Local Government Function Authority in Indonesia and Japan[1] : Elaboration and Analysis on Similarities and Differences

A. Background

Local government in one country is regarded important for several reasons. One of them is function implementation for public welfare. It can be happened that there are differences in function delivery quality among local governments, however the principal more or less is the same, which is to give service and welfare for public. This is important especially for people in rural area where they are not close with the government centre as urban people and in some certain condition they have limitation in fulfilling the needs.

Another important reason why local government is important to deliver its function for public is, it is only local government that knows or understands the condition and needs of public, since they are closer. Local governments can estimate or know what resources are available and unavailable in their area to accomplish the needs of people, and based the local condition, they can map the service allocation for public.

For those purpose, the authority must exist. Local government can apply their function well only if they have a certain authority to implement function delivery process. This is also vital to be a guidance in determine their operational mechanism and target.

Furthermore, a clear definition or separation of authority, whether between central and local government or between local governments themselves must be present. Some reasons will be explained here using the case of Japan and Indonesia local government authority separation.

B. Indonesia System and Concept

In the Local Autonomy Law 23/2004, Article 10(2) mentions that for the local authorities, local government can run the autonomy as wider as they can, to regulate and take care the government matter by themselves based on the autonomy principle.

The concept using here is, local governmental matters are divided into compulsory and optional substances. Subsequently, the compulsory matter implementation is based on minimum standard of service and conducted in phases and set by Government.

Table 1

The Separation of Authorities Between Central and Local Government

(Provincial and Region/City Level)

Government	Authorities
Central Government	a. foreign affairs or politics; b. defense; c. security; d. justice; e. national monetary and fiscal; and f. religion.
Compulsory	a. development planning and control; b. spatial planning, using and supervising; c. public order and serenity; d. public tool and infrastructure; e. health service; f. education and potential human resource allocation arrangement; g. over regions/cities social problem overcoming; h. over regions/cities labor service; i. cooperation, small and medium enterprise improvement facilitation including over region/city; j. enviroment control; k. land service including over region/city; l. citizenship and civil administrative service; m.general government administrative service; n. investment administration service including over region/city; o. other basic services that have not been able done by region/city and p. other compulsory authority that mentioned by law	The concept of area and scale is used to determined which government should handle, e.g activities over one regions or cities will be handle by province government
Optional	Governmental authority which is exist and potential to improve social welfare based on condition, special characterisitic and local competitive potentiality

Sources : Republic of Indonesia Law 32/2004 concerning Local Government

Moreover, based on the Article 12 of Local Autonomy Law, governmental matters are divided into two parts :

1. Governmental matter that are given to local executive chief followed by financing sources, tool and infrastructure and employment transfer based on desentralised matter;
2. Governmental matter that is delegated to Governor followed by financing based on deconcentrated matter

C. Local Government Functions in Japan

Most familiar day-to-day public services are the responsibility of local government. These include: family and resident registration; building and management of daycare centers, kindergartens, primary and secondary schools, libraries, public halls and similar facilities; construction, maintenance and management of ref use and sewage disposal facilities, water supply and sewage works; development and improvement of roads and parks; and police and fire fighting services (Council of Local Authorities for International Relations, 2004, Local Government in Japan in http://www.clair.or.jp/e/forum/other.html).

Table 2

Division of Authorities in Japan

Government	Authority
Central Government	· juridical affairs; · criminal punishment; · transportation and communication at the national level; · national hospitals and sanatoriums; · facilities for navigation, meteorology, and sea channels; · national museums and libraries. · diplomacy, · national security,
Local Government	Prefecture Government	Municipal Government
· Similarities	· All domestic aspects except diplomacy, national security, the courts and the penal system · Public services : education, public works, health and hygiene, environmental protection, social welfare, social security, agriculture, forestry, commerce and industry · Regulatory functions : maintenance of public order, public safety and welfare, including the care and control of juveniles or the prevention of pollution · Build and improve roads, construct public rental houses, make city planning decisions and build sewage systems and parks
· Differences	· Operates numerous senior high schools and schools for the handicapped. · pays the primary and secondary schools teacher salaries . · mainly engage in wide area or large scale projects that extend over a number of municipalities, · undertake police administration · license and passport	· Establishes and operate primary and secondary schools. · each municipality carrying out the project within its territory, · mainly provide firefighting services and ambulant municipalities · garbage service

Sources : Elaborate from Local Government in Asia and the Pacific: A Comparative Study Country Paper: Japan in www.unescap.org/huset/lgstudy/country/japan and Local Government Class Material Week 7

In the Japan case, there are some overlapping in the function operational. The overlapping can happen in the level of central government and local government-prefecture and also between prefecture and municipal government. However, the sureness is there is area or scale limitation which is necessary technique in marking the line of authority and which government level should handle.

