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LOCAL GOVERNMENTS
IN A GLOBAL CONTEXT
Conference Proceedings
The 3rd International Conference on Local Government
November 15-16, 2012, Khon Kaen, THAILAND
College of Local Administration
Khon Kaen University
Khon Kaen, THAILAND
-iii-
Table of Contents
Message from the Chairman of the Organizing Committee i
Committee Members ii
Program Schedule 1 List of Paper:
Scoring Local Economic Development Goals in South Africa: Why Local Government is Failing to Score Costa Hofisi and Roland Mbeba
15
The Role of Local Government in Local Economic Development in South Africa Johannes Tsheola, Phophi Nembambula and Matshidisho Ledwaba
25
The Impact Application of Asset-based Approach to Socio-Economic Challenges at Umzumbe Local Municipality (South Africa) Ndwakhulu Tshishonga and Kealeboga J. Maphunye
35
The Impact of Local Economic Development on Poverty Alleviation in the Eastern Cape of South Africa: The Case of Nkonkobe Local Municipality Stephen Mago, Costa Hofisi and Ronald Mbeba
45
Role of Local Government on REDD+ Implementation in Indonesia (Case Study of Central Kalimantan as REDD+ Pilot Province) Dian Agung Wicaksono and Wahyu Yun Santosa
56
The Character of School Governance in South Sumatera, Indonesia Alamsyah Alamsyah and Mardianto Mardianto
65
The Local Government Functions in Social Welfare of Neglected Children in Mataram Chairun Nasirin
80
-iv-
Trends in Municipal Services Marketization and Privatization: Lessons in Service Delivery Reforms in South Africa and Botswana Nyawo Gumede and Kenneth Dipholo
87
Ampersal (Jaminan Persalinan or Labor Warranty) as a Form of Public Health Service Vita Marwinda Retnaningsih and Dyah Retna Puspita
99
Social Participation in Policy Formulation of Developing the West Java International Airport Based on a New Public Service Perspective Fanny Dwipoyanthi and Slamet Rosyadi
107
Local Government and the Fragmented Developmental Mandate: A Case Study of Offender Rehabilitation in South Africa Michael Nkosinathi Khwela
113
Analyzing the Quality of South Africa’s Public Services at the Local Government Level Through the Batho Pele Principles Kealeboga J. Maphunye, Ndwakhulu Tshishonga and Eve D. Mafema
123
Characteristics of the End of Regional Autonomy Era: A Lesson from Indonesia Andy Al Fatih
138
Human Resource Competencies for E-Government in Local Government Ali Rokhman, Rawuh Edy Priyono and Rahab
147
Electronic Government in Local Government Companies Nur Soim Isnanto and Ali Rokhman
162
Moderating Effects of SISP Approaches to the Relationship between SISP Practices and Performance Hisyam Harun and Mohd Khairuddin Hashim
173
Information for Community Management of Local Administrative Organizations in Thailand Phadet Jinda and Lampang Manmart
191
Local Government’s Autonomy and Effectiveness in Nigeria Abdullahi Ayoade Ahmad
204
-v-
A Survey of Community Engagement in Australian Local Government Bligh Grant, Brian Dollery, Michael Kortt and Boyd Blackwell
215
The Quest for Local Sustainability: How to Balance the Development Paradigm Prateep Chayalee
237
Local Fiscal Autonomy of Philippine Local Government Units John Robert Eleccion
252
Local Government and Sustainability in Aotearoa New Zealand: The Te Ao Māori Research Approach Karen Webster
260
Local Government’s Role in Economic Development, Preservation of Local Culture, Social Welfare, and Public Concerns Related to Sustainability, Energy Resources, and the Environment Sunil Kavade, Sudhir Wadekar, Vilas Nabde and Firoj Shaikh
269
Creating a New Ethical Culture in South African Local Governments Noluthando Matsiliza
284
Limitations of the Proportional Representation (PR) Electoral System in South Africa's Local Government Elections: The Case of the 2011 Local Election Alexius Amtaika
294
Reinventing Local Governance in Uganda: Current Governance Perspectives and Future Trends Stella B. Kyohairwe and Gerald K.Karyeija
