This book provides fresh perspectives and insights on what may be the worlds largest ongoing decentralisation reforms, the Panchayat Raj reforms in India, and presents unique empirical material from Madhya Pradesh and Kerala. Comparative perspectives and references to historical cases from around the world are used to show how decentralisation can be connected to social capital and corruption. In particular, this book shows how certain forms of social capital, previously thought to be a hindrance to development, can work in favour of democracy.