Under the current local autonomy system, it is hard to draw a clear line between the jurisdiction of local governments and that of central government, although it is mostly agreed that the degree of autonomy of local governments is limited and that many policies are formulated and decisions taken at the central level. The type and degree of autonomy which local governments are entitled to have differs greatly across sectors. This is the result of complexity of practices accumulated over a long time, rather than the application of a set of principles.” (OECD, 1997)

D. Analysis

1. Similarities

1. Functions cover service and regulation

Local government has an authority to operate functions including services and regulatory function as wide as mention in the law. For instance, services are education, health services. Regulatory function covers public order, safety and welfare.

1. The concept of area and scale for determining which government level should handle the function.

As in the general understanding, the authority of province or prefecture government is broader than region/city or municipal government. For Japan case, a larger or wider scale project is handled by prefecture government, while in Indonesia is not so different that, the activities that cover over regions or cities become the province government’s authority. Municipal or region/city concentrates to activities within their areas.

2. Differences

1. For Indonesia, there is a qualification or division concept of local government authority ; compulsory and optional authority.

This is a good concept considering Indonesia is still in the process of empowering all the local government aspects. Although Indonesia has been applying the decentralization concept since 1999, but there are a lot of aspects still in the process of implementation. Some are established well, while some others have to change because of the adjustment and unsuited result of policy implementation. Thus, besides the compulsory, Local Autonomy Law offers the optional authority based on each special criteria of local government. Each local government can decide whether they have been competent enough in taking that responsibility or not. Central Government can give the authority or responsibility based on the local initiative. In short, in the optional authority, the readiness from local government plays major.

For Japan case, this concept of compulsory and optional is not so recognized. Japan uses concept of decentralization with the separation of authority and local government implement the authority and pursues the aim, which is well-operated function.

1. Overlapping

As in the case of Japan, there are overlapping in the operational of local government function, such as road and school. To some extent, it will not become a problem only if that matter is solved or taken care by two governments in the overlapping. In addition, there will be a competition and one cannot monopoly one matter in overlapping (Local Government Class Week 7). This is a positive effect of overlapping process.

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Source : Local Government Class Material Week 7

However, the problem will occur if there is no party wants to take care or in charge for that matter, thus that project or activities is abandoned. To avoid this abandoning or blaming to each other, in Indonesia, the central government through the local autonomy law, draws a line among authorities, which one is in the central, province or region/city government authority. The rule of the game is determined first.

1. Central Government Role

It is undoubtedly that central government still plays an important role in the authorities or functions separations. To some extent, if the decentralization is conducted in a proper mechanism, then the role of Central Government is less needed. Local government’s independence can run very well if there is a strong initiative from inside the local government. Central government can do the supervising without interference, otherwise the local government enters the central government authority or national matter, and then Central Government can take the matter into the central authority.

In applying the decentralization concept, local government has been trying and learning to take the responsibility of being more self-governing. Central government role has been decreased and many aspects have been assigned truly by local. For Japan, this independence seems that a little absurd or ambiguous. The concept of decentralization is within the law, but the implementation is still contained a strong willing up to central government through some top down policies, such as the authority setting.

Local authorities can do anything (except in certain fields) so long as they do not infringe on the national legal framework. In the Japanese legal system, national laws and Cabinet ordinances (which must be based on national laws) always take precedence over by-laws of prefecture governments; and by-laws of prefecture governments over-rule those of municipalities. The fact is, however, that the central government has established national laws in major policy areas, keeping control over local governments. This situation can partly be attributed to the highly centralized system of administration in the pre-war period (Local Government in Asia and the Pacific: A Comparative Study Country Paper: Japan in www.unescap.org/huset/lgstudy/country/japan).

E. Further Elaboration : Persuasive Opinion

1. An obvious weakness of Indonesian system is that in the definition of function in the law, specifically in the optional authority, there is an unclear description present. The limitation is absurd and potential to raise question, to what extent “Governmental authority which is exist and potential to improve social welfare based on condition, special characterisitic and local competitive potentiality” can be defined. In short, the difficulty raised is the interpretation problem.

For that purpose, the lower regulation or law is necessary to define the function therefore it is clearer, although it will be better that such this type of provision is not first choice. The optional authority concept itself offers a good condition, which as a result, local government can measure their capacity in running their function.

