A Response to Fiscal Stress: Public Sector Employment Reduction across States during a Budget Crisis

This paper incorporates measurements of the four financial condition dimensions of cash, budget, long-run, and service solvency to explore the link between financial condition and public sector employment among states in the context of the Great Recession of 2008–2009. The finding is that the severity of this economic recession led states to reduce public workers as one type of fiscal response to cope with budget shortfalls. The results suggest that not all dimensions of state financial condition affect public sector employment.     

Citizen’s Charter for Improved Public Service Delivery and Accountability: The Experience of Land Administration at the Local Government in Bangladesh

Improved public service delivery and accountability have increasingly turned out to be important issues in public sector management. In Bangladesh, there has been noteworthy progress, including the introduction of citizen’s charter since 2008. This article explores the contribution of citizen’s charter in improving public service delivery and accountability at the local government land administration, adopting a qualitative longitudinal study. Analysis of the findings reveals that most of the service recipients are ignorant about the charter even after 8 years of its introduction. The charters are mainly producer dominated and their grand rhetorics are far away to achieve in reality.     

Principal,Agent or Bystander? Governance and Leadership in Chinese and Russian Villages

Abstract

What does ‘local self-governance’ mean in post-communist Russia and China? In order to answer this question, the article focuses on village-level governance in both countries by employing a four-fold typology of village leadership in public affairs. In both countries, the withdrawal of state power from local communities and the introduction of legislative ‘self-government’ has not brought autonomy to the local and community levels. The findings here suggest that the single ‘state agent’ category of village leadership that emerged under the communist regime is shifting to become one of the remaining three types, ‘principal’, ‘local agent’ and ‘bystander’. There was a growing tendency towards a non-autonomous type of ‘bystander’-style leadership in China and the ‘local agent’ type in Russia. This article suggests that the development of these local governance styles should not be attributed to a common transitional process departing from the communist past, but is the outcome of four factors that influence village leaders in two countries: administrative distance between local and village level, village social structure, fiscal arrangements and electoral relationships.     

Performance and Equality in Public Sector Wages

Abstract

The present paper describes how democratic values—reflected by work equality values—paired with the organizational performance characteristics—defined by the height of organizational inputs and outputs—affect gender differences in wages. It is suggested here that despite the democratic conception of the public sector's equal employment opportunities, variations in the organizational performance of 83 local authorities account for gender differences in wages. The study assumes that organizational inputs (type and level of resources) and outputs (type and level of provided services) generate gender differences in individual earnings, when controlling for human capital factors. The results show that variations in organizational performance affect women's but not men's wages. However, the effect of individual level (demographic, human capital and employment) characteristics, reflecting the meritocracy‐based and democratic nature of public sector employment rather than the level of organizational performance explains most of the variance in gender differences in wages. These results point to the slow shift from the principle of administrative values of democracy and equality to the adoption of performance‐related mechanisms in the determination of public sector wages.     

Russian Central Government Budgeting and Public Sector Reform Discourses: Paradigms,Hybrids, and a “Third Way”

ABSTRACT

This study explores how public sector reform discourses are reflected in Russian central government budgeting. Through the lenses of institutional logics, Russian central government budgeting is considered to be a social institution that is influenced by rivaling reform paradigms: Public Administration, New Public Management (NPM), the Neo-Weberian State, and New Public Governance. Although NPM has dominated the agenda during the last decade, all four have been presented in “talks” and “decisions” regarding government budgeting. The empirical evidence illustrates that the implementation of management accounting techniques in the Russian public sector has coincided with and contradicted the construction of the Russian version of bureaucratic governance, which is referred to as the vertical of power. Having been accompanied by participatory mechanisms and a re-evaluation of the Soviet legacy, the reforms have created prerequisites for various outcomes at the level of budgeting practices: conflicts, as in the UK, and hybridization, as in Finland.     

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.     

A comprehensive model for the evaluation of standard expenditure needs and standard level of local services

ABSTRACT

This paper addresses the problem of the simultaneous evaluation of local governments’ standard expenditure needs together with the related level of standard public services proposing a new approach to fiscal equalisation based on quantitative methods. Standard expenditure needs are estimated using quantile regression, moreover robust non-parametric methods are employed for the computation of composite indicators of demand and supply factors. Data from English local authorities over the period 1997–2006 have been used to test the internal and external validity of the model.     

