Multilevel governance and the coordination dilemma

Abstract

This chapter comes to grips with the dilemma of coordination under multilevel governance. Governance has become multi-level as regions within states have gained self-rule and states have pooled and delegated authority to international organizations. Hence, multilevel governance imposes the need for coordination, but it reduces the capacity of central governments to issue authoritative commands. We develop a contract theory of coordination under multilevel governance and argue that as the shadow of hierarchy recedes, so coordination among autonomous actors relies on shared mental maps and diffuse reciprocity - i.e on community.