Public services matter for welfare. But they will need to count at the ballot box

At the heart of public economics is the theory that citizen preferences should shape the provision of public goods in an electoral democracy. Politicians seek votes, voters care about outcomes, and governments have an incentive to respond. However, the real-world application of this theory is not straightforward. While governments may lose elections due to poor service quality, it is often difficult to attribute such defeats directly to specific issues, such as a poorly performing school or unreliable public transportation.

India's citizens have developed a strong capacity for private alternatives to public failure. When public services fall short, people can choose private options like private schooling, borewells, scooters, private clinics, and gated colonies. This exit strategy partially insulates those who can afford to leave from the problems caused by public failure. However, where people are dependent on public services, pressure for reform is weaker.

The quality of essential services like school, examinations, water, electricity, and air quality can significantly impact an individual's welfare, yet these issues have not been strong electoral concerns in India. Voters can usually identify the benefits they receive from visible public services, such as piped water, LPG connections, electricity, toilets, and cash transfers, which can directly link their support to the government responsible.

This trend of "competitive welfarism" may explain why weak public services can coexist with a vigorous electoral democracy in India.

For voters to express their dissatisfaction through the ballot, several conditions must be met: they need information about the failure, an agreement on who is responsible, and the issue must become salient enough to override other electoral concerns. Additionally, political competition involves not just demand but also the supply of choices.

If competing parties offer no meaningful differences on critical issues like school quality or air pollution, voters cannot readily use the ballot to express preferences. Thus, while preferences for public goods are essential, they must pass through multiple stages before becoming electoral pressure.