315
Devolution, Localism, and Good Governance in England David Smith and Enid Wistrich
328
The State of Ethics in the South African Local Government Tadi Daniel Rampai and Vusi Nocholas Mgwenya
344
The Role of Local Governments in Building Democracy: A Study of the Akkaraipattu Municipal Council of Sri Lanka Seeni Mohamed Aliff
361
-vi-
National Strategic Framework, Trans-boundary Institutions and Local Government: An International Defense Perspective Shadrack Baleseng Ramokgadi
376
Managers’ Perceptions of the ASEAN Economic Community: A Case Study of a Company in Khon Kaen Province Jarun Bootdachi
392
Market Success in Addressing Policy Failure in the Utilization of River Resource: Conflicts among Industry, Local Government, Traditional Fishermen, and Collective Action in Cilacap, Indonesia Slamet Rosyadi and Erwin Riyanto Ardhi
407
Grassroots Planning – from Conceptualization to Institutionalization Yogesh Mahor and Ramgopal Singh
421
Consolidation of Thai Sub-District Municipalities and Sub-District Administrative Organizations, into One Organization: Suitable or Not? Supaluck Suvarnajata
431
Collaborative Governance in Community-Based Environmental Sanitation Programs in Banyumas, Indonesia Rridiyah Septiyani and Pawrtha Dharma
443
A Comparative Analysis of the System of Intergovernmental Relations in Botswana and South Africa: The Dynamics of a Two-Tier Versus a Three-Tier System Kenneth Dipholo and Nyawo Gumede
451
A Comparison of Sanitation Case Studies in Three South African Cities - Service Delivery in Turmoil? Barry Hanyane
466
Periodization of South African Local Government Reformation since 1994: (Im)perfect Democratic Transition? Ndwakhulu Tshishonga and Kenneth Dipholo
500
Local Government and Development Administration in Nigeria: Issues and Cases Oyetola Oniwide
518
-vii-
Community Participation Inhibiting Factors: A Community Development Prospective Muhammad Shakil Ahmad and Noraini Bt. Abu Talib
529
The Effects of Municipal Policies on the Livelihood of the Different Demographic Groups or Local Communities in South Africa Tintibane Thamaga
537
Changes in Gender Role among Hair Manufacturers Workers’ Families in Purbalingga, Central Java, Indonesia Dyah Retna Puspita, Rin Rostikawati, Lilis Sri Sulistiani and Slamet Rosyadi
542
Dynamics of Regional Autonomy in the Context of Regional Arrangement: An Evaluation of the Impact of the Poliferation of Administrative Region in Banjar City, Indonesia for Enabling Greater Prosperity Among Local Residents Qurrotul A’yuni and Simin
555
The Specter of Leviathan in the Central-Local Relations: A Comparative Historical Analysis of the Decentralization Reform in Thailand and the Philippines Tatchalerm Sudhipongpracha
562
Pattani, Yala, Narathiwat: Urban Terrorism and Political Violence in Southern Thailand Antonio Rappa
578
Women’s Empowerment through Panchayati Raj Institutions in West Bengal, India Sanjoy Roy
596
An Assessment of the Fiscal Autonomy of Local Governments at the Third-Tier Level in a Federation with Particular Reference to Nigeria Woleola Ekundayo
597
The Possibility of Budgetary Process Reform by Residents’ Participation Naoki Ogawa and Yuji Mori
605
The Local Government System in Pakistan: A Focus on the Musharraf Era Akhtar Sandhu
617
-viii-
The Implementation of Manpower Service Policy in South Sumatera, Indonesia Andries Lionardo
632
Traditional Leadership in Botswana: Opportunities and Challenges for Enhancing Good Governance and Local Development Kenneth Dipholo, Ndwakhulu Tshishonga and Eve Mafema
633
Toward Open Government: A Study of Gerakan Desa Membangun Firdos Putra Aditama and Andi Antono
648
Understanding Discretionary Service Behavior in the Public Sector: The Role of Organizational Justice, Satisfaction with Supervisors, and Organizational Commitment Sinto Sunaryo and Joko Suyono
661
Human Resource Management in Local Governments: An Analysis of Recruitment and Selection Practices in Uganda Lazarus Nabaho and Alfred Kiiza
672
Organizational Puzzles of Agencification: A Kampala City Council Authority Case, Uganda Gerald Kagambirwe Karyeija and Stella B.Kyohairwe
684
Perception of Local Governments in Thailand: Views of People and Local Administration Sarunya Ruangwicha
695
The Right Man for the Right Job: Do Local Regulations Support It? Empirical Evidence from Central Java, Indonesia Retno Mawarini Sukmariningsih
703
The Search for “Common Ground” in Kenora, Northwest Ontario, Canada John Sinclair and Jim Robson
710
Creative Tourism in Phuket Province: A Case Study of Sino-Portuguese Historical Areas Duangjai Panitcharernkit
723
The Isan Culture Maintenance and Revitalization Programme John Draper
735
-ix-
Promoting Proactive Citizens in order to Disseminate Academic Knowledge and Promote Community Strength: A Case Study of Klongpon Subdistrict, Klongthom, Krabi Thawilwadee Bureekul and Nittaya Ponok
760
Using an Ancient Lao Epic to Inspire a Modern Thai Municipality Bonnie Pacala Brereton
777
Sixth Schedule: Negotiating Ethnic Autonomy Discourses in Northeast India Ch. Sekholal Kom and Chintu Brahma
792
Decentralized Governance in Multi-Party Systems in Developing Countries: Challenges to Service Delivery in Uganda Michael Kiwanuka
815
Analyzing Decentralization and Local Government's Role in Development in South Africa Aklilu Asha
820
Unlocking Democracy through Active and Responsible Citizenship: Towards the Convergence of Demand-Supply Side Governance in South Africa Ndwakhulu Tshishonga
831
Redundancies, Competition, and Inefficiencies in Decentralized Education Planning: A Case Study of District Khairpur under Decentralization in Pakistan Mohammed Rehan Malik
843
407
Market Success in Addressing Policy Failures in the Utilization of
River Resource: Conflicts among Industry, Local Government
and Traditional Fisherman and Collective Action in Cilacap,
Indonesia
Slamet Rosyadi, Department of Public Administration, Faculty of Social and Political Sciences,
and Erwin Riyanto Ardhi, Aquatic Biology Laboratory, Faculty of Biology
E-mail address: [email protected]
Abstract
Public policy governing natural resources often fails to address conflicts of
interest among its users. Using the case of Cilacap in Central Java, we examine
conflict resolution initiated by the industry as a response to the ineffectiveness of
local government to regulate the use of the river as both a conservation zone and
ship traffic. By applying the theoretical framework based on the concept of
collective action, we analyze the role of the industry in addressing policy failures
indicated by the river-related conflicts among local government, industrial and
traditional fishing. Our analysis shows that collective action and bargaining
between industry and traditional fisherman has pushed them to develop their
solution. In addition, we found that the conflict resolution negates the transaction
costs incurred by the industry in the form of the cost of securing ship traffic.
Key words: industry, local government, policy failure, traditional fisherman,
collective action, Indonesia
Introduction
In conservation zone of the Segara Anakan Lagoon, conflicts dealing with
the use of natural resources over Donan River which is caused by the practice of
traditional „apong” (a tidal filter net) fisherman in the past constitutes a serious
obstacle to adopt the collaborative use of river (Rosyadi et al, 2007). They do not
only practice unfriendly ways of fishing in terms of environmental aspect, but also
disrupt industrial shipping traffic that relies on the Donan river as a transport
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 408
pathway. Ironically, the bureaucracy in developing countries which become the
leading agency to conduct the legal control and supervision of environmental
issues has failed to resolve conflict among the resource users (Khator, 2009).