Hands-off or Hands-on Governance for Public Innovation? A Comparative Case Study in the EU Cohesion Policy Implementation in Finland

ABSTRACT

Public innovation is increasingly strived for by involving non-state agents in policy implementation. Public governance theory has assumed the public administration better govern the activity hands-off by providing incentives and pressure. The theory-driven research agenda has, however, not sufficiently put the assumption to test. This paper compares two similar public innovation projects in employment management of which one was governed hands-off and the other hands-on. The cases reveal several problems with hands-off governance eventually risking innovation while hands-on governance consistently support innovation. Contrary to previous assumptions hands-off governance through competition in a complex environment confound the objective of the project. Hands-on governance, meanwhile, provide information and support that help the project to experiment and learn. The public governance theory should recognize the innovation potential of hands-on governance in the often complex public sector and be wary of mixing hands-off and hands-on governing techniques.     

Hybrids and Contradictions: Human Resource Management in the Contemporary Public Sector

Public employment is a dynamic field of study, buffeted by the ever-changing and reforming public sector environment and by external events such as changing demographics and the global financial crisis. This first article to the special edition on contemporary public sector human resources provides a broad overview of recent developments, starting with the nature of public sector reforms and proceeding with analysis of the far-reaching effects on public employment. For many western countries, this has led to a hybrid model of old and new practices, with many internal contradictions and a confusing array of accountabilities. The new arrangements led to a de-privileging of public servants through reductions in merit and tenure. They also reduced the institutional capacity of central personnel institutions to co-ordinate and monitor public employment and public management. The article proceeds with a review of the implications of these changes in the face of new challenges such as skills shortages and economic pressures. This overview provides a backdrop for the variety of articles presented in the special edition.

Peter Blunt, Mark Turner, and Henrik Lindroth's “Patronage, Service Delivery, and Social Justice in Indonesia” appears in the International Journal of Public Administration, Volume 35, Issue 3, 2013, pp. 214—220. doi:10.1080/01900692.2011.641050. It is related to this special issue's content.     

Public Service Motivation and Job Sector Choice: Evidence from a Developing Country

This article explores the determinants of actual job sector decisions of highly skilled professionals across four different sectors in a developing country, with a particular interest in the relationship with public service motivation (PSM). Unlike most previous cross-sectional studies, it uses a pooled time series of individual antecedents and job characteristics, both before and after the individuals leave the job market to pursue graduate education abroad. The results indicate that there are key differences in terms of the determinants of job sector choices across the four sectors, and that PSM appears to have a differential role on the attraction of individuals to each of those sectors.     

Fiscal Transparency: Concepts, Measurement and UK Practice

Greater fiscal transparency is seen by its advocates as a means of improving economic governance arrangements in ways which, by promoting fiscal stability, will in turn improve the functioning of the government sector and facilitate improvements in the economic environment for the private sector. 'Fiscal transparency' is much acclaimed by policy-makers, not only in the UK Treasury but also by the IMF and OECD. Fiscal transparency can have substance or can just be voguish incantation. This article explores the meaning of fiscal transparency, by examining its structure and evaluating criteria for assessing the degree of fiscal transparency attached to particular sets of circumstances. It explores the link between transparency and accountability, developing the distinction between event and process transparency. Consideration is given to the trade-off between the value of sunlight (to employ an analogy) and the danger of over-exposure. The performance of the United Kingdom against emerging international best practice is examined, with regard to both public expenditure and taxation. By international standards, UK fiscal transparency is high. Nevertheless, there is a major gap between UK rhetoric and practice, indicating a  divergence between nominal and effective transparency. This is evidenced by: frequent changes in public expenditure definitions; the non-publication of important analyses; the location of certain liabilities 'off-balance sheet'; and a lack of candour about tax policy.     

The Co-evolution of Technology and Institutions in the Catch-up Process: The Case of the Semiconductor Industry in Korea and Taiwan

Abstract

This paper explores the industrial specialisation of latecomer countries, particularly Korea and Taiwan, which are often referred to as successful catch-up cases. The traditional wisdom is that the ‘developmental state’, resource leverage, and technological sophistication in an export-oriented strategy have been the factors for success. However, firm strategies and a supportive government are not sufficient to explain the different features of catch-up patterns. In this paper we propose that differences in industrial specialisation of catch-up countries are attributable to the interaction between technological characteristics and institutional settings, including corporate organisation, industrial structure, and the role of the public sector.     

Strategic Commissioning in the UK: Service Improvement Cycle or Just Going Round in Circles?

This article explores the drivers of the development of strategic commissioning over the last two decades, its limitations, and the implications of its rapid spread. It suggests that the differences between government departments have allowed scope for local variations, which have been exploited by local government, leaving room for more innovation than would have been possible under an entirely ‘joined-up’ government agenda. The forms taken by this new approach to strategic commissioning were consistent with continual pressure from central government to find ways of promoting externalisation of public services. Although this underlying drive was often resisted, particularly at local level, but always re-emerged. The article ends by exploring the implications of this analysis for public services in the era of fiscal austerity under the new UK Coalition government.     

