Exploiting the common pool or looking to the future? A study of free-riding leading up to the 2007 municipal amalgamations in Denmark

ABSTRACT

Municipal amalgamations can create incentives for opportunistic behaviour. Several fairly recent studies have examined this on amalgamations in Denmark and Sweden using the so-called law of 1 over n. However, they have yielded inconclusive results and I argue that one plausible explanation is a theoretical deficiency in the law, as it does not account for how future political representation can mitigate the incentive to free-ride. I examine this using large-scale amalgamations in Denmark in 2007. This case is quite unique as the amalgamations were implemented in such a manner that they constitute a quasi-experiment, and because an extra fiscal year was added to the election period where the composition of the new councils was known with certainty, while the municipalities retained some decision-making power. The study’s findings are consistent with the argument that the incentive to free-ride depends on the decision makers’ future political stake in the new, amalgamated municipality.     

A personal issue: feminist standpoint theory,epistemologies of ignorance,and perceptions of HIV transmission among northern Tanzanian wildlife conservation professionals

Drawing on ten months of qualitative research from 2009/10, we present a case study of situated HIV transmission knowledge claims among wildlife conservation actors in northern Tanzania. Utilizing feminist standpoint theory and epistemologies of ignorance, this article explores why a single professional group consistently articulated divergent explanations of the causal forces shaping on-going HIV transmission dynamics. Elite respondents were more likely to consistently attribute viral transmission to individual-level behaviors, while non-elite conservation actors more often situated HIV transmission dynamics in relation to extra-personal structural forces. This case study reveals the experiential grounding of HIV-related knowledge claims; illuminates the partiality of authoritative knