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Encina Columns is the biannual newsletter of the Freeman Spogli Institute for International Studies. The newsletter, published in the winter and summer, highlights recent news, events, policy analysis, and accomplishments of the institute and its research centers and programs.

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India, the world's largest democracy, is a country of contrasts. Not the least among these is the tremendous economic diversity of India's states. The Law and Economy in India program aims to analyze and explain why growth patterns are so different across India. The program analyzes the major differentials in growth across Indian states and sectors as a means of assessing potential interrelationships between the quality of legal institutions and economic development. 

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On March 17 the Freeman Spogli Institute for International Studies will host a book launch for a pathbreaking new book, Power and Responsibility: Building International Order in an Era of Transnational Threats, co-authored by Stephen Stedman, Senior Fellow, FSI and Director of the Ford Dorsey Program in International Policy Studies, Bruce Jones, Co-Director of the Center on International Cooperation, New York University, and Carlos Pascual, Director of Foreign Policy Studies, the Brookings Institution. Power and Responsibility has been produced by the Managing Global Insecurity Project, a multi-year, multi-continent collaboration between the Brookings Institution, NYU's Center on International Cooperation, and Stanford's Freeman Spogli Institute, seeking to coalesce the best thinking on international security affairs today.

As the authors note, the post-World War II fabric of global security, designed and maintained by the United States, has dangerously frayed. Built for a different age, current international institutions are ill-equipped to address today's pressing transnational security challenges-- such as climate change, nuclear proliferation, civil strife, and terrorism, which are beyond the power of any one state to address.

Revitalizing the institutions of cooperation will require a new conceptual foundation for global security. The "national sovereignty" of the twentieth century must give way to "responsible sovereignty" - a principle requiring nations not only to protect their own people, but also to cooperate across borders to safeguard common resources and tackle common threats. Achieving this will require American leadership and commitment to a rule-based international order.

With timely and hard-hitting recomendations, Power and Responsibility seeks to galvanize more effective global action against transnational threats and to build the political support networks needed to reform and revitalize international institutions.

Following an introduction by Coit D. Blacker, the Olivier Nomellini Professor in International Studies and Director, the Freeman Spogli Institute, all three authors will comment on key ways that revitalized institutions and commitments could address issues topping the foreign policy agendas of the U.S. and its global partners.

A book signing and reception will follow the authors' commentary.

Bechtel Conference Center

Bruce Jones Director, Center on International Cooperation, New York University Speaker
Carlos Pascual Vice President, Director of Foreign Policy Studies, the Brookings Institution Speaker

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Senior Fellow at the Freeman Spogli Institute for International Studies
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Stephen Stedman is a Senior Fellow at the Freeman Spogli Institute for International Studies (FSI) and the Center on Democracy, Development and the Rule of Law (CDDRL), an affiliated faculty member at CISAC, and professor of political science (by courtesy) at Stanford University. He is director of CDDRL's Fisher Family Honors Program in Democracy, Development and Rule of Law, and will be faculty director of the Program on International Relations in the School of Humanities and Sciences effective Fall 2025.

In 2011-12 Professor Stedman served as the Director for the Global Commission on Elections, Democracy, and Security, a body of eminent persons tasked with developing recommendations on promoting and protecting the integrity of elections and international electoral assistance. The Commission is a joint project of the Kofi Annan Foundation and International IDEA, an intergovernmental organization that works on international democracy and electoral assistance.

In 2003-04 Professor Stedman was Research Director of the United Nations High-level Panel on Threats, Challenges and Change and was a principal drafter of the Panel’s report, A More Secure World: Our Shared Responsibility.

In 2005 he served as Assistant Secretary-General and Special Advisor to the Secretary- General of the United Nations, with responsibility for working with governments to adopt the Panel’s recommendations for strengthening collective security and for implementing changes within the United Nations Secretariat, including the creation of a Peacebuilding Support Office, a Counter Terrorism Task Force, and a Policy Committee to act as a cabinet to the Secretary-General.

