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Institutional Analysis of Participatory Development: A Review of Institutional Function and Mechanism of Intermediary Organizations
1998 Volume 7 Issue 1 Pages 47-61
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1998 Volume 7 Issue 1 Pages 47-61
The institutional framework of participatory development is characterized by the nature of interaction among various actors such as government, market, community, and intermediary organizations. By analyzing the institutional function of intermediary organization which channel resources and information between government and community, the institutional framework which promote peoples' participation can be identified.
This article attempted to examine the interaction among three actors from the 13 cases of intermediary organizations to analyze following three institutional aspects. The first is the institutional functions among actors and who bears transaction costs. The second is the institutional mechanism which affects transaction costs and the incentive structure which promotes participation. The third is the nature of social capital which affects the institutional function, mechanism and incentives.
In the institutional framework of participatory development, institutional functions of intermediary organizations can be classified into 5 types according to who take initiatives and bear transaction cost. They are the contact point, service delivery, promoter, facilitator, and assistance types. The major institutional mechanisms identified in the cases are group formation, networks, and contract. The incentive for participation is mainly to obtain access to material benefits, resources and information. These institutional mechanisms are deeply affected by nature of social capital. As the social capital accumulates, the transaction cost required for group formation is tends to decline.
The Institutional framework will evolve as the function of intermediary organization changes according to the capability of community organizations and the density of networks with outside systems. The evolutionary direction of intermediary organizations can be indicated from the promoter to facilitator, and then to assistance type, as well as service delivery to contact point type.
