If territorial fragmentation is a problem,is amalgamation a solution? – Ten years later

ABSTRACT

Over the last decade, municipal territorial amalgamation has occurred in 15 European countries. The same period has seen spectacular progress in research on the relationship between municipal size and the functioning of local governments, as well as the impacts of territorial reforms on economic performance and local democracy. Quasi-experimental designs treating territorial reforms as specific “research laboratories” have constituted an important part of that trend. However, there are still important gaps in the knowledge and the study results are often inconclusive. These observations call for a research agenda for the future.     

THE IMPACT OF PUBLIC MANAGEMENT REFORMS ON STUDENT PERFORMANCE IN DANISH SCHOOLS

Many resources have been invested in reforming the public sectors of most countries in the world during the last 20 years. Greater focus on evaluation and performance is one of the most central aspects of these reforms, but despite much academic research virtually no systematic evaluations of the outcome of the reforms themselves are found. This paper presents a study of the effect of performance management reforms of Danish public schools on the achievements of more than 80,000 lower secondary students. The study finds no or very small effects on performance measured as average exam scores, but highly significant effects on inequity in the sense that students with low socioeconomic status perform worse at reforming schools than at similar non‐reforming schools. These results, as well as the methodological challenges involved in estimating reform impact, emphasize the need for more empirical scrutiny of what effects the reforms have.     

Evaluation in France,a Component of Territorial Public Action

Evaluation practices developed in France, especially by local authorities and above all by regional councils, provide an interesting opportunity to examine from the inside the way public policies are constructed. Taking evaluation practices seriously as a subject of study reminds us, in a way, of the necessary empiricism needed to analyse public policies. At a time when this discipline experiences, at least in France, a surge in conceptual proposals, the point of view expressed here aims to point out the necessary modesty we have to show in the face of the complexity of the subjects studied and of the usefulness of evaluation practices to explain territorial public policies.     

Evaluation in France, a Component of Territorial Public Action

Evaluation practices developed in France, especially by local authorities and above all by regional councils, provide an interesting opportunity to examine from the inside the way public policies are constructed. Taking evaluation practices seriously as a subject of study reminds us, in a way, of the necessary empiricism needed to analyse public policies. At a time when this discipline experiences, at least in France, a surge in conceptual proposals, the point of view expressed here aims to point out the necessary modesty we have to show in the face of the complexity of the subjects studied and of the usefulness of evaluation practices to explain territorial public policies.     

Performance Management, Evaluation and Learning in 'Modern' Local Government

Public sector reforms throughout OECD member states are producing a new model of 'public governance' embodying a more modest role for the state and a strong emphasis on performance management. In the UK, the development of performance management in the context of the 'new public management' has been primarily 'top-down' with a dominant concern for enhancing control and 'upwards account-ability' rather than promoting learning and improvement. The development of performance management and evaluation in local government in the UK has been conditioned by external pressures, especially reforms imposed by central government, which have encouraged an 'instrumental–managerial' focus on performance measurement. The new Labour government's programme of 'modernizing local government' places considerable emphasis on performance review and evaluation as a driver of continuous improvement in promoting Best Value. However, recent research has indicated that the capacity for evaluation in local government is uneven and many obstacles to evaluation exist in organizational cultures. Local authorities need to go beyond the development of review systems and processes to ensure that the capacity for evaluation and learning is embedded as an attribute of 'culture' in order to achieve the purpose of Best Value.     

Performance Management,Evaluation and Learning in ‘Modern’ Local Government

Public sector reforms throughout OECD member states are producing a new model of ‘public governance’ embodying a more modest role for the state and a strong emphasis on performance management. In the UK, the development of performance management in the context of the ‘new public management’ has been primarily ‘top‐down’ with a dominant concern for enhancing control and ‘upwards account‐ability’ rather than promoting learning and improvement. The development of performance management and evaluation in local government in the UK has been conditioned by external pressures, especially reforms imposed by central government, which have encouraged an ‘instrumental–managerial’ focus on performance measurement. The new Labour government's programme of ‘modernizing local government’ places considerable emphasis on performance review and evaluation as a driver of continuous improvement in promoting Best Value. However, recent research has indicated that the capacity for evaluation in local government is uneven and many obstacles to evaluation exist in organizational cultures. Local authorities need to go beyond the development of review systems and processes to ensure that the capacity for evaluation and learning is embedded as an attribute of ‘culture’ in order to achieve the purpose of Best Value.     