On the other hand, for Japan, the overlapping can be overcome also by creating clear definition. It will make a more efficiency in local government function implementation. Although, sometimes the competition is good, but it is also potential in occurring conflict and inefficiency.

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Clear Provision or Definition

Indonesia To avoid an absurd and unclear understanding this will lead to function authority interpretation

Japan To create more efficient function operational by decreasing overlapping process

Point : Unclear Interpretation Matter

Point : Overlapping Decreasing Matter

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1. Disparity

a. disparity of local condition as the cause

b. inequality in achievement as the effect or result

In the decentralization operational, required consideration is in observing the capability and condition of each local government. The differences among them can result in two kinds – strength and weakness–. The positive effect is that a good competition can lead to a higher achievement of local government. On the other hand, it can also result a worse condition for local government that cannot get along in the competition, furthermore it will make a wider gap and disparity among local governments.

In this matter, first, the concept of compulsory and optional authority is suitable for country that in the process of decentralization implementation. Secondly, although the central government sets the function authority or its portion to local government, central government also must support in creating a conducive competition climate among local governments. Thirdly, local government must improve their capability and initiative, such as in the case of Indonesia, local government has an improved authority in function delivery process. Central government has decreased their role, and as a result local government can work more efficient in solving social or public problems, since they are nearer to grass root level and know better their local condition

F. Conclusion

Similarities and differences between Indonesia and Japan show the importance of function authority in local level. The elaboration is rather in emphasizing more on the local function authority implementation. What parts are positive enough now, although it is possible to improve, and for other parts, the issue will be: how it can be operated well or better. Although some parts mentioned about the central government authority, it is not the focus here.

The abolition of Agency Delegated Function in Japan can push the progress of decentralization implementation in Japan. Local government is expected to have a more independence and confidence in running their program and duty.

It is important for local government to have a clear function authority, so they can implement their function to public well. In the process, sometimes the concept and rule are challenged by the reality. The concept and decentralization must suitable with the local governments characteristic, however it is possible to observe other country’s experience in finding the positive aspect to improve local government capability.

References

Book

Council of Local Authorities for International Relations, 2004, Local Government in Japan in http://www.clair.or.jp/e/forum/other.html

Reports

Local Government in Asia and the Pacific: A Comparative Study Country Paper: Japan in www.unescap.org/huset/lgstudy/country/japan)

OECD, Managing Across Levels of Government Japan, 1997 in http://www.oecd.org/dataoecd/10/16/1902326.pdf

Local Government Class Material

Week 7

Law

Republic of Indonesia Law 32/2004 concerning Local Government

Websites

http://www.clair.or.jp/e/forum/other.html

http://www.oecd.org/dataoecd/10/16/1902326.pdf

http://www.unescap.org/huset/lgstudy/country/japan

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[1] The comparison between Indonesia and Japan is taken because the writer found several elements can be compared to each other and also can enrich the understanding about local government function authority.

Local Election in Indonesia and Japan : A Comparative Study

Introduction

For every country, election process is one important moment in the governmental and political system. Besides as the implementation of democratization, this process will also prove the public responsibility. The importance of election is that the rule and process of election will determine the further governmental process, since it will select persons in charge in the legislative and executive bodies and determine policies for public.

Indonesia with its decentralization system has been coming into several changes and progress. Transitions from one arrangement to another, in order of local government’s autonomy implementation, have led to this recent condition which totally different with the past of local government. Direct election for the head of local government is a crucial issue, since now local government holds more authority and public gives more attention to the election implementation and transparency. Public demands that their local government must be able to accommodate their needs, and in addition, the progress in the political system, including parties, has pushed election system into more transparent and democratic one.

On the other hand, Japan has carried out local government system since the Constitution and Local Autonomy Law were enacted in 1947. Progress and modification transpire by time, combined with the political characteristic of Japan. It is interesting to see local election in Japan, how the development in the election system can also lead to other aspects in the local government system.

By a comparative study, there are some similarities and differences between local government in Japan and Indonesia. Furthermore, these points will result similar and different policy outcomes as well.

Election for Local Government and People’s Representative in Indonesia : Some Changes

Local government in Indonesia is divided into provinces and regions/cities (municipals). Up until now, there are 349 regents, and 91 autonomous cities in 33 provinces. Governor and regent/mayor are the local executives, and People’s Representative Council exists in the Province and Region/City level are local legislatives.

