TY - JOUR
T1 - Regional development dynamics in Indonesia before and after the 'big bang' decentralization
AU - Hill, Hal
AU - Vidyattama, Yogi
PY - 2016
Y1 - 2016
N2 - Decentralization is in vogue. However, the relationship between decentralization and local-level development dynamics remains unclear. Does decentralization lead to a 'reform dividend' of more rapid development in better-governed regions, with attendant national benefits? What is the impact on spatial inequality? In particular, do poorer regions lag further behind as equalizing fiscal policies at the national level weaken? We address these issues with reference to Indonesia, the world's largest archipelagic nation, which implemented a 'big bang' decentralization program in 2001. Our main conclusion, perhaps counterintuitive, is that decentralization had a minimal impact on regional development dynamics, although its political impacts have been far-reaching.
AB - Decentralization is in vogue. However, the relationship between decentralization and local-level development dynamics remains unclear. Does decentralization lead to a 'reform dividend' of more rapid development in better-governed regions, with attendant national benefits? What is the impact on spatial inequality? In particular, do poorer regions lag further behind as equalizing fiscal policies at the national level weaken? We address these issues with reference to Indonesia, the world's largest archipelagic nation, which implemented a 'big bang' decentralization program in 2001. Our main conclusion, perhaps counterintuitive, is that decentralization had a minimal impact on regional development dynamics, although its political impacts have been far-reaching.
U2 - 10.1142/S0217590816400270
DO - 10.1142/S0217590816400270
M3 - Article
SN - 0217-5908
VL - 61
SP - 1
EP - 26
JO - Singapore Economic Review
JF - Singapore Economic Review
IS - 2
ER -