Attempts to reduce elite capture in decentralized governments range from going back to a heavily centralized planner to providing citizens with funds to initiate projects. Local governments are even more vulnerable to capture by local elites than national governments.
Failure can occur when particular subgroups of the community are able to mobilize resources to further their own self-interest at the expense of the broader community. By yielding power to smaller units, money should be more efficiently distributed, but local governments are more vulnerable to pressure groups. However, despite the theoretical predictions, the outcomes of many development projects in decentralized governments have not met these expectations. On the other hand, theory predicts that when people are involved in governing and have representation in decision making, public spending is supposed to be more efficient, more equitable and more sustainable. A centralized government often lacks knowledge and might be subject of lobbying, leaving certain territories unattended. Įlite capture in decentralization įor long it was thought that creating decentralized governments would avoid the limitations of a single planner in society. In this context, as long as there is elite capture, the welfare impact will not be Pareto Optimal nor equitable. This causes a biased distribution of a public good or a service, resulting a situation wherein certain segments of the population experience reduced access to these public goods. This causes a siphoning of resources by elite middlemen through legal practices such as noncompetitive tender of contracts, excessive pricing and overcharging, which result in fewer and fewer proportion of a government project's budget being spent on the declared mission. Elite capture is related to information asymmetry, inefficient regulation or inefficient allocation of resources. This form of corruption is differentiated from outright criminal corruption such as embezzlement, misappropriation, or other diversion of funds by a public official. This specific form of corruption occurs when elites use public funds, originally intended to be invested in services that benefit the larger population, to fund projects that would only benefit them. Elites are groups of individuals who, because of self-ratifying factors such as social class, asset ownership, religious affiliations, political power, historic discrimination among social groups, political party affiliation, or economic position, have decision-making power in processes of public concern. ( Learn how and when to remove this template message)Įlite capture is a form of corruption whereby public resources are biased for the benefit of a few individuals of superior social status in detriment to the welfare of the larger population. Please discuss this issue on the article's talk page. Please read the layout guide and lead section guidelines to ensure the section will still be inclusive of all essential details. Please help by moving some material from it into the body of the article. This article's lead section may be too long for the length of the article. If you find any bugs in this program please report me at You need to enable JavaScript to run this Website.Form of political corruption Political corruption
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