Election process for national-local legislative and executive in Indonesia is carried out separately with special arrangements for each. For the local legislative members, the election is conducted together with national legislative members’ election, in one national general election. The law concerning this matter is General Elections for the Members of People’s Representative Council, Regional Representative Council and Regional People’s Representative Council Law 12/2003. However, for the head of local government, governor and mayor, recent condition, the election is based on Law 32/2004 concerning Local Government.

Special committee takes in charge in the election process is Committee of Election, which has Election Supervisory Body within. General election law mentioned, this committee works independently, ranges from national level into sub district level and has responsibilities :

1. to supervise every stage of election implementation;
2. to receive reports on violations of election legislation;
3. to settle disputes that arise in the conduct of election;
4. to submit findings and unfinished reports to authorized institution

Head of Local Government

Election in the local government level in Indonesia has been experiencing some development. The path ways of election process for head of local government as mention :

Pre-1999	1999 (based on Law 22/1999)	2004 (based on Law 32/2004)
Appointment mechanism The Regional People’s Representative Council proposed the candidates of governor and regent/mayor to central government, and central government appointed one.	Indirect election. The Regional People’s Representative Council elected governor and mayor and reported the result to central government	Direct election for governor and mayor and their vices (in couple).

Elections for governor and regent or mayor are held once in every 5 years. The candidates form with their vices or in couples, and are required to be proposed by political parties. The chance for independent/individual candidates is open, but still it must be through party’s proposal.

The eligibility age of candidates is at least 30 years old, while re-election is limited into another one period, thus the limitation for total term of position will be two periods.

The latest data on governor and mayor, and their vices total elections for 2006 are (see Appendix 1)[1] :

- Governor and vice election : 7

- Regent and vice election : 66

- Mayor and vice election : 12

For regional level (see Appendix 2)[2], during 2006, in the election for governor/vice and regent/mayor/vice, in general the voter turnout was range from 70% – above 80%, only special cases happened were about 45% (Batam city) and 55% (Pakanbaru city).

Local Assembly Member

Local assembly in Indonesia comprises Regional People’s Representative Council in the province level and region/city level, and has a unicameral system within. All members of these councilc are partisans. The election for these council members is conducted once in every 5 years.

To observe Regional People’s Representative Council voters in Indonesia, it is necessary to see general election, since the election for regional people’s representative in the province and region or city are held together with the national People’s Representative Council.

The latest general election held in April 2004, there were still 32 provinces participated, and 24 for political parties. Based on the Decision of Committee on Election Number 32/2004 :

Total people who fulfilled the requirements to become voter 148,000,639[3]	Applied their right 124,449,038 (83%)	Legal 113,498,755
		Illegal 10,957,925 (8,81%)
	Did not apply 23,551,321

Source : www.kpu.go.id

Since the election for regional local assembly in Indonesia (province and region/city) is conducted together with the election for people’s representative council for national level, then the voter turnout for regional people’s representative council can be seen as the same as the voter turnout in whole. From the explanation before, we can see that the voter turnout for assembly council reached 83%.

System of Election

For the regional people’s representative council, voters can chose the picture of political party and the name of candidates[4]. However, it is still legal if only chose the picture. In the general election 2004, the number of voters who just chose the picture were 54,188,481 and voters who chose both pictures and candidate’s name were more than they who chose pictures only (www.kpu.go.id).

Indonesia applies majority system for governor and regent/mayor electoral system, however for the local legislative member, uses proportional representative mechanism.

Japan Condition

Since May 1947, the Constitution and the Local Autonomy Law were enacted and marked the change in the local government system, from Germany system into American system (Ministry of Home Affairs, 1984), and this change was also including in the election field.

The organization of Japanese local government is similar to the presidential system where the citizens choose the chief executive and members of assembly in direct elections.

Chapter VIII Article 93 of the Constitution of Japan mentioned :

“The local public entities shall establish assemblies as their deliberative organs in accordance with the law. The chief executive officers of all local public entities, the members of their assemblies, and such other local officials as may be determined by law shall be elected by direct popular vote within their respective communities”

This election is carried out in every 4(four) years. The eligibility of candidates to participate in the local election is over 25 years old for mayor and assembly members and 35 years old for governor (Local Government Class Material Week 7). The backgrounds of candidates are varied from civil, servant, Diet member, high ranking official of local government, local assembly or local business man. Re-election is defined unlimited, and chief executive of local government can demand for reconsideration or re-election to Local Assembly (Ministry of Home Affairs, 1984).

