Does fiscal decentralization in a politically decentralized less developed country help strengthen democratic institutions at the grass root level? And is the impact of such decentralization on local politics important in determining local development? Our study on Indonesia suggests that fiscal...

Does fiscal decentralization in a politically decentralized less developed country help strengthen democratic institutions at the grass root level? And is the impact of such decentralization on local politics important in determining local development? Our study on Indonesia suggests that fiscal...

We study classist societies where the middle class fight over redistribution of public funds with the marginalized and over social policies with the elites. We show that such societies are often deprived of well-defined majoritarian preferences, underscoring the importance of the party system....