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Political Decentralisation and Local Economic Development: Findings on the Pro-Poor Responsiveness in 5 Cambodian Communes

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Political Decentralisation and Local Economic Development: Findings on the Pro-Poor Responsiveness in 5 Cambodian Communes A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Westphal, Nico Working Paper Political Decentralisation and Local Economic Development: Findings on the pro-poor responsiveness in 5 Cambodian communes IEE Working Papers, No. 193 Provided in Cooperation with: Institute of Development Research and Development Policy (IEE), Ruhr University Bochum Suggested Citation: Westphal, Nico (2011) : Political Decentralisation and Local Economic Development: Findings on the pro-poor responsiveness in 5 Cambodian communes, IEE Working Papers, No. 193, ISBN 978-3-927276-79-6, Ruhr-Universität Bochum, Institut für Entwicklungsforschung und Entwicklungspolitik (IEE), Bochum This Version is available at: http://hdl.handle.net/10419/183547 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu NICO WESTPHAL POLITICAL DECENTRALISATION AND LOCAL ECONOMIC DEVELOPMENT - FINDINGS ON THE PRO-POOR RESPONSIVENESS IN 5 CAMBODIAN COMMUNES - WORKING PAPER VOLUME | 193 BOCHUM 2011 www.development-research.org | www.ruhr-uni-bochum.de IEE WORKING PAPERS 193 Nico Westphal POLITICAL DECENTRALISATION AND LOCAL ECONOMIC DEVELOPMENT - FINDINGS ON THE PRO-POOR RESPONSIVENESS IN 5 CAMBODIAN COMMUNES - Copyright 2011 Herausgeber: © Institut für Entwicklungsforschung und Entwicklungspolitik der Ruhr-Universität Bochum Postfach 10 21 48, D-44780 Bochum E-Mail: [email protected] www.development-research.org ISSN 0934-6058 ISBN 978-3-927276-79-6 Abstract Decentralisation and local economic development (LED) are two major development strategies that both have an explicit or inexplicit focus on poverty reduction. Political decentralisation offers principally two channels that allow to better orient policies to the needs of the poor, either through electoral processes at the local level or through direct participation. Local economic development is widely based on the assumption that interventions need to be tailored to the specific local characteristics. Governance mechanisms are inherent to both concepts, considering that especially participation is an important element in policy-making. This research project analyses the voice-responsiveness mechanism, which is based on direct citizen participation in a governance-setting rooted in the context of a decentralisation reform. Analysing the Cambodian decentralisation process, this study finds that the legal framework and the resulting participation of poor economic actors gives them significant influence on defining the strategic outline for local economic development policies and that these opportunities are largely exploited by them. Such an inclusive decision-making process leads to policies that largely reflect the poor’s needs. Nonetheless, the results show a clear location- and actor-specificity regarding the inclusion and voice of poor people in policy-making and of the resulting LED-policies. It thus supports the argument that political decentralisation can be a driving but not a decisive factor for pro-poor oriented local economic development policies. i TABLE OF CONTENTS List of Figures ............................................................................................................................ v List of Acronyms ...................................................................................................................... vi 1 Introduction, Context and Justification ...............................................................................1 2 Discussion of the Conceptual Frameworks and Evidence ................................................. 3 2.1 The concept of decentralisation .................................................................................... 3 2.2 Political decentralisation ............................................................................................... 3 2.2.1 Preconditions and hindering factors for effective political decentralisation .................................................................................................. 5 2.2.2 Political decentralisation and its pro-poor effects ............................................ 6 2.2.3 Voice-channels and their relevance for pro-poor policies ............................... 8 2.3 Local Economic Development ...................................................................................... 9 2.3.1 Political decentralisation & LED – rationale and expected benefits ............. 10 2.3.2 Local actors’ diverse roles and power in LED ................................................. 11 2.3.3 The ‘pro-poorness’ of LED ............................................................................... 13 3 Presentation of Relevant Concepts .................................................................................... 14 3.1 Governance – the underlying concept behind political decentralisation ................. 14 3.2 Governance and the voice-responsiveness mechanism ............................................ 16 3.3 Pro-poor responsiveness ............................................................................................. 18 3.4 Hypotheses................................................................................................................... 20 4 Research Design - Methodology and Description of Selected Cases .............................. 22 4.1 Sources of data and the units of analysis ................................................................... 22 4.1.1 Legal opportunities for participation - polity perspective .............................. 22 4.1.2 ‘Voice-responsiveness’-mechanism - politics perspective ............................. 22 4.1.2.1 The poor economic actors ................................................................. 23 4.1.2.2 The civil society organisations .......................................................... 23 4.1.2.3 The representatives of the local government and adjacent bodies ................................................................................................. 24 4.1.3 Responsiveness - policy perspective ............................................................... 24 4.2 Data collection ............................................................................................................. 24 4.3 Operationalisation of the theoretical concepts ..........................................................26 4.3.1 The legal opportunities....................................................................................26 4.3.2 The voice-responsiveness mechanism ...........................................................26 4.3.2.1 The voice-mechanism ...................................................................... 27 4.3.2.2 The responsiveness mechanism ...................................................... 27 4.4 Study region, cases, sample and sampling methods ................................................ 28 4.4.1 The study region – Battambang Province ...................................................... 28 4.4.2 The Cases – the five selected communes and villages ..................................29 4.4.3 The units of observation and sampling techniques ...................................... 30 iii 4.5 Limitations to the study ............................................................................................... 31 5 Analysis of the decentralisation process and the provisions for participation ................ 32 5.1 Introduction to the decentralisation process in Cambodia ....................................... 32 5.2 Objectives of the decentralisation reform in Cambodia ............................................ 33 5.3 Elements of the decentralisation reform and the institutional setting .................... 34 5.3.1 The national level institutional setting ........................................................... 34 5.3.2 At the local level – actors and their roles in decentralisation ........................ 34 5.3.3 Major functions of the communes - is decision-making power transferred? ....................................................................................................... 35 5.3.4 Political decentralisation and citizen participation ........................................ 37 5.3.5 Legal regulations for local development planning ......................................... 38 5.4 Intermediate conclusion and additional insights ..................................................... 42 6 The use of the ‚voice’ channel – findings from the field .................................................
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