Municipal Socialism Then and Now: some lessons for the Global South

Given the large and growing literature opposed to the privatisation of services such as water and electricity, it is peculiar that so little has been written about the experience of ‘municipal socialism’—a set of roughly analogous historical movements that used local governments to challenge private service delivery and advance ‘socialist’ agendas from the late 1800s to the 1940s. Although primarily a European and American phenomenon, and emerging from different contexts than those prevailing today, municipal socialism found widespread support and transformed many public services. Results were mixed, with some experiments being little more than (pre)Keynesian attempts to revitalise capital accumulation in the face of ‘irrational’ private sector services, but the lessons are important as these experiments provided the first intellectually and politically sustained resistance to privatisation and other prototypical forms of what we now call neoliberalism, and demonstrated the possibility of effective service delivery by the public sector. This paper reviews these experiments, focusing on the experience of the United Kingdom and drawing lessons for contemporary efforts to build alternatives to privatisation in cities in the South, where local-level, socialist-oriented reforms have been relatively strong.     

PRAGMATIC MUNICIPALISM: LOCAL GOVERNMENT SERVICE DELIVERY AFTER THE GREAT RECESSION

Since the Great Recession, some have argued that local governments have become ‘austerity machines’ that cut and privatize services and undermine unions. We conducted a national survey of US municipalities in 2012 to examine how service provision level and delivery methods are related to local stress and capacity, controlling for community need and place characteristics. We find that local governments are balancing the pressures of stress with community needs. They use alternative revenue sources and service delivery methods (privatization and cooperation) to maintain services. Unionization is not a barrier to innovation. Further, we find that ethnically diverse suburbs are providing more services than other suburbs, thus acting more like metro core cities. We find that the Great Recession has not dramatically shifted local government behaviour to a ‘new normal’ of fiscal austerity. Instead, we find municipalities practising ‘pragmatic municipalism’ to maintain their public role.     

Can alternative service delivery save cities after the Great Recession? Barriers to privatisation and cooperation

ABSTRACT

Cities continue to face fiscal challenges after the Great Recession and alternative service delivery is being emphasised as a solution. How promising is alternative service delivery as a solution and what are its barriers? Regression analyses using 2012 survey data of US local governments show that local governments manage procedural barriers, but structural barriers of economy and demography hinder privatisation and cooperation. Places with a housing bust (measured as decline in home values) can use privatisation, but not places with more or increased poverty. Cooperation is more promising for places with increased poverty, but lack of a willing partner hinders this spatially constrained tool. Neither cooperation nor privatisation is promising for places with low home values. State governments must level the playing field for localities with weak economies if market approaches to service delivery are the main tools for local governments to survive fiscal stress.     

Reshaping Public Administration: The Spanish Experience Compared to the UK

This paper analyses the nature and extent of the policies of modernizing Spanish public administration. Successive Spanish governments have been involved in modernizing public administration with the stress on customer focus, improving service delivery and implementing quality awards, service charts and information technologies.
As a basis for assessing the reforms, we compare Spanish New Public Management (NPM) developments with the initiatives undertaken in the UK. The paper evaluates the usage of NPM concepts in the Spanish and UK experiences and cultural differences based on public and common law traditions respectively, locating these reforms in a comparative context. We focus on why similar concepts and initiatives could provide such different results in each country and how the cultural and institutional features produce differences in the way that NPM postulates are defined, implemented, monitored and evaluated. The answer is probably rooted in the context in which the initiatives have been developing.     

COMPETITION OR MONOPOLY? COMPARING PRIVATIZATION OF LOCAL PUBLIC SERVICES IN THE US AND SPAIN

Differences in national traditions of public intervention, institutional arrangements and public service markets make local public services an area of great diversity. In this paper we undertake a comparative study of how local governments arrange for delivery of water and waste services in the US and Spain. We find levels of privatization are higher in Spain than in the US. We review organizational reform in the two contexts and compare service delivery data using national surveys from each country. We find lower and less stable privatization in the US stems in part from adherence to public choice emphasis on the benefits of market competition over public monopoly. By contrast, Spanish municipalities reflect an industrial organization approach, and create hybrid public/private firms which benefit from both market engagement and economies of scale available under monopoly production. We conclude that managing monopoly may be more important than competition in local service delivery.     

Contracting personalization by results: Comparing marketization reforms in the UK and Australia

Market instruments are increasingly used to drive innovation and efficiency in public services. Meanwhile, many governments recognize the need for services to be more personalized and ‘user-centred’. This was a key aim of major welfare-to-work reforms in both the UK and Australia over the past decade, which sought to achieve personalization through increasing service delivery by for-profit providers, contracted via Payment-by-Results. Drawing on three surveys of frontline staff, we show the impact of recent UK and Australian marketization reforms on frontline practices to consider whether the reform mix of increased commercial provision tied to Payment-by-Results has enhanced service personalization. We find that the UK's ‘black box’ model was associated with some increase in frontline discretion, but little evidence that this enhanced personalization, either compared to previous programmes or to Australia's more regulated system.     

