Violent Crime and Capital Market Punishment: How Violent Crime Affects the Supply of Debt to Municipal Mexico

Research shows that violent and organized crime reduces foreign direct investment and that armed conflict lowers sovereign credit ratings. Building on these insights, I argue that violent crime reduces financial institutions’ confidence in the capacity of governments to repay loans, raising the costs attached to loans, and reducing government debt through a “supply-side” logic. Yet, this logic is difficult to test. Governments can render lenders indifferent to violent crime by accepting higher borrowing costs, resulting in no observed relationship between them. It is for this reason that analysis of the effect of violent crime on government credit ratings alone cannot tell us much about its effect on actual government debt. In this study, I explain how analysis of subnational debt from welfare-minded public banks and profit-minded private lenders can distinguish the supply-side logic from the null hypothesis. Cross-sectional time-series analysis of homicide rates and municipal debt in Mexico demonstrates support for the supply-side logic. Evidence of the supply-side logic reveals that those governments most in need of cost-efficient financing are most likely to be charged higher prices for it or priced out of capital markets altogether, signaling the need for market intervention in these cases.     

Local Public-Services Provision under Public–Private Partnerships: Contractual Design and Contracting Parties Incentives

When deciding to resort to a PPP contract for the provision of a local public service, local governments have to consider the demand risk allocation between the contracting parties. In this article, I investigate the effects of demand risk allocation on the accountability of procuring authorities regarding consumers changing demand, as well as on the cost-reducing effort incentives of the private public-service provider. I show that contracts in which the private provider bears demand risk motivate more the public authority from responding to customer needs. This is due to the fact that consumers are empowered when the private provider bears demand risk, that is, they have the possibility to oust the private provider in case of non-satisfaction with the service provision, which provides procuring authorities with more credibility in side-trading and then more incentives to be responsive. As a consequence, I show that there is a lower matching with consumers’ preferences over time when demand risk is on the public authority rather than on the private provider, and this is corroborated in the light of two famous case studies. However, contracts in which the private provider does not bear demand risk motivate more the private provider from investing in cost-reducing efforts. I highlight then a tradeoff in the allocation of demand risk between productive and allocative efficiency. The striking policy implication of this article for local governments would be that the current trend towards a greater resort to contracts where private providers bear little or no demand risk may not be optimal. Local governments should impose demand risk on private providers within PPP contracts when they expect that consumers’ preferences over the service provision will change over time.     

Does Power Corrupt? An Empirical Study of Power,Accountability, and Performance Triangle in Public Administration

Foundational work in public administration has considered the relationship between administrative power, accountability, and performance in public organizations. Even with the vast literature addressing power, accountability, and performance, scholars are still theorizing on how they influence one another. This study proposes and empirically tests a theoretical model of the relationships between each of these three constructs. Data are analyzed from an original survey of a national sample of US local government public administrators—city managers. Using structural equation modeling, results show that there are positive relationships between power and accountability, power and performance, and accountability and performance. The article discusses theoretical and practical implications of these findings.     

The economic impact of a foreign debt bail‐out for private firms in Ecuador

In this article the effect of Ecuador's general foreign debt conversion programme on private firms' financial position is analysed. The programme, called the Sucretización, was similar to programmes implemented by many heavily indebted countries after the debt crisis began. I concentrate on the Sucretización's implicit transfer from the government to firms, arguing that it was large, but unnecessary. Very few firms would have gone bankrupt because of their devaluation‐induced foreign exchange losses. What is more, I find no evidence that firms receiving these transfers used them to strengthen their balance sheets.     

The growing challenges of providing pensions to state and local civil servants in an aging society

Much hope has been placed in the ability of Supreme Audit Institutions (SAIs) to enhance public accountability. SAIs' independence and professionalism lend promise to the chance that they might succeed where program budgeting, program evaluation, performance measurement and strengthened legislative oversight have failed. Little attention has been paid in the literature to political and organizational constraints on the ability of SAIs to enhance public accountability. The article examines the contribution of Israel's State Comptroller to enhanced accountability across three measures: audit coverage; type of audit coverage; and use of audit reports by the Knesset (Israel's parliament). Programs connected with crisis situations, large programs and direct provision programs are found to receive significantly more audit attention. The Comptroller conducted few audits of program effectiveness. The few reports used by the Knesset were almost all connected with crisis situations. Exploration of the reasons for these patterns reveals that: organizational politics considerations limit the willingness of state auditors to conduct effectiveness audits and relate to controversial issues; logistical and political considerations of Members of Knesset limit their interest in using audit reports; and the paucity of audit resources relative to the scope of government means that much activity is not scrutinized.     

