Empowering States and Provinces or Unshackling Local Governments: Does It Matter for Peace, Order, Good Government, and Growth? (The Gustav Ranis Lecture)
Globalisation and the information revolution are profoundly influencing the division of power within, across, and beyond nation-states. Within nations, this mega change has led to a diminished economic relevance of the intermediate order of government (states and provinces) and an enhanced need for home rule (empowered local governments) in both unitary and federal countries. Considerations of peace, order, and good government further warrant that intermediate orders of governments must assume a relatively less prominent role in multi-order governance. The recent fiscal crisis and the ever-growing concern about corruption have further heightened the need to the get the government right, thereby creating additional pressures to limit the size of the government by possibly downsizing the role of the states/provinces and reconstituting these as provincial councils of local governments to perform inter-local functions and coordination. These economic imperatives, calling for an hourglass model of federalism, are at odds with the political realties in countries conforming to the traditional dual federalism model, i.e., federalism of the provinces model of economic governance as prevalent in Australia, India, Mexico, and Pakistan, among others. The political order in these latter countries has blocked local governments from assuming their due role as the primary agents of the people providing oversight on the shared rule and as facilitators for network governance to improve the economic and social outcomes. Such a role of local government is also critical to international competitiveness and growth as demonstrated by the experiences of China, Japan, Korea, and the Nordic countries. This paper outlines reform options for multi-order governance to conform with the new world economic order. The paper elaborates the role of local governments under ‘glocalised governance’—the new vision of multi-order governance—and argues that growth and economic prosperity of nations in the coming decades would critically depend on how quickly political and institutional impediments to the new (or the oldest?) paradigm of local governance are overcome. The paper concludes that path dependency makes such radical reforms infeasible in countries with strong provincial governments run by feudal, military, and industrial elites.
Volume (Year): 49 (2010)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Web page: http://www.pide.org.pk
More information through EDIRC
References listed on IDEAS
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.:
- Anwar Shah, 2006. "Local Governance in Developing Countries," World Bank Publications, The World Bank, number 7192.
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:49:y:2010:i:4:p:333-362. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.