• Research
  • Politika
  • About
Carnegie Russia Eurasia center logoCarnegie lettermark logo
  • Donate
{
  "authors": [
    "Milan Vaishnav",
    "Devesh Kapur"
  ],
  "type": "other",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [
    "Anti-Corruption"
  ],
  "englishNewsletterAll": "ctw",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "SAP",
  "programs": [
    "South Asia"
  ],
  "projects": [],
  "regions": [
    "South Asia",
    "India"
  ],
  "topics": [
    "Political Reform",
    "Democracy",
    "Civil Society"
  ]
}

Source: Getty

Other

Quid Pro Quo: Builders, Politicians, and Election Finance in India

A new measure of construction activity reveals evidence that builders in India use their assets to help politicians circumvent election finance laws.

Link Copied
By Milan Vaishnav and Devesh Kapur
Published on Mar 29, 2013

Source: Center for Global Development

Where elections are costly but accountability mechanisms are weak, politicians often turn to private firms for illicit election finance. Where firms are highly regulated, politicians can exchange policy discretion or regulatory forbearance for bribes and monetary transfers from firms. Due to its regulatory intensity, we focus on the role of the construction sector. Specifically, we argue that builders will experience a short-term liquidity crunch as elections approach because of their need to re-route funds to politicians as a form of indirect election finance. We use variation in the demand for cement to investigate the presence of an electoral cycle in building activity in India consistent with this logic. Using a novel monthly-level dataset, we demonstrate that cement consumption does exhibit a political business cycle consistent with our hypothesis.  Additional tests provide confidence in the robustness and interpretation of our findings.

This full text of this article is available at the Center for Global Development.

About the Authors

Milan Vaishnav

Director and Senior Fellow, South Asia Program

Milan Vaishnav is a senior fellow and director of the South Asia Program and the host of the Grand Tamasha podcast at the Carnegie Endowment for International Peace. His primary research focus is the political economy of India, and he examines issues such as corruption and governance, state capacity, distributive politics, and electoral behavior. He also conducts research on the Indian diaspora.

Devesh Kapur

Starr Foundation Professor, Johns Hopkins (SAIS)

Devesh Kapur is the Starr Foundation Professor of South Asian studies at the Johns Hopkins School of Advanced International Studies (SAIS). He is the author of three books on migration, including The Other One Percent: Indians in America (with Sanjoy Chakravorty and Nirvikar Singh).

Authors

Milan Vaishnav
Director and Senior Fellow, South Asia Program
Milan Vaishnav
Devesh Kapur
Starr Foundation Professor, Johns Hopkins (SAIS)
Devesh Kapur
Political ReformDemocracyCivil SocietySouth AsiaIndia

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Russia Eurasia Center

  • Commentary
    Carnegie Politika
    Who Is Responsible for the Demise of the Russian Internet?

    The Russian state has opted for complete ideological control of the internet and is prepared to bear the associated costs.

      Maria Kolomychenko

  • Commentary
    Carnegie Politika
    Is Opposition to Online Restrictions an Inflection Point for the Russian Regime?

    After four years of war, there is no one who can stand up to the security establishment, and President Vladimir Putin is increasingly passive. 

      Tatiana Stanovaya

  • Commentary
    Carnegie Politika
    Is Frustration With Armenia’s Pashinyan Enough to Bring the Pro-Russia Opposition to Power?

    It’s true that many Armenians would vote for anyone just to be rid of Pashinyan, whom they blame for the loss of Nagorno-Karabakh, but the pro-Russia opposition is unlikely to be able to channel that frustration into an electoral victory.

      Mikayel Zolyan

  • Commentary
    Carnegie Politika
    Conspiracy Theories Are Eclipsing the Real Dangers of Russia’s Messaging App Max

    The internet is awash not only with instructions from digital security experts, but also with urban legends and conspiracy theories that divert attention away from the real dangers of Max.

      David Frenkel

  • Commentary
    Carnegie Politika
    Blocking of Telegram App Sparks Rare Public Rift Among Russia’s Elites

    The prospect of a total block on Russia’s most popular messaging app has sparked disagreement between the regime’s political managers and its security agencies.

      Andrey Pertsev

Get more news and analysis from
Carnegie Russia Eurasia Center
Carnegie Russia Eurasia logo, white
  • Research
  • Politika
  • About
  • Experts
  • Events
  • Contact
  • Privacy
  • For Media
Get more news and analysis from
Carnegie Russia Eurasia Center
© 2026 Carnegie Endowment for International Peace. All rights reserved.