How to Save Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

A Robust Vision of Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

Europe Faces Crisis Brazil Solved

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

From China's “Peaceful Rise” to Building Communites of Interest

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

The G‐20 Must Get Serious About Its Commitments

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

DEMOCRATIC ACCOUNTABILITY IN PUBLIC–PRIVATE PARTNERSHIPS: THE CURIOUS CASE OF FLEMISH SCHOOL INFRASTRUCTURE

This article questions the negative outlook on the democratic accountability in public–private partnerships (PPPs). It challenges this widely held perception in the literature with the empirical findings of a case study of Flemish school infrastructure (Belgium). A large design, build, finance, and maintenance (DBFM) programme is compared with the regular subsidizing system through the public agency AGIOn (Agency for School Infrastructure). This case study demonstrates that more accountability forums and actors can be active in the PPP, that they can behave more actively in the PPP, and that they get results in terms of accountability. It provides a critical example of having more accountability in the PPP variant of school infrastructure than in direct public provision, and there are reasons to argue that this also means improved accountability, because internal and latent processes of accountability become external and actual ones.     

Managing the Public Sector in Hong Kong: Trends and Adjustments

Public sector management in Hong Kong was initially designed to rule the territory as a British colony. A number of changes took place in the last quarter century before Hong Kong's reintegration with China and the nature of public sector management has transformed over this period. An overview of administrative principles and practices and an analysis of changes reveal trends that were influenced by both local and international factors. The framework of traditional public administration in the territory adapted effectively to embrace the principles of new public management without much difficulty. The global economic crisis compelled the government to revise its strategies to expand public spending and adopt a further reduced role in the provision of public services. New social, economic and political challenges are driving Hong Kong to adjust to the changing circumstances and trends, and four noticeable shifts can be identified. They include shifts from an administrative to a political executive, from job cuts to job creation, from financial restraint to increased spending, and from public to private sector provision of public services. The trends are driven by local and international forces as well as the progress of democratization and political awareness in Hong Kong.     

Only Full Integration Can Save Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

Analysing credit risk in large local governments: an empirical study in Spain

In governments throughout the world, bank lending excesses, solvency issues and worsening credit ratings have all contributed to raising risk premiums and impeding access to credit, thus provoking a major financial problem in the public sector. Accordingly, tax authorities and regulators need to analyse the causes of public sector bank debt, doing so through the joint study of idiosyncratic and systematic variables, an area that has been neglected in previous research. This paper examines idiosyncratic and systematic factors that may influence local government credit risk through an empirical study of the performance of 148 large Spanish municipalities during 2006–2011. We identify individual factors relevant to the probability of local government default (such as dependent population, per capita income and debt composition) and also determinants associated with macroeconomic developments, such as gross domestic product and the risk premium.     

Small States and Nonmaterial Power: Creating Crises and Shaping Migration Policies in Malta,Cyprus, and the European Union

This article examines how the power relationships between Malta and the Republic of Cyprus, on the one hand, and the European Union, on the other, shape irregular immigration policies in these two sovereign outpost island states in the Mediterranean. As member states on the EU's southern periphery, Malta and Cyprus have faced new institutional structures since their accession in 2004 within which they now construct their migration policies. Here, I examine how the new structures influence the discourse and logic of migration policies and politics and also how the seemingly small and powerless states affect regional policies. My contention is that, within this EU framework and with limited material power, the two outpost states have developed strategies based on nonmaterial power in order to defend and promote their interests. Such strategies have resulted in treating irregular immigration as a crisis in order to attract support. The new dynamics have thus resulted in more barriers to migration, and in negative consequences for the individual migrants and refugees on the islands. Although the strategies of Malta and Cyprus have been surprisingly successful in influencing regional migration governance, their long-term effectiveness is questionable, and their effects on the migrant and local population problematic.     

Professional leadership in local government

Local public service professionals are experts who temper their use of expertise with public service ethics. Public service ethics differ from the ethical codes of most professions in that they stress external accountability. Ethical codes of private sector professions create a sense of responsibility to the profession and help undergird professional autonomy. Public service ethics emphasize public responsibility and help create public accountability. City and county managers show how public service ethics can help make experts accountable to the public.     

