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THE DARK SIDE OF DECENTRALIZATION: THE EMERGENCE OF THE SHADOW STATE IN INDONESIA
Corresponding Author(s) : Panji Suminar
Humanities & Social Sciences Reviews,
Vol. 8 No. 4 (2020): July
Abstract
Purpose of the study: This study investigates the interrelated roles between the ruling elites and informal actors with the emergence of shadow states after the direct election of regional heads in Bengkulu, Indonesia.
Methodology: This study employed qualitative methods that use interviews, observations, and documentation techniques to collect data. Data and information obtained are analyzed by employing domains, taxonomic, componential, and cultural theme analysis. This study applied a purposive sampling method to select informants based on criteria that are relevant to the needs of the research.
Main Findings: The shadow state was built by four dominant groups, namely political outsider, political directorate, corporate rich, and informal elite. The shadow state was not caused by the weakening or weathering of functions in formal government institutions but rather because of the interrelation between dominant groups working outside legal government structures.
Applications of this study: This study will be useful in understanding the phenomenon of the emergence of the shadow states in the local political and democratic system. Besides, it will be useful in searching for the right way to increase the consolidation of politic and democracy in Indonesia
Novelty/Originality of this study: This study offers a conceptual framework for analyzing the emergence of shadow states in local government after direct elections. This study also provides a comprehensive description related to the process of development of the shadow state as the dark side of decentralization.
Keywords
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- Arghiros, D. (2001). Democracy, development, and decentralization in provincial Thailand. Surrey: Curzon.
- Case, W. (2002). Politics in Southeast Asia: Democracy or less. Mitcham. Surrey: Curzon.
- Erman, E. (2007). Indikasi patrimonialisme dan klientalisme dalam proses pilkada. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp129-162). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
- Fazekas, M., & Tóth, I. J. (2018). From corruption to state capture: A new analytical framework with empirical applications from Hungary. Political Research Quarterly, 69(2), 320-334. https://doi.org/10.1177/1065912916639137 DOI: https://doi.org/10.1177/1065912916639137
- Frye, T. (2010). Capture or exchange? Business lobbying in Russia. Europe-Asia Studies, 54(7), 1017–36. https://doi.org/10.1080/0966813022000017113 DOI: https://doi.org/10.1080/0966813022000017113
- Grzymala-Busse, A. (2008). Beyond clientelism: Incumbent state capture and state formation. Comprative political Studies, 41(4-5),638-673. https://doi.org/10.1177/0010414007313118 DOI: https://doi.org/10.1177/0010414007313118
- Hall, D. (2012), Dealing with corruption and state capture, public services international research unit (PSIRU). London: Business School, University of Greenwich, London.
- Hassan, S.Y. (2017). Corruption, state capture, and the effectiveness of anticorruption agency in post-communist Ethiopia. Economic and Political Studies, 6(4), 368-416. https://doi.org/10.1080/20954816.2018.1535757 DOI: https://doi.org/10.1080/20954816.2018.1535757
- Hellman, J.S., Jones, G., Kaufmann, D. & Schankerman, M. (2000). Measuring governance and shadow state: The role of bureaucrats and firms in shaping the business environment: Results of a firm-level study across 20 transition economies. Working Paper No 51, The Business Environment and Enterprise (BEEPS). https://doi.org/10.2139/ssrn.222210 DOI: https://doi.org/10.2139/ssrn.222210
- Hellman, J.S. and M. Schankerman (2000) 'Intervention, Corruption and Capture', Economics of Transition,8(3), 545–576. https://doi.org/10.1111/1468-0351.00055 DOI: https://doi.org/10.1111/1468-0351.00055
- Hidayat, S. (2003). Desentralisasi dalam perspektif state-society relation: Rekonstruksi konsep dan pendekatan kebijakan. Desentralisasi dan otonomi daerah. LIPI: Jakarta.