Since 2010, there has been a major breakthrough in handling conflict of
the Donan River use. Through a program of the profession switch which has been
facilitated by industry, some fishermen possessing the fishing locations and
disrupting industrial ship traffic have no longer practiced the apong nets. Their
profession have been transferred to other profession under mentoring of the
industrial agents. This case is particularly interesting to study because of three
reasons. First, solving the problem of using the resource of common pool involves
collective action between coastal community and industry (market). Initially, each
party has claimed their right to the river use based on their interest (shaped by
economic, cultural and historical factors). Meanwhile, the local government does
not have an adequate conflict resolution except the regulation concerning the
spatial Segara Anakan Lagoon as a conservation zone. Second, industry (market)
is not always passive to the policy failure of management of natural resource that
mostly impinged various developing countries. Third, there is no systematic
attempt to explain under which conditions of traditional fisherman and industry
have achieved agreement to address their conflicts of interest.
Theoretical Background
In this paper, a framework is developed to consider collective action and
bargaining with regard to the resolution of river conflicts. A variety of issues of
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 409
natural resource utilization can not be solved by bureaucratic-regulatory approach.
As an alternative, collective action approaches become a potential option to
address the problem of joint utilization of natural resources (Birner and
Gunaweera, 2001: Bouwen and Taillieu, 2004; Anand, 2007; Ray and
Bhattacharya, 2011). In the perspective of social movements, collective action
refers to some types of action taken by some people as a demonstration or strike
(Snow, 2004). In the perspective of economics, collective action is always
associated with the production of public goods together due to the inability to
produce individually (Ostrom, 1998). In this study, the concept of collective
action is used to demonstrate the joint use of access to natural resources by several
different interest groups with the principle of mutual benefit. Collective action
certainly involves issues of power that is bargained among stakeholders. It will
consequently determine the model of agreement that is acceptable to resolve
conflicts among those who use the resource (Birner and Gunaweera, 2001).
Methodology
Collaborative utilization of river resource in the Donan River in Central
Java Indonesia is selected as a case study because it represents an interesting
effort of a local fisherman (community side), industry (market side), and local
government to achieve agreement regarding the use of river resource and reduce
conflicts among them by promoting the profession switch program for some
“apong” fishermen. In this case, the profession switch program facilitated by
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 410
industry has been successful to address the conflicts of interest in the use of river
for long period.
Figure 1 shows that the three actors (government, fishermen and industry)
have different interests in the utilization of river-based resource in Laguna Segara
Anakan Conservation Area. The government applies its authority to establish an
area for specific interests. Consequently, all parties must comply with local
regulations made by the government. The industry has a vested interest to utilize
the river as ship transportation pathway. Meanwhile, fishermen rely on the river as
a source for sustainable their livelihood. At first, these three interests lead to
conflict, especially between fishermen versus the government and the industry.
Each side claims to have the rights to use the river resource. Negotiations finally
reached a deal to take advantage of the river by taking into account the economic
interests of fishermen through the profession switch program.
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 411
Data
The data was collected by observation, in-depth interviews with key
informants such as leaders of fisherman groups, manager of community relation
of Holcim Cement Company and related-local government officers, and the
analysis of documents issued by the local government and industry from April –
August 2012. Data is analyzed with the “interactive” model (Miles and
Huberman, 1984) with regard to the strategies of the actors applied to the
negotiation process by stipulating a set of causal links about the case. Since the
collaborative process dealing with conflict of river use was still in early stages, the
Industry Actors
Local Government
Actors
Traditional Fisherman
Actors
RIVER
RESOURCES
From Conflict to Collaborative Utilization
Negotiation Process: Profession Switch Program for “Apong”
Fishermen
Figure 1. Negotiation Model leading to Collaborative
Utilization
in River Resource
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 412
study focused on analyzing the negotiation processes rather than on evaluating the
outcome.
Findings
The Role of Market
The role of market in the area research was reflected by a problem
solution facilitated by industry together with fishermen in utilizing the Donan
River. For years, the fishermen and the industry failed to reach agreement in
resolving conflicts regarding the utilization of river. From 2001 to 2004, the
placement of the apong net had interfered the lines of shipping traffic where
Holcim Company usually passes through. Table 1 shows that the incidence of
apong net disruption to the shipping line has increased quite high, especially in
2001-2004. Average interference in the form of a net crash incidence by ships
reached 7 times per month. This situation has brought about losses both for
fishermen and Holcim Company. For fishermen, the ship crash against their
Apong nets has not only disrupted their livelihoods, but also damaged fishing gear
as their live hood investment. As a result, they claim costs of damage against
Holcim. For Holcim, of course, the compensation has burdened on their budgets.
Each year, according to the Community Relations Manager of Holcim, the
company must provide budget cost of securing as much as 600 million rupiahs
annually. However, the budgetary cost of this protection does not reduce the
frequency of conflicts with the fisherman community regarding the use of the
river Donan.
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 413
Figure 2. Frequency of Apong Net Disturbance against Shipping
Activities
Source: Holcim Company Tbk (2001-2004), data of 2005-2009 is not
available, Interview with The Holcim Manager and Cilacap Harbour
Administration (2010-2012)
To resolve the conflict of interest based on the agreement of the apong
fishermen, in 2010 Holcim Company offered economic incentives supported by
Corporate Social Responsibility (CSR) funds to the fishermen to participate in the
program of profession switch. This program has been designed to encourage the
fishermen to install their apong net in the trajectory of the ship. As compensation,
Holcim provides venture capital assistance to the apong fishermen by an average
of 25 million rupiahs to each fisherman. In addition, Holcim facilitate the
participants of program with continuous assistance in order to make fishermen
household economy stable during the transition period. According to Community
Relations Manager of Holcim, the program of profession switch will only be
successful if the participants have earned a steady income when they have no
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 414
longer relied on the catch of fish cages. If they do not receive ongoing mentoring,
they are prone to get back into fishing with a tidal filter nets.
The Role of Local Government
In principle, there are three types of regulation enforced by the local
government dealing with the problem of river utilization in Segara Anakan
Lagoon, as follow:
1. Law No. 28/2008 on Shipping.
2. Local Law No. 6/2001 on Spatial Plan of Segara Anakan Area.
3. Local Law No. 16/2001 on Fishery Management in Segara Anakan Area.
Law 28 /2008 on Shipping. In general, the Act is intended to ensure the
safety and security of shipping by Local Port Administration and encourage the
participation of local communities in a positive way regarding the organization of
shipping and port activities. But this law is difficult to implement in the case of
Donan River since it confronts with the local fishing culture which traditionally
not forbid people to set up tidal filter nets along the river. Strict law enforcement
in order to clear the Donan River from obstacles is almost impossible because it
will face strong resistance from the apong nets community. Consequently, the
IMO (International Maritime Organization) categorizes the Port of Cilacap as
Black Area due to disruption and threat to the safety of cruise ships.
Local Law No 6/2001. According to this local regulation, Segara Anakan
Lagoon is designated as a limited conservation zone. This law is stipulated due to
the fact that Segara Anakan is naturally spawning areas (nursery ground) and a
habitat of diversity of flora and fauna. To keep the sustainability of the unique
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 415
biodiversity resource, therefore, the local government of Cilacap controls the
fishing and land use practices in this area. However, at the implementation level,
it is not effective altogether to control the rate of destruction of the lagoon.
Instead, along with the increasing number of people around the Laguna Segara
Anakan, pressures on lagoon ecosystems have been becoming more extensive.
One of the pressures is fishing practices by the apong nets.
Local Law No. 16/2001. One of the purposes of this regulation is
intended to prohibit the use of apong nets. However, the Government of Cilacap
found serious problem to stop local fishermen using Apong nets. Moreover, the
amount of apong net use is still very high. According to the Local Agency of
Marine, Fisheries and Segara Anakan Area, the distribution of apong nets has
reached 1660 whose property owned by 912 fishermen. Prohibition of apong nets
has been done, but the fishermen demanded higher compensation and the
initiation of making the profession switch program for them. However, the limited
government budget is not possible to fulfill the fisherman demands.
Collective Action and Bargaining as a Solution
This section discusses the case of collective action and bargaining among
apong fishermen, industry, and local government in building “agreement” among
them particularly in the joint utilization of Donan River.
