Business

Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

(650) 725-6459 (650) 723-6530
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MarkThompson[1].JPG PhD

Professor Thompson builds on Barrington Moore's insight that there are different "paths to the modern" world. Thompson's manuscript explores alternatives to the familiar South Korean-and Taiwan-based model of "late democratization." According to that model, political pluralism follows a formative period of economic growth during which labor is demobilized and big business, religious leaders, and professionals depend upon and are co-opted by the state.

Thompson argues that even when these preconditions are in place, democratization need not follow. Singapore is an illuminating case in point. The autocratic growth model pays insufficient attention to politics, including the sometimes crucial role of student activists in challenging developmental authoritarianism and triggering a democratic transition, as in Indonesia. As political actors, students (rather than a progressive bourgeoisie) may fill the oppositional vacuum created by the preconditions that characterized predemocratic South Korean and Taiwan.

In his critique of Northeast Asian-style, post-authoritarian "late democratization" and its emphasis on economic growth as the driver of political change, Professor Thompson uses evidence drawn from paired comparisons of Vietnam with China, Hong Kong with Singapore, and between South Korea and Taiwan on the one hand and other major Southeast Asian cases on the other.

Mark R. Thompson is a professor of political science at the University of Erlangen-Nuremberg in Germany.  A Chicago native, he took his first degree in religious studies at Brown University followed by postgraduate work at Cambridge University and the University of the Philippines.  Fascinated by Philippine people power, he wrote his dissertation at Yale University on the anti-Marcos struggle (Yale University Press, 1996). After moving to Germany, he witnessed popular uprisings in East Germany and Eastern Europe, inspiring him to conceptualize democratic revolutions in essays later published as a book (Routledge, 2004).  He is in residence at Stanford as Lee Kong Chian Distinguished Fellow in Southeast Asian Studies from February through April 2009.

Lee Kong Chian NUS-Stanford Distinguished Fellow on Southeast Asia

There is a potential for large gains in the efficiency of energy use with substantial economic payoffs: in buildings, motor vehicles, traffic control, electricity grids, industry. All of these applications involve the use of information technologies. This workshop will focus on demand and efficiency topics that are becoming increasingly salient.

This invitation-only workshop involves three important actors on the world energy scene: California and Mainland China are large consumers of oil while Taiwan, for its size a substantial consumer of oil and emitter of greenhouse gases, plays a leading role in information technologies. California’s size and commitment to energy efficiency makes its role an important one within the US while China’s ongoing urbanization has major energy implications.

This workshop is the first in a series with the goal of convening leading experts from these three regions to focus on key energy-economic efficiency issues, form a research agenda and collaborate on possible solutions.

Topics for discussion will include:

  • strategic policy choices, especially the challenges posed by cap-and-trading of carbon emissions
  • improving industry use of energy
  • urbanization 2.0: transportation and buildings
  • how IT helps green the planet, including the use of smart meters 
  • how consumers respond to better data
  • new venture capital investments in clean tech
  • energy efficiency start-ups in Silicon Valley

Preliminary agenda:

Day 1: Tuesday, February 17

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am – 8:45 am Introduction

Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

8:45 am – 9:45 am Keynote

“How to Think About Energy Efficiency” 
Dr. James Sweeney, Director, Precourt Institute for Energy Efficiency, Stanford University

10:00 am Strategic Choices

Moderator: Marguerite Hancock, Associate Director, SPRIE 

10:00 am – 10:45 am

Overview: “Trading Carbon in California”   
Dr. Lawrence Goulder, Chair, Economics Department, Stanford University; Member, California Public Utilities Commission

10:45 am – 12:00 pm Panel

“Taiwan’s 2025 Carbon Reduction Goals: Options and Challenges” 
Dr. Robert J. Yang, Senior Advisor, Industrial Technology Research Institute

“A Synthesis of Energy Tax, Carbon Tax and CO2 Emission Trading System in Taiwan” 
Dr. Chi-Yuan Liang, Research Fellow, Institute of Economics, Academia Sinica & Professor, National Central University

“Measurement of Energy Efficiency in Taiwan and Relevance to CO2 Decoupling” 
Dr. Chung-Huang Huang, Dean, College of Transportation and Tourism, Kainan University and Professor, Department of Economics, National Tsing Hua University

1:00 pm Industry Uses

Moderator: Dr. Chin-Tay Shih, Dean of College of Technology Management, National Tsing-Hua University

