Open AccessFostering civil society to build institutions
Why and when 1
Author(s) -
Grajzl Peter,
Murrell Peter
Publication year - 2009
Publication title -
economics of transition
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 51
eISSN - 1468-0351
pISSN - 0967-0750
DOI - 10.1111/j.1468-0351.2009.00349.x
Subject(s) - civil society , institution , politics , welfare , political science , spanish civil war , public administration , political economy , sociology , economics , law
We revisit the ubiquitous claim that aiding civil society improves institutional outcomes. In our model, a vibrant civil society initiates public debate in a reform process otherwise dominated by partisan interest groups and politicians. Civil society involvement can alleviate or aggravate adverse selection problems that arise because interest groups are better informed about reform consequences than politicians. Since aid increases the cost to the politician of excluding civil society, it affects institution building. We show analytically, and illustrate empirically, that the welfare implications of fostering civil society critically depend on the specifics of local politics, thereby casting new light on the experience of civil society aid in transition and developing countries.