In Western democracies it is held that parties and their positions affect how politicians choose to make public expenditure and investment. This article examines the public policy choices of politicians in India, a large well-established democracy with remarkable subnational variation. Public expenditure, from education and health to agriculture and irrigation, is analysed. Counterintuitive findings – that election timing and political factors play a strong role in the subnational states, and that party competition increases investment in education – are explained by highlighting the role economic and political uncertainty plays in politicians’ choices. Building a ‘Polanyi’ argument enhanced by a supply-side mechanism highlights the importance of compensation and insurance and the imperatives of political stability for subnational politicians, who attempt to maximize re-election chances in an uncertain environment.

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Scholars of business associations have recently learned a great deal about how associations contribute to development, but much less about the origins of such developmental associations. This essay introduces and assesses a new political explanation for the origins of ‘developmental associations.’ Conventional wisdom holds that developmental associations must be able to rise above political and collusive pressures and establish autonomy from states. Yet, I argue that these associations' developmental capacities emerge as a result of active state support by key actors, and in response to challenges and threats posed by competitive business organizations. Developmental associations emerge and acquire their capacities as they confront internal threats from other associations, as well as utilize the opportunities presented by the national state and international channels. In this view, functional or organizational capacity is not enough, rather, developmental business associations, must exhibit political capacity'that is the ability to manage the political environment, and respond to the structure of opportunities and threats. This explanation views developmental business associations as political organizations seeking power as well as offers a historically sensitive analysis of transformation of business politics in reforming India.