ABSTRACT
This chapter applies a few streams of theory and empirical research to the above questions. We begin by considering the role of coordination in governance, and then review the research dealing with social capacities for coordination. We then examine the contribution of heterogeneity to governance failures, notably corruption, in poor countries. Social status has an equivocal role. It can contribute to successful organization and material progress due to its mobilizing power, and it can just as well undermine
governance by encouraging harmful competition over power and resources. Next, we consider approaches to governmental design that can accommodate social heterogeneity while fostering coordination for shared objectives. The approaches considered include models of devolution that enhance status group authority. Experience with these different models is suggestive but inconclusive. In the final section, we urge a broader rethinking of governance models in light of our analysis.
