Welfare,Inequality and Financial Effects of a Multi-Pillar Pension Reform: The Case of Peru

This paper studies the potential effects of a multi-pillar pension system on pension inequality, actuarial liability and welfare in Peru, by means of simulations of future distributions of pensions with social security administrative records. The results show that actual pension inequality and actuarial liability can be substantially reduced with welfare preserving policies. The simulations illustrate that when welfare is considered, it is important to define the implied value judgments, which are not universally agreed upon. Therefore, this paper highlights the trade-offs of a pension policy reform and contributes to assess the second generation of pension reforms in Latin America.     

Economic Reform and Social Change in China: Past, Present, and Future of the Economic State

China's socioeconomic crisis before 1978 and its success over the past two decades can be viewed as a zigzag process of politicization and depoliticization of the economic state. By summarizing the Chinese experience, this article shows the importance of a specific pattern of general public policy (GPP) in determining the nature of a policy system. China's economic and serialized reforms since 1978 are reviewed in order to illuminate the current situation and future direction of the nation. The changes have undermined the economic state by creating a trend of de-economicization in the Chinese government. If economic reform and social change are to continue smoothly, another transfer of state emphasis to more balanced development is required.     

Political Entrepreneurs and Public Administration Reform: The Case of the Local Authorities' Unification Reform in Israel

This article examines a specific institutional change in Israel. In 2003 the Israeli Knesset implemented the local authority unification plan, an unprecedented reform in the structure of local authorities in Israel. This article is about a local government reorganization taking place in a unique political culture. This article tries to integrate the role of political entrepreneurs within an Institutionalist and “learning” perspectives to offer an explanation to a local government structure, thus politicians influence and are influenced by a wide range of institutional norms and practices in a complex process of design and determination of institutional change.     

The Public Administration Reform in Post-War Bosnia and Herzegovina: A Reform Process Embedded in a Sovereignty Paradox

As the post-war Bosnia and Herzegovina has turned its interest towards a European Union membership, it has entered an accession process requiring it, among other things, to reform its public administration system. The European Union's involvement within the reform has been placed under critique, as it has been claimed to have placed Bosnia and Herzegovina's sovereignty at risk by presenting contradicting behaviors leading to a sovereignty paradox. By examining the European Union's role in Bosnia and Herzegovina, and its possible relations to a sovereignty paradox in the process, the article finds sovereignty paradox indicators to exist along its processes.     

The Varieties of Religious Reform: Public Intelligentsia in Iran

Religious intellectuals play a pivotal role in the transformation of the Islamic Republic of Iran from an uneasy mélange of theocracy and democracy to a liberal democratic state with a religious tinge. This article examines the provenance of reform religious intelligentsia (in contradistinction to the leading intellectuals of the reform) and its varieties. Religious intelligentsia are the carriers of the triple strands of reform thought (radical, muckraking, and political) among the engagé intelligentsia in Iran. This paper is a timely contribution and functions as a snapshot of the religious reform at the brink of the second landslide victory of President Khatami.     

The Politics of Administrative Reforms in Ghana: Perspectives from Path Dependency and Punctuated Equilibrium Theories

Since 1957, various Ghanaian governments have made, and continue to make, attempts to reform the administrative state for development. In spite of this, not much seems to have been achieved over the years. Why has the passion of successive governments for reforming the administrative system failed to yield the desired outcomes? What is the nexus between regime turnover and frequent administrative reforms? Where do we want to go, and what will take us there or at least close to our intended destination? What approach is likely to maximize the chances of success and minimize those of failure? We argue that administrative reforms in Ghana have been consistently undermined by the discontinuity of reform initiatives undertaken by successive governments; the inability to have a “national agenda for development”; continuous reliance on expatriates as consultants and advisers; over-reliance on multinational institutions for financial support; and by the absence of a “developmental state.”     

Redesigning the Hollow State: A Study of Florida Child Welfare Service Reform through the Lens of Principal-Agent Theory

While principal-agency theory has greatly facilitated our understanding of governance and management in the hollow state, close examinations of how system designs affect agency problems has been rare. The purpose of this study is to explicitly investigate the effects of different contract configurations on agent shirking, which is a common problem in third-party service delivery arrangements. Florida's recent statewide privatization and reconfiguration of its child welfare service delivery system are analyzed for this purpose. Data were collected through intensive document reviews and interviews with the public managers and the contract agents who were involved in the reform. Major structural components of the redesigned system (such as overall contract configuration, procurement policies, oversight mechanism, payment methods, and vendor governance structures) are examined and compared with those of the old system. The results of the analysis suggest that the Florida reform installed several structural devices intending to curb agent shirking that plagued the old system. The most significant changes involve a transition of the contracting scheme from a fragmented quasimarket based on dyadic contracting to an integrated service network based on a managed care model, a shift of the focus of the contract oversight from compliance and process to service outcomes, and a transfer of programmatic and financial risks and uncertainties from the government to vendors. Further, the findings of the study reveal some unintended consequences of the reform. For example, the reconfigured system that empowers communities also promotes local parochialism that hinders the government's statewide policymaking ability. The reform that consolidates contracts into the hands of a few large vendors under a standardized contract management system unites the vendors around their common interests to confront their government principal.     

