Economic effects of devolution of governmental powers to the local people : a cross country comparison of Asian and European rural localities

Author: Peter B. Grubenmann

AIT Library Call Number: AIT Diss. no.RD-02-02

Year: 2002

Academic Program: Regional and Rural Development Planning (RRDP)

Type: Thesis (Ph.D.) – Asian Institute of Technology, 2002

Examination Committee: B.W.E. Wickramanayake (Chairperson); Reidar Dale, Willi Zimmermann, A.H.J. Helmsing(Examination Committee Members)

Abstract: Devolution of political-administrative powers to localities is thought to create a more conducive environment for local economic development. The objective of the research was to investigate economic effects of devolution of governmental powers to the local people in a direct democratic fashion. The research compares two Asian localities in Thailand and the Philippines with two European localities in Spain and Switzerland. Through this research simulation models of the politico-economic process of four sample localities was developed. The lack of hard data on the local level suggested the use of System Dynamics as analysis and simulation methodology. System Dynamics modeling methods were amalgamated with Social Network analytical and econometric tools. Social Network Analysis was used to develop the systems’ power structure. The dynamic models become locality specific by filling structural and behavioral parameters with local values derived through field research. The models allow the simulation of the devolution of powers to the villagers versus the exclusive or partial concentration of these powers in the hands of the local governments. Thus the research does not deal with the power and choice relations between local and upper government, but rather with granting direct democratic powers to the villagers themselves, with the local government being the executioners of the peoples’ will only Through this research, it was demonstrated that the combination of the methodologies of System Dynamics, statistics, econometrics and Social Network Analysis allows gaining more profound insights in the workings of politico-economic systems, particularly with respect to long-term economic effects of changes in the political and economic environment. The simulations demonstrated that policy variations matter very much on the local level for gaining competitive advantage against other localities. From a point of view of cause and effect of policy variations, there are no fundamental differences between the European and Asian l

Scholarship Donor(s):

Note: A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Environment, Resources and Development

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Search keywords index: Peter B. Grubenmann Economic effects of devolution of governmental powers to the local people : a cross country comparison of Asian and European rural localities Regional and Rural Development Planning (RRDP) Decentralization in government;