His most recent book, with Bruce Jones and Carlos Pascual, is Power and Responsibility: Creating International Order in an Era of Transnational Threats (Washington DC: Brookings Institution, 2009).

Director, Fisher Family Honors Program in Democracy, Development and Rule of Law
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Stephen J. Stedman Senior Fellow, FSI, and Director, Ford Dorsey Program in International Policy Studies Speaker
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A major dimension of effective international cooperation on climate change will be to more successfully engage developing countries in curbing greenhouse gases. The carrots and sticks that have been used for compliance under the current international affairs regime have not given good prospects for the reduction of CO2. This is largely because of the mis-alignment of countries' interests and capabilities. Victor provides an innovative scenario on designing a new institutional framework that would engage developing countries based on current accession protocols used in international economic institutions such as the WTO, OECD, and IMF.

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Daishiro Nomiya
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In activist communities worldwide, globalization has had an enormous impact, both in the composition of activist groups and the content of their messages. At the same time, regional concerns are playing a significant role in the ways protests are organized, managed, and deployed.

Regardless of their location or their target, it is clear that protest campaigns have, on the one hand, become increasingly globalized. The protests that took place during the July 2008 G8 Toyako Summit in Japan offer a case in point. Approximately one hundred transnational activists flew into Sapporo, a city located near the summit site, and joined various civil and protest activities. Over a loudspeaker, they broadcast statements denouncing the summit meeting as “antidemocratic” and “discriminatory against the poor.” These activists were drawn from East, Southeast, and Central Asia, as well as Europe and North America, and they voiced correspondingly global concerns—for human rights, global peace, and democracy, and against inequality and poverty. These themes echoed those of other major global protests, including demonstrations that took place against the International Monetary Fund and the World Trade Organization, the latter most notably in 1999 in Seattle. Indeed, protests of this kind represent what might be called an antiglobalization movement

On the other hand, global movements of this kind also appear to be organized on an increasingly regional basis. Though the activists who protested the Toyako Summit came from all over the world, and addressed topics of global importance, most of the participants came mainly from South Korea, Hong Kong, and Taiwan. Given this apparent dichotomy, the question arises: Will global social movements become regional?

One could argue that global social movements are and will remain regional, at least for the time being, for two practical reasons. First, the costs associated with flight to activist hubs near protest sites can be expensive. Second, the amount of time spent in transition to the protest site becomes a burden. The time doubles when taking into consideration the time spent to return to the originating country. These factors can be prohibitive especially to those based far away, but are less burdensome to regional activists, thus making it easier for nearby protesters to participate.

While time and cost are no doubt a concern, they may not be as important when compared with the other factors. Language is among these factors. Cooperative activities beyond the national borders are on the rise, yet many foreign activists do not speak the languages spoken in the countries where they protest. They invariably rely on English, widely accepted as the “global” language. Yet the levels of English fluency differ among participating activists, and this is a key factor. With their English ability, activists from Europe and North America tend to communicate with others on an individual basis, while those from nearby countries often rely on interpreters, especially when discussions delve into the details of the planned activity and necessary arrangements associated with it. Typically, interpreters are group leaders, well educated and knowledgeable about regional and global issues—and these individuals facilitate most intergroup communication.

Preestablished ties and preexisting communication can influence negotiation and cooperation processes among activists. Global social movements tend to enhance crossnational cooperation among participating activists—that is, activists who come together from different countries often regroup elsewhere, building on their previous cooperative activities. In the case of the 2008 G8 summit protests, regionalization was very much at work. Several months prior to the summit, Japanese media activists planned a temporary umbrella organization called the G8 Media Network, which helped to accommodate incoming foreign media activists and arranged international cooperative activities during the summit. As it happened, the foreign activists and groups that interacted with the G8 Media Network were actually regional, originating mainly from South Korea and Hong Kong. Under the auspices of the G8 Media Network, these groups of activists arrived prior to the summit and stayed until it concluded. Afterward, the same media groups discussed the continuation of crossnational cooperation. Though technically foreign, the dominant actors and groups who sought to continue cooperative activities were, in fact, only from neighboring countries.

