Governance from below: a theory of local government with two empirical tests
I 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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- Olivier Blanchard & Andrei Shleifer, 2001.
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- repec:cup:apsrev:v:87:y:1993:i:02:p:303-318_09 is not listed on IDEAS Full references (including those not matched with items on IDEAS)
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