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The article shows a theoretical debate on the consequence of decentralization policy and Community Driven Development (CDD) especially in relation to the way capitalism develop. The decentralization policy reshapes local government bureaucracy more responsive and accountable toward people’s needs, and the CDD facilitate rural and urban communities to manage collectively efforts to eradicating their poverty condition. Both are promoted by neo-institutionalist thinking in the World Bank and Civil Society within the same interlocking direction. Furthermore, I explicate critiques toward theory and practice of decentralization policy and CDD, launched by Vedi Hadiz, Toby Carroll, Tania Li, and Frederich Rawski. I connect those with the theorization of the ways capitalism develop as articulated by Paul Cammack, Michael Perelman, Massimo de Angelis and David Harvey. I argue that the presence of space of struggle, contestation and negotiation open the possibility for multiple forces to participate, or refuse to participate, to reshape the practice of decentralization and CDD, and furthermore the forces dialectically are reshaped because of their struggle, contestation and negotiation.

MENINJAU KEMBALI TEORISASI MENGENAI DESENTRALISASI, COMMUNITY DRIVEN DEVELOPMENT, DAN KAPITALISASI AGRARIA