Hardening Budget Constraints: A Cross-National Study of Fiscal Sustainability and Subnational Debt

This study explores the financial sustainability of subnational governments in four different countries. Scholars argue that subnational fiscal capacity helps local governments deliver better public services and provide public goods, which in turn helps to promote economic growth. While administrative control by the central governments contributes to reducing moral hazard from the soft budget constraints, bottom-up strategies to manage fiscal profligacy also need attention. The study first provides understanding about the characteristics of central-local governance and management of subnational government debt of each country. Then, we test our hypotheses regarding local fiscal capacity and administrative control, including political-economic factors that may affect debt spending by local governments. Our findings show that subnational fiscal sustainability improves when the central governments have clear rules to intergovernmental transfers in place and more (market) liberal policies, meanwhile when subnational governments have a more fiscal capacity and less intergovernmental transfers they are able to manage their debt more soundly.     

Assessing Local Government Capacity for Implementing Sustainable Transportation: The Role of Political Culture

Transportation development increasingly relies on local governments to implement sustainable strategies, yet implementation success varies widely. This begs an important question, why are some cities successful and others not? In response, this study focuses on the political culture characteristics of city leadership and staff pertaining to sustainable transportation. Employing semi-structured interviews with officials in two case study cities—Pomona and Pasadena, California—the study identifies and traces the impact of cultural characteristics on network interactions and the resulting transportation innovation. Finally, this research suggests key political and department characteristics that contribute to political cultures that facilitate sustainable transportation development.     

Governing environmental conflicts: A comparative analysis of ten protests against industrial facilities in urban China

With the increasing numbers of environmental conflicts in recent years, Chinese local governments are deploying a variety of strategies to address them. Using the method of agreement and the method of difference, this article explores the question of why local governments adopt particular strategies during conflicts over the construction or operation of industrial facilities. The findings reveal that the position of higher-level governments, the costs involved in adapting projects and the threats posed by the form of protest to social stability are important conditions in explaining the differences in the patterns of government strategies. The authoritarian responsiveness that characterises Chinese government strategies results in high political, economic and environmental costs. The big challenge for Chinese governments is to develop policies, institutions and capacities to deal with environmental concerns in a more proactive and balanced way.     

Financing the decentralization of urban services in developing countries: Administrative requirements for fiscal improvements

Rapid urbanization in developing countries is placing increasing strains on the financial capacity of governments to provide the urban services and infrastructure that will be needed to promote sustainable economic growth. The growing complexity of urban systems in developing countries and the financial constraints on central government agencies are pressuring governments to decentralize a wider range of responsibilities for financing and providing public services in urban areas. Experiments with five approaches to local finance in many developing countries have focused more on revenue generation than on strengthening the administrative capacity of local governments to manage new responsibilities. The success of decentralization and of local revenue generation in the future, however, will depend on strengthening the ability of local governments to manage revenues and expenditures more efficiently and to maintain urban services more effectively. Dennis A. Rondinelli is senior policy analyst and principal scientist in the Office for International Programs at the Research Triangle Institute, PO Box 12194, Research Triangle Park NC 27709. Dr. Rondinelli has served as an advisor to governments in developing countries and international assistance organizations on public administration, municipal management and urban development policy, subjects on which he has published ten books and more than one-hundred articles. His most recent books includePlanning Education Reforms in Developing Countries (Duke University Press),Urban Services in Developing Countries, (Macmillan), andDevelopment Administration and U.S. Foreign Aid Policy (Lynn Rienner).     

Identifying and Coping with Fiscal Emergencies in Ohio Local Governments

Abstract

This study examines the reasons fiscal emergencies occur in Ohio local governments and the strategies that local governments use to recover. In Ohio, fiscal emergencies have regularly occurred predominantly at the local level. This study aims to reveal the internal process that both bring on and ameliorates fiscal emergencies. Previous studies failed to differentiate between fiscal stress and fiscal emergencies and did not include the role of the Ohio Fiscal Emergency Law in assisting local governments in restoring long term fiscal health. This study finds fiscal emergencies in Ohio were caused by: (1) the increased costs associated with unfunded state-mandated programs and, (2) major economical downturns brought on by local plant closings. Local governments were found to have responded in the short run by strategies such as targeted expenditure cuts and in the long run by increased the use of economic development.     

Towards Performance,Quality and Environmental Management in Local Government: the Case of Spain

The search for improvements in the management and quality of public services seems to be a constant in all public administrations, and there is an ever-increasing use of management techniques and models from the business sector. The aim of this paper is to show which management systems are being used by Spanish local governments to improve their management in terms of economy, quality and the environment. Our analysis is based on a questionnaire sent to Spanish local governments about the tools they use and the factors that influence their implementation. The results show that more efforts are necessary to implement performance measurement and total quality management, but they also show some positive aspects, such as the usefulness of performance measurement and its application to decisions in those local governments that have implemented it.     

Going online. Does ICT enabled-participation engage the young in local governance?

