This paper examines the impact of democratization on the social spending behavior of Indonesia and the Philippines. Comparing social spending as a percentage of central government spending and as a...Show moreThis paper examines the impact of democratization on the social spending behavior of Indonesia and the Philippines. Comparing social spending as a percentage of central government spending and as a share of GDP over a period of approximately ten years before and after democratization, one can’t observe a significant change in the social policy priorities of politicians. Although theory would suggest that democratization would increase the awareness of politicians to focus more on the social well-being of its citizen, investments in human capital remained largely unchanged. This paper argues that the persistence of elites, both at national and local level, prevents a substantial change in social spending to materialize. Drawn from several empirical studies and secondary literature, this paper shows how the rent-seeking attitudes of elites translates into a major burden for lower-class groups to enter the political domain and to change social policy (spending) to their favor.Show less