1:00 pm – 1:45 pm

Overview: “Improving Energy Efficiency in Industry” 
Dr. Eric Masanet, Principal Scientific Engineering Associate, Energy Analysis Dept., Lawrence Berkeley National Laboratory

1:45 pm – 3:00 pm Panel

“Technology R&D and Industry Development of Distributed Energy System in Taiwan”
Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute

“Energy Saving Potential and Trend Analysis in Taiwan” 
Dr. Jyh-Shing Yang, Senior Consultant, IEK/ITRI and Professor, National Central University

“Industrial innovation toward low carbon economy in Hsinchu Science Park”
Dr. Kung Wang, Professor, School of Management, National Central University, Taiwan

3:15 pm – 5:30 pm The Urban Environment: Buildings and Transportation

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

Framing Remarks: Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

"Integrated management of energy performance of buildings, building portfolios, and cities"
Dr. Martin Fischer, Professor of Civil and Environmental Engineering, and Director, Center for Integrated Facility Engineering, Stanford University

“Challenges, priorities and strategies for energy efficiency in the electric car industry”
Mr. Fred Ni, General Manager, BYD America Corporation

"Urban Motorization in China: Energy Challenges and Solutions"
Ms. Wei-Shiuen Ng, Consultant, previously with World Resources Institute

Title TBA—delivered via video link
Mr. David Nieh, General Manager of Planning and Development, Shui On Land Corporation

 

Commentator: Dr. Fang Rong, Researcher, Center for Industrial Development & Environmental Governance, Tsinghua University

 

Day 2: Wednesday, February 18

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am How IT Helps Green the Planet

Moderator: Dr. John Weyant, Deputy Director, Precourt Institute for Energy Efficiency

8:30 am – 9:00 am

“Challenges for Energy Efficiency Innovation and Convergence with Green Environmental Technology”
Dr. Simon C. Tung, General Director, Energy and Environmental Research Laboratories, ITRI

9:00 am – 10:00 am Panel: Two Perspectives on California Initiatives

“Demand Response: Time-differentiating technologies, rates, programs, metrics and customer behavior” 

Dr. Joy Morgenstern, California Public Utilities Commission

“The PG&E Smart Meter Program” 
Ms. Jana Corey, Director of AMI Initiatives, The Pacific Gas and Electric Co.

10:00 am – 10:30 am

Overview: “Behavioral Responses”
Dr. Carrie Armel, Research Associate, Precourt Institute for Energy Efficiency

10:45 a.m. – 12:00 p.m. A Conversation on IT’s Impact on Energy

Moderator: Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Dr. Banny Banerjee, Associate Professor, Mechanical Engineering, Stanford University
  • Dr. Sam Chiu, Professor, Management Science and Engineering, Stanford University 
  • Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute
  • Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

1:00 p.m. – 3:00 p.m. Operating in the Cleantech Space

Moderator: Dr. Craig Lawrence, Accel Partners

  • Mr. Mike Harrigan, VP Business Development, Coulomb Technology (charging hardware and software infrastructure for electric vehicles)
  • Mr. David Leonard, CEO Redwood Systems (LED lighting management systems)
  • Mr. Frank Paniagua, Jr., CEO GreenPlug (intelligent DC charging for consumer electronics devices)

3:15 p.m – 4:30 p.m. A Venture Capital Perspective

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Mr. Maurice Gunderson, Senior Partner, CMEA Capital
  • Dr. Marc Porat, CEO, Calstar Cement
  • Dr. Marianne Wu, Mohr Davidow Ventures

    Bechtel Conference Center

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    FSI Senior Fellow Emeritus and Director-Emeritus, Shorenstein APARC
    H_Rowen_headshot.jpg

    Henry S. Rowen was a senior fellow at the Hoover Institution, a professor of public policy and management emeritus at Stanford University's Graduate School of Business, and a senior fellow emeritus of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Rowen was an expert on international security, economic development, and high tech industries in the United States and Asia. His most current research focused on the rise of Asia in high technologies.

    In 2004 and 2005, Rowen served on the Presidential Commission on the Intelligence of the United States Regarding Weapons of Mass Destruction. From 2001 to 2004, he served on the Secretary of Defense Policy Advisory Board. Rowen was assistant secretary of defense for international security affairs in the U.S. Department of Defense from 1989 to 1991. He was also chairman of the National Intelligence Council from 1981 to 1983. Rowen served as president of the RAND Corporation from 1967 to 1972, and was assistant director of the U.S. Bureau of the Budget from 1965 to 1966.

