Ranganathan, Aruna, and Laura Doering. 2026. “The (State–Private) Ties That Bind: Status, Interactions, and Economic Development in India.” Sociology of Development 1–31. doi:10.1525/sod.2026.2893447.

Abstract: Governments often collaborate with the private sector to design and implement major economic initiatives. In studying such state–society collaborations, sociologists tend to focus on how institutional contexts shape outcomes. Although this institutional approach has been highly generative, it can overlook important micro-level interaction patterns between state and private-sector actors that also affect economic outcomes. In this study, we examine how bureaucrats in the Indian government interacted with private-sector representatives to design and implement an industrial crafts park. Drawing on ethnographic observations, interviews, and supplemental survey data, we show how bureaucrats’ status biases in favor of certain private-sector actors produced interaction patterns that blinded them to fatal flaws in the project’s design and ultimately contributed to its dramatic failure. By bringing an interactionist lens to state–society economic engagements, this study reveals how interaction patterns can aggregate to shape large-scale development outcomes. More broadly, it highlights an important but undertheorized pathway through which bureaucrats may inadvertently reinforce social stratification through the very projects intended to reduce economic inequality. We suggest that an interactionist approach to state–private collaborations and policy design can contribute to efforts to address global poverty.

Aruna Ranganathan holds the Dong Koo Kim Chancellor’s Chair in Social Entrepreneurship and is an Associate Professor at the UC Berkeley Haas School of Business. Prof. Ranganathan is also affiliated with the Sociology department and the Institute for Research on Labor and Employment at UC Berkeley. She was formerly an associate professor of organizational behavior at Stanford University. Ranganathan spent her childhood in the Middle East, India, and Singapore before graduating with honors from the University of British Columbia’s Sauder School of Business with a BCom in organizational behavior and human resources. She also received an MS in international and comparative labor from Cornell University’s School of Industrial and Labor Relations and an MS/PhD in management from MIT’s Sloan School of Management.

Laura Doering is an Associate Professor of Strategic Management and is cross-appointed in the Department of Sociology. As an economic sociologist, she examines how interactions and social psychological processes shape outcomes for households, organizations, and markets. Her research has been published in the American Journal of Sociology, American Sociological Review, Sociological Science, Sociology of Development, and Journal of Business Venturing. Professor Doering’s research and writing have appeared in The New York Times, BBC News, The Globe and Mail, Salon, and other outlets.