Looking more closely at participants in the global protest activities provides further insight into contemporary global protest movements. At the 2008 G8 Summit protests, two different types of foreign participants were on display—those who had prior ties to host activist groups in Japan, and those who did not. The former group could be described as professional activists, whose preestablished ties ensure that they have good knowledge of a given protest’s scheduled activities. The professional group also organizes its own plans of action, precoordinated with domestic groups. The latter group tends to be traveling activists, a more or less independent and unorganized collection of individuals who enjoy traveling the globe and joining the activities offered at protest sites worldwide. The professional activist group is often drawn largely from neighboring countries in the region.

Most global social movements feature participants from around the world. At the same time, signs of regionalization also exist, making most protests both global and regional in nature. One could claim that the future of global social movements is regional. But whether global or regional, it is vital that we continue to study the composition of global protest movements and their abiding impact on civil society.

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Larry Diamond
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Bush gave democracy promotion a bad name, Larry Diamond writes in Newsweek. The new administration needs to get it right.

The new U.S. President will face more than one kind of global recession. In addition to the economic downturn, the world is suffering a democratic contraction. In Russia, awash with oil money, Vladimir Putin and his KGB cronies have sharply restricted freedom. In Latin America, authoritarian (and anti-American) populism is on the rise. In Nigeria, the Philippines and once again in Pakistan, democracy is foundering amid massive corruption, weak government and a loss of public faith. In Thailand, the government is paralyzed by mass protests. In Africa, more than a dozen fragile democracies must face the economic storm unprepared. And in the Middle East—the Bush administration's great democratic showcase—the push for freedom lies in ruins.

In the past decade, the breathtaking democratic wave that swept the world during the final quarter of the 20th century reversed course. Making democracy work proved harder than bringing down authoritarian rule. And receptive peoples everywhere were alienated by the arrogance and unilateralism of President George W. Bush's approach, which associated "democracy promotion" with the use of force and squandered America's soft power. Advancing democracy abroad remains vital to the U.S. national interest. But the next president will have to craft a more modest, realistic and sustainable strategy.

It's easy today to forget how far freedom has advanced in the past 30 years. When the wave of liberation began in 1974 in Portugal, barely a quarter of the world's states met the minimal test of democracy: a place where the people are able, through universal suffrage, to choose and replace their leaders in regular, free and fair elections. Over the course of the next two decades, dictatorships gave way to freely elected governments first in Southern Europe, then in Latin America, then in East Asia. Finally, an explosion of freedom in the early '90s liberated Eastern Europe and spread democracy from Moscow to Pretoria. Old assumptions—that democracy required Western values, high levels of education and a large middle class—crumbled. Half of sub-Saharan Africa's 48 states became democracies, and of the world's poorest countries, about two in every five are democracies today.

This great shift coincided with an unprecedented moment of U.S. military, economic and cultural dominance. Not only was America the world's last remaining superpower, but U.S. values—individual freedom, popular sovereignty, limited government and the rule of law—were embraced by progressive leaders around the world. Opinion surveys showed democracy to be the ideal of most people as well.

In recent years, however, this mighty tide has receded. This democratic recession has coincided with Bush's presidency, and can be traced in no small measure to his administration's imperial overreach. But it actually started in 1999, with the military coup in Pakistan, an upheaval welcomed by a public weary of endemic corruption, economic mismanagement and ethnic and political violence. Pakistan's woes exposed more than the growing frailty of a nuclear-weapon state. They were also the harbinger of a more widespread malaise. Many emerging democracies were experiencing similar crises. In Latin America and the post-communist world, and in parts of Asia and Africa, trust in political parties and parliaments was sinking dramatically, as scandals mounted and elected governments defaulted on their vows to control corruption and improve the welfare of ordinary people.

