Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/109406 
Authors: 
Year of Publication: 
2011
Series/Report no.: 
ADB Economics Working Paper Series No. 288
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
Applying the Institutional Model of Decentralization, the paper argues that the presumption that local democracy will impose accountability pressure on elected officials does not always hold. Even in a democratic system like in Indonesia, decentralization policy is welfare-enhancing only for the developed regions, not for all, exacerbating interregional welfare disparity. This "captured democracy" is largely due to the presence of "negative local capture". Where welfare has not improved, limited participation, low initial welfare combined with poor quality of local leaders are found to be the most critical determinants.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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