Scheme of Local Government Mechanism in Japan

Source : CLAIR 2004

Election Management Commission is one of administrative committees, in the prefecture and municipal level that takes in charge in the electoral process, management of elections and other related affairs. This committee stands independently and fairly, in order avoiding bias. For local assembly, the membership is open both for partisan and non partisan candidates.

System of Election

Voters write down the name of candidate, and then the vote is counted using the simple majority system for governor and mayor election, and on the other hand for local assembly members’ election uses multi-member constituency and single casting system (Local Government Class Material, Week 7).

There is also often a reverse relationship between the level of election and the rate of voter turnout in Japanese elections. Ordinarily, the lower the level government is, the higher the rate of voter turnout. In the council elections for towns and villages, the voter turnout often reaches 90 per cent. In 1991, it was 87.18 per cent, although the average turnout of the elections for the House of Representatives remains at around 70 per cent. In 1994, the Lower House election the turnout rate was only 67.26 per cent (OECD, 1997).

Comparative and Policy Outcomes

Similar points between local government election in Indonesia and Japan are

1. (Simple) Majority system for local executive
2. Direct type of election system
3. Independent institution manages the election

1. Party entry pass for executive candidates

Political party or some parties in together, propose candidates for head of local government. In Indonesia, this requires whether partisans or independent candidates to pass one door mechanism which is party. In Japan, two political parties can cooperate in candidate’s nomination locally, where in the national level these two parties compete.

There is also an effort to bring up discussion about the role of local party and the rule for them in election participation recently. This kind of new development must be anticipated well by government and Commission of Election.

1. (Simple) Majority system for executive

There is critics for majority system in the executive election, that it will invite conflict because of dissatisfaction from light loose. This concern can be answered by fair rule and transparent process of election. So far, the proportional system still capable in legislative election, for this can also accommodate the minority as well, especially in Indonesia with multi party system.

1. Direct type of election system

The shift from indirect election system to direct one, actually becomes the focus and important. To what extent, local government can put its role on the implementation. For Indonesia, besides the autonomy field that later belong wider to local authority, the change of electoral means so much, as another addition point to acknowledge the existence not only local government, but also public, vis a vis local community.

Direct election system results the elected persons to have more public responsibility than appointed one, in addition the voters are the community they serve as well. Although for head of local government, they still must relate to national government, but their achievement to be elected make an important conditions, where the respect or priority will come for voters. In other words, public will be more important.

For Japan case, the change will result in the change of local government position character. Muramatsu (1997:64) explained that :

“Essentially, the postwar constitution and the Local Government Act established the framework for a new, decentralized central-local relationship by providing for the direct popular election of governors. My focus here is on whether, as a result of direct election, the prefectures character as intermediate bodies has change from being agents of the state to serving as intermediaries for both sides, and specifically on what form this change may have taken.”

Another advantage from this system is chief executive or governor-mayor-regent will be likely to local representative. Furthermore, some years ago when Local Government was first introduced, there was an issue of “putra daerah” or “locally (birth) son”. It was said that the first priority for local government leaders must give to the putra daerah, since they are originally come from the region or province. For the vice leader, this provision came lighter, that it was allowed for non putra daerah to hold that position. Since the candidates must be nominated in couple, usually the executive candidate is putra daerah although he or she is not fully qualified but is not native in that area. This combination on occasion results well, but it cannot be made generally.

This spirit could be arisen also because of the demand from local community to have a larger authority rather than central government intervention.

However, this direct election system and principle also can give effect differently, that from this system, people tend to choose popular candidates. For example, in some area, the criteria will arrive to popular candidates, although he or she was not locally born there. Undoubtedly, this has two impacts as on a coin. The advantage is the relationship between candidates and public is examined. They have to know public and also known by public, there the trust will be built among voters. If the voters are smart then the choice will go to a qualified-popular candidate. However, this also has a possibility that unqualified-but popular candidate will be chosen.

Policy outcome can raise is direct election is still the better mechanism compare with appointment, as long as requirements are fulfilled.

1. Independent institution manages the election

The independent Election Committee is important to prevent the neutrality of political aspect during election. In Indonesia, it is stated by law this committee reaching from central body in national level, provincial branch, region/city branch and sub district branch level. This institution is very strategic and important because first, it implements the election rule, secondly, it has an authority to make report of violation, and thirdly the result of election is released legally by this institution. In short, based non those reasons, the neutrality of this committee is important.