Local governments increasingly use online strategies to strengthen political participation of citizens in policy and politics. Young people, however, are generally under-represented. This article studies age patterns of participation across offline and online forms of action to test whether online initiatives are able to overcome this age bias. We first report a case study of online and offline problem reporting to local authorities. We find that simply going from offline to online participation reinforces rather than mitigates age bias. We then report a case study of message posting on an online political forum. In this case, age bias disappears. In contrast to the traditional instrumental modes, a forum is an expressive form of online participation. The young seem to value the act of participating over the outcomes of participation. For practice, these findings suggest a need for participation policies that speak to these expressive needs of young. In recent years, social media have reinforced the potential for expressive participation.     

Understanding Diversity Management in the Public Sector: A Case for Contingency Theory

Recent diversification in Western populations has led to the implementation of diversity policies like diversity management (DM), a human resource management concept that promotes the hiring, retention, and active participation of a diverse workforce in order to improve organizational performance. This paper seeks to develop contingency theory as a theoretical framework for examining and explaining different DM practices across governments. In contingency theory, there is no one best way to manage all organizations; rather the internal and external environments of each organization create unique situations that require programs tailored to their distinctiveness in order to achieve optimal functionality.     

Institutions,interests, and policy support: Experimental evidence from China

Policy support matters for the success of public policies. It is still unclear how governments can garner support for policies with high costs. Using a conjoint experiment in China, we demonstrate that governments can encourage policy support by offering institutional services and material interests to policy targets. In particular, citizens become more willing to support policies when governments timely disclose policy information and respond to and incorporate their voices in the policy design. Government subsidies in both the short and long runs also increase citizens' policy support. In addition, government transparency and long-run subsidies are complementary to enhancing policy support; the role of institutions is strengthened when citizens are exposed to severe policy problems.     

Organisational choices in public procurement: what can public management learn from the private sector?

ABSTRACT

In the public context, the efficient and effective management of procurement activities has a crucial impact on the achievement of operational and broader government objectives. In particular, the potential contribution of procurement within local governments has been broadly recognized, and organisational procurement choices represent a strategic aspect that must be managed to contribute to these objectives. Through the analysis of data on 371 Italian municipalities, this paper discusses how to design procurement organisation variables for local governments. Three possible organisational models are identified (i.e., authoritative procurement, silo procurement, and local procurement) and discussed from the perspective of internal and external contingencies that may affect organisational decisions.     

Joint care and joint funding

One of the most important possible sources of conflict of interest between central and local governments is difference in political preferences with respect to, for example, income redistribution. If local governments are of a different political composition than the central government, they may be inclined to reinforce or weaken the redistribution policies as pursued by the central government. We empirically test whether local governments in the Netherlands do pursue income redistribution policies over and above the central government's redistribution policy and we find that the distribution of the local tax burden over the various household types differs according to the political composition of the local council.     

Waiting for Godot: Sustainable development,international trade and governance in environmental policies

The current environmental crisis calls for a sustainable style of development and draws attention to a new ecological dimension in social life that poses hitherto unforeseen challenges to the social sciences and to the everyday concerns of citizens, governments and private interests. Consequently, it is appropriate to attempt a critical overview of governance issues around the formation and implementation of environmental policies designed under the framework of sustainable development. After a brief introduction on how global perceptions about sustainable development have evolved, this article subsequently focuses attention on the main thrust of the emerging international environmental regime, and the multilateral environmental treaties embodied in it. Specific governance issues pertaining to environmental policies are also critically reviewed, particularly interrelations with the trade regime. The article concludes by spelling out some comments on research issues for the future, with a view to charting the environmental governance agenda lying ahead of us.     

LEARNING FROM SUCCESS: ARE SUCCESSFUL GOVERNMENTS ROLE MODELS?

Do local governments learn from their successful peers when designing public policies? In spite of extensive research on policy diffusion and learning, there is still a lack of studies on how success relates to learning patterns. We address this deficiency by examining which other governments local administrative units draw lessons from. More precisely, we investigate whether public managers learn from the experiences of local governments whose citizens are satisfied with government services. Using a large dyadic dataset on all Swedish municipalities from 2010, we find that senior public managers in local administrations learn from similar local governments and from neighbours. But we also find clear evidence that they learn from local governments whose citizens are pleased with local public services. This indicates that best practices are spread among local governments.     

Economic resilience after the Great Recession: an examination of unreserved fund balance in Michigan counties

ABSTRACT

This paper examines fiscal slack, in the form of unreserved fund balance, as a tool used by local governments to enhance economic resilience. It adapts ecological, engineering, and organisational definitions of economic resilience and investigate their relevance to local financial management in the United States after the Great Recession in 2008. Using group-based trajectory modelling, we identify different strategies of fund balances used by Michigan counties. The change of fund balance does not delineate any pattern theorised by the resilience concepts. We also find different factors that motivate local officials to manage their fund balances differently. The study suggests a nuanced understanding of fiscal slack used by local governments for economic resilience that goes beyond unreserved fund balance.     

