Decentralizing corruption: Irrigation reform in Pakistan

Hanan Jacoby, Ghazala Mansuri and Freeha Fatima

Journal of Public Economics, 2021, vol. 202, issue C

Abstract: Does decentralizing the allocation of public resources reduce rent-seeking and improve equity? We study a governance reform in Pakistan’s vast Indus Basin irrigation system, where corruption is endemic. Using canal discharge measurements across Punjab province from 2006 to 2014, we find that water theft increased on channels taken over by local farmer organizations compared to those that remained bureaucratically managed, reducing agricultural surplus and substantially redistributing wealth from downstream to upstream landowners. Water theft increased by more along channels with relatively larger (more influential) upstream landowners, suggesting that the political-economy context is critical to the success, or lack thereof, of decentralization.

Keywords: Rent-seeking; Bureaucracy; Elite capture; Landownership inequality (search for similar items in EconPapers)
JEL-codes: D73 P48 Q15 Q25 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272721001353
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:202:y:2021:i:c:s0047272721001353

DOI: 10.1016/j.jpubeco.2021.104499

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().