For Holcim, it is not a good idea to rely on the legal approach since the
people is no longer respect to the law enforcement. According to its spoke person,
the root of the problem is how to meet the household economy of fishermen so
they will not fish anymore with the apong nets. Apart from environmental
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 416
reasons, the placement of apong nets in Donan River was very disturbing the
Holcim‟s transport ships carrying raw materials for the manufacture of cement.
Thus, the main interest of Holcim is to secure the continuity of the production
process. Delivery of raw materials which is not conducted timely due to the
existence of apong nets would certainly disturb the process of cement production.
Moreover, Holcim is heavily dependent on the existence of Donan River because
the average traffic of ships that enter the Holcim can reach 3-4 times each day.
Meanwhile, the shipping line through Donan River is the most efficient option
than a landline.
Apart from their effort to maintain the sustainability of the production
process, Holcim is also concerned to keep the image of Holcim. Conflicts of river
use that occurred a few years ago could not only damage the image of Holcim
business, but it also damaged the relationship between Holcim and the local
community. This trend contravened one of the company objectives that seek to
realize a harmonious relationship with the environment and society. Therefore, in
2009, Holcim with local leaders of apong fishermen did a lot of meetings to
design a solution that benefits all parties. An important outcome of this
negotiation was the program of profession switch. However, the main target of
the program is focused on the profession switch of fishermen who apply their
fishing practices disrupting shipping lines. Based on the joint mapping undertaken
in 2004, it was reached an agreement that 27 apong fishermen in two villages
were targeted to be the participants of the program of profession switch.
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 417
For the apong fishermen, the program of profession switch agreed in 2009
was considered highly beneficial than any other program. Actually, the offer of
the program of profession switch was also ever been offered by Holcim to the
apong fishermen along the Donan River in 2004. However, the compensation
money received by the fishermen is not worthy for the investment spent on the
cost of manufacture and installation of apong nets. Besides, the process of
profession switch was not bound by a legal contract. As a result, the fishermen
who participate in the program reneged and re-installed their apong nets on the
shipping line.
Learning from the failure of the previous program of profession switch,
Holcim has no longer provided incentive compensation in the form of cash but
with the assistance of equipment, livestock or vehicles in accordance with the
suggestions made by the participants of the program. To strengthen the agreement
between them, the contract is legally witnessed by the local government to be the
basis of a profitable partnership between Holcim and program participants. In
addition, Holcim keep monitoring and provide assistance for economic enterprises
run by former apong fishermen until their household economy is relatively stable.
For Holcim, mentoring is essential in the form of social corporate responsibility to
the surrounding community. The response of the fishermen also indicates
favorable development to the idea of the current program of profession switch
offered by Holcim.
For local government, the agreement between Holcim and apong
fishermen is very beneficial in reducing ecological pressures of Segara Anakan
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 418
Area. The limitation of budget does not allow the government to contribute to the
program of profession switch. The government support has been manifested in
fostering an environment that is conducive for the cooperation between Holcim
and fishermen apong to jointly utilize Donan River without harming both party.
Conclusion
The study of traditional fishermen, industry and local government in
utilizing common pool resource like Donan River allows one to draw several
conclusions on conditions that have facilitated collective action. First, business
philosophy oriented towards environmental sustainability becomes an important
foundation that encourages the industry to work with the surrounding community.
Second, conversion of transaction costs into the cost of empowerment programs
has positive impacts on the reduction of conflict, continuity of business processes,
and collaboration. Third, mutual beneficial cooperation in economy and
sympathetic to the interests of society has facilitated agreement among the
fishermen, industry and local government to minimize disputes in the utilization
of natural resources.
Research Recommendations
Another important aspect that needs to be explored further is: how is the
fate of apong fishermen who do not involve in the program of profession switch?
Regarding the fishing location outside the shipping line, does the program affect
the relationship between program participants and non-participants? Further
MARKET SUCCESS IN ADDRESSING POLICY FAILURES IN RIVER
RESOURCE UTILIZATION 419
studies should focus on these issues so that the efforts of collective action that
have been built in this case, do not lead to negative external impacts.
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