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Striking the Right Balance. Economic Concentration and Local Government Performance in Indonesia and the Philippines.
- Source :
-
European Journal of East Asian Studies . Mar2012, Vol. 11 Issue 1, p17-44. 28p. 5 Charts, 3 Graphs. - Publication Year :
- 2012
-
Abstract
- The relationship between economic concentration and governance remains controversial. While some studies find that high economic concentration strengthens collective action and reform cooperation, others stress dangers of rent-seeking and state capture. In this paper I argue that effects are neither strictly positive nor negative: they are best described as an inverted u-shaped relationship, where better governance performance emerges with moderate economic concentration. Decentralisation reforms in Indonesia and the Philippines -- unprecedented in scope and scale--provide a unique opportunity to explore this thesis. Subnational case studies and cross-sectional data analyses indicate that moderately concentrated polities in both countries are accompanied by more effective and less corrupt service provision. The presence of 'contested oligarchies'--a small but diverse pool of economic elites--paves the ground for more balanced policy arenas; they contribute to a scenario where private sector actors are strong enough to influence government decisions and, at the same time, diverse enough to keep themselves and public officials in check. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 15680584
- Volume :
- 11
- Issue :
- 1
- Database :
- Academic Search Index
- Journal :
- European Journal of East Asian Studies
- Publication Type :
- Academic Journal
- Accession number :
- 79571547
- Full Text :
- https://doi.org/10.1163/15700615-20120005