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Development and Dominant Parties: Evidence from India’s Green Revolution Adi Dasgupta [email protected] Overview I connect literature on political economy of clientelism with research on dominant party regimes to argue that rural economic development, arising from the green revolution, brought about an end to dominant party rule in India. Theoretical Motivation 1. It is widely accepted that clientelism is less prevalent in high-income than in low-income environments. 2. Dominant party regimes often rely upon a “resource advantage”, together with clientelism, to monopolize political power. 3. Does economic development therefore destroy support for dominant party regimes? May do so through two channels: 1) Increase private sector incomes, raising the costs of vote buying and 2) Increase the eco- nomic value of political control, raising the opportunity cost of supporting the regime among voters who do not share the dominant party’s policy preferences. Applying the Argument to India 1. Reconsidering the Indian democratic “success story”: the Congress party won national elections for three decades continuously until losing power for the first time in 1977. The urban-biased ‘Congress system’ sustained support in rural areas largely through clientelism. 2. I argue that the introduction of HYV crops in 1965/66, an intervention to increase food production, led to massive increase in agricultural pro- ductivity and unintended political consequences: reduced dependency of rural poor on government largesse and formation of agrarian opposition parties supported by agrarian economic interests. These two develop- ments paved the way for the emergence of multi-party competition. Basic Findings in Two Plots Mean HYV Crop Adoption Across Districts in India, 1967-1987 under 11.56 11.56 - 17.6 17.6 - 20.61 20.61 - 28.51 over 28.51 HYV adoption vs. Change in INC Seat Share by District 0 10 20 30 40 50 60 -60 -40 -20 0 20 40 Mean HYV crop adoption, 1967-1987 Change in Congress seat share, Pre/Post 1967 Empirical Strategy 1. I geo-code state assembly and parliamentary constituencies to districts to connect annual HYV crop adoption data to 18,000 state assembly elec- tion races and 3,000 parliamentary races, 1961-1987. 2. Regress INC support on HYV crop adoption, including FEs, utilizing sub- national variation in intensity and time pattern of HYV crop adoption. 3. Also instrument for HYV crop adoption with a diff-in-diff style interaction of group indicator of pre-existing suitability based on irrigation coverage interacted with time dummy indicating arrival of HYV crops in 1965/66 Summary and Extensions 1.Counter-factual simulations suggest that green revolution was pivotal in historical emergence of multi-party competition in India: Actual and Counter-factual INC Seat Share Over Time 1960 1965 1970 1975 1980 1985 0.40 0.45 0.50 0.55 0.60 0.65 Year INC Seat Share Actual Lower Counterfactual Upper Counterfactual 2. Ongoing research: using surveys to assess the connection between individual-level income and support for the Congress party and digitizing the biographies of Indian MPs to investigate whether the green revolution led to a rise in the legislative representation of farmers. Prepared for Department of Government Annual Poster Session, 2013

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Development and Dominant Parties: Evidence from India’sGreen Revolution

Adi [email protected]

Overview

I connect literature on political economy of clientelism with research ondominant party regimes to argue that rural economic development, arisingfrom the green revolution, brought about an end to dominant party rule inIndia.

Theoretical Motivation

1. It is widely accepted that clientelism is less prevalent in high-income thanin low-income environments.

2. Dominant party regimes often rely upon a “resource advantage”, togetherwith clientelism, to monopolize political power.

3. Does economic development therefore destroy support for dominantparty regimes? May do so through two channels: 1) Increase privatesector incomes, raising the costs of vote buying and 2) Increase the eco-nomic value of political control, raising the opportunity cost of supportingthe regime among voters who do not share the dominant party’s policypreferences.

Applying the Argument to India

1. Reconsidering the Indian democratic “success story”: the Congress partywon national elections for three decades continuously until losing powerfor the first time in 1977. The urban-biased ‘Congress system’ sustainedsupport in rural areas largely through clientelism.

2. I argue that the introduction of HYV crops in 1965/66, an interventionto increase food production, led to massive increase in agricultural pro-ductivity and unintended political consequences: reduced dependency ofrural poor on government largesse and formation of agrarian oppositionparties supported by agrarian economic interests. These two develop-ments paved the way for the emergence of multi-party competition.

Basic Findings in Two Plots

Mean HYV Crop Adoption Across Districts in India, 1967-1987

under 11.5611.56 − 17.617.6 − 20.6120.61 − 28.51over 28.51

HYV adoption vs. Change in INC Seat Share by District

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● ●

● ●

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● ●

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0 10 20 30 40 50 60

−60

−40

−20

020

40

Mean HYV crop adoption, 1967−1987

Cha

nge

in C

ongr

ess

seat

sha

re, P

re/P

ost 1

967

Empirical Strategy

1. I geo-code state assembly and parliamentary constituencies to districtsto connect annual HYV crop adoption data to 18,000 state assembly elec-tion races and 3,000 parliamentary races, 1961-1987.

2. Regress INC support on HYV crop adoption, including FEs, utilizing sub-national variation in intensity and time pattern of HYV crop adoption.

3. Also instrument for HYV crop adoption with a diff-in-diff style interactionof group indicator of pre-existing suitability based on irrigation coverageinteracted with time dummy indicating arrival of HYV crops in 1965/66

Summary and Extensions

1. Counter-factual simulations suggest that green revolution was pivotal inhistorical emergence of multi-party competition in India:

Actual and Counter-factual INC Seat Share Over Time

1960 1965 1970 1975 1980 1985

0.40

0.45

0.50

0.55

0.60

0.65

Year

INC

Sea

t Sha

re

ActualLower CounterfactualUpper Counterfactual

2. Ongoing research: using surveys to assess the connection betweenindividual-level income and support for the Congress party and digitizingthe biographies of Indian MPs to investigate whether the green revolutionled to a rise in the legislative representation of farmers.

Prepared for Department of Government Annual Poster Session, 2013