History,memory and nation building in the post-Soviet colonial space

This is an article on Bolshevik nationalities policy and ethnic engineering, asking who, in fact, decided which populations belonged together as ethnic groups (narodnost') and thus had the right of national self-determination, and how the level of autonomy was determined for each ethnic unit. Scholars have dealt with Russian and Soviet nationalities issues for decades already, but they have turned their attention mainly to the larger nationalities (at the level of SSR, and to a lesser degree the levels of ASSR and autonomous oblast). I argue that the lower levels of national territorial autonomy in the Soviet Union (national okrug, raion, volost', and selsovet) are worthy of greater academic attention, at least from the ethnological point of view. Having this kind of low-level territorial autonomy has often been a question of to be or not to be for the small ethnic groups concerned, and hence the subject is connected with the question of preservation of cultural and linguistic diversity in Russia.     

THE FRENCH STATE AND ITS TERRITORIAL CHALLENGES

This article focuses upon the territorial challenges to the French state. There is a genuine policy puzzle in terms of how to join up separate agencies of the state that is far from unique to France. Introducing new evidence based on interviews with high ranking officials, politicians and representatives of territorial policy communities in 2010, the main body of the article focuses upon the two main territorial reforms of the Sarkozy presidency, the reform of the territorial state, and the local government reform. These cases reveal an original attempt to craft a political discourse based on public sector productivity and state puissance. The article explores the tension between synoptic models of reform, focused on the expectation of rapid and quantifiable macro‐level change that suits the short‐term returns of the political cycle; and institutionalized processes of meso‐level implementation, with different timescales, logics of appropriateness and configurations of actors.     

Path Dependencies in European Integration: A Constructive Response to German Foreign Minister Joschka Fischer

There is no doubt about the political necessity of the Eastern enlargement of the European Union and corresponding reforms of its political institutions. By contrast, the shape and content of these reforms is a subject that is highly contested between the member states. In this context, when the German Foreign Minister, Joschka Fischer, presented his vision of future development for Europe his ideas were refreshingly welcome. However, Fischer's ideas imply, in many respects, a turning away from hitherto accepted paths to European integration. The main claim we want to make in this paper is that, against the backdrop of this breach with the present European-level institutional system, the chance that the Fischer initiatives could come to political fruition must be viewed with scepticism. On the basis of this finding, which rests essentially upon a historical-institutionalist analysis, we develop an alternative concept for a European constitution.     

Linking anticorruption threats,performance pay,administrative outputs,and policy outcomes in China

Little is known about the effects of two prominent public sector reforms—anticorruption efforts and high‐powered incentive systems—on the accomplishment of policy goals in the absence of the rule of law and in the presence of an extrinsic incentive to take advantage of corruption to achieve performance targets. This study explores how performance rewards and anticorruption efforts jointly affect administrative outputs and policy outcomes. We examine China's air pollution control policy with province‐level panel data. The analysis shows that performance rewards prompt administrative outputs that are linked to the incentive structure. Anticorruption activities have small significant, positive effects on those outputs only prior to the inception of high‐powered rewards, but have no significant effect on policy outcomes, regardless of the measure. The introduction of performance incentives contributes to the achievement of policy outcomes only when their measurement is subject to government manipulation.     

Corruption and reforms: A case of Poland's medical sector

This study focuses on the effects of Poland's reforms in the period 1990–2005 on corruption in the health care system. In the last 15 years Poland has transformed its economy drastically, introducing market-oriented reforms into almost every aspect of its economy. In this study we consider how different reforms changed incentives and mechanisms facilitating corruption in the medical care sector. Our conclusion is that corruption in Poland's medical sector has worsened since the onset of the marketization reforms. We support this conclusion primarily by analyzing changes in incentives for corruption and the number of mechanisms facilitating it. In addition, where available, quantitative data are provided, though we recognize that numerical estimates of corruption are subject to substantial error. We focus on three major forms of corruption: patient payments to secure medical treatment or improve its quality, payments from industry (mostly pharmaceutical and medical equipment producers), and the use by physicians of free public facilities for private patients.     

Managerialism Meets Regime: A Distinctively Singaporean Marriage?

Managerial reforms were once assumed to be apolitical, and hence universally applied to various political settings. This assumption has been widely contested; some argue that managerial reforms are not applicable to countries outside what are termed Western liberal democracies, due to differing political contexts. The case of Singapore offers a counter-argument to these claims—managerial reforms were well-received in the state and its bureaucracy; both of which were vastly different from those of liberal democracies. The article further argues that this was not a coincidence; there seem to be salient reasons why managerial reforms were able to ‘marry’ Singapore's regime. This case study offers insights vis-à-vis a broader question: whether and how managerial reforms can be justified within and received in differing political contexts. It seems imperative to address this question, given the implications for future scholarship and how managerialism is a significant matter of concern to many governments worldwide.     