- Hidayat, S. (2007). Peta relasi kekuasaan dalam penyelenggaraan pemerintah daerah pasca pilada di provinsi kepulauan Riau dan Sumatera Barat. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp. 165-203) Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
- Hoinaru, R., Buda, D., Borlea, S.N., Văidean, V.L., Achim, M. (2020). The Impact of corruption and shadow economy on the economic and sustainable development. Do they "sand the wheels" or "grease the wheels"? Sustainability, 481(1), 2-27. https://doi.org/10.3390/su12020481 DOI: https://doi.org/10.3390/su12020481
- Innes, A. (2013) The political economy of state capture in Central Europe. Journal of Common Market Studies, 52 (1). pp. 88-104. https://doi.org/10.1111/jcms.12079 DOI: https://doi.org/10.1111/jcms.12079
- Innes, A. (2016). Corporate state capture in open societies: The emergence of corporate brokerage party systems. East European Politics & Sociaties, 30(3), 594. https://doi.org/10.1177/0888325416628957 DOI: https://doi.org/10.1177/0888325416628957
- Labuschagne, P. (2017). Patronage, state oligopolistic monopoly in South Africa: The slide from a weak to a dysfunctional state? Acta Academica, 49(2), 51-67. https://doi.org/10.18820/24150479/aa49i2.3 DOI: https://doi.org/10.18820/24150479/aa49i2.3
- McKechnie, L. E. F. (2008). Observational research. In Given, L. M. (Ed.), The Sage encyclopedia of qualitative research methods (pp. 573–577). Thousand Oaks, CA: Sage.
- Michles, R. (1962). Political parties: A sociological study of the oligarchical tendencies of modern democracy. New York: Macmillan Publishing Co.
- Mills, C. W. (1956). The power elite. Oxford University Press: Oxford.
- Moore, B. (1966). Social origins of dictatorship and democracy: Lord and peasant in the making of the modern world. Boston, MA: Beacon Press.
- Mulenga, M.C., & Mulenga, J.N. (2018). Demystifying the concept of state or regulatory capture from a theoretical public economics perspective. African Journal of political science and International relation, 12(7), 132-141. https://doi.org/10.5897/AJPSIR2018.1105 DOI: https://doi.org/10.5897/AJPSIR2018.1105
- Nordholt, H.S. (2003). Renegotiating boundaries: Access, agency, and identity in post-Soeharto Indonesia. Journal of the Humanities and Social Science of Southeast Asia and Oceania, (159) 4, 550-589. https://doi.org/10.1163/22134379-90003742 DOI: https://doi.org/10.1163/22134379-90003742
- Ostrom, V. (1991). The meaning of American federalism: Constituting a self-governing society. San Fransisco: Institute for Contemporary Studies Press.
- Oyugi, O.W. (2000). Decentralization for good governance and development: The unending debate. Regional Development Dialogue, 21(1), 3-22.
- Quimpo, N.G. (2007). The Philippines: Political parties and corruption. In Southeast Asian Affair. Singapore: Institute of Southeast Asian Studies, pp. 277-294. https://doi.org/10.1355/SEAA07N DOI: https://doi.org/10.1355/SEAA07N
- Reno, W. (1995). Corruption and state politics in Sierra Leone. Cambridge: Cambridge University Press.
- Richter, S. & Wunsch, N. (2019). Money, power, glory: The linkages between EU conditionality and state capture in the Western Balkans. Journal of European Public Policy, 27(1), 41-62. https://doi.org/10.1080/13501763.2019.1578815 DOI: https://doi.org/10.1080/13501763.2019.1578815
- Robinson, R., & Hadiz. V. (2004). Reorganizing power in Indonesia: The politics of oligarchy in an age of markets. London. Routledge Curz.
- Santos, E.G. (2011). Impact on the state through state capture: Development of the state capture concept based on cases of some countries in Latin America. Vortex Working Paper No. 2. Bogotá: Vortex Foundation.
- Smith, B.C. (1985). Decentralization: The territorial dimension of the state. London: Asia Publishing House.
- Soesilowati, E.S., & Erman, E. (2007). Penguasa, pengusaha dan penyelenggaraan pemerintahan daerah pasca pilkada: Kasus provinsi kepulauan Riau. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp.203-248). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
- Spradley, J.P.(2007). Metode etnografi. Yogyakarta: Tiara Wacana
- Srouji, S. (2005), Capturing the state: A political economy of Lebanon's public debt crisis 1992–2004. A research paper presented in partial fulfillment of the requirements for obtaining the degree of Master of Arts in Development Studies in International Political Economy. The Hague, The Netherlands: Institute of Social Studies.
- Susanto, H. (2007). Relasi penguasa dan pengusaha pasca pilkada: Kasus provinsi Sumatera Baratâ€. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp 251-273). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
- Tudoroiu, T. (2013). Democracy and state capture in Moldova. Democratization, 22(4), 655-678. https://doi.org/10.1080/13510347.2013.868438 DOI: https://doi.org/10.1080/13510347.2013.868438
- Vengrof, R. & Salem, H.B. (1992). Assessing the impact of decentralization on governance: A comparative methodological approach and application to Tunisia. Public Administration and Development, 12(5), 473-492. https://doi.org/10.1002/pad.4230120505 DOI: https://doi.org/10.1002/pad.4230120505
- Wedel, J.R. (2003). Clans, cliques, and captured states: Rethinking transition in Central and Eastern Europe and the former Soviet Union. Journal of International Development 15(4),427-440. https://doi.org/10.1002/jid.994 DOI: https://doi.org/10.1002/jid.994
- White, B. H. (1999). How India works: The character of the local economy. Cambridge Commonwealth Lecture.
