The risky business of public–private partnerships

Public–private partnerships (PPPs) are now a common strand of third way government policy, with better efficiency promised from the private funding of public infrastructure through the transfer of risks to private parties. This paper aims to investigate, on an empirical basis, the realities of risk transfers in PPPs and compare this experience against both the rhetoric of project proponents and the formal contract conditions. The paper outlines some conceptual frameworks underpinning PPPs and establishes the notions of risk shifting and risk sharing. The range of typical risks encountered in infrastructure projects is specially considered, and differences to traditional project delivery arrangements are articulated. Some empirical experience on the transfer of risks under PPPs is then outlined through a case study. This analysis shows the extent to which risks were shifted to the private parties as planned, or whether risks remained with government. It is argued that while commercial risks were largely well managed, governance risks were not. It is critical to understand better the nature of risk transfers in PPPs in view of the large financial implications of these deals along with long contract terms.     

Competition and service quality: Evidence from Swedish residential care homes

Against a backdrop of increased levels of marketization of welfare services in OECD countries, this article aims to shed light on the separate effects of private ownership and competition for the market on service quality. Using residential elder care homes in Sweden as our case, we leverage unique panel data of ownership and competition against a set of indicators, pertaining to the structure, process, and outcome dimensions of care quality. The main finding of our analyses is that competition for the market does surprisingly little for quality: private entrepreneurs perform neither better nor worse under stiff competition and the quality of care is approximately the same in those nursing homes that are exposed to the market as in those that are not.     

Electoral Rules,Labor Market Coordination and Macroeconomic Performance

Two distinct literatures have studied the macroeconomic effects of electoral systems and of labor market structures, respectively. Results include a positive association between proportional representation (PR) electoral systems and growth, but also between PR and inflation, as well as negative or hump‐shaped relationships between labor market coordination and the ‘misery variables’, unemployment and inflation. However, these results could be biased; particular electoral system and labor market features co‐vary systematically, and extant studies have typically not taken this into account. Effects attributed to PR systems could really stem from labor market coordination, and vice versa. In this article the relationships with macroeconomic outcomes for both electoral systems and labor market structures are re‐evaluated by modelling them jointly. Employing data from more than 30 democracies, with time‐series from the period 1960–2010, some robust and some non‐robust associations are identified. First, PR systems are, indeed, associated with higher growth rates, but not with higher inflation. Regarding labor market coordination, robust curvilinear relationships with unemployment and inflation are identified; intermediate levels of coordination correspond with worse macroeconomic performance – albeit not lower growth – even when accounting for electoral system features.     

Japan's Search for the ‘Sweet Spot’: International Cooperation and Regional Security in Northeast Asia

To analyze how Japan's competing objectives and specific policies have been evolving and how they trade off in today's regional security situation, this article argues that shifting Japanese foreign and security policies in Northeast Asia can be understood as ongoing responses to tensions along three key axes. First Japan confronts a tension between bilateralism and multilateralism; second Japan's economic and security interests are often at odds, and third, Japan still struggles with the competing pulls exerted by Asia on the one hand and the West (most particularly the United States) on the other.     

First Priorities in Military Professionalism

This article contends that it is time for the armed forces to revisit their schools, day rooms, wardrooms, squadron meeting places, headquarters, bases and posts to increase the level of awareness and the teaching of professional norms.     

Cycles of Jihadist Movements and the Role of Irrationality

The article argues that Islamist terror is driven by irrational forces; it analyzes jihadist values and doctrines that animate Islamic revolutionaries; it then contends that jihadist movements go through a cycle of mobilization, extremism, implosion and recreation. Finally, it assesses the prospects for jihadist revitalization, extremism, and decline in Syria and the Sahel. Examples from the Iraqi and Algerian jihadist campaigns are used for illustrative purposes throughout.