GOVERNANCE FROM BELOW A Theory of Local Government With Two Empirical Tests
AbstractI examine decentralization through the lens of the local dynamics that it unleashes. The national effects of decentralization are simply the sum of its local-level effects. Hence to understand decentralization we must first understand how local government works. This paper proposes a theory of local government as the confluence of two quasi-markets and one organizational dynamic. Good government results when these three elements - political, economic and civil - are in rough balance, and actors in one cannot distort the others. Specific types of imbalance map into specific forms of government failure. I use comparative analysis to test the theory's predictions with qualitative and quantitative evidence from Bolivia. The combined methodology provides a higher-order empirical rigor than either approach can alone. The theory proves robust.
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Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Political Economy and Public Policy Paper Series with number 12.
Date of creation: Aug 2005
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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
local government; civil society; democratic theory; good governance; decentralization; Q2 (Q-square); Bolivia;
Other versions of this item:
- Jean-Paul Faguet, 2005. "Governance from below: a theory of local government with two empirical tests," LSE Research Online Documents on Economics 475, London School of Economics and Political Science, LSE Library.
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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