Persistently Biased: The Devil Shift in Water Privatization in Jakarta

This article operationalizes an underinvestigated element of the Advocacy Coalition Framework—the “devil shift”—on the controversial issue of water privatization. In doing so, it offers a methodological premise for investigating intractable opposition to policies that are politically salient and high in technical content. It uses the Q methodology on the case of Jakarta, Indonesia to uncover seven discourse coalitions within the anti‐privatization groups. They confirm two key hypotheses within the devil shift, namely the underestimation of a coalition's resources compared with their opponents and the exaggeration of opponents’ unreasonableness. Intriguingly, it finds that the “devil” is constructed in three different ways by this coalition—the profiteer, the Goliath, and the ineffectual governor. The narrative strength of the combination of these beliefs answers an apparent paradox in the devil shift viz that of rational actors persisting in unreasonable beliefs concerning their opponents. It also offers some specific solutions on how to deal with public hostility in water privatization in Jakarta.     

The effectiveness of the telecommunications regulatory regime: the case of Sri Lanka telecom

This article examines the telecommunications industry in Sri Lanka and assesses the effectiveness of regulatory arrangements associated with the liberalisation of the telecommunications industry, from a management point of view. The review focuses on the scope of services, price and the quality of services available to customers after the liberalisation. This study finds that, despite the early establishment of the Telecommunications Regulatory Commission (TRC) to monitor the telecommunications industry, its interventions have been only partially successful in making it conducive to service providers and customers. While liberalisation of the telecommunications industry has been favoured, the role of the regulator has been controversial with regard to its independence, impartiality, capability, transparency and accountability. We argue that the current model has failed to create favourable market conditions under the circumstances prevailing in the country, and hence a more appropriate model is yet to be developed. Copyright © 2006 John Wiley & Sons, Ltd.     

Promoting customer engagement: A new trend in utility regulation

This paper traces a new development in regulation that encourages utilities to engage more directly with their customers. We make four contributions: First, we perform a comprehensive analysis of how regulators are using customer engagement, and offer a simple model for understanding different customer engagement initiatives. Second, we review assessments of customer engagement. We find that there are no quantitative, empirically robust assessments of the effectiveness of customer engagement as a regulatory tool. Third, we develop two detailed case studies of an energy regulator and a water regulator that are in the forefront of customer engagement efforts. We find that there is no direct link between the engagement strategy used and the economic incentives received by a firm. Finally, we propose a framework for improving the customer engagement process. The new framework relies on microeconomics, modern tools of program evaluation, and supplying the regulated firm with direct incentives to engage with the customer.     

External Actors and the Provision of Public Health Services in Somalia

Concentrating on the health sector, this article argues that the provision of collective goods through external actors depends on the level of state capacity and the complexity of the service that external actors intend to provide. It shows that external actors can contribute most effectively to collective good provision when the service is simple, and that simple services can even be provided under conditions of failed statehood. Effectively delivering complex services requires greater levels of state capacity. The article also indicates that legitimacy is a key factor to explain variance in health service delivery. To demonstrate this, the article assesses health projects in Somalia. It shows that simple services—malaria prevention and tuberculosis control—are provided effectively in all three Somali regions, including the war‐torn South‐Central region. In contrast, the HIV/AIDS project only achieved substantial results in Somaliland, the only region with a comparatively higher level of state capacity, and failed in the South‐Central region and Puntland.     

Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise

Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise—better knowledge of the regulatory standards. In for‐profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.     

Consumer well‐being through engagement and innovation in higher education: A conceptual model and research propositions

With globalization and the marketization of higher education, the relationship between higher education institutions (HEIs) and students is becoming more complex. As the cost of higher education increases, the expectations of students have not only changed dramatically but, combined with heightened competition in the market, it is clear that the balance of power has moved towards the students. Operating across this new landscape, HEIs are facing a different set of opportunities and challenges. In order to survive, differentiation through service innovation is imperative to achieving success in attracting and retaining students. While this has been voiced by a number of authors, until now, there is a paucity of empirical research examining the impact of service innovation in higher education on individual customer outcomes. This paper explores the links between service innovation and well‐being and the mediating roles of perceived service quality and customer engagement within the higher education context. The research is timely as previous studies have not taken into consideration the mediating roles of customer engagement between service innovation and customer well‐being. Yet, unless customers are engaged and participating in the service innovation process, or satisfied with the service innovation, the innovation may not lead to the desired customer outcomes. HEIs cannot afford to ignore the expectations of their primary customers (students). Hence, this conceptual paper seeks to develop a conceptual model of how service innovation leads to student/consumer well‐being and the mechanism through which perceived service quality and customer engagements affects this process.     