Thanks to bad governance and popular disaffection, democracy has lost ground. Since the start of the democratic wave, 24 states have reverted to authoritarian rule. Two thirds of these reversals have occurred in the past nine years—and included some big and important states such as Russia, Venezuela, Bangladesh, Thailand and (if one takes seriously the definition of democracy) Nigeria and the Philippines as well. Pakistan and Thailand have recently returned to rule by elected civilians, and Bangladesh is about to do so, but ongoing crises keep public confidence low. Democracy is also threatened in Bolivia and Ecuador, which confront rising levels of political polarization. And other strategically important democracies once thought to be doing well—Turkey, South Africa and Ukraine—face serious strains.

This isn't to say there haven't been a few heartening successes in recent years. Indonesia, the world's most populous Muslim country, has become a robust democracy nearly a decade after its turbulent transition from authoritarian rule. Brazil, under the left-leaning Luiz Inácio Lula da Silva, has also strengthened its democratic institutions while maintaining fiscal discipline and a market orientation and reducing poverty. In Africa, Ghana has maintained a quite liberal democracy while generating significant economic growth, and several smaller African countries have moved in this direction.

But the combination of tough economic times, diminished U.S. power and the renewed energy of major authoritarian states will pose a stiff challenge to some 60 insecure democracies in Asia, Africa, Latin America and the former Soviet bloc. If they don't strengthen their political institutions, reduce corruption and figure out how to govern more effectively, many of these democracies could fail in the coming years.

Part of the tragedy is that Washington has made things worse, not better. The Bush administration was right that spreading democracy would advance the U.S. national interest—that truly democratic states would be more responsible, peaceful and law-abiding and so become better contributors to international security. But the administration's unilateral and self-righteous approach led it to overestimate U.S. power and rush the dynamics of change, while exposing itself to charges of hypocrisy with its use of torture and the abuse of due process in the war on terror. Instead of advancing freedom and democracy in the Middle East, 2005 and 2006 witnessed a series of embarrassing shocks: Hamas winning in the Palestinian territories and Islamist parties winning in Iraq; Hizbullah surging in Lebanon and the Muslim Brotherhood surging in Egypt. After a brief moment of optimism, the United States backed away and Middle Eastern democrats grew embittered.

The new American administration will have to fashion a fresh approach—and fast. That will mean setting clear priorities and bringing objectives into alignment with means. The United States does not have the power, resources or moral standing to quickly transform the world's entrenched dictatorships. Besides, isolating and confronting them never seems to work: in Cuba, for example, this policy has been a total failure. This does not mean that the United States should not support democratic change in places like Cuba, Burma, Iran and Syria. But it needs a more subtle and sophisticated approach.

The best strategy would be to open up such places to the freer flow of people, goods, ideas and information. The next administration should therefore start by immediately lifting the self-defeating embargo on Cuba. It should offer to establish full diplomatic ties with Havana and free flows of trade and investment in exchange for a Cuban commitment to improve human rights. Washington should also work with Tehran to hammer out a comprehensive deal that would lift economic sanctions, renounce the use of force to effect regime change and incorporate Iran into the WTO, in exchange for a verifiable halt to nuclear-weapons development, more responsible behavior on Iraq and terrorism, and improved human-rights protection and monitoring. Critics will charge that talking to such odious governments only legitimizes them. In fact, engaging closed societies is the best way to foster democratic change.

At the same time, the United States should continue to support diaspora groups that seek peaceful democratic change back home, and should expand international radio broadcasting, through the Voice of America and more specialized efforts, that transmits independent news and information as well as democratic values and ideas.

In the near term, however, Washington must focus on shoring up existing democracies. Fragile states need assistance to help them adjust to the shocks of the current economic crisis. But they also need deep reforms to strengthen their democratic institutions and improve governance. This will require coordinated help from America and its Western allies to do three things.