    Rowen most recently co-edited Greater China's Quest for Innovation (Shorenstein APARC, 2008). He also co-edited Making IT: The Rise of Asia in High Tech (Stanford University Press, 2006) and The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship (2000). Rowen's other books include Prospects for Peace in South Asia (edited with Rafiq Dossani) and Behind East Asian Growth: The Political and Social Foundations of Prosperity (1998). Among his articles are "The Short March: China's Road to Democracy," in National Interest (1996); "Inchon in the Desert: My Rejected Plan," in National Interest (1995); and "The Tide underneath the 'Third Wave,'" in Journal of Democracy (1995).

    Born in Boston in 1925, Rowen earned a bachelors degree in industrial management from the Massachusetts Institute of Technology in 1949 and a masters in economics from Oxford University in 1955.

    Faculty Co-director Emeritus, SPRIE
    Senior Fellow, Hoover Institution
    Henry S. Rowen Moderator
    William F. Miller Moderator
    Marguerite Gong Hancock Moderator
    Workshops
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    Come hear four successful entrepreneurial leaders share insights about the crucial element of talent for start-ups in a global environment: how to build a team, recruit the best people, and manage across borders. Draw on their wealth of experiences: they have founded, funded and led many firms, pioneered technologies and business practices, led start-ups and Fortune 500 firms, and recruited and mentored scores of company leaders.

    After the panel discussion there will be a question and answer period, followed by Chinese appetizers and networking.

    This event is open to students, the Stanford community and the general public and is part of Entrepreneurship Week at Stanford University. You can see the entire line-up of Entrepreneurship Week events at eweek.stanford.edu.

    About the panelists

    Benhamou thumb Eric Benhamou
    Eric Benhamou is chairman and CEO of Benhamou Global Ventures, which invests and plays an active role in innovative high tech firms worldwide. He is chairman of the board of directors of 3Com Corporation, an adjunct professor at INSEAD, and a visiting professor at Ben Gurion University. He served as chairman of the board of directors of Palm, Inc. from 1999-07 and as CEO of Palm from 2001-03. Benhamou served as CEO of 3Com Corporation from 1990-2000. Benhamou has served on US government advisory committes and panels, corporate and educational boards and is the recipient of numerous honorary doctorates and awards, including the Packard Award. He holds an MS from the Stanford University School of Engineering.

    chao thumb David Chao
    David Chao, as co-founder and general partner of DCM, guides portfolio companies in formulating marketing strategies, developing management teams and implementing domestic and international partnerships. Prior to DCM, David was a co-founder, acting CFO and CTO of Japan Communications Inc., a provider of mobile data and voice communications services. Chao was part of Apple Computer's Marketing/Promotions group that helped Apple Japan grow from a $25 million company to $500 million in less than 2 years. He has a BA from Brown University and an MBA from Stanford.

    yoon thumb Kyung Yoon
    Kyung Yoon is CEO of Talent Age Associates, a cross-border talent company offering board and executive recruitment, coaching, and leadership development to clients in the US, Europe and Asia. Previously, she was Vice Chairman of Heidrick & Struggles, a executive search and leadership consulting firm, and President of Benten Investments, Inc. She is Chairman of the Asia America MultiTechnology Association and is a former AAMA President. She has served on numerous corporate and civic boards, including the Silicon Valley Bank Financial Group. Yoon holds a BA in Economics from Goucher College and an MBA from the University of Chicago.

    zhao Michael Zhao
    Michael Zhao, CEO and President of Array Networks, has more than 20 years worth of experience in executive roles at Internet infrastructure and systems integration companies. Most recently, Michael was founder and COO of AsiaInfo - a $500M systems integration company he led to a Nasdaq IPO. He is considered a major industry leader throughout Asia and holds a Ph.D. in Engineering from State University of New York at Buffalo and an MBA from Rutgers, the State University of New Jersey. He currently serves as President of the Asia America MultiTechnology Association (AAMA).

    Bechtel Conference Center

    Eric Benhamou Chairman and CEO Panelist Benhamou Global Ventures
    David Chao Co-founder and General Partner Panelist DCM (Doll Capital)
    Kyung Yoon President and CEO Panelist Talent Age
    Michael Zhao President and CEO Panelist Array Networks
    Seminars
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    This event is presented in conjunction with the Japan Society of Northern California.

    About the talk

    After five years of sweeping changes during the Koizumi administration (2001-06), Japan has slipped into a period of political stagnation.  