Postal Service Reforms in Solomon Islands of the South Pacific: Evaluating Consequences for Public Service Delivery and Customer Satisfaction

The changing environment of the postal sector over the last decade has increased the urgency for governments worldwide to re-examine regulations governing how their public postal administrations operate. The need to increase service efficiency and quality is a critical strategic focus, given the increasing technological competition, rising operational costs, and changing customers' needs and expectations. There are many success stories, particularly from developed countries, highlighting improved service quality following corporatization of their public postal administration. This particular study revealed that reforms of the Solomon Islands postal service have had some positive influence on the level of customer satisfaction.     

Why Do Municipalities Cooperate to Provide Local Public Services? An Empirical Analysis

Intermunicipal cooperation is being increasingly adopted in various countries as a part of local service delivery reforms. This article draws on survey data from Spain's municipalities to examine the reasons underpinning the decisions of local governments to engage in intermunicipal cooperation and privatisation. Our empirical analysis indicates that small municipalities prefer to rely on cooperation for reducing costs, while their larger counterparts prefer to privatise the delivery of services. By cooperating, scale economies can be achieved with lower transaction costs and fewer concerns for competition than is the case via private production.     

The politics of HIV/AIDS in South Africa: government action and public response

A decade ago it seemed likely that African governments would be destabilised by the impact of the HIV/AIDS epidemic. This article tests some of the presumptions in such forecasting with an examination of the South African case. It begins with an assessment of the effects on the public health system of the South African government’s efforts to cope with the illness. Efforts to implement universal treatment of people who are HIV-positive appear to have strengthened government, while the costs have been affordable. The efforts have extended the embrace of the public health system and prompted the engagement of civil society in policy formation and implementation. Survey evidence suggests that the government has gained public approval and that its health service delivery has become more socially accountable. Civil protest to engender political reforms in the treatment of AIDS patients has enhanced the role of constitutional checks on executive authority.     

Partial Privatisation in Local Services Delivery: An Empirical Analysis of the Choice of Mixed Firms

Mixed public–private firms are increasingly used in several European countries. This paper makes use of survey data from Spanish municipalities to examine the motivations of local governments for engaging in partial privatisation of local service delivery of water distribution and solid waste collection. The empirical analysis indicates that mixed firms emerge as a pragmatic middle way between purely public and purely private production. Indeed, local governments make use of mixed firms when cost considerations, financial constraints and private interests exert contradictory pressures. Political and ideological factors play no significant role in that decision.     

Public–private partnerships (PPPs) in local services: risk-sharing and private delivery of water services in Spain

Local governments are increasingly utilising the public–private partnership (PPP) model as a means of organising service delivery in the public–private domain. This article examines the experiences with construction and operation of 131 PPP wastewater treatment plants in the region of Aragon, Spain. The study highlights how an inadequate management of construction risk and unsuitable transfer of demand and revenue risk resulted in significant time delays in execution of the PPP projects. The research also shows how the involvement of public bodies at local, regional and national level further added to the complexity of implementing the projects. The findings contribute to the literature on local service delivery and provide insights regarding risk transfer in long-term PPP contracts for the delivery of local services in general and water services in particular.     

CUSTOMER CARE AND THE PUBLIC SERVICE ETHOS

The Labour governments that have been in power in the UK since 1997 have reconceptualized the public service ethos. In an apparent departure from their Conservative predecessors, Labour ministers have argued that the distinctive culture of public service can enhance rather than impede service quality and deliver high levels of customer care. This article utilizes interviews and content analysis data to explore the ethical dimension of public service, the significance of the language of customer in relation to ethos, and the implications for service delivery of a customer care focus. Case study findings show that a customer orientation is endorsed by politicians and bureaucrats in both central and local government, although there is a lack of clarity about the service manifestations of such a shift in emphasis. Respondents voiced concerns about the viability of customer care in the public sector as well as the sidelining of the political role of citizen.     

Marketization reforms and co-production: Does ownership of service delivery structures and customer language matter?

In public services that are tax funded, public goods are sometimes marketized by being delivered using private companies instead of public organizations. In addition, marketization reforms can entail service users being described as customers for the service rather than as citizens. We assess the effects of these aspects of marketization reforms on users' willingness to co-produce public services. First, service delivery using private companies risks reducing users' willingness to co-produce because firms cannot commit ex ante to not appropriate donated labour for private gain. Second, using customer-oriented language risks reductions by priming individualistic market norms that lower prosocial motivation compared to citizen-oriented language priming citizenship duty. Using three survey experiments in the United States, we find that delivery structures are not neutral. Private firms delivering local public services reduce users' willingness to co-produce, although similar effects are not evident from primimg customer rather than citizenship thinking.     

Evaluating local government performance in times of crisis

In recent years, Spanish local governments have come under increasing pressure to accommodate severe economic restrictions while maintaining their provision of local public services. We analyse overall cost efficiency in Spanish local governments during the period of the economic crisis (2008–2013), under four different non-parametric methodologies. Moreover, given how problematic it is to precisely define what municipalities do, we compare three different output models with various measures of quantity as well as quality. Results suggest that Spanish local government efficiency improved over the period 2008–2013 since budget expenditures (inputs) fell while local public services and facilities (outputs) were maintained. We also find evidence of the possible implications of service quality when measuring municipalities’ efficiency, and of structural differences in the average efficiency between municipalities located in different Spanish regions. Finally, our results confirm that the level and variation of efficiency scores are affected by the approach taken.     

