Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia
Show Less

Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia

The ‘Big Bang’ Program and its Economic Consequences

  • Studies in Fiscal Federalism and State–local Finance series

Edited by James Alm, Jorge Martinez-Vazquez and Sri Mulyani Indrawati

Indonesia is currently facing some severe challenges, both in political affairs and in economic management. One of these challenges is the recently enacted decentralization program, now well underway, which promises to have some wide-ranging consequences. This edited volume presents original papers, written by a select group of widely recognized and distinguished scholars, that take a hard, objective look at the many effects of decentralization on economic and political issues in Indonesia.
Buy Book in Print
Show Summary Details

Chapter 14: Implementing Decentralized Local Government: A Treacherous Road with Potholes, Detours and Road Closures

Anwar Shah, Theresa Thompson and Anwar Shah

Extract

14. Implementing decentralized local government: a treacherous road with potholes, detours and road closures Anwar Shah and Theresa Thompson1 INTRODUCTION During the past two decades, a silent revolution in public sector governance has swept across the globe.2 This revolution aims to move decision-making for local public services closer to the people. The interest in this new paradigm of public governance has further been heightened by the information revolution and globalization of economic activity which tend to weaken central government at the expense of supranational regimes and local governments. The countries embracing and adapting to this silent revolution had diverse motives and followed even more diverse approaches. This chapter attempts to present a stylized view of the motivations, approaches and processes used to strengthen localization. In doing so, it attempts to draw lessons of some general interest on the process and substance of decentralization, in part how they apply to Indonesia. The chapter is organized as follows. The first section introduces the reader to basic concepts in decentralization. The second section is concerned with the motivations for decentralization. The third section presents a worldwide overview of decentralization efforts. The fourth section is concerned with the processes of decentralization and examines sequencing issues. The fifth section deals with sustainability and local capture issues, and the sixth section draws lessons for the future of decentralization in Indonesia. DECENTRALIZATION: SOME BASIC CONCEPTS A review of basic concepts commonly used in the decentralization literature is presented here so as to facilitate communications in subsequent sections....

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.