Differences points between local government in Indonesia and Japan can be explained as mention :

Table 1

Differences of Local Election in Indonesia and Japan

Differences

	Indonesia	Japan
Local Assembly Election	Together with National Assembly Election in a national general election –coordination is under the National Committee of Election	Conducted locally – under the management of prefecture and municipal Election Administrator Committee
Election Regulation Base	- General Election law for local assembly member election - Local Government law for governor, regent/mayor and their vices election	Unified in the Constitution and Local Autonomy law
Local Assembly Members	Partisan only	Urban : most of are partisan (and the rest are independent members) Rural : Most are non partisan
Local Legislative Electoral System	Proportional	Multi-member constituency　and single casting system
Governor; Regent/ Mayor and Vice Candidates	l Directly elected in couple form (Law 12/2003 Article 24 point 5) l Party entry pass for executive candidates – including for Independent candidate	l Only governor and mayor are directly elected, on the other hand Vice Governor and Deputy Mayor are appointed l Executive candidate can be independent or party nominated
Limitation for Re-elected	Limited until the total of two periods working (one period re-elected) (Law 12/2003 Article 110)	Unlimited (potential for status quo)
Voter Turnout	In general, both urban and rural voter turnout has a light difference. Few voter turnouts only happens cases.	Rural area has more voter turnout than urban area.

Source : Data Elaboration

For Indonesia case, where the election for local assembly is arranged together with national assembly general election, public will be persuaded to be in one election condition. The spirit and conducive situation are created, thus this will make a support and motivation for public in participating, or giving attention to the political situation. For some reasons, this is important. First, that election situation and spirit can be one way of political education for public. Public concern is important to select qualified and popular elected politician. Secondly, that condition is important for voter turnout. Voter turnout is important to fulfill the support for elected persons. Besides the urban and rural division voter comparison elements, in the case of Indonesia, since local assembly of member election is conducted together with the national assembly member, then there is no division of voter turnout between national and local assembly member voters. It will not be different. However, if we want to compare it, then as it is mentioned, the element of comparison will be urban and rural voters division.

The disadvantage of this mechanism is, if the arrangement under national coordination is unhealthy or corrupt, then the impact will touch many elements since it is a national general election.

In observing the local assembly member, that Indonesia accommodates only partisan members, compare with Japan that accommodates independent popular candidates besides partisan, there are outcomes from these system. Considering that local assembly is the counter balance for local government, and then it is important to have independent members within. If the elected members are only allowed for partisans, then the focus to party will be high, instead of people or public interest. To balance it, we can use the independent members as their background will accommodate public interest before the executive.

For Japanese system, where executive vice is appointed, then the system will be 50:50 between direct for chief executive and indirect for the vice. Actually the vice position is important, in the time of sudden chief replacement or especially for politician who has ambition to be chief executive. Vice position can be a way to gain popularity, so by the time he or she joins in the direct election for chief executive, then they already gain support and popularity. In addition, besides from local background, then it is also possible he or she comes from central government base. Since vice position is important, the direct election will be suitable to choose a qualified one.

Conclusion

In observing Indonesia with its progress in the local election system, since the local assembly members’ election is held together with the national assembly members’, the coordination and management which is under National Committee of Election, must be built very health and fair. Otherwise, if the national coordination has been unfair or weak, then the impact will touch many local government – provinces; region/cities.

Japan system, though has been applied a wider local autonomy including in the election system, but still contained by national government aspects, for example there is opportunity for vice executive comes from bureaucrat in central government. This intervention can be resulted from top (central government’s initiative or intervention) or bottom (local government itself or dependency). Nevertheless, the shift is done in several ways. As the result of direct election and improvement in the local government system, governor characteristic shifted from merely national branch side to local government character. The election system itself has been applied well including the open chance for independent candidate participation although party must be involved as the pass except for Japan local assembly.

***

Bibliography

Books

Council of Local Authorities for International Relations, 2004, Local Government in Japan in http://www.clair.or.jp/e/forum/other.html

Ministry of Home Affairs, 1984, “Local Administration and Finance” in Tsuji Kiyoaki eds., 1984, Public Administration in Japan, University of Tokyo Press, Tokyo.

Muramatsu, Michio, 1997, “The Changing Role of Prefecture” in the Local Power in the Japanese State, University of California Press, California

Tsuji Kiyoaki eds., 1984, Public Administration in Japan, University of Tokyo Press, Tokyo.