Subterranean successes: Durable regulation and regulatory endowments

Scholars sometimes criticize durable regulatory systems for being costly, inefficient, ineffective, and inequitable. This article reassesses regulation, arguing that a mis-categorization of types of regulatory activity has led critics astray. More specifically, the article observes that regulation “hardened” by being built into infrastructure often ceases to be seen as regulation and its benefits are therefore inappropriately omitted from assessments of regulatory accomplishments. Hardening into one or another durable form can create two important benefits: durable regulation moves some items off the agenda of regulators, conserving resources for other regulatory work; durable regulation also creates regulatory endowments, preserving key bargains struck at the time infrastructure was created and reducing future opportunities for capture. Such endowments can then become the foundation for other regulatory work. Examples from the regulation of drinking water in the United States and brief discussions of road safety and disability regulation illustrate the argument.     

When risk‐based regulation aims low: Approaches and challenges

Risk‐based regulation is becoming a familiar regulatory strategy in a wide range of areas and countries. Regulatory attention tends to focus, at least initially, on high risks but low‐risk regulatees or activities tend to form the bulk of the regulated population. This article asks why regulators need to address low risks and it outlines the potential difficulties that such risks present. It then considers how regulators tend to deal with lower risks in practice. A body of literature and survey‐based research is used to develop a taxonomy of intervention strategies that may be useful in relation to low‐risk activities, and, indeed, more widely. In an article to be published in the subsequent issue of this journal, we will then develop a strategic framework for regulators to employ when choosing intervention strategies and we will assesses whether, and how, such a framework could be used by regulatory agencies in a manner that is operable, dynamic, transparent, and justifiable.     

Regulatory mobilization and service delivery at the edge of the regulatory state

Where there is weak state capacity to carry out regulatory, redistributional, and developmental functions characterizing much of the developing world, the role of governance and service delivery is also performed by a myriad of private actors. Institutional reform in the utility sector in developing countries has often failed to distinguish between social and economic regulation. I show how private actors like NGOs and local community groups undertake what I term “regulatory mobilization” to influence the new rules of the service delivery game, as well as to deliver much‐needed basic services to urban poor communities. Based on extensive fieldwork carried out in the Philippines, this article reveals and explains the politics of the informal sector at the edge of the regulatory state. More than a decade since the privatization of the Metropolitan Waterworks and Sewerage System in Metro Manila in 1997, water access for the urban poor remained limited as privatized water utilities faced difficulties in extending service provision. In the context of an unpredictable regulatory landscape and an oligarchic patrimonial state, unexpected collective action by organized urban poor communities and NGOs has taken place around water as a subsistence right. Combining hybrid mobilizations to obtain water as well as influencing the rules governing their provision, these forms of regulatory mobilization appear to be peripheral and episodic. However, depending on how local and sectoral politics are conflated, such regulatory mobilization may sometimes not only result in obtaining subsistence goods, but may also occasionally project countervailing power in the policy sector, and influence formal regulatory frameworks in surprising ways.     

Caribbean electricity restructuring: an assessment

This article assesses the privatisation of the electricity sector in two Caribbean countries, Jamaica and Trinidad and Tobago, to determine if they have been successful and whether they have contributed benefits to the respective societies. Two general methods are applied in assessing the success of the divestments; attainment of governments' stated objectives and commonly used utility performance metrics together with social and customer focus indicators. The results indicate that the stated objectives were broadly achieved, and the privatisation and its attempts brought benefits to the consumers and the society in general. The short to medium term benefits were accrued through lower labour costs per unit of electricity, higher performance of plant and operations and business led decision‐making. Long‐term benefits are accrued through the reduction or elimination of electricity supply deficits. However, although the basic privatisations were successful, the absence of an adequate regulatory framework in one case may have reduced the quantum of benefits through failure to enforce continuous improvement in the privatised generation company, and reductions in worker rents in the public distribution company. Further, benefits were reduced by long divestment processes, accompanying strategic drift, opportunity costs from delayed sale proceeds and efficiency enhancement, and the costs to sustain interim operations. Copyright © 2005 John Wiley & Sons, Ltd.     