The Public Sector Reform Movement: Mapping the Global Policy Network

Public sector reform in both developed and developing countries has now become a routine matter of public policy—reform is almost continuous, if not always successful. While the role of international transfer agents such as the World Bank and the Organization for Economic Cooperation and Development (OECD) in promoting reforms has often been noted, there has been no comprehensive mapping of the global network on public sector reform. This article makes a first attempt to map the close to 100 organizations that make up a loose global network around public administration and governance. It then provides a brief history of the evolution of the network, and the key events that encouraged a substantial degree of coherence among its members. It examines the practices and tools that are specific to this global public policy network, and concludes with some observations on policy transfer models. The article shows that in trying to understand the dynamics of public administration reform, we need to pay greater attention to this network, its members, and its influence over national policy priorities.     

The New Public Management Theory and the Reform of European Health Care Systems: An International Comparative Perspective

The New Public Management (NPM) Theory is a rhetorical construction with diverse intellectual roots. That diversity means that it is open to reinterpretation and shifts in implementation across countries (Sahlin-Andersson, 2001 Sahlin-Andersson, K. 2001. “National, international and transnational constructions of New Public Management”. In New Public Management—The transformation of ideas and practice, Edited by: Christensen, T. and ægreid, P. L. 43–72. Aldershot, , UK: Ashgate.  [Google Scholar]; Smullen, 2007 Smullen, A. 2007. Translating agency reform: Rhetoric and culture in comparative perspective, Rotterdam, , The Netherlands: PhD Dissertation, Erasmus University.  [Google Scholar]). This overview article critically investigates NPM application in various EU health care systems. NPM led to a greater focus on market forces and competition and improved information sharing and cooperation among health care networks, and changed the way care is delivered. This article also identifies significant misfits between policy announcements and NPM implementation. NPM has taken root much more substantially in the United Kingdom (UK) than in France and Germany. The variety of capitalism and institutional systems provides an explanation for divergences in NPM implementation.     

The myth of equilibrium: winner power, fiscal crisis and Russian economic reform

It has become common to describe Russia as a state that has only achieved partial reform due to the influence of powerful economic forces, the ‘winners’ of economic reform, and to assume that the Russian state lacks autonomy. This paper questions how far reform in Russia has been compromised by the power of winners. The failure of economic reform between 1992 and 1998 is explained as a policy response by state officials unable to manage tendencies towards fiscal crisis because of the state's general helplessness in managing the Russian economy, rather than as a surrender of sovereignty to economic interests.     

A Modernization Myth: Public Management Reform and Leadership Behavior in the Irish Public Service

To assess whether public service modernisation in Ireland is a ‘useful myth’, we examine aggregate indicators of leadership behaviours and the interview responses of recognised ‘change agents’ to assess whether there is a gap between the rhetoric and reality of follower engagement in pursuit of a transformative vision that official rhetoric highlights as a potentiality in this sector. The persistence of such a gap can be explained in terms of the usefulness of this potentiality myth in legitimising the leading role top-level public servants play in reform processes in this country although this may have declined during the current recession.     

Public Employment in the Economic Downturn: The Case of an Australian State

Employment has been severely affected by the global financial crisis (GFC). This research considers the effects of the GFC on an Australian state public service workforce, reviewing trends before, during, and in the aftermath of the GFC. The workforce continued to grow, but at a slower pace, and with changes in inflows and outflows of employees. The workforce profile changed, with some decrease in the proportion of more vulnerable groups and some retention of stronger groups perhaps seeking a refuge during the GFC. Significant decentralization of workforce responsibility has meant comparatively little central effort to effect change during the GFC.     

Public Participation in Budgeting: The New Path of Budget Reform in Thailand

The purposes of this article are three fold. First is to explore the status of public participation budgeting in central, regional, and local administrative levels of Thailand. Second is to develop a model of public participation budgeting that fits with the contexts of each level. Third is to recommend some directions for budgetary reform in Thailand. This article employs qualitative methodologies using a multi-method approach for data collection, including in-depth interviews, focus groups, and work visits. The findings are discussed and compared with international experiences. Finally, a public participation budgeting typology is proposed and guidelines for budget reform are provided.     