- White, B. H. (2003). India working: essays on society and the economy. Cambridge: Cambridge University Press.
References
Arghiros, D. (2001). Democracy, development, and decentralization in provincial Thailand. Surrey: Curzon.
Case, W. (2002). Politics in Southeast Asia: Democracy or less. Mitcham. Surrey: Curzon.
Erman, E. (2007). Indikasi patrimonialisme dan klientalisme dalam proses pilkada. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp129-162). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
Fazekas, M., & Tóth, I. J. (2018). From corruption to state capture: A new analytical framework with empirical applications from Hungary. Political Research Quarterly, 69(2), 320-334. https://doi.org/10.1177/1065912916639137 DOI: https://doi.org/10.1177/1065912916639137
Frye, T. (2010). Capture or exchange? Business lobbying in Russia. Europe-Asia Studies, 54(7), 1017–36. https://doi.org/10.1080/0966813022000017113 DOI: https://doi.org/10.1080/0966813022000017113
Grzymala-Busse, A. (2008). Beyond clientelism: Incumbent state capture and state formation. Comprative political Studies, 41(4-5),638-673. https://doi.org/10.1177/0010414007313118 DOI: https://doi.org/10.1177/0010414007313118
Hall, D. (2012), Dealing with corruption and state capture, public services international research unit (PSIRU). London: Business School, University of Greenwich, London.
Hassan, S.Y. (2017). Corruption, state capture, and the effectiveness of anticorruption agency in post-communist Ethiopia. Economic and Political Studies, 6(4), 368-416. https://doi.org/10.1080/20954816.2018.1535757 DOI: https://doi.org/10.1080/20954816.2018.1535757
Hellman, J.S., Jones, G., Kaufmann, D. & Schankerman, M. (2000). Measuring governance and shadow state: The role of bureaucrats and firms in shaping the business environment: Results of a firm-level study across 20 transition economies. Working Paper No 51, The Business Environment and Enterprise (BEEPS). https://doi.org/10.2139/ssrn.222210 DOI: https://doi.org/10.2139/ssrn.222210
Hellman, J.S. and M. Schankerman (2000) 'Intervention, Corruption and Capture', Economics of Transition,8(3), 545–576. https://doi.org/10.1111/1468-0351.00055 DOI: https://doi.org/10.1111/1468-0351.00055
Hidayat, S. (2003). Desentralisasi dalam perspektif state-society relation: Rekonstruksi konsep dan pendekatan kebijakan. Desentralisasi dan otonomi daerah. LIPI: Jakarta.
Hidayat, S. (2007). Peta relasi kekuasaan dalam penyelenggaraan pemerintah daerah pasca pilada di provinsi kepulauan Riau dan Sumatera Barat. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp. 165-203) Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
Hoinaru, R., Buda, D., Borlea, S.N., Văidean, V.L., Achim, M. (2020). The Impact of corruption and shadow economy on the economic and sustainable development. Do they "sand the wheels" or "grease the wheels"? Sustainability, 481(1), 2-27. https://doi.org/10.3390/su12020481 DOI: https://doi.org/10.3390/su12020481
Innes, A. (2013) The political economy of state capture in Central Europe. Journal of Common Market Studies, 52 (1). pp. 88-104. https://doi.org/10.1111/jcms.12079 DOI: https://doi.org/10.1111/jcms.12079
Innes, A. (2016). Corporate state capture in open societies: The emergence of corporate brokerage party systems. East European Politics & Sociaties, 30(3), 594. https://doi.org/10.1177/0888325416628957 DOI: https://doi.org/10.1177/0888325416628957
Labuschagne, P. (2017). Patronage, state oligopolistic monopoly in South Africa: The slide from a weak to a dysfunctional state? Acta Academica, 49(2), 51-67. https://doi.org/10.18820/24150479/aa49i2.3 DOI: https://doi.org/10.18820/24150479/aa49i2.3
McKechnie, L. E. F. (2008). Observational research. In Given, L. M. (Ed.), The Sage encyclopedia of qualitative research methods (pp. 573–577). Thousand Oaks, CA: Sage.