AGENCIFICATION AND BLAME SHIFTING: EVALUATING A NEGLECTED SIDE OF PUBLIC SECTOR REFORMS

The establishment of autonomous agencies has been a strong trend in the public sector across countries for about 25 years. In line with the official rhetoric accompanying such reforms, almost all reform evaluations have focused on various kinds of performance improvements. This article investigates a set of behavioural consequences of such reforms, which have been claimed by the blame avoidance literature, but have never been subjected to systematic empirical analysis. In particular, the article examines how a reform of agencification influences the propensity of agency managers to blame the political principals when the agency is subject to public criticism. Furthermore, it examines how the reform influences the blaming rhetoric of ministers and MPs. To evaluate such reform effects systematically, the article introduces a new empirical approach and illustrates the utility of the approach in a case study of the transformation of the national Danish railway company from 1995 to 2007.     

Evaluating the 'New Public Management' Reforms in the UK: A Constitutional Possibility

Far-reaching managerial changes to the public sector in the UK have been occurring in the last few years. Broadly described as the 'new public management' (Hood 1991, 1995) these changes have reached new levels of intensity ever since the Conservative Government came to power in 1979. The article argues that the government should be accountable for these changes but not in a way which simply justifies its actions to the body politic but rather by going beyond this to a complete critical evaluation to assess their merit and worth. It is this exposure which will provide its real accountability. This article addresses the contextual factors surrounding the possibility of conducting such a wide-ranging evaluation. It traces a range of different examples which highlight the resistance of the previous government to an open-ended evaluation tracing the sizeable investment in implementation rather than careful policy experimentation and evaluation that has occurred. Finally, and most importantly the article explores the constitutional position of the Comptroller and Auditor General (C&AG) and the National Audit Office (NAO) who could conduct the wide-ranging evaluation which is deemed necessary. The conclusion of the article is that there is a need for an evaluation and any resistance of the government could be overcome if the C&AG and NAO exercised their constitutional right to conduct an evaluation of the reforms.     

Evaluating Freedom of Information Laws: Objectives,Approaches, and Practical Considerations

Freedom of information (FOI) laws aim to improve the public’s opportunities to access official information from public authorities and hence to increase the level of transparency. Thus, it is important to know whether and to what degree the effects intended by establishing FOI laws are achieved and how their implementation could be improved. In order to answer these questions, FOI laws have to be evaluated. Unfortunately, attempts to evaluate FOI laws are still in their infancy. To promote sound evaluation, this article aims to provide guidance on how comprehensive FOI law evaluations might be designed and conducted.     

Revisiting the Concept of the Failed State: bringing the state back in

The policy and donor communities have placed great importance on fixing ‘failed states’. World leaders have cited failed states as one of the greatest threats to the global community. Nevertheless the concept of the failed state is currently subject to a backlash from the academic community. Scholars have criticised the failed states literature on theoretical, normative, empirical and practical grounds. We provide a brief overview of these main concerns and offer a more systematic method for measuring ‘state failure’. Coming up with better ways of assessing how states underperform will enhance our understanding of how institutional decay affects stability and development and, most importantly, will provide an improved system of early warning for practitioners.     

Planning,Budgeting, and Health Care Performance in Ukraine

Abstract

The Government of Ukraine has not pursued health care reforms now commonplace in the rest of Europe and Central/Eastern Europe that rely less upon centralized, state delivery of services and more on decentralized operational responsibilities and competition for services that increase patient choice. The Ukrainian health sector suffers from personnel overspecialization and facility overcapacity, resulting in high-cost, low productivity services. Budget funds are unavailable for operations and maintenance resulting in poor quality services. The state provides health care as a constitutionally-protected monopoly, relying on the traditional command and control model which ignores cost/quality competition options and responsibilities to patients. Overall, the system which produces these results is over-centralized, requiring achievement of physical service norms without providing sufficient funds. The centralized system does not monitor or evaluate services beyond narrow financial accountability and control requirements. The health care system is paradoxically over-centralized but unable to regulate or control local health care official decisions to ensure compliance with national standards. Needed are reforms in the health care policy and operational areas to produce the supply of services needed for national economic recovery. In the short-term, the budgetary framework can be improved as an operational/management guide through development of comparative information on results. Most of this information can be based on the economic classification consistent with the chart of accounts. Funding stability can be increased to improve expenditure control by implementing a new fiscal transfer formula that provides discretion (i.e., block grants) and performance criteria (i.e., outcome measures). In the medium-term, building on the technical foundation of physical norms and statistical reporting, the health care budgeting and financial management system should shift emphasis to: program planning, policy and management analysis, and public communications. The results of these reforms should lead to decentralized health care operations, service analysis, and delivery responsibilities. At the same time, the reforms should lead to proper centralization of responsibilities for strategic policy decisions, safety regulation, national standards, and program evaluation.     