    The ruling LDP is in disarray and facing the prospect of defeat in the next general election, partisan conflict is slowing the pace of policy innovation, and past reforms have been partially unraveled in response to demands from both the public at large and vested interests.  

    This lecture explores the past decade of political change and backtracking in Japan and their implications for innovation and entrepreneurship in the business community, paying particular attention to the ongoing process of postal privatization and other instances of “structural reform.”

    About the speaker

    Patricia Maclachlan is Associate Professor of Government and Asian Studies at the University of Texas at Austin.  She received her Ph.D in political science and Japan studies in 1996 from Columbia University and spent one year as a research associate in the Program on U.S.-Japan Relations at Harvard University. Her research interests include consumer politics and culture in advanced industrial democracies, with a focus on Japan.

    Professor Maclachlan is the author of Consumer Politics in Postwar Japan: The Institutional Boundaries of Citizen Advocacy (NY: Columbia University Press, 2002), and a co-editor and contributing author to The Ambivalent Consumer: Questioning Consumption in East Asia and the West (Ithaca: Cornell University Press, 2006). She has also written several articles and book chapters on consumer-related issues in Japan and the West, Japanese civil society, and on Japanese postal reform. She is now completing a book on the history and politics of the Japanese postal system.

    Daniel and Nancy Okimoto Conference Room

    Patricia MacLachlan Professor of Asian Studies Speaker University of Texas, Austin
    Seminars
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    This event is presented in conjunction with the Japan Society of Northern California and the US-Asia Technology Management Center.

    About the event

    In recent remarks, President Obama has clearly linked our success at stimulating economic dynamism and science-based innovation abroad and our ability to clip the root causes of terrorism. The entrepreneur's optimistic vision is polar opposite of the terrorist's dark pessimism. By helping to grow entrepreneurial ecosystems abroad and link those ecosystems with their U.S. counterparts, we both fertilize broad-based future economic growth and strengthen a sense of self-determination, both potent antibodies to terrorist recruiters. This panel discussion will explore this concept.

    About the speakers

    Richard C. Boly is a national security affairs fellow for 2008-2009 at the Hoover Institution. Mr. Boly represents the U.S. Department of State.

    Richard is a career member of the United States Foreign Service. He was an Economic Officer at the U.S. Embassy in Rome, Italy from 2004-2008 and worked in the office of European Union affairs at the State Department from 2002-2004. His other overseas tours include the Dominican Republic, Ecuador, and Paraguay. Richard is the most junior diplomat to win the Cobb Award for commercial diplomacy. Prior to joining the Foreign Service, Richard was the first Presidential Management Fellow with the Inter-American Foundation, was a consultant with the Inter-American Development Bank, and founded and ran a shrimp hatchery in coastal Ecuador. Richard is a native of Tacoma, Washington and a graduate of Stanford University and the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He plans to use his fellowship year to focus on promoting entrepreneurship abroad as a U.S. policy objective.

    Richard Dasher has been with the US-Asia Technology Management Center at Stanford University since 1993, becoming USATMC Acting Director in 1994 and Director in 1996. In this capacity, Dr. Dasher holds consulting faculty appointments in the Department of Electrical Engineering (technology management) and the Department of Asian Languages (Japanese business), moving up from Consulting Associate Professor (1996 - 2003) to Consulting Professor since 2004. He has additionally served as Executive Director of Stanford's Center for Integrated Systems since 1998.

    Dr. Dasher was the first non-Japanese person ever asked to join the senior governance of a Japanese national university, serving a one-year term on the Board of Directors of Tohoku University from April 2004. He continues to serve on the Management Steering Council of Tohoku University and as Special Advisor to the Tohoku University president. From 2001-2003, he was a member of the International Advisory Committee to the Japanese Minister of State for Science and Technology Policy in regard to the creation of the Okinawa Institute of Science and Technology. He is regularly called on to consult for local and regional governments in Japan, the U.S. and Asia in regard to innovation-based regional economic development and university-industry relations.

    Dr. Dasher maintains an active business consulting practice on international strategy and planning, technology trend and opportunity analysis, and Japan market entry and performance improvement. In addition to projects for large firms, he serves as an outside board director of ZyCube Inc. in Japan and as advisor to several start-up companies in the U.S. and China. Since 2000, Dr. Dasher has been an advisor to the US-Japan Business Incubation Center in San Jose, California.