First, they must ramp up technical assistance and training programs to help the machinery of government—parliaments, local authorities, courts, executive agencies and regulatory institutions—work more transparently and deliver what people want: the rule of law, less corruption, fair elections and a government that responds to their economic and social needs. This also means strengthening democratic oversight.

Second, we know from experience that these kinds of assistance don't work unless the political leaders on the receiving end are willing to let them. So we need to generate strong incentives for rulers to opt for a different logic of governance, one that defines success as delivering development and reducing poverty rather than skimming public resources and buying support or rigging elections. This will mean setting clear conditions that will have to be met before economic and political aid is doled out to governments.

The third priority is to expand assistance to independent organizations, mass media and think tanks in these fragile states that will increase public demand for better governance and monitor what governments do. This means aiding democratic professional associations, trade unions, chambers of commerce, student groups and organizations devoted to human rights, women's rights, transparency, civic education, election monitoring and countless other democratic activities. Ordinary people must be educated to know their rights and responsibilities as citizens—and be ready to defend them.

While Western countries have provided this kind of aid for more than two decades, economic assistance handed out at the same time has often undermined democracy efforts by subsidizing corrupt, abusive governments. Aid donors should thus strike a new bargain with recipients, telling them: if you get serious about containing corruption, building a rule of law and improving people's lives, we will get serious about helping you. Those that show a real commitment should get significant new rewards of aid and freer trade. Those unwilling to reform should get little, though the West should continue to fight disease and directly help people in dire need wherever they are.

Finally, the new president should keep in mind the power of example. Washington can't promote democracy abroad if it erodes it at home. The contradictions between the rhetoric of Bush's "freedom agenda" and the realities of Abu Ghraib, Guantánamo, torture, warrantless surveillance and boundless executive privilege have led even many of the United States' natural allies to dismiss U.S. efforts as hypocritical. Thus the new president must immediately shut down Guantánamo and unequivocally renounce the use of torture; few gestures would restore American credibility more quickly. The United States should also reduce the power of lobbyists, enhance executive and legislative transparency and reform campaign-finance rules—both for its own good and for the message it would send.

Make no mistake: thanks to the global economic crisis and antidemocratic trends, things may get worse before they get better. But supporting democracy abroad advances U.S. national interests and engages universal human aspirations. A more consistent, realistic and multilateral approach will help to secure at-risk democracies and plant the seeds of freedom in oppressed countries. Patience, persistence and savvy diplomacy will serve the next president far better than moralistic rhetoric that divides the world into good and evil. We've seen where that got us.

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It possesses nuclear weapons and missiles to deliver them, and despite some progress, it is by no means clear that the ongoing six-party talks will be able to reveal the full extent of the country's nuclear activities, much less persuade Pyongyang to give them up.

The United States maintains tens of thousands of forces on the Korean peninsula in support of its commitments to the Republic of Korea (South Korea), a country with which the North is still technically at war. And the peninsula sits in a strategically vital region, where the United States, China, Russia, Japan, and South Korea all have important interests at stake.

All of this puts a premium on close attention to and knowledge of developments in North Korea. Unfortunately, Kim Jong-Il's government is perhaps the world's most difficult to read or even see. This Council Special Report, commissioned by CFR's Center for Preventive Action and authored by former CISAC co-director Paul B. Stares and Joel S. Wit, focuses on how to manage one of the central unknowns: the prospect of a change in North Korea's leadership. The report examines three scenarios: managed succession, in which the top post transitions smoothly; contested succession, in which government officials or factions fight for power after Kim's demise; and failed succession, in which a new government cannot cement its legitimacy, possibly leading to North Korea's collapse. The authors consider the challenges that these scenarios would pose-ranging from securing Pyongyang's nuclear arsenal to providing humanitarian assistance-and analyze the interests of the United States and others. They then provide recommendations for U.S. policy. In particular, they urge Washington to bolster its contingency planning and capabilities in cooperation with South Korea, Japan, and others, and to build a dialogue with China that could address each side's concerns.