Decentralisation,Governance and the Structure of Local Political Institutions: Lessons for Reform?

Many governments are devolving power to elected local councils, hoping to improve service delivery and citizen representation by bringing officials closer to the people. While these decentralisation reforms hold the promise of improved governance, they also present national and sub-national leaders with a complex array of options about how to structure newly empowered local political institutions. This article draws on cross-national experience and the latest research to identify the trade-offs inherent in structuring local political institutions. The study's specific interest is in the impact of strong, locally elected councils on governance and representation. Proceeding from an empirical basis that competitive elections are vital for the legitimacy and efficiency of local political institutions, the analysis first questions the impact of four institutional features – central versus local control, local executive versus local council authority, local council structure, and the role of parties – on service provision and fiscal solvency. The article's second section analyses the impact of decentralisation on political representation, with a particular focus on the role of institutional design in combating the threat of extremist parties. A final section summarises empirical findings and advances some policy-relevant conclusions.     

California local government contracting after proposition 13

Recent fiscal constraints have forced many local governmental jurisdictions to search for alternative service delivery approaches. One approach frequently discussed is contracting out services to the private sector. While local governments in the state of California have been involved in such contracting for many years, the fiscal pressures which brought abut the passage of Proposition 13 have refocused increased attention to activities in this area. This article focuses on local government activities with the private sector, the reasons for deciding to provide services through the contract method, assesses probable outcomes to contracting out, and develops three future scenarios on the issue.     

Localism and Accountability in a Post-Collaborative Era: Where Does It Leave the Community Right to Challenge?

Since the establishment of subsidiarity in the early 1990s, the European-wide move to devolve governance has been interpreted by previous and present UK governments adopting differing ideological positions within a ‘localism agenda’. Interpretations have changed the dynamics of the community right to challenge, as well as the structure and mechanisms for community accountability. This article adopts the typology of forms of local governance developed by Lowndes and Sullivan (2008, How low can you go? Rationales and challenges for neighbourhood governance. Public Administration, 86 (1), 1–22) to explore the hypothesis that the localism agenda realigns the synergy between neighbourhood rationales; citizen engagement in service delivery and the opportunity for public scrutiny and accountability. It concludes that opportunities for communities to challenge service delivery and ensure increased accountability to the local level will be tempered by increased complexity and demands on local authorities to develop new relationships with both service users and providers.     

Administrative reform in Malaysia: Recent trends and developments

During the past two decades, the public bureaucracy in Malaysia has undergone substantial reforms. Broadly aimed at excellence in the public service, these recent reforms are in many respects similar to those introduced in other countries under the new paradigm of “managerialism”. This article analyses the present trends of reforms in Malaysia and comments on some concerns and emerging issues. It shows that while these reforms have generally improved the delivery of public services, public administration in Malaysia continues to suffer from such problems as a weak system of accountability, growing incidence of corruption and mismanagement, absence of decentralisation and community participation, and non‐enforcement of rules and regulations.     

Multichannel Delivery of Public Services: A New and Complex Management Challenge

A strategic challenge facing all governments today is how to deliver services effectively and efficiently. At one time, they thought that they could meet this challenge by exploiting technology and going the E-government route with the promise of single-window, integrated, intelligent service delivery. Very quickly, however, they had to accept the fact that they would have to overcome a multitude of obstacles and that individual and corporate clients often preferred to receive service in traditional ways.

As a result, the delivery of public services is becoming increasingly multichannel: over the counter, by mail and telephone, over the Internet, via text and television, etc. There is therefore a need to identify some kind of model for managing this highly complex new phenomenon effectively and efficiently. By conducting research in the field with the help of case studies and international benchmarking, it was possible to identify the main variables in the degree of effectiveness and efficiency of multichannel public service delivery and develop the outline of a model representing the underlying factors.     

The importance of contextual factors for reform efforts in rural local governments

Local governments in rural areas are often characterized as lacking in professionalism and capacity necessary for confronting the variety of problems that must be addressed at the local level.

The public administration perspective is often one of recommending reforms to enhance the efficiency and effectiveness with which these governments do things, thereby increasing their capacity to manage their affairs. Well meaning reformers often take for granted the fact that constituents of the reform-targeted governments also recognize the need for change. In practice, the opposite may be closer to the truth. The State of Mississippi has just endured several years of bitter struggles to restructure its county governments. Resistance to structural reform of county government in Mississippi is largely a factor of the existing split between rural citizens and those who live within incorporated municipalities. While rural citizens generally oppose reforms, this opposition virtually disappears when only African-American citizens are examined. There are some important differences associated with the region of the state in which one resides. These differences are not as important as the message they convey. Reform efforts are important for improved governance in rural areas, but their success or failure may depend upon how accurately we assess the socio-political environment in which these reforms are introduced.