Functional Reforms in Italian Employment Policies: Institutional Impact at the Macro and Micro Level

This article explores the institutional impact of Italy’s administrative decentralization of employment policies since the mid-1990s, by focusing on the Lombardy region. These reforms have produced significant shifts in terms of transfer of responsibilities from the national to the regional level, liberalization, and participation of private actors. By relying on two case studies—the regional public agency in charge of coordination of employment policies and a private provider of employment services—the reforms’ implications in terms of reorganization and stakeholder participation are explored. The results point to a required shift in terms of strategy, organization, and operations for both institutions.     

Only If We Agree? How Value Conflicts Moderate the Relationship Between Transformational Leadership and Public Service Motivation

Existing studies find positive associations between transformational leadership and public service motivation (PSM), but value conflict may moderate the relationship. This is investigated for Danish University Colleges using a mixed-methods design. These colleges educate future teachers, pedagogues, nurses, and social workers, and their strong public service-oriented missions and potentially conflicting public values make this sector a well-suited case to test whether consensus on public values is a precondition for a positive association between transformational leadership and employee PSM. Based on a survey of 968 employees combined with qualitative interviews concerning specific public values, we find that the less value conflict, the stronger the positive relationship between the direct managers’ level of transformational leadership and the employees’ PSM. This is also the case for the top management. This implies that transformational leadership might be a way for managers to enhance employee PSM, but only if there is no severe value conflict.     

A Tangled Web: Complexity and Inequality in the English Local Government Finance Settlement

The £29 billion formula grant stands at the heart of the English local government finance system. This transfer of resource from central to local government has, since 2006–07, been distributed using the so-called ‘four block model’. This extraordinarily complex formula-based funding mechanism aims to ensure that all local authorities are able to provide individuals with a broadly comparable level of public service – offering greatest support to local authorities with high service needs and/or low capacity to raise revenue. This paper outlines the structure and workings of the four block model and, drawing attention to key methodological shortcomings, explains why the resulting distribution of the formula grant is both arbitrary and inequitable. In particular it argues that key model parameters – specifically the need and resource equalisation proportions – are set in order to fulfil a particular funding outcome. This flies in the face of the basic tenets of resource allocation methodology in that, being outcome-led, the approach is clearly neither need-based nor impartial. The paper argues that the four block model fails to meet its own goal of fiscal equalisation, is likely to lead to increasing service disparities, and must be replaced as a matter of urgency.     

Government and Corruption: Scylla and Charybdis

Using public sector employment and corruption perception data for 72 countries across the world, this article demonstrates that despite common notion countries with “smaller” governments do not tend to have lower corruption. Under general assumptions, one can demonstrate that there is an optimal size of public sector employment corresponding to the highest capital intensity. The model has several implications: lower optimal sizes of governments for labor intensive countries and higher sizes for capital intensive ones, possibility to reduce corruption paying a cost of suboptimal output, and a higher “price” of an oversized government for labor intensive countries.     

How a demanding employment relationship relates to affective commitment in public organizations: A multilevel analysis

It has recently been recognized in the public administration literature that multiple reforms coexist in public organizations, ranging from the Weberian bureaucracy to New Public Management and, more recently, new public governance. This study develops a typology of the employment relationship with features of these macro‐level changes and tests their impact on the civil servant's affective commitment by including the individual‐level social exchange relationship. This multilevel model is tested with data from 936 employees in a public organization. The findings confirm the existence of different approaches to the employment relationship: overdemanding, mutual investment and moderately demanding. Civil servants in a mutual investment employment relationship are most affectively committed, and civil servants in a moderately demanding employment relationship benefit most from a positive social exchange relationship. Implications for public management theory and practice are discussed.     

Mobilizing Change in Public Services: Insights from a Systems Leadership Development Intervention

ABSTRACT

This paper explores the mobilization of systems change through analysis of a place-based ‘systems leadership’ development intervention aimed to develop the capacity of cross-sector partnerships to tackle ‘wicked’ health and social care challenges. Particular attention is given to the role of independent ‘enablers’ in opening up ‘adaptive spaces’ where partners can navigate competing priorities and develop new ways of working. This paper contributes to existing literature by providing an overview of recent developments in the field of public leadership, applying these to the challenge of developing systems leadership capacity and considering implications for future research, development and practice.