With Kim Jong-Il's health uncertain and with a new president in the United States, this report could not be more timely. And with all the issues at stake on the Korean peninsula, the subject could not be more important. Preparing for Sudden Change in North Korea is a thoughtful work that provides valuable insights for managing a scenario sure to arise in the coming months or years.

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(From the introduction) For more than a decade, international lawyers and international relations scholars have been fascinated by an ever-increasing number of international courts and tribunals. These are producing more international case-law, thereby replacing the traditional scarcity of international law precedents embodied in a few celebrated ICJ and PCIJ cases. Today, there is a host of frequently highly specialized international dispute settlement mechanisms like the WTO Dispute Settlement Body, the International Tribunal for the Law of The Sea, the International Criminal Court, various investment tribunals acting under The International Centre for Settlement of Investment Disputes (ICSID) Convention or other arbitration rules. All apply, interpret and probably ‘make’ international law. One question frequently raised in this context is whether these institutions contribute to the development of a single uniform body of international law or whether they make ‘their own’ ever more fragmented law. To the extent that they must apply specifically agreed upon rules, such as the WTO agreements, various bilateral investment protection treaties or the Law of the Sea Convention, etc., this is of course largely a false problem. In so far as they rely on common rules of international law, coherence vs. fragmentation does indeed arise and is a serious issue.

Scholars of international law have intensely debated these problems mostly under the heading ‘fragmentation’ of international law or ‘proliferation’ of international courts and tribunals. Gerhard Hafner has significantly contributed to this scholarly debate in a number of articles, and most importantly in a report prepared for the International Law Commission (ILC), which triggered the Commission’s work on fragmentation and was further pursued by Gerhard Hafner’s successor on the ILC, Martti Koskenniemi.

It thus appears appropriate to dedicate a few modest thoughts about these issues to a great international lawyer with whom I have had the privilege to work at the Department of International Law and International Relations at the University of Vienna during the last twenty years. Gerhard Hafner will understand that due to the space allotted in this liber amicorum, I must limit the scope of my remarks on fragmentation and proliferation to a specific subfield of international law. He will also appreciate that the chosen field is investment law and arbitration, which, in many respects, may be viewed as a test laboratorium of international law where many of the pertinent problems mentioned above have appeared in particularly visible form.

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Martinus Nijhoff Publishers in "International Law between Universalism and Fragmentation - Festschrift in Honour of Gerhard Hafner", J. Crawford/A. Pellet/I. Buffard/S. Wittich (eds.)
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Why did limited government and 'constitutionalism' (the rule of law, constitutional rules, and political representation) evolve in some societies but not others? Guided by history, this paper examines why this evolution reflects dependence on administrators to implement policy choices including those affecting them. Limited government and constitutionalism are manifestations of equilibria in which the administrators have the power to influence choices. The thesis that constitutionalism reflects an equilibrium among the powerful differs from the prevailing one, which asserts that it reflects gains to the weak from constraining the powerful. Analyzing the determinants and implications of administrative power reveals its impact on trajectories of economic development. Distinct administrative-power equilibria have different impacts on the security of the non-elite's property rights; intra-state and inter-state violence (e.g. civil wars and wars, respectively); policies; entry barriers to new technologies and economic sectors; the nature of political conflicts; and the means to resolve conflicts concerning political rights.

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Harvard University Press, in "Institutions and Economic Performance", Elhanan Helpman (ed.)
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Avner Greif
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Christian von Luebke
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At first sight, political turmoil in Thailand and the Philippines—repeated violent protests, impeachment battles, and military coups—gives the impression that democracy in Southeast Asia is on a downward spiral. One country in the region, however, has sustained a stable pluralistic democracy: the Republic of Indonesia.