Higher Education in Transition to a Market Economy: Two Case Studies

THE IDEA FOR THIS ARTICLE came from a visit to Tomsk that took place in May 1997. The authors visited the State University of Tomsk, one of Russia's leading universities, with an enviable research record and very good library and computing facilities, and were fortunate enough to be able to interview senior staff of the university concerning their budgets and financial situation. Apparently the situation in Tomsk is not especially bad; indeed it may well be rather better than elsewhere in Russia. In order to have a little basis for comparison and to provide a second case study, we also investigated some aspects of the financial arrangements at the Economics Faculty of Moscow State University. What we learned from these two cases-admittedly far from a representative sample-not only revealed a great deal about the current state of higher education reforms in Russia but also provided a snapshot of the state of Russian economic reforms in general. Hence although this article is partly about Tomsk and Moscow, it is also about these wider issues. In significant respects, Russia remains quite distant from a well-functioning market-type economy, and some of these respects are important for the higher education sector. In a very fundamental sense, one could identify the main source of Russian shortcomings in reforms as a general problem of the state.1 However, this is not the place for a general review of such a major topic. Instead, in this article we focus on a few aspects of Russia's reforms in so far as they affect higher education, namely (1) ownership, property rights and governance issues; (2) funding issues and the state budget; (3) the tax regime and (4) non-functioning of the market economy. In what follows, therefore, we proceed as follows. First we outline some general issues relevant for the reform of a system of higher education moving away from former, Soviet-type structures, focusing on the Russian situation; then we present the case studies of Tomsk and Moscow. The following section examines issues concerning higher education in particular and the reform process more generally, as highlighted in the two case studies and in the light of the above four issues. We end with a short concluding section.     

Financial investment via ADRs in Mexico and South America

American depository receipts (ADRs) are dollar-denominated, negotiable instruments issued by a depository bank to represent ownership of a foreign security in the bank's possession. They are the primary method employed by Latin American corporations to raise equity capital in the United States. One flequently overlooked aspect about ADRs is that their investment performance provides a gauge not only on management's performance but also a measure of the foreign government's ability to provide a political, legal, economic and social climate that is conducive to international investment. This paper investigates the returns and risks associated with foreign investment in Mexico and South America. First, we show that the weekly returns to Latin American stocks are weakly correlated with the U.S. stock market which suggests that they can reduce the risk of a portfolio that is fully diversified within the U.S. market. Second, we find that ADRs from this region are more risky than U.S. common stocks. However, we find little evidence that foreign exchange rate risk should be a major factor in the investment decision. Third, we examine the effects of the devaluation of the Mexican peso and show that political factors can significantly increase the risk and reduce the return to foreign investment. Finally, the results show that investors do not pay a significantly larger relative transaction cost premium for investing in Mexican and South American equity vis-à-vis U.S. common stock. We conclude that ADRs provide the ability for the U.S. investor to realize potentially superior gains from companies located in these emerging economies. However, the willingness by the U.S. investor to disinvest means that politicians and managers have a powerful incentive to continue reforms that lead to improved standards of living for their citizens and employees.     

Why voluntary municipal merger projects fail: evidence from popular votes in Switzerland

ABSTRACT

What determines the failure of local government amalgamation referenda? Existing research suggests that functional pressures act as a push factor towards local territorial reform, whereas considerations of political self-determination exert a pull effect. However, we know little about the respective importance of these countervailing forces. In this paper, I analyze popular vote decisions on mergers of 541 municipalities involved in 166 different merger projects in three Swiss cantons since the new millennium. The results show that both functional pressures and concerns for self-determination are linked to popular vote outcomes: small municipalities are less likely to reject a merger. Concerns for self-determination matter, but only when the pressures of smallness are not overwhelming: a higher vote share of right-wing parties and a preponderance of other municipalities in the merger coalition increase the probability that voters reject a merger project. This has implications for policy-makers’ strategies when drafting and promoting voluntary local amalgamation reforms.