Diah, Ahyar Muhammad (2017) The politics of patronage in intergovernmental financial transfer : the role of local elites in East Kalimantan Province, Indonesia. PhD thesis, Victoria University.

Abstract

Intergovernmental financial transfers from central to local governments provide a vital source of income to support local development of public services and infrastructure. However, most local governments in developing countries, such as Indonesia, fail to meet the transfer objectives due to misuse of the funds by local elites. Although financial transfers increased significantly with increased local autonomy since 2001, local development has not been commensurate with the larger budgets, with unfair wealth distribution denying equitable outcomes. Previous studies have addressed the involvement of political rulers in the misuse of intergovernmental financial transfers, but there has been limited investigation into the role of other elites. Working with theories of the politics of patronage derived from Eisendtat (1980) and Bearfield (2009), this study examines the role of a much wider range of formal and informal elites—from bureaucrats and politicians to businessmen and religious and ethnic leaders—in intergovernmental financial transfer within the Indonesian province of East Kalimantan. The aims of the study are twofold: to provide insight into how local elites exercise their power and influence to structure and allocate financial resources, and to help local governments curb the misuse of financial resources.

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