Local Government’s Class Material

Week 7

Report

Head and Vice of Local Government Election from who Finish Their Term in January to December 2006 to February 2007 with The Schedule of Local Election for Head and Vice of Local Government in http://www.depdagri.go.id

Local Government in Asia and The Pacific : A Comparative Study Country Paper : Japan, in http://www.unescap.org/huset/lgstudy/country/japan/japan.html

Managing Across Levels of Government : Country Case Japan in http://www.oecd.org/dataoecd/10/16/1902326.pdf

Law

Chapter VIII Article 93 of the Constitution of Japan

Republic of Indonesia Law 22/1999 concerning Local Government

Republic of Indonesia Law 12/2003 concerning General Election for Members of People’s Representative Council, Regional Representative Council and Regional People’s Representative Council

Republic of Indonesia Law 32/2004 concerning Local Government

Websites

http://www.oecd.org/dataoecd/10/16/1902326.pdf

http://www.depdagri.go.id

http://www.clair.or.jp/e/forum/other.html

http://www.unescap.org/huset/lgstudy/country/japan/japan.html

http://www.kpu.go.id

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[1] The total is already included election for working term finished in February 2007, since the election must be held at least one month before it is ended. Schedule for Head of Local Government Election.

[2] Appendix 2 covered local election in 2006 only (not including election for working term finished in January and February 2007). Focus here is the voter participation.

[3] There is a difference between the total number based on Committee Election Decision (148,000,639) and the explanation from the Committee about the total from people who applied and did not apply (148,000,359). Until this paper finished, the writer could not find the suitable explanation for this.

[4] Voters receive the election sheet, which shown the political party pictures and candidate’s name. In the closed room where provided the nail and desk.

Social Capital Concept on Political Economy Study in Developing Countries

Introduction

Development process, including political economy, will always relate with social condition, since economic is embedded to social relation. Conducive social capital is important to profound daily tasks and creates trust and social relation among groups.

To achieve an efficient economic and politic development progress, social capital is vital. Besides trust and networks, building social capital in developing countries represents the cultural component. In developing countries, particularly in the rural areas, it is informal rather than formal associations that have most value for citizens (Krishna, 2002). Informal associations are common as rural communities. Hayami (2001) studies on community role in the developing country cleared that rural communities demonstrated their capacities to manage resources.

There are many factors influence social capital growing; customs-ethnic and religion as the social capital sources in developing countries, participation, bonding and bridging quality, networks, or even the state interference. Here are seen high and low conditions of social capital. Though a general decline does not mean decline everywhere (Putnam and Feldstein, 2002 : 4), because social capital built in one area is not always the same with other places and in addition it takes time in its forming.

Further, this paper will discuss about the advantages and disadvantages of social capital concept on political economy study in developing countries. To gain clearer understanding, some cases in Indonesia will illustrate the explanation.

Advantages

Paul Collier mentioned about classification of social capital based on the economically beneficial results. First, social capital facilitates the transmission of knowledge about behavior of others, reducing problem of opportunism through repeat transactions that establish trustworthiness and reputations. Second, it facilitates the transmission of knowledge about technology and market, reducing market failures in information. Third, by relying norms and rules, social capital reduces the problem of free-riding, thereby facilitating collective action (Grottaert, et al , 2002:9).

In my opinion, the advantages of social capital using in the political economy are :

1. The economic function of social capital is to reduce the transaction costs of private goods and services, associated with formal mechanisms like contracts, and bureaucratic rules. Trust and network play an important role here. The economic process will be run more efficient if social capital implemented well.

First example is about natural resources management. Rural association or community group can manage and utilize natural resources with a certain system or mechanism. All members can get benefit from the natural resources, but on the other hand there are rules or norms which tie all of the members and monitoring mechanism to prevent free-rider. The irrigation system in Indonesia is included here.

From the neo liberalism view, this concept must apply totally, means that state function has to be applied in a minimum scale. However, developing countries including Indonesia have not been able to decrease state role in managing resources. State role is still needed to regulate the rule of resources management, in particular for public natural resources.

Second example is in trade transaction, in case of market and state are failed to fulfill the demand of people, community –social capital — can replace the mechanism and furthermore they will act independently. Hayami (2001) explained community as critical in correcting state and market failure.

The case about small-medium enterprises (SMEs)in some areas in Indonesia is real example of this. When they face difficulties to get financial loan or credit from the bank, because of difficult requirements and bureaucracy and they also lack of knowledge and networking, then they gather to form a small association among them and step by step try to overcome their problems together. Their efforts is due to collective interest and sacrifice some things such as fund, understanding, patience, discipline for they obey the groups rule, but later obtain benefits such as networking, marketing, customers and income. In the beginning, the association formed small with few members within. Then members are increasing time by time. One prove of their achievement is during the last financial crisis, it is only SMEs that can survive. Since they are not depend on state, when state was facing difficulties then they were not influenced. However, this success story is not happening entirely in all part of Indonesia.

