Democracy, Public Expenditures, and the Poor : Understanding Political Incentives for Providing Public Services

The incentives of politicians to provide broad public goods and reduce poverty vary across countries. Even in democracies, politicians often have incentives to divert resources to political rents and private transfers that benefit a few citizens at...

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Bibliographic Details
Main Authors: Keefer, Philip, Khemani, Stuti
Format: Journal Article
Language:English
en_US
Published: Oxford University Press on behalf of the World Bank 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/03/17591977/democracy-public-expenditures-poor-understanding-political-incentives-providing-public-services
http://hdl.handle.net/10986/16407
Description
Summary:The incentives of politicians to provide broad public goods and reduce poverty vary across countries. Even in democracies, politicians often have incentives to divert resources to political rents and private transfers that benefit a few citizens at the expense of many. These distortions can be traced to imperfections in political markets that are greater in some countries than in others. This article reviews the theory and evidence on the impact on political incentives of incomplete information for voters, the lack of credibility of political promises, and social polarization. The analysis has implications for policy and for reforms to improve public goods provision and reduce poverty.