Private administration of a public function: The news election service

The United States government has no elections office and does not attempt to administer congressional and presidential elections. The responsibility for the administration of elections and certification of winners in the United States national elections rests with the states. The states divide election administration responsibilities between state and local election officials, whose objective is an efficiently administered honest election, with the ballots correctly tabulated. The formal structure of election administration in the United States is not capable of providing tirely results of the presidential and congressional election. Similar structural difficulties in other policy areas often result in ad hoc operating agreements or informal cooperation among agencies at different levels of the federal system. In the case of election administration, however, the public officials have abdicated responsibility for election night aqgregation of the national Vote totals to a private organization, News Election Service, which is owned by five major news organizations. This private organization performs without a contract, without public compensation, and without supervision by public officials. It makes decisions concerning its duties according to its own criteria. The questions of responsibility and accountability have not arisen in part because of the private organization's performance record and in part because the responsibility was assumed gradually over a lengthy period without ever being evaluated as an item on the public agenda.     

Central banks under stress: Reputation,accountability and regulatory coherence

This symposium homes in on an area of public administration that has been through a period of significant change in the last ten years. Since the global financial crisis, central banks have expanded their operations in financial markets, buying up vast quantities of assets as part of expansive monetary policy strategies. They have also played a leading role in the reform of financial regulation and have been entrusted with enhanced authority to supervise financial institutions. This activity has taken place amid heightened political contestation, with central banks increasingly viewed as the quintessence of a technocratic mode of governance that eschews traditional democratic control. The purpose of this symposium is to consider how central banks’ reputation, accountability and regulatory roles have changed since the financial crisis, and what those changes tell us about the balance of power between independent regulatory agencies and elected policy‐makers.     

“A partnership in virtue among all citizens”:(1) the public service and the civic humanist tradition

It is argued that the Founders’ intentions are most correctly interpreted through the virtue-centered paradigm of civic humanism, with its attendant “ethics of character.” Such an interpretation has major implications for the civic obligations of public servants. Among them are obligations to encourage civic autonomy; to govern by persuasion; to transcend the corruptions of power; and to become civic exemplars. Because these vital civic responsibilities have been neglected in recent years, it is argued that public administration should take the lead in promoting them as standards of good government.

The future of fin de siecle America is not bright, as each day brings us closer to some geopolitical, economic, or environmental disaster that will pitch us into the garrison state.

Because of the legacy of Ronald Reagan, a banal self-seeking and “moral thoughtlessness, “⁽²⁾ we trail dispiritedly after leaders who have neither vision nor courage and who care only for the pomp, circumstance, and financial possibilities of their offices. Lost in the scramble for preferment and self-aggrandizement are the Founding values and the society they were to create.

A few call for a return to the ideals of the Founding, but who are to be the reformers? One area with real possibilities is public administration, for two reasons. First, it still respects the vestiges of the political philosophy of its tradition and, hence, does not automatically reject suggestions from moral philosophy as impractical. Second, many who joined the public service did so because of some sense, perhaps inchoate, of wanting to serve the “public interest.” We can build from this foundation.

In this spirit, then, what are the moral obligations of the public service? While public servants owe their organizations both efficient performance and compliance with the law, they also owe a great deal more because they are “public” employees. Publicness carries higher obligations than those entailed by private employment. To be of the public service is to accept moral obligations, bespoken in the oath of office, the basis of public accountability. At the base, the primary obligation is to know and to believe in the Founding values.

Second, public servants are obligated to embody those values intentionally in all their actions, whether with superiors, colleagues, subordinates, or the general public. Third is the obligation to secure the Founding values for the citizens of the Republic. The fourth obligation is that all are able to speak and write well in defense of the Founding values. These obligations are nonnegotiable.

The source of the problems of contemporary America is our collective loss of belief in and application of the Founding values. By loss, I do not mean to imply that we disbelieve, but rather that we are—following Hannah Arendt— “thoughtless” concerning them. They have become cliches, rather than the guiding principles for all individual and organizational actions. Even those who defend the Founding values are reluctant to deal with the difficult problems of belief, but knowledge of the Founding values must precede belief in them, and knowledge must be interpreted within a paradigm, of which there are at least two to which we may turn.     

The persistence of Neopopulism in Peru? From Fujimori to Toledo

This paper argues that Peru's Alejandro Toledo can be considered a neopopulist leader. Neopopulists seek to develop personalistic ties with the dispossessed, unorganised masses, while also appealing to international economic interests. By analysing Toledo's administration according to four categories—anti-political rhetoric and symbols, promises and policies, personalism, and mass support—I conclude that his strategy is largely, but not perfectly, consistent with neopopulism. Importantly, however, his strategy has failed to generate the all-important element of broad mass support. I further argue that Toledo faces three important contextual constraints: the absence of crisis, public weariness with neoliberalism and the reaction to Fujimori. These factors limit the prospects for successful neopopulist leadership in contemporary Peru. They also suggest that today's neopopulists in Latin America may require ever more nuance and creativity to mobilise support.