Unpacking the Effect of Decentralization on Conflict: Lessons from Indonesia

• In Event: 401 - Regular Session. Development 2

Abstract

We study the effect of decentralization reforms on communal violence in Indonesia. We unpack decentralization along an institutional and operational dimension. The institutional dimension covers the introduction of local elections and the creation of new administrative units. The operational dimension includes the effects of the fiscal transfer system and the decentralized delivery of public services. Moreover, prior analyses on violence in Indonesia and globally have relied on limited data in terms of type, coverage, and quality. We use comprehensive data from the National Violence Monitoring System (NVMS), a new dataset that records the incidence and impact of violence in Indonesia over a 15-year period beginning in 1998. We use these data to examine the relationship between the different dimensions of decentralization and communal conflict in Indonesian districts between 2001 and 2010. Our analyses suggest that there is a positive association between local service delivery and at least some forms of violence. We argue the positive effect of service delivery on violence is due to newly generated distributive conflicts between local ethnic groups about the control over and access to services. By comparison, district splitting and the introduction of direct elections of district heads are negatively associated with some forms of violence. There is little evidence that fiscal transfers mitigate conflict.

Authors

• Jan Pierskalla, Political Science Department, Ohio State University

• Audrey Sacks, World Bank