In 1999, after thirty years of Suharto’s centralistic, authoritarian rule, Indonesia embraced far-reaching decentralization and election reforms. Within a brief period of two years, the Indonesian government reshaped its administrative architecture, including the devolution of local tax and service responsibilities to more than 400 district governments. In view of its deep-seated authoritarian traditions, beginning with Javanese kingdoms and sultanates, moving through Dutch colonialism (1619–1942), and ending with Suharto’s New Order (1965–98), Indonesia’s rapid shift toward democratic decentralization stands out as one of the most remarkable political transitions in recent history.

Particularly notable is the peaceful and competitive conduct of Indonesian elections. Over the last decade, local citizens have elected more than 30,000 local councilors and over 400 mayors, regents, and governors, with little violence or intimidation. High voter turnouts (around 70 percent) and high replacement rates of incumbent executives (roughly 40 percent) bear witness to rising electoral competition in local polities. While subnational elections display considerable flux, the upcoming presidential elections in July 2009 suggest continuity. The latest national polls, for example, predict a comfortable lead for President Susilo Bambang Yudhoyono (49 percent) over his main competitor, Megawati Soekarnoputri (36 percent).

The institutionalization of democracy and decentralization, however, has yet to translate into substantive public sector reforms. Indonesia continues to score low in global governance assessments. According to Transparency International and the World Bank, Indonesia’s government ranks 126th (out of 180) in terms of corruption, and 129th (out of 181) in terms of administrative efficiency for business start-ups. With the introduction of regional autonomy, these governance problems have, to a considerable extent, been decentralized to hundreds of districts. Yet, despite formally uniform institutional settings, local governments exhibit vast differences in regulatory quality, administrative efficiency, and anticorruption measures.

What motivates some local governments to perform better than others? Implicit in this question, which stands at the center of my research, is the idea that local democracy is not only an end in itself, but also a means for improving government outcomes. The pronounced policy differences that arise in Indonesia’s district polities provide a good opportunity to examine the workings of Indonesian local democracy or, to use a different terminology, the political economy of local decision-making.

The findings from controlled case comparisons and subnational datasets suggest that policy variations are best explained by differences in government leadership. Good policy environments emerge primarily in cases where local regents and mayors, whose career aspirations are tested by direct elections, skillfully use their office powers to forge reform coalitions and supervise bureaucratic practices. Societal reform pressures that arise from local parliaments, business chambers, and nongovernmental organizations, in comparison, tend to be less significant drivers of good governance. While broad-based interest groups continue to struggle with collective-action problems, district council members seem more concerned with provincial/national party elites (and their party list positions) than with representing local constituencies. Thus, in Indonesia’s early stage of democratic transition, where societal pressures are yet to fully unfold, much seems to depend on leadership efforts to initiate, facilitate, and oversee government improvements.

Under what conditions, then, are local leaders likely to act in the public interest, rather for private gain? While direct elections provide basic incentives, the direction and strength of these incentives also hinge upon existing socioeconomic structures. Government leaders need to accommodate interests of powerful economic groups in order to secure support for campaign funding and co-investments in public goods. Whether these interest alignments result in unproductive rent-seeking and corruption, or in constructive government reforms, depends on the constellation and transparency of economic powers.  The more economic powers become concentrated in specific sectors, groups, and firms, and the less public-private interactions are monitored by local media, the greater the likelihood that leaders will pursue self-preferential and collusive strategies.

As a result, it is plausible to assume that a moderate economic concentration and strong media presence are conducive to better governance. At this point, only some districts fall into this category. But as globalization and communication technologies progress, local polities are bound to become more economically diverse and politically informed. With growing political awareness and increased incentives for better leadership, it is likely that Indonesia, over time, will see more public-private symbioses for reform and, thus, bridge the gap between well-functioning elections on the one hand and poor governance
on the other.

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