Neo‐patrimonialism and Corruption: Evidence from 8,436 Firms in 17 Countries in Sub‐Saharan Africa

This article introduces four innovations to the literature on administrative corruption. First, it employs a neo‐patrimonialism framework by addressing measurement, identification, and endogeneity issues that beset the literature. Second, unlike cross‐country studies, it uses firms as the unit of analysis. Third, unlike the conventional literature, the article uses large‐n (n = 8,436) panel survey data of key informants in 17 countries in sub‐Saharan Africa. Finally, unlike the conventional literature, the article focuses on a particular type of corruption: the supply and demand for bribery. The authors find that the uncertainty associated with neo‐patrimonialism has a strong, positive, and significant effect on the propensity of civil servants to demand bribes in exchange for services and for firms to supply bribes in exchange for winning government contracts. The results are robust to controls on the characteristics of firms and their regulatory environments. The article concludes with implications for research and practice.     

Expectations,performance, and citizen satisfaction with urban services

The expectancy disconfirmation model has dominated private‐sector research on customer satisfaction for several decades, yet it has not been applied to citizen satisfaction with urban services. The model views satisfaction judgments as determined—not just by product or service performance—but by a process in which consumers compare performance with their prior expectations. Using data from a New York City citizen survey, this study finds that citizen expectations, and especially the disconfirmation of expectations—factors that previously have not been considered in empirical studies of the determinants of citizen satisfaction—play a fundamental role in the formation of satisfaction judgments regarding the quality of urban services. Interestingly, the modeling results suggest that urban managers should seek to promote not only high‐quality services, but also high expectations among citizens. Additional implications for research and public management practice are discussed. © 2004 by the Association for Public Policy Analysis and Management.     

Unintended consequences: Regulating the quality of subsidized day care

Advocates for the poor frequently support uniform, high federal standards for subsidized social services. While such standards may improve the quality of services for those who qualify, they can also have unintended but important side effects. Stringent regulations may actually curtail the supply of services, promote segregation, and expand the role of large subsidized for-profit firms. All these possibilities are illustrated by the history of federal regulation in subsidizing child day care. The federal government's retreat from regulation in 1980 and 1981 may have had results that—even if unintended—were in many ways salutary.     

Explaining Levels of Local Government Involvement in Service Delivery: The Dynamics of Cross‐Sector Partnerships in Malawi

This study explores how local governments and their development partners—that is, donors, non‐governmental organisations and private companies—structure their partnerships as they work together to provide services to communities. Cases of collaboration between four organisations working in the rural water supply sector and six local governments in Malawi are studied. Using a cross‐case qualitative methodology, we illustrate how power and control translate into practices, leading to different levels of local government involvement in service delivery. This study contributes to the literature on cross‐sector partnerships in particular by developing empirically‐based propositions that help explain the dynamic trajectories that partnerships between local governments and their development partners can take. Copyright © 2015 John Wiley & Sons, Ltd.     

Top‐Down Self‐Organization: State Logics,Substitutional Delegation,and Private Governance in Russia

This study investigates the counterintuitive emergence of self‐regulation in the Russian construction sector. Despite its proclivity for centralizing political authority, the government acted as the catalyst for the delegation of regulatory powers to private industry groups. The article argues that a factor little considered in extant literature—namely, a weak and corrupt bureaucracy—is key to explaining why the normally control‐oriented executive branch began to promote private governance despite industry's preference for continued state regulation. The article's signal contribution is to theoretically explain and empirically demonstrate how a government's prior inability to establish intrastate control over an ineffective and bribable public bureaucracy creates incentives for political authorities to search for alternative means for policy implementation outside of existing state agencies. These findings are important for understanding the impetus and logic behind particular regulatory shifts in countries where the state apparatus is both deficient and corrupt.     