2. Social capital helps to understand or even prevent conflicts better. For example, in the post-conflict areas, social capital is commonly used as the tool to build recovery and social glue among all components of societies. Christiaan Grootaert (2002;12) mentioned that “ … in some cases fostered cultural revitalization”. Furthermore, understanding in social capital will be related in understanding political economy in that area. The example is Maluku case in the reconciliation that exercises social capital in local village first to unite society.

3. Social Capital and State

Taken from Synergy View, concludes that synergy between government and citizen action is based on complementary and embeddedness (Evans, 1992,1995, 1996, in Woolcock and Narayan, 2000).

“Complementary refers to mutually supportive relations between public and private actors and is exemplified in legal frameworks…… Embeddedness refers to the nature and extent of the ties connecting citizen and business group”

This is important to understand that government in applying the development program must give attention to local social relations. To reduce poverty, the policy made by public institutions must involve people to participate in the development program. This approach can reduce the cleavage which is inefficient for development.

However, in the social capital organization or community, the role of state or government is limited or at least be certain of the group. State must not influence the group to a large extent therefore be dependent. State can open opportunities for the groups or facilitates so the social capital comes up and networks widen (bridging). In other words, state and community position must be balance. Any powerful community will also lead negatively to weaker position of state.

Disadvantages

Using social capital in the political economy study also has some weaknesses so far, especially in the developing countries which have pluralism characteristic. First, no matter how little it is, social capital through the form of association has possibility to separate people. In the multicultural, multi religions or multi-ethnics countries, ethnics or customs and religion are easily becoming the source of association. Somehow, it is rather different with the concept of unity in countries. For instance, there are many associations based on ethnic source in Indonesia, but the state always sounds about nation and unity among people without seeing what ethnic they come from. State then proclaims ‘unity in diversity’ as one way to overcome this but without neglecting the unity.

In countries where ethnic and religion are two sensitive matters, social capital must be developed carefully. If it executes inappropriately, then conflict is potential comes up.

In one side, the ethnic association – contains social capital and trust within- can perform progress including in the economic field, for their life. However, on the other side, it is different with state program that always promotes national unification.

Secondly, most of the studies of social capital are still based on developed countries, whereas social capital in the developing countries also grows with their characteristic. In my opinion, the approach of social capital in developing countries relates with many factors including religion and customs values. There are more diverse forms of social capital in countries where multi cultures and multi-ethnics people live. Norms and sanctions have sources from customs or religion or none of them, and in some cases the members in the groups do not determine them, but just follow the customs rules.

That condition can be different with western countries, where formal associations are common and the diversity is not emerged largely.

Conclusion

Social capital concept is important in the political economy, especially in the developing countries. The types and quality of social capital are different among associations, however the function are significant in the development process.

The advantages are based on empirical evidences that social can contribute to economic development and poverty reduction. The economic function of social capital is to reduce the transaction costs of private goods and services. Furthermore, related with social conflict, a fine application of social capital can prevent conflict because there is awareness to other people, and for post-conflict area, social capital can be used as social glue. Social relations provide opportunities for mobilizing other growth enhancing resources (Woolcock and Narayan, 2000).

The disadvantages are there is opposite intention from the grouping or association from with the unity spirit of state or developing countries. Secondly, the study of social capital in developing countries still rare and have to focus to customs and religions values as the sources of social capital.

In the field of political economic, people must understand how to connect to state and market. In some condition, when there is state failure, then the social capital can grow well.

Reference

Grootaert, Christiaan, and Thierry van Bastelaer (eds), 2002, The Role of Social Capital in Development : An Empirical Assesment, Cambridge University Press, Cambridge

Hayami, Yujiro, 2001, Development Economics : From Poverty to the Wealth of Nations, 2^nd edition, Oxford: Oxford University Press.

Krishna, Anirudh, 2002, Active Social Capital : Tracing the Roots of Development and Democracy, New York, Columbia University Press

Putnam, Robert D. and Lewis M. Feldstein with Don Cohen, 2002, Better Together Restoring the American Community¸Simon & Schuster Paperbacks, New York

Woolcock, Michael and Deepa Narayan, 2000, Social Capital : Implications for Development Theory, Research, and Policy, The World Bank Research Observer vol. 15 no.2 .