Globalisering og styresett i sør Kristian Stokke

Multi-scale and Diffuse Governance MarketHierarchyCommunity Global National State Local Decentralisation Privatisation Civil society Internationalisation

The Washington Consensus Early state-led development models Market failure  interventionist states Public enterprises, protective regulation Market liberalisation (”structural adjustment” Problems of bureaucratisation, state monopoly, state intervention creating inefficiencies and undermining markets State failure  economic liberalisation ”Rolling back the state” through privatisation Denationalisation of publix enterprises, sub- contracting, self-management, deregulation Political conditionalities by donors/IFIs in regard to loans and aid

State/Market-Relations in Development Debates about NICs: Market-led or state-led development Wrong question: Not state or market-led development, but what kind of state (Peter Evans and others) Parasitic states: controlled by and used for self-interest og state elites (corruption and clientelism). Inefficient bureaucracy with limited administrative capacity. Weak states with limited capacity and accountability. Developmental states: weak states that have become strong through governance arrangements Such states are characterised by ”Embedded autonomy” (Evans) Autonomy: strong bureaucracy with substantive autonomy in regard to specific interests Autonomy: strong bureaucracy with substantive autonomy in regard to specific interests Embedded: governance through networks with market actors Embedded: governance through networks with market actors Division of labor between market and enabling state institutions Division of labor between market and enabling state institutions

Post-Washington Consensus From ”Less Government” to ”Good Governance” Role of state Division of labor between state, market and civil society State enabling market-led development Accountable and efficient state institutions Not how much but what kind of state

New State Roles Provision of public goods (for example enforcement of contracts, defence) Provision of some merit goods (for example education and health) Development of transportation, communication and power systems Dissemination of economic information Institution of a ’transparent’ and flexible regulatory framework Promotion of scientific and technological research Provision of a safety net for low-income groups Turner & Hulme p. 185

Elements of Good Governance Legal framework for development providing a basis of stable rules, enforcement and dispute resolution Efficiency in public sector management through appropriate budgeting, accounting and reporting systems Transparency in public sector management through access to information about handling of resources Accountability of both political and official side of government, mechanisms for holding individuals and institutions to account

Decentralisation Privatisation Privatisation Transfer of functions from state to market Transfer of functions from state to market Deconcentration (administrative decentralisation) Deconcentration (administrative decentralisation) Transfer of functions from national to local institutions for public administration Transfer of functions from national to local institutions for public administration Devolution (democratic decentralisation) Devolution (democratic decentralisation) Transfer of functions and authority (decision- making) to local government Transfer of functions and authority (decision- making) to local government

Periods of Decentralisation in Africa Golden Age of Local Government ( early 60s) Golden Age of Local Government ( early 60s) Indirect rule (Mamdani: decentralised despotism) Indirect rule (Mamdani: decentralised despotism) Decolonisation & state building (early 60s - late 70s) Decolonisation & state building (early 60s - late 70s) State, party and nation-building. Centralised development planning State, party and nation-building. Centralised development planning Liberalisation & decentralisation (late 70s - late 80s) Liberalisation & decentralisation (late 70s - late 80s) Privatisation and administrative decentralisation in context of structural adjustment Privatisation and administrative decentralisation in context of structural adjustment Democratisation & good governance (1990s - present) Democratisation & good governance (1990s - present) Discourse and attempts at democratic decentralisation (participation in ’good governance’) Discourse and attempts at democratic decentralisation (participation in ’good governance’)

Local Elite Capture (Local Bossism) Decentralisation may lead to local substantive democracy, but also decentralised despotism: local bosses capturing local political power and control over public resources Decentralisation may lead to local substantive democracy, but also decentralised despotism: local bosses capturing local political power and control over public resources John Sidel on ”local bossism” John Sidel on ”local bossism” Local strongmen are created as much by the nature of the state as by that of society (i.e. not simply a local ’tradition’) Local strongmen are created as much by the nature of the state as by that of society (i.e. not simply a local ’tradition’) Bossism reflects the subordination of the state apparatus to elected officials in the context of primitive accumulation Bossism reflects the subordination of the state apparatus to elected officials in the context of primitive accumulation Primitive accumulation; loss of control over means of production/ subsistence, prevalence of economic insecurity (scarcity of wage work), considerable economic resources within the ”public domain” Primitive accumulation; loss of control over means of production/ subsistence, prevalence of economic insecurity (scarcity of wage work), considerable economic resources within the ”public domain” This makes voters susceptible to clientelism in a situation where state offices are crucial for capital accumulation This makes voters susceptible to clientelism in a situation where state offices are crucial for capital accumulation Key factors: nature of public affairs, nature of decentralisation, nature of local civil society Key factors: nature of public affairs, nature of decentralisation, nature of local civil society

Democratic Decentralisation Experiments in institutionalized local popular democracy: decentralized planning in Kerala (India) and participatory budgeting in Porto Alegre (Brazil) Common characteristics Extensive popular participation, enabled through devolution of policy-making and institutionalization of new arenas for democratic participation. Policy-making within these new local arenas is based on deliberative processes. A strong ‘practical orientation’ with an emphasis on concrete socio-economic development needs.

Politics of Democratic Decentralisation How do such institutional arrangements for local deliberative democracy come about? Existing literature tends to focus on institutional design and ignore the political interests, strategies and relative strengths of state, elite and popular forces involved in the making of local popular democracy Participatory budgeting has functioned as a successful political strategy for PT in Porto Alegre (Rebecca Abers): (i) by responding to demands from neighborhood leaders who would otherwise rely on clientelistic networks within the opposition party (ii) by politically mobilizing and integrating activists from popular movements (iii) by delivering accountable and efficient local government that especially appeals to the middle classes (iv) by strengthening local state capacity and coordination in the interest of the bureaucracy (v) by addressing the prioritized needs of poor people.

The Role of Civil Society Civil society as an intermediate sphere of associational life between the family and the state Civil society as an intermediate sphere of associational life between the family and the state Civil society increasingly seen as a key arena for development Civil society increasingly seen as a key arena for development Economic development fostered by local participation and resource mobilisation Economic development fostered by local participation and resource mobilisation Good governance (accountability/transparency) fostered through civic engagement Good governance (accountability/transparency) fostered through civic engagement Civil society operationalised as non-governmental organisations or alternatively as social capital Civil society operationalised as non-governmental organisations or alternatively as social capital

Diversity of the ’Third Sector’ Some critical issues State/society-relations (service delivery or political advocacy) NGO/community-relations (participation, transparency, accountability) NGO/CBO-relations (mutuality or dependence)

General Points New form of public administration in developing countries, generally referred to as (good) governance New form of public administration in developing countries, generally referred to as (good) governance Presented and promoted – not the least by international financial institutions such as the World Bank and the IMF – as a universal solution for development Presented and promoted – not the least by international financial institutions such as the World Bank and the IMF – as a universal solution for development But development administration are not simply technical solutions: ”There are no universal principles of management and no universal management tool kits” (Turner & Hulme, p. 3) But development administration are not simply technical solutions: ”There are no universal principles of management and no universal management tool kits” (Turner & Hulme, p. 3) Development administration takes place in political contexts and reflect political forces and dynamics Development administration takes place in political contexts and reflect political forces and dynamics Institutions are not simply acted upon (designed) but also influence their environment (structure politics) Institutions are not simply acted upon (designed) but also influence their environment (structure politics)