19th-century British cities got more work from unpaid officials than paid ones
What happened
19th-century British cities built effective local governments by relying on unpaid officials. These officials, often from the elite, were more productive than their paid counterparts because they gained prestige and career advancement.
Why it matters
People often assume that building state capacity requires significant fiscal resources to pay bureaucrats. This paper shows that in 19th-century Britain, local governments found a way to get effective governance without a large payroll. Social incentives like prestige and career advancement can be powerful motivators, especially for elite volunteers.
The signal
Watch whether development agencies or governments in resource-constrained settings begin to experiment with non-fiscal incentives for public service, or if they continue to focus solely on paid bureaucracies.