    Dr. Dasher received the Ph.D. in Linguistics from Stanford University and is co-author with Prof. Elizabeth Traugott of the book "Regularity in Semantic Change" (Cambridge University Press, 2002). He is fluent in Japanese and directed the U.S. State Department's Foreign Service Institute training centers in Japan and Korea from 1986-90. From 1990-93, Dr. Dasher was a salaried board director of two Japanese companies in Tokyo, at which he expanded the companies' business lines to include international IP licensing. He taught clarinet and chamber music at the San Francisco Conservatory of Music from 1978-85 and maintains an active interest in performing and enjoying music.

    Philippines Conference Room

    Richard C. Boly Fellow Panelist Hoover Institution

    U.S.-Asia Technology Management Center
    School of Engineering
    Stanford, CA

    (650) 724-0096 (650) 725-9974
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    Consulting Professor
    richard-lg0001-200x300.jpg PhD

    At Stanford University, Dr. Dasher has directed the US-Asia Technology Management Center since 1994, and he has been Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments at Stanford in the Departments of Electrical Engineering (technology management), Asian Languages and Cultures (Japanese business), and at the Asia-Pacific Research Center for his work with the Stanford Program on Regions of Innovation and Entrepreneurship. He is also faculty adviser to student-run organizations such as the Asia-Pacific Student Entrepreneurship Society and the Forum for American/Chinese Exchange at Stanford.

    From 2004, Dr. Dasher became the first non-Japanese person ever asked to join the governance of a Japanese national university, serving a term as a Board Director (理事) of Tohoku University . He continued as a member of the Management Council (経営協議会) until March 2010, and he now serves as Senior Advisor to the President (総長顧問) of Tohoku University. Dr. Dasher has been a member of the high-profile Program Committee of the World Premier International Research Center Initiative (WPI) of the Japanese Ministry of Education (MEXT) since 2007. He has served on the Multidisciplinary Assessment Committee of the C$500 million Canada Foundation for Innovation Leading Edge Fund in 2007 and again in 2010, and as a member of the Phase I and Phase II Review Panels of the C$200 million Canada Excellence Research Chairs Program in 2008 and again in 2010. He was a distinguished reviewer of the Hong Kong S.A.R. study on innovation in 2008–09, and since 2007 he has been a member of the Foresight Panel of the German Ministry of Education and Research. From 2001–03, Dr. Dasher was on the International Planning Committee advising the Japanese Minister of State for Science and Technology Policy in regard to the formation of the Okinawa Institute of Science and Technology.

    As allowed by Stanford policy, Dr. Dasher maintains an active management consulting practice, through which he is an advisor to start-up companies and large firms in the U.S., Japan, and China. He has been a board director of Tokyo-based ZyCube Inc. since 2006, and he is founder and chairman of Pearl Executive Shuttle in Valdosta, Georgia, U.S.A. In the non-profit sector, he is a Board Director of the Japan Society of Northern California and the Keizai Society U.S. – Japan Business Forum, and he is an advisor to organizations such as the Chinese Information and Networking Association, the Silicon Valley – China Wireless Technology Association, and the International Foundation for Entrepreneurship in Science and Technology (iFEST). In 2010 he served as a consultant to The Indus Entrepreneurs (TiE) in regard to their establishment of a worldwide remote mentoring program for entrepreneurs. Dr. Dasher frequently gives speeches and seminars throughout Japan and Asia, as well as in the U.S. Recent appearances include the Nikkei Shimbun Business Innovation Forum, the Foreign Correspondents Club of Japan, speaking tours of Japan co-sponsored by METI and the U.S. Embassy in Tokyo, and guest lectures at Chubu University, Kochi University of Technology, Ritsumeikan Asia Pacific University, and the University of Tokyo.

    From 1990–93, Dr. Dasher was a board director of two privately-held Japanese companies in Tokyo, at which he developed new business in international licensing of media rights packages and other intellectual properties. From 1986–90, he was Director of the U.S. State Department’s Foreign Service Institute advanced field schools in Japan and Korea, which provide full-time language and area training to U.S. and select Commonwealth country diplomats assigned to those countries. He received M.A. and Ph.D. degrees in Linguistics from Stanford University and, along with Prof. Elizabeth Closs Traugott, he is co-author of the often-cited book Regularity in Semantic Change (Cambridge University Press, 2002). He received the Bachelor of Music degree in clarinet and orchestra conducting from the San Francisco Conservatory of Music, where he served on the faculty from 1978-85.

