TY - JOUR
T1 - The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia
AU - Lewis, Blane D.
AU - Hendrawan, Adrianus
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2019/6
Y1 - 2019/6
N2 - This study examines the impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia. The investigation finds that majority coalitions, i.e. those coalitions for which participating political parties control greater than half of council seats, cause a shift in local government spending towards health sector activities and induce improvements in citizen health service access—but only for a year or two, after which the positive effects disappear. The study shows that budget fraud starts to become problematic in the last two years of the coalition's life. Majority coalition support for the local health spending and service agenda dissipates quickly as attention turns to corrupting the budget, via increased infrastructure outlays and associated rent-seeking. We hypothesize that budget fraud serves, in part, to finance subsequent rounds of local parliamentary and executive elections.
AB - This study examines the impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia. The investigation finds that majority coalitions, i.e. those coalitions for which participating political parties control greater than half of council seats, cause a shift in local government spending towards health sector activities and induce improvements in citizen health service access—but only for a year or two, after which the positive effects disappear. The study shows that budget fraud starts to become problematic in the last two years of the coalition's life. Majority coalition support for the local health spending and service agenda dissipates quickly as attention turns to corrupting the budget, via increased infrastructure outlays and associated rent-seeking. We hypothesize that budget fraud serves, in part, to finance subsequent rounds of local parliamentary and executive elections.
KW - Corruption
KW - Indonesia
KW - Local government spending and service delivery
KW - Majority coalitions
KW - Regression discontinuity
UR - http://www.scopus.com/inward/record.url?scp=85057719205&partnerID=8YFLogxK
U2 - 10.1016/j.ejpoleco.2018.11.002
DO - 10.1016/j.ejpoleco.2018.11.002
M3 - Article
SN - 0176-2680
VL - 58
SP - 178
EP - 191
JO - European Journal of Political Economy
JF - European Journal of Political Economy
ER -