ABSTRACT
The paper describes how some irrigation engineers raise vast amounts of illicit revenue from the distribution of water and contracts, and redistribute part to superior officers and politicians. It argues that the corruption ‘system’, which is centred on control of personnel transfers, is an important supply-side reason for poor performance of canal-irrigated agriculture. Insofar as the same system operates in other government departments, it may be more important for understanding Indian politics and the political influences on economic development than has previously been realised.