Social funds and local government: the case of Malawi

Two instruments—social funds and decentralization—are currently quite popular policy instruments being adopted in many developing countries throughout the world. Each of these instruments is currently being used or is being implemented in Malawi, Africa. While each instrument is intended to improve the flow of public services in a locality, the article discusses how each has certain potential theoretical advantages over the other. The article then goes on to describe and analyze the flow of resources to Malawian communities under the two largest social action programs, neither of which currently relies on substantial inputs, financial or human, from local governments. The data illustrates a wide disparity in the per capita amounts allocated to these demand‐driven initiatives across districts but also shows the relatively diverse set of local public services supported by the funds. The article close with a discussion of how these two initiatives might be merged within the context of the new Local Government Act 1998, under which local services are to be devolved in the near future. Copyright © 2000 John Wiley & Sons, Ltd.     

The Evolution of a Global Labor Governance Regime

During the last decade, the approach by businesses and governments toward labor and social issues at the global level has fundamentally changed. Industrial relations are rapidly internationalizing by developing new actors and forms of governance to deal with the regulation of labor. This article looks at the evolution of self‐regulatory standards in the global labor governance debate. Key is that notwithstanding problems with the lacking legal framework of global regulation and enforceability, patterns of local self‐regulation, norm‐setting, and international codes lead not only to higher expectations of the behavior of transnationally operating firms but also to an indirect pattern of regulation. The article argues that particularly the adoption of the core labor standards by the International Labour Organization (ILO) and the setup of the Global Compact by the UN serve as points of convergence. A plethora of voluntarist initiatives that converge over time toward a shared understanding of labor standards is part of the transformation of global labor governance institutions.     

Licensing,Accreditation and Quality Improvement

This article provides an explanation of why consideration is needed of historical practice issues when designing new regulatory regimes. It also suggests some practice techniques that can be applied both to existing and new regulatory regimes to enhance the effectiveness of the regulation. It does so by exploring the problems faced by existing service providers and regulators following the introduction of a new regulatory regime intended to raise the standard of out‐of‐home care services in NSW. This involved agencies making the transition from a licensing regime based on minimum standards under the Children (Care and Protection) Act 1987 to accreditation, employing optimum practice standards, under the Children and Young Persons (Care and Protection) Act 1998.     

The effectiveness of NGO self‐regulation: theory and evidence from Africa

Non‐governmental organizations (NGOs) play an increasingly important role in public service provision and policy making in sub‐Saharan Africa, stimulating demand for new forms of regulatory oversight. In response, a number of initiatives in NGO self‐regulation have emerged. Using cross‐national data on 20 African countries, the article shows that self‐regulation in Africa falls into three types: national‐level guilds, NGO‐led clubs and voluntary codes of conduct. Each displays significant weaknesses from a regulatory policy perspective. National guilds have a broad scope, but require high administrative oversight capacity on the part of NGOs. Voluntary clubs have stronger standards but typically have much weaker coverage. Voluntary codes are the most common form of self‐regulation, but have the weakest regulatory strength. This article argues that the weakness of current attempts to improve the accountability and regulatory environment of NGOs stems in part from a mismatch between the goals of regulation and the institutional incentives embedded in the structure of most self‐regulatory regimes. The article uses the logic of collective action to illustrate the nature of this mismatch and the tradeoffs between the potential breadth and strength of various forms of NGO self‐regulation using three detailed case studies. Copyright © 2008 John Wiley & Sons, Ltd.     

Long‐term care reform and the role of housing finance

Abstract

The Clinton administration's recently announced home and community‐based care proposals have potentially important implications not only for long‐term care policy, but also for housing policy in the United States. This article attempts to draw out some of those implications. The first section examines problems inherent in the current “medical/welfare” system of financing long‐term care, which constrains consumer choice by limiting the supply of providers to control costs and by increasing medical professionals’ control over the types of services provided in the name of quality control. The medical/welfare dominance of long‐term care policy has resulted in an overreliance on nursing homes as providers, resulting in both escalating costs and continued consumer dissatisfaction.

The second half of the article looks at recent market and policy developments in response to consumer demand for lower cost alternatives to nursing homes. These alternatives promote more consumer autonomy and control in supportive housing arrangements. A more comprehensive services and housing policy could promote these developments in an approach that combines the security of public financing of supportive services with the benefits of consumer choice, market competition, and legal protections that characterize housing markets. In such a scenario, housing finance institutions—including government agencies, lenders, developers, and investors—could play a pivotal role in the long‐term care debate not only by unlocking substantial financial resources but, equally important, by transforming the provision of long‐term care services to promote consumer choice and autonomy.