URBAN MANAGEMENT AND LOCAL GOVERNMENT AS NEW INSTITUTIONS IN THE NEW UKRAINE

Local government and modern urban management techniques will play a key role in the transition of Ukraine's institutions from a communist to a free economy and society. This paper provides a historic context for this transition, discusses the problems encountered in building urban management capacities and local government institutions, and explores what it will take to achieve real change.

The paper places the problems of revitalization and rebuilding of these Ukrainian institutions in historical perspective, with special attention to inherited patterns of Soviet administrative culture. The Sovietization of urban planning and administration, and living standards and the creation of nomenklature (the main governmental “human resource”), are analyzed as the starting point for rebuilding Ukraine's local governments. The paper traces the main sources and consequences of “continuous institutional crisis,” such as distrust, corruption, and deterioration of the capabilities of the Ukrainian state. Also examined are the current effects of economic globalization on the development of local and urban governments.

Following a review of Ukrainian “path dependence” and recent difficulties in institutional building, the paper outlines the most important tasks for future development and an agenda for Ukraine's “institutional entrepreneurs.” The paper emphasizes that it is vital to create a professional, rule-based bureaucracy and merit-based municipal civil service.     

Dealing with Austerity: a case of local resilience in Southern Europe

Southern countries are undergoing a severe economic crisis that has renewed debates about the available strategies to economise their public resources. Political leaders have launched a wide range of different strategies aimed at reducing spending. According to generally accepted political discourse, drastic actions should be taken to guarantee economic and financial sustainability in times of austerity. We explore the main measures adopted by Spanish municipalities in order to examine their impact in budgetary terms. First of all, we identify the most frequently implemented mechanisms including organisational structure, public services and operational economic restructuration. After their quantification, we monitor the presence and impact of each set of policies to analyse the relationship between concrete measures and effective economic impact. The effective reduction of budgets is being implemented but data show that local governments are resilient to non-compulsory changes. The ‘government at a distance’ policy pursued by the central state administration has effectively reduced budgets but has not affected the institutional core of Spanish local governments.     

Local government’s disaster management capacity and disaster resilience

ABSTRACT

The questions in this research are as follows: How does the disaster management capacity of local governments affect the disaster resilience of local communities? The research distinguished local communities by type according to their level of exposure to natural disaster hazards and the analysis compared the impact of the disaster management capabilities on disaster resilience by the type of natural disaster exposure. The analysis results are as follows: While the frequency of disasters local communities experience is low, the magnitude of disasters experienced is large; external network and manual had a positive effect on disaster resilience. When disaster frequency experienced by local communities is high, the magnitude of disasters experienced is small, and internal network and public relation contribute to increased disaster resilience. In conclusion, this research will help expand the externalities of disaster management discussed in the fields of public administration and policy.     

Privatising Local Public Services: Between Industrial Legacy and Political Ambition

Since the 1980s, research on the privatisation of local services has analysed the factors affecting government's delivery choices; but this research has not given unanimous results, for reasons connected both to the different methodologies adopted and the dynamic nature of privatisation processes. This article introduces the case of Italian water services reform, drawing attention to the economic and political dynamics that make privatisation an extremely complex choice, in which the preferences of politicians have to be balanced with industrial heritage and the strategies of the utilities. By privileging a historical analysis of the conditions in which such choices take place, it is possible to grasp the changing relations between local governments and utilities and to look at the relative power of firms, citizens and governments in the process of service delivery choice.     

A new approach to developing institutional structure

This article describes an approach developed to assess the institutional capacity of whole governments. It discusses the evolving context in Latin America and the Caribbean for public sector reforms and the impact of structural adjustment and globalization on international agency policies on the issue. It reviews national and sectoral organizational networks, the profile of a modern public administration, and the definition of public management horizontal and vertical systems; explains how integration of horizontal management system reforms is attained at the ministry level, and addresses the issue of performance management and use of an elite managerial and technical corps. Finally, it describes techniques used to plan changes in strategies.     

Revitalizing Local Government Performance Management: Further Dissecting the Role of Socioeconomic Status and Social Mobilization Policy

ABSTRACT

This article examines how socio-economic status and social mobilisation are linked to local government performance management in Nepal. As part of local government reform, Nepal adopted a social mobilisation policy in selected local governments to empower communities for their effective participation. Our results show that socio-economic status and social mobilisation have a significant relationship with performance management. Female literacy, for example, is strongly and significantly associated with performance management, while area has a significant positive relationship but population has only a weak positive relationship. In contrast, poverty has a significant negative correlation. More importantly, mobilisation has a significant, though modest, positive association with performance management particularly in participatory planning and budgeting, fiscal discipline, and administrative management. This indicates that improving the socio-economic status of citizens and their mobilisation for empowered collective action can be one important strategy to improve the performance capacity of local government.