Public-Sector Reform: Employment Security and Quality of Decision Making in the Australian Taxation Office

This article examines the impact of structural reforms and industrial relations changes on the employment security and decision behaviors of middle-level managers in the Australian Taxation Office (ATO). This article is based on an empirical study using focus group and survey data that investigated how structural change and public-sector reforms substantially altered the employment environment. This research reveals that the ATO environment can be characterized by low morale, risk aversion, fear, and distrust brought about, in part, by employment insecurity. Where middle managers perceived organizational threats to their employment security, they engaged in self-protective “survivor” behaviors even when no such threats to their employment security existed. The article concludes that a substantial number of middle-level managers, survivors of years of restructuring, downsizing, and organizational change, were unlikely to display high-quality decision-making behaviors.     

The Implications of the Lyons Report into Local Government in England for Structural Reform in Australian Local Government

The Lyons Inquiry into English local government presented its Final Report in 2007. It has significant implications for local government jurisdictions beyond England. This article considers the import of the Lyons Inquiry for reform to Australian local government. It is argued that the Lyons Inquiry adds weight to other work that questions the traditional reliance on amalgamation as the chief instrument of Australian local government reform. In particular, the “place-shaping” thesis developed in the Lyons Inquiry shows that the Australian emphasis on structural reform has been misdirected. Further, the Lyons Report offers a range of policy options besides municipal amalgamation.     

Chalk and Cheese: A Comparative Analysis of Local Government Reform Processes in New South Wales and Victoria

A substantial empirical literature exists on the consequences of local government reform programs. However, much less effort has been directed at examining how reform processes affect the outcomes of reform programs and little work has been invested in the comparative analysis of local government reform processes. To address this neglect in the literature, this article provides a comparative analysis of the contemporary municipal reform initiatives in the New South Wales and Victorian state local government systems. It is argued that the much more deliberative and inclusive Victorian approach represents a superior approach to the hurried “top-down” New South Wales method.     

Local Governments’ Responses to Revenue Changes: The Effects of Unreserved General Fund Balances

ABSTRACT

Volatile revenues affect the quality and consistency of municipal service provision. This article investigates how cities use unreserved general fund balances to mitigate annual expenditure fluctuations when confronted with volatile revenues. Based on the analysis of a panel dataset of over two thousand American cities from 2003 to 2011, the fixed-effects regression results suggest that unreserved general fund balances reduce municipal expenditure fluctuations on a year-to-year basis. The expenditure-smoothing effects were more pronounced when municipal governments experienced large revenue changes. Results are robust when excluding large cities, using different cutting-points to define ‘moderate’ or ‘large’ revenue changes, and in recession and non-recession years. This article contributes to the local expenditure stabilization literature by recognizing the unreserved general fund balances’ expenditure-smoothing effects during ‘non-rainy days.’ It adds empirical evidence to the organizational theory that financial slack works as a crucial buffer against external changes and provides managerial discretion to local administrators.     

Meeting the Information Needs of Older People: A Challenge for Local Governance

The challenge of the ageing population is not just to provide more services but to employ new strategies. One of these is the need to rethink the provision of information to older people and their carers. This paper makes four points. First, that information and access to information have become more critical issues. Second, that older people may place a much higher value on information than other citizen groups but their access is poor for a range of reasons. Third, that the processes by which older people seek information may be empowering. Finally, effective partnerships with creative older people can be a catalyst to changing governance cultures which is a vital step in modernising local government. The paper draws upon examples from the author's experience of working alongside older people under the umbrella of the Better Life in Later Life project in Newcastle upon Tyne.     

The Impact of the Unemployment Rate on Unemployment Benefits in Barbados: An Impulse Response Approach

The purpose of this article is to determine how the rate of unemployment will impact on unemployment benefits in Barbados using annual data from 1982 to 2009 with the use of an impulse response function. The results show that when a shock is applied to the rate of unemployment, which causes it to rise, unemployment benefits will contract marginally and this reaction will not stabilize until the 14th period when a new equilibrium will be attained. Since this new equilibrium will lie below the original equilibrium, rising unemployment will impact negatively on unemployment benefits although this decline will only be marginal.     

Quality of Political Management and the Role of Corruption: A Cross-Country Analysis

Using the Bertelsmann Transformation Political Management Index (PMI, 2008), which measures the role and quality of political leaders, this study empirically investigates the relationship among corruption, economic freedom, and political management, controlling for the underlying socio-economic and cultural factors that shape the success of a country's political leadership. The results suggest that corruption significantly affects the quality of political management and that the effect is dependent on the level of economic freedom.