Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test
AbstractDecentralization in Indonesia was introduced institutionally in 2001, with a democratization drive promoted by international donors and by the intention of the new government to clear away the centralistic image of Soeharto. Decentralization has had some effects on regional economies and on local government administration. Compared to the period before decentralization, the share of gross regional domestic product and local government finance has increased in Java, though investment and bank borrowing have expanded to the outer islands. In qualitative aspects, decentralization has transferred not only administrative authority but also many new vested interests from the center to regions. Local governments have become more extensive economic actors in regional economies. Regional economic actors now compete actively for such vested interests and have missed the opportunity to create market-friendly regional economies. The government sector should not be a mere rent-seeking economic actor, but should play a role as a facilitator promoting private sector activities in regional economies.
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Bibliographic InfoArticle provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its journal The Developing Economies.
Volume (Year): 43 (2005)
Issue (Month): 1 (March)
Find related papers by JEL classification:
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Meirelles, Patricia & Rodriguez, Catherine, 2010.
"Devolution and Accountability Effects in the Public Provision of Water Services in Indonesia,"
Documentos CEDE Series
107395, Universidad de Los Andes, Economics Department.
- Catherine Rodríguez & Patricia Meirelles, 2010. "Devolution and Accountability Effects in the Public Provision of Water Services in Indonesia," DOCUMENTOS CEDE 007905, UNIVERSIDAD DE LOS ANDES-CEDE.
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