tax base (detection capacity) and the inability to enforce unpaid liabilities (enforcement capacity). A randomized experiment with Liberian property owners finds that using identifying information from a newly developed property database to alert property owners that their noncompliance has been detected quadruples the tax payment rate, but only when the notice includes details on the penalties for noncompliance. A second experiment finds a further increase in compliance from signaling greater enforcement probability to delinquent property owners. These results highlight the importance of investments in both detection and enforcement capacity.


Book
Oil and Civil Conflict : Can Public Spending have a Mitigation Effect?
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Year: 2014 Publisher: Washington, D.C., The World Bank,

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This paper explores the conditions under which public spending could minimize violent conflict related to oil wealth. Previous work suggests that oil can lead to violent conflict because it increases the value of the state as a prize or because it undermines the state' bureaucratic penetration. Yet, little has been said on how oil wealth could be used to prevent the onset of violent conflict through public spending by buying off citizens and elites, increasing state legitimacy by providing basic services, or strengthening the military and security apparatus. The empirical analysis (148 countries over 1960-2009) shows that higher levels of military spending are associated with lower risk of small- and large-scale conflict onset in countries rich in oil and gas. By contrast, in economies with little natural resources, increases in military spending are associated with a higher risk of conflict. Welfare expenditure is associated with lower risk of small-scale conflict, irrespective of the level of oil revenue. However, general government spending does not appear to have any robust mitigating effects.

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