PATRON-CLIENT POLITICS AND GOVERNANCE SYSTEM IN NEPAL By: Shiva Hari Adhikari Acknowledgements Government of Nepal Nepal Administrative Staff College Seoul National University Prof. Dr. Kil Kon Ko Patron-Client Relation Establishes and promotes informal governance Creates unauthorized transactions Holds control over policy decision and implementation Applies rules with partiality and some citizens get preferential treatment Encourages favouritism, nepotism and corrupt practices “Aafno manchhe” – one’s own people “Chakari”- serving, offering or appeasing big man Statement of the Problem Norwegian Agency for Development Cooperation, 2011 Informal practices more prevalent Corruption Bureaucratic and legislative norms to clientelism and patronage Dix, Hussmann, and Walton, 2012 Patronage system is apparent in society, economy and politics Corruption However, both are Silent on level of patronage Influence of patronage in governance system Literature Review No unique understanding of patron-client relation The form of patron-client relation may differ across regions and countries Patron-client relation as interpersonal exchange and its negative consequences Patron-client relation and its not-negative consequences All levels of patronage are not equally harmful (Dix, Hussmann, and Walton, 2012; and Johnston, 2010) Patron-client cluster vs pyramid (Scott, 1972) Formal and informal governance system (Brinkerhoff and Goldsmith, 2002) Framework: Deductive model for theory construction Objectives The general objective of this study is to analyze the patron-client relation prevailed in Nepal and its effect on governance system. The specific objectives are: to assess the level of patronage related corruption in Nepal, to seek the relationship among the patron-client related components, and to evaluate the effect of patron-client relation in the governance system of Nepal. Research Question/Hypothesis R.Q.: What is the effect of patron-client relation in governance system? Hypothesis 1: There is a difference in perceived level of corruption between public officials and students Hypothesis 2: Higher the patrimonialism is, the more unfair the civil service will be Hypothesis 3: Clientelism is positively correlated with corruption Hypothesis 4: Patron-client relation worsens the governance Methodology Sample selection: NASC and TU Research Design: descriptive, explanatory and mixed Data collection period: 7 – 22 August 2014 Sample size: 106 (public officials), and 167 (students) Peer review and pretest of questionnaire Data collection: mixed (questionnaire and face-to-face interview {2 Students + 3 Public officials}) Data processing: 380 distributed, 324 returned (51 have quitted or incomplete), 273 fully complete and usable, 85% return rate, 72% response rate Methodology: Summary of Variables (newly created) Type of Newly Created Number of Items Measurement Question Variable Variable Included Number Poor Governance 5 Five response Likert 211, 212, 324, Scale 325 and 326 Corruption 6 Five response Likert 201, 202, 206, Dependent Scale and 304 to 306 Unfair Civil 3 Five response Likert 301 to 303 Service Practice Scale Patrimonialism 5 (but after factor Five response Likert 207 to 210, analysis only 4) Scale and 311 (311 is omitted) Clientelism 7 Five response Likert 203 to 205 Scale and 307 to 310 Independent Opaque 5 Five response Likert 312 to 316 Procurement Scale Pork Barrelling 3 Five response Likert 317 to 319 Scale Rent Seeking 4 Five response Likert 320 to 323 Behaviour Scale Methodology: Summary of Variables Type of Variable Variable of Yes/No question Nominal (Yes=1) Question Number 406 Future intention Yes/No question of bribery Family member Yes/No question government employee Study group Yes/No question Nominal (Yes=1) 408 Nominal (Yes=1) 611 Experience bribery Control Question Type Family member a Yes/No question politician Political Yes/No question affiliation Measurement Nominal (Public 601 officer=1) Nominal (Yes=1) 612 Nominal (Yes=1) 613 Methodology Data analysis: Mixed (verbatim and uni-, bi-, and multi-variate analysis) Inter-correlation and reliability test (Cronbach’s Alpha test) Factor analysis Kaiser-Meyer-Olkin measure of sampling adequacy (>0.5) Check of the assumptions of the regression model Findings Hypothesis 2: Supported as Beta value (0.261) is positive, and is significant (p <0.01, t = 5.143) H y p o t h e s i s 3 Hypothesis 4 Hypothesis 1 Summary and Conclusion All the four types of patronage related corruption – Influence Market, Elite Cartel, Oligarch and Clan, and Official Mogul- apparent in society, politics and economy. Low integrity of state institutions Tax collection and land management offices are the most corrupt state institutions. Low level of public trust Students- the future leaders- less knowledgeable about corruption Public officials- the executors- know less about their code of conduct Summary and Conclusion There are significant percentage of respondents who believe that patronage related corruption is tolerable. About 45% respondents have experienced bribery. About 72% think that service providers are corrupt. About 18% have future intention of corruption About 88% think that ‘chakari/aafno manchhe’ has helped in promoting corruption in Nepal. All the hypotheses are significant (except POB variable) Policy Implication Collaborative action: public administration, government, market and civil society Service providers: accountable, responsive and ethical. Promotional action: level of awareness need to be raised on corruption related matters and issues Preventive and punitive action: sharp detection mechanism, robust prosecution and recovery action should be needed for effective control. Special mechanism need to be developed and act immediately to break the tie between patrons and their clients. Limitation and Further Research Respondents: Public officials attending a training program at NASC during 7 to 22 August 2014 (relatively small in size n=106), however, diverse in working organizations and years of experience. Students who have completed Bachelor’s degree, non probability techniques (snow-ball sampling), may lack representation, however, diverse in background and location. Conflict of Interests: inherent problem of reporting and perceiving corruption, however, voluntary participation has helped in reducing response bias Limitation and Further Research Governance and Patron-client relation study demands more in-depth study- direct and indirect observation, KII, FGD-, study heavily relied on quantitative data and information, however, qualitative information was collected through face-to-face interview, and analysis has been made using verbatim reporting. Further research should focus on country level analysis with targeting public officials of all region, I/NGO officials, politicians (local and national level), service receivers, private sector, business groups, elites, interest groups, civil society, and trade unions. References Brinkerhoff, D. W. and Goldsmith, A. A. (2002). Clientelism, Patrimonialism and Democratic Governance: An Overview and Framework for Assessment and Programming. Bethesda: U.S. Agency for International Development. Dix, S., Hussmann, K. and Walton, G. (2012). Risks of Corruption to State Legitimacy and Stability in Fragile Situations, U4 Issue, No 3. U4 is a web based reserch centre: Chr. Michelsen Institute. Norwegian Agency for Development Cooperation. (2011). Corruption and Anti-corruption in Nepal: Lessons Learned and Possible Future Initiatives. Oslo: Norwegian Agency for Development Cooperation.