EconPapers    
Economics at your fingertips  
 

The politics of electricity reform: Evidence from West Bengal, India

Elizabeth Chatterjee

World Development, 2018, vol. 104, issue C, 128-139

Abstract: Across many developing countries, the power sector persistently underperforms despite years of market reform efforts. India, where de facto responsibility for the power sector rests with subnational (state) governments, provides a useful laboratory to examine why. The state of West Bengal provides an example of public sector reform as an alternative to the so-called “World Bank template” for electricity liberalization, and a lens on the political preconditions for reform success. Drawing on 30 elite interviews in 2016 alongside comparative evidence from other Indian states, this article documents the reform design and assesses its success. West Bengal’s reforms aimed at internally strengthening the utility against political interference. The study finds that this reform model delivered initial performance among the best of any Indian utility, and that successful reforms in several other states were also more statist than often recognized. However, longer-term sustainability remains challenging. While weak rural lobbies had some effect, the study explains this trajectory as the result of the transition from one-party dominance to intensified party-political competition, a finding that resonates with evidence from other Indian states. In contrast to influential political theories developed in the Global North, this suggests that party-political competition does not make Indian politicians more likely to deliver public services, but rather leads to short-termism and political capture of utilities. Conversely, under some conditions one-party dominance can encourage longer-term reforms. The study thus assesses the promise and limits of public sector reforms as an alternative to liberalization, and suggests how electoral competition can influence development priorities in Indian states.

Keywords: Public sector reform; Energy; Infrastructure; India; Public service delivery; Electoral volatility (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X17303650
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:wdevel:v:104:y:2018:i:c:p:128-139

DOI: 10.1016/j.worlddev.2017.11.003

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:wdevel:v:104:y:2018:i:c:p:128-139