    Richard Dasher Panelist
    Seminars

    Shorenstein APARC
    Stanford University
    Encina Hall E301
    Stanford, CA 94305-6055

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    2008-09 Visiting Scholar

    Kyung Joon Oh served as Senior Executive Vice President of Pantech Group and the president of Pantech Capital.  He holds a BA in Business Administration and an MBA from Yonsei University in Korea.

    Authors
    Christian von Luebke
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    At first sight, political turmoil in Thailand and the Philippines—repeated violent protests, impeachment battles, and military coups—gives the impression that democracy in Southeast Asia is on a downward spiral. One country in the region, however, has sustained a stable pluralistic democracy: the Republic of Indonesia.

    In 1999, after thirty years of Suharto’s centralistic, authoritarian rule, Indonesia embraced far-reaching decentralization and election reforms. Within a brief period of two years, the Indonesian government reshaped its administrative architecture, including the devolution of local tax and service responsibilities to more than 400 district governments. In view of its deep-seated authoritarian traditions, beginning with Javanese kingdoms and sultanates, moving through Dutch colonialism (1619–1942), and ending with Suharto’s New Order (1965–98), Indonesia’s rapid shift toward democratic decentralization stands out as one of the most remarkable political transitions in recent history.

    Particularly notable is the peaceful and competitive conduct of Indonesian elections. Over the last decade, local citizens have elected more than 30,000 local councilors and over 400 mayors, regents, and governors, with little violence or intimidation. High voter turnouts (around 70 percent) and high replacement rates of incumbent executives (roughly 40 percent) bear witness to rising electoral competition in local polities. While subnational elections display considerable flux, the upcoming presidential elections in July 2009 suggest continuity. The latest national polls, for example, predict a comfortable lead for President Susilo Bambang Yudhoyono (49 percent) over his main competitor, Megawati Soekarnoputri (36 percent).

    The institutionalization of democracy and decentralization, however, has yet to translate into substantive public sector reforms. Indonesia continues to score low in global governance assessments. According to Transparency International and the World Bank, Indonesia’s government ranks 126th (out of 180) in terms of corruption, and 129th (out of 181) in terms of administrative efficiency for business start-ups. With the introduction of regional autonomy, these governance problems have, to a considerable extent, been decentralized to hundreds of districts. Yet, despite formally uniform institutional settings, local governments exhibit vast differences in regulatory quality, administrative efficiency, and anticorruption measures.

    What motivates some local governments to perform better than others? Implicit in this question, which stands at the center of my research, is the idea that local democracy is not only an end in itself, but also a means for improving government outcomes. The pronounced policy differences that arise in Indonesia’s district polities provide a good opportunity to examine the workings of Indonesian local democracy or, to use a different terminology, the political economy of local decision-making.

    The findings from controlled case comparisons and subnational datasets suggest that policy variations are best explained by differences in government leadership. Good policy environments emerge primarily in cases where local regents and mayors, whose career aspirations are tested by direct elections, skillfully use their office powers to forge reform coalitions and supervise bureaucratic practices. Societal reform pressures that arise from local parliaments, business chambers, and nongovernmental organizations, in comparison, tend to be less significant drivers of good governance. While broad-based interest groups continue to struggle with collective-action problems, district council members seem more concerned with provincial/national party elites (and their party list positions) than with representing local constituencies. Thus, in Indonesia’s early stage of democratic transition, where societal pressures are yet to fully unfold, much seems to depend on leadership efforts to initiate, facilitate, and oversee government improvements.

    Under what conditions, then, are local leaders likely to act in the public interest, rather for private gain? While direct elections provide basic incentives, the direction and strength of these incentives also hinge upon existing socioeconomic structures. Government leaders need to accommodate interests of powerful economic groups in order to secure support for campaign funding and co-investments in public goods. Whether these interest alignments result in unproductive rent-seeking and corruption, or in constructive government reforms, depends on the constellation and transparency of economic powers.  The more economic powers become concentrated in specific sectors, groups, and firms, and the less public-private interactions are monitored by local media, the greater the likelihood that leaders will pursue self-preferential and collusive strategies.

    As a result, it is plausible to assume that a moderate economic concentration and strong media presence are conducive to better governance. At this point, only some districts fall into this category. But as globalization and communication technologies progress, local polities are bound to become more economically diverse and politically informed. With growing political awareness and increased incentives for better leadership, it is likely that Indonesia, over time, will see more public-private symbioses for reform and, thus, bridge the gap between well-functioning elections on the one hand and poor governance
    on the other.

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