LAUSR

Drawing upon existing theories, this article argues that good policy design requires two enabling conditions—an optimal design space that balances political and technical goals, and policy capacity that includes organizational and analytical capacity to carry out the implementation. The case of Gujarat's unique ‘Jyotigram Yojana’ (JGY) is used to illustrate how the policy design process operates in the context of a particularly challenging issue of rural electrification. Our analysis suggests that the design process and implementation of JGY were as much problem†driven as it was politically motivated. A top†down approach favored the conception and implementation of JGY and enabled the state government of Gujarat to effectively leverage its financial, technical, and administrative capacity. Copyright © 2017 John Wiley & Sons, Ltd.