It’s always a student who asks the fundamental question that you never bothered to ask.

I gave a guest lecture in Arvind Subramanian’s class at Johns Hopkins School of Advanced International Studies recently on “Service delivery in India.”  As I was going through the usual spiel about how service delivery in India is worse than in other low-income countries such as Bangladesh and Vietnam (both of which have lower child mortality rates) and Kenya (which has higher immunization rates), a student asked, “What is distinctive about India that leads to such poor service delivery?” 

I offered a few answers off the top of my head.  First, especially compared with Bangladesh, India is an extremely heterogeneous society, with many castes, ethnic groups, languages and religions. There is some evidence that polarized societies find it more difficult to build political support for public goods.  Second, to the extent that these services are transactions-intensive (a teacher has to spend time with students, doctors with patients), caste or other differences may stand in the way of publicly-provided services working for some people.  Low-caste people, for instance, have been excluded from some public schools and public clinics.  They are able to obtain services in the private sector—because they pay for these services.  Paradoxically, therefore, the fact that the Indian government mandated free and universal public education and health, and decided to finance and provide it from the public sector, may be the reason poor people are largely obtaining these services in the private sector.

I’d be interested in any other reasons for the poor state of public services in India, as well as your thoughts about the reasons offered here.