Michles, R. (1962). Political parties: A sociological study of the oligarchical tendencies of modern democracy. New York: Macmillan Publishing Co.
Mills, C. W. (1956). The power elite. Oxford University Press: Oxford.
Moore, B. (1966). Social origins of dictatorship and democracy: Lord and peasant in the making of the modern world. Boston, MA: Beacon Press.
Mulenga, M.C., & Mulenga, J.N. (2018). Demystifying the concept of state or regulatory capture from a theoretical public economics perspective. African Journal of political science and International relation, 12(7), 132-141. https://doi.org/10.5897/AJPSIR2018.1105 DOI: https://doi.org/10.5897/AJPSIR2018.1105
Nordholt, H.S. (2003). Renegotiating boundaries: Access, agency, and identity in post-Soeharto Indonesia. Journal of the Humanities and Social Science of Southeast Asia and Oceania, (159) 4, 550-589. https://doi.org/10.1163/22134379-90003742 DOI: https://doi.org/10.1163/22134379-90003742
Ostrom, V. (1991). The meaning of American federalism: Constituting a self-governing society. San Fransisco: Institute for Contemporary Studies Press.
Oyugi, O.W. (2000). Decentralization for good governance and development: The unending debate. Regional Development Dialogue, 21(1), 3-22.
Quimpo, N.G. (2007). The Philippines: Political parties and corruption. In Southeast Asian Affair. Singapore: Institute of Southeast Asian Studies, pp. 277-294. https://doi.org/10.1355/SEAA07N DOI: https://doi.org/10.1355/SEAA07N
Reno, W. (1995). Corruption and state politics in Sierra Leone. Cambridge: Cambridge University Press.
Richter, S. & Wunsch, N. (2019). Money, power, glory: The linkages between EU conditionality and state capture in the Western Balkans. Journal of European Public Policy, 27(1), 41-62. https://doi.org/10.1080/13501763.2019.1578815 DOI: https://doi.org/10.1080/13501763.2019.1578815
Robinson, R., & Hadiz. V. (2004). Reorganizing power in Indonesia: The politics of oligarchy in an age of markets. London. Routledge Curz.
Santos, E.G. (2011). Impact on the state through state capture: Development of the state capture concept based on cases of some countries in Latin America. Vortex Working Paper No. 2. Bogotá: Vortex Foundation.
Smith, B.C. (1985). Decentralization: The territorial dimension of the state. London: Asia Publishing House.
Soesilowati, E.S., & Erman, E. (2007). Penguasa, pengusaha dan penyelenggaraan pemerintahan daerah pasca pilkada: Kasus provinsi kepulauan Riau. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp.203-248). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
Spradley, J.P.(2007). Metode etnografi. Yogyakarta: Tiara Wacana
Srouji, S. (2005), Capturing the state: A political economy of Lebanon's public debt crisis 1992–2004. A research paper presented in partial fulfillment of the requirements for obtaining the degree of Master of Arts in Development Studies in International Political Economy. The Hague, The Netherlands: Institute of Social Studies.
Susanto, H. (2007). Relasi penguasa dan pengusaha pasca pilkada: Kasus provinsi Sumatera Baratâ€. In Hidayat & Susanto (eds), Bisnis dan politik di tingkat lokal: Pengusaha, penguasa dan penyelenggara pemerintah daerah pasca pilkada (pp 251-273). Jakarta: Lembaga Ilmu Pengetahuan Indonesia.
Tudoroiu, T. (2013). Democracy and state capture in Moldova. Democratization, 22(4), 655-678. https://doi.org/10.1080/13510347.2013.868438 DOI: https://doi.org/10.1080/13510347.2013.868438
Vengrof, R. & Salem, H.B. (1992). Assessing the impact of decentralization on governance: A comparative methodological approach and application to Tunisia. Public Administration and Development, 12(5), 473-492. https://doi.org/10.1002/pad.4230120505 DOI: https://doi.org/10.1002/pad.4230120505
Wedel, J.R. (2003). Clans, cliques, and captured states: Rethinking transition in Central and Eastern Europe and the former Soviet Union. Journal of International Development 15(4),427-440. https://doi.org/10.1002/jid.994 DOI: https://doi.org/10.1002/jid.994
White, B. H. (1999). How India works: The character of the local economy. Cambridge Commonwealth Lecture.
White, B. H. (2003). India working: essays on society and the economy. Cambridge: Cambridge University Press.