Skip to main content
×
×
Home

Governance from below in Bolivia: A Theory of Local Government with Two Empirical Tests

  • Jean-Paul Faguet (a1)
Abstract

This article examines decentralization through the lens of the local dynamics it unleashed in the much-noted case of Bolivia. It argues that the national effects of decentralization are largely the sum of its local-level effects. To understand decentralization, therefore, we must first understand how local government works. The article explores the deep economic and institutional determinants of government quality in two extremes of municipal performance. From this it derives a model of local government responsiveness as the product of political openness and substantive competition. The quality of local politics, in turn, emerges endogenously as the joint product of the lobbying and political engagement of local firms and interests and the organizational density and ability of civil society. The analysis tests the theory's predictions on a database containing all Bolivian municipalities. The theory proves robust. The combined methodology provides a higher-order empirical rigor than either approach can alone.

Copyright
References
Hide All
Albó, Xavier. 1990. Los Guaraní-Chiriguano: la comunidad hoy. La Paz : CIPCA.
Bardhan, Pranab. 1996. The Economics of Decentralization. Unpublished mss. Department of Economics, University of California, Berkeley.
Bentley, Arthur F. 1908. The Process of Government. Chicago : University of Chicago Press.
Ben-Zion, Uri, and Eytan, Zeev. 1974. On Money, Votes, and Policy in a Democratic Society. Public Choice 17: 110.
Bergstrom, Theodore, and Goodman, Robert. 1973. Private Demand for Public Goods. American Economic Review 63: 280–96.
Black, Duncan. 1948. On the Rationale of Group Decision Making. Journal of Political Economy 56: 2334.
Blanchard, Olivier, and Shleifer, Andrei. 2000. Federalism with and without Political Centralization: China versus Russia. National Bureau of Economic Research Working Paper 7616. Cambridge, MA: NBER.
Blanco, Juan Carlos. 1997. Director, Cbn bottling plant. Author interview. Viacha, October 16.
Brambor, Thomas, Roberts Clark, William, and Golder, Matt. 2005. Understanding Interaction Models: Improving Empirical Analyses. Political Analysis 14: 6382.
Condorcet, Marquis de (Jean Antoine Nicolas de Caritat). 1785. Essai sur l'application de l'analyse à la probabilité des décisions rendues à la pluraliste des voix. Paris. English translation appears in Classics of Social Choice, ed. McLean, I. and Urken, A.. Ann Arbor : University of Michigan Press, 1995. 91112.
Crook, Richard C., and Sverrisson, Alan S.. 1999. To What Extent Can Decentralized Forms of Government Enhance the Development of pro-Poor Policies and Improve Poverty-Alleviation Outcomes? Unpublished mss. Washington, DC: World Bank. <http://siteresources.worldbank.org/INTPOVERTY/Resources/WDR/DfiD-Project-Papers/crook.pdf> Accessed September 30, 2009.
De Mello, Luiz R. 2004. Can Fiscal Decentralization Strengthen Social Capital? Public Finance Review 32: 435.
Dodgson, Charles L. 1884. The Principles of Parliamentary Representation. London : Harrison.
Downs, Anthony. 1957. An Economic Theory of Democracy. New York : Harper and Row.
Eaton, Kent. 2006. Decentralization's Nondemocratic Roots: Authoritarianism and Subnational Reform in Latin America. Latin American Politics and Society 48, 1 (Spring): 126.
Faguet, Jean-Paul. 2004. Does Decentralization Increase Responsiveness to Local Needs? Evidence from Bolivia. Journal of Public Economics 88: 867–94.
Finer, Samuel. E. 1997. The History of Government from the Earliest Times. Oxford : Oxford University Press.
Fisman, Raymond, and Gatti, Roberta. 2002. Decentralization and Corruption: Evidence across Countries. Journal of Public Economics 83: 325–45.
González, Luis. 1997. Departmental Director, Social Investment Fund. Author interview. Viacha, March 17.
Hart, Oliver. 1995. Firms, Contracts and Financial Structure. New York : Oxford University Press.
Hart, Oliver, and Moore, John H.. 1990. Property Rights and the Theory of the Firm. Journal of Political Economy 98: 1119–58.
Huther, Jeff, and Shah, Anwar. 1998. Applying a Simple Measure of Good Governance to the Debate on Fiscal Decentralization. Policy Research Working Paper 1894. Washington, DC: World Bank.
Kitschelt, Herbert. 2000. Linkages between Citizens and Politicians in Democratic Polities. Comparative Political Studies 33: 845–79.
Kubal, Mary Rose. 2006. Contradictions and Constraints in Chile's Health Care and Education Decentralization. Latin American Politics and Society 48, 4 (Winter): 105–35.
Manor, James. 1999. The Political Economy of Democratic Decentralization. Washington , DC : World Bank.
Medina, Javier, ed. 1994. Arakuarenda: un centro intercultural de capacitación para el desarrollo Guaraní. La Paz : Arakuarenda/FIS.
Mueller, Dennis 1989. Public Choice II. Cambridge : Cambridge University Press.
Muñoz Franco, Fernando Dr. 1997. Departmental Director, Social Investment Fund. Author interview. Santa Cruz, March 31.
Olson, Mancur. 2000. Power and Prosperity: Outgrowing Communist and Capitalist Dictatorships. New York : Basic Books.
Ostrom, Elinor, Schroeder, Larry, and Wynne, Susan. 1993. Institutional Incentives and Sustainable Development: Infrastructure Policies in Perspective. Boulder : Westview Press.
Palda, K. Filip, and Palda, Kristian S.. 1985. Ceilings on Campaign Spending: Hypothesis and Partial Test with Canadian Data. Public Choice 45: 313–31.
Parker, Andrew. 1995. Decentralization: the Way Forward for Rural Development? Policy Research Working Paper 1475. Washington, DC: World Bank.
Piriou-Sall, Suzanne. 1998. Decentralization and Rural Development: a Review of Evidence. Unpublished mss. Washington, DC: World Bank.
Poole, Keith T., and Romer, Thomas. 1985. Patterns of Political Action Committee Contributions to the 1980 Campaigns for the United States House of Representatives. Public Choice 47: 63111.
Presencia (La Paz). 1997. Los vecinos viacheños marchan hoy para que se vaya su alcalde. March 22.
Prud'homme, Rémy. 1995. On the Dangers of Decentralization. World Bank Research Observer 10: 210–26.
Putnam, Robert D. 1993. Making Democracy Work: Civic Traditions in Modern Italy. Princeton : Princeton University Press.
Putnam, Robert D. 2000. Bowling Alone: The Collapse and Revival of American Community. New York : Simon and Schuster.
Rondinelli, Dennis A., Shabbir Cheema, G., and Nellis, John. 1983. Decentralization in Developing Countries: a Review of Recent Experience. World Bank Staff Working Paper No. 581. Washington, DC: World Bank.
Rubinfeld, Daniel, Shapiro, Perry, and Roberts, Judith. 1987. Tiebout Bias and the Demand for Local Public Schooling. Review of Economics and Statistics 69: 426–37.
Samoff, Joel. 1990. Decentralization: the Politics of Interventionism. Development and Change 21: 513–30.
Secretaría Nacional de Participación Popular. 1997. Resumen de auditorías SAYCO efectuados a la fecha. La Paz : Secretaría Nacional de Participación Popular.
Sequier, Gabriel, Fr. (“Pirou, Tianou”). 1997. Parish priest. Author interview. Izozo, April 3.
Shah, Anwar, Thompson, Theresa, and Zou, Heng-Fu. 2004. The Impact of Decentralization on Service Delivery, Corruption, Fiscal Management and Growth in Developing and Emerging Market Economies: a Synthesis of Empirical Evidence. CESifo Report 1: 1014.
Slater, David. 1989. Territorial Power and the Peripheral State: the Issue of Decentralization. Development and Change 20: 501–31.
Smith, Brian C. 1985. Decentralization: The Territorial Dimension of the State. London : Allen and Unwin.
Smoke, Paul. 2001. Fiscal Decentralization in Developing Countries: a Review of Current Concepts and Practice. Democracy, Governance and Human Rights Programme Paper No. 2. Geneva: UNRISD.
Tanzi, Vito. 1995. Fiscal Federalism and Decentralization: a Review of Some Efficiency and Macroeconomic Aspects. Paper presented at the Annual World Bank Conference on Development Economics. Washington, DC: World Bank.
Treisman, Daniel. 1999. Political Decentralization and Economic Reform: a Game-Theoretic Analysis. American Journal of Political Science 43: 488517.
Truman, David. 1951. The Governmental Process: Political Interests and Public Opinion. New York : Knopf.
United Nations Development Program (UNDP). 1993. Informe sobre desarrollo humano 1993. Madrid : CIDEAL.
Vargas Portales, Abelardo. 1997. President, Charagua Municipal Council (Adn). Author interview. Charagua, April 1.
Verba, Sidney, Lehman Schlozman, Kay, Brady, Henry, and Nie, Norman H.. 1993. Citizen Activity: Who Participates? What Do They Say? American Political Science Review 87: 303–18.
Wallis, John J., and Oates, Wallace E.. 1988. Decentralization in the Public Sector: An Empirical Study of State and Local Government. In Fiscal Federalism: Quantitative Studies, ed. Rosen, Harvey S.. Chicago : University of Chicago Press. 532.
Weingast, Barry R. 1995. The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development. Journal of Law, Economics, and Organization 11: 131.
Bank, World. 1994. World Development Report: Infrastructure for Development. New York : Oxford University Press.
Zax, Jeffrey S. 1989. Initiatives and Government Expenditures. Public Choice 63: 267–77.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Latin American Politics and Society
  • ISSN: 1531-426X
  • EISSN: 1548-2456
  • URL: /core/journals/latin-american-politics-and-society
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 1 *
Loading metrics...

Abstract views

Total abstract views: 17 *
Loading metrics...

* Views captured on Cambridge Core between 2nd January 2018 - 27th May 2018. This data will be updated every 24 hours.