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Effectiveness of Local Governance: Interactions Between Social Capital and Institutional Structures
Author(s) -
Udayaadithya Avadhanam,
Gurtoo Anjula
Publication year - 2014
Publication title -
asian social work and policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.286
H-Index - 13
eISSN - 1753-1411
pISSN - 1753-1403
DOI - 10.1111/aswp.12026
Subject(s) - social capital , corporate governance , empowerment , reciprocity (cultural anthropology) , government (linguistics) , economic system , local government , institutional analysis , economics , public economics , economic growth , political science , public administration , sociology , finance , social science , law , linguistics , philosophy
This paper critically evaluates the debate on what makes local governments more effective, higher social capital (such as trust, reciprocity, and informal social networks) or stronger institutional structures (such as democratic processes, ombudsman, and social audits). Empirical analysis of a decentralized welfare scheme in India, the Andhra Pradesh Rural Employment Guarantee Scheme ( APREGS ), using the latent variable path analysis modeling approach reveals that creation of formal democratic institutional channels in itself does not impact governance performance. Rather, it is mediated by complex institutional and social capital issues. For example, formal information dissemination activates social capital, leading to effective local governance. However, this (higher social capital and better institutions) does not automatically lead to empowerment or trust in the local government. The influence of the economically and politically powerful mediates this relationship. These and other results, cumulatively, highlight the complexity involved in the effectiveness of government empowerment initiatives. The paper calls for a fresh and wider debate on decision‐making dynamics in rural India, especially the interaction between government institutions, social capital, and the historical societal dynamics.