The Impact of Ethnic and Political Favoritism on Resource Allocation and Public Service Delivery

Date of Award

12-2025

Degree Name

Doctor of Philosophy

Department

Economics

First Advisor

Christine Moser, Ph.D.

Second Advisor

Eskander Alvi, Ph.D.

Third Advisor

J.S. Butler, Ph.D.

Keywords

Ethnic favoritism, political alignment, resource allocation, service delivery

Abstract

This body of work deals with the effects of political and ethnic alignment on the provision of public services and the distribution of resources in the developing world. Secondary sources of data are used for the analysis, and a suitable empirical strategy is employed based on the context to answer the questions raised in the chapters. The studies bring new insight to the political economy literature of resource distribution and the factors that impact it.

The first chapter examines whether ethnic favoritism influences the allocation of public funds in Balochistan, Pakistan’s largest and least developed province. Using district level data on development funding, population, and multidimensional poverty from 2010 to 2024, the study leverages change in the ethnicity of the Planning and Development (PD) minister to test for coethnic favoritism. The findings suggest that, contrary to common assumptions, ethnic favoritism does not systematically drive resource allocation in Balochistan, and that poverty and need are not strong predictors of funding either. The analysis also reveals that while some districts with higher poverty levels may receive less funding per capita, this relationship is only marginally significant. Overall, the results highlight the limited role of both ethnic alignment and socioeconomic need in shaping the distribution of development resources across districts in Balochistan.

The second chapter investigates the impact of alignment of a political representative with the ruling provincial government on public service delivery outcomes in the four provinces of Pakistan. Using panel data from three waves of the Pakistan Social and Living Standards Measurement (PSLM) survey and the provincial election results from 2008, 2013, and 2018, the study compares educational and health outcomes in aligned and non-aligned districts. The findings reveal that political alignment does not have a significant effect on net primary school enrolment or immunization rates. The chapter provides evidence that, in Pakistan, distributive politics does not necessarily translate into improved welfare for aligned constituencies.

The third chapter analyses the distribution of externally funded development projects in the communes of Madagascar, focusing on the influence of ethnic composition, political connections, and local need. A nation-wide panel data set from 2001 and 2007 commune censuses is used to study how internal political and social factors shape the distribution of projects. The analysis reveals that the ethnic group of the President is favored in project allocation, communes with local leaders affiliated with the national ruling party receive more projects, and while some measures of local need, such as poverty and cyclone damage, are associated with increased project allocation, remote and inaccessible communes receive fewer projects due to higher implementation costs. The results highlight that both political and ethnic connections significantly influence the spatial distribution of development projects, even when most projects are donor-funded, underscoring the persistence of patronage and identity politics in aid allocation.

Access Setting

Dissertation-Abstract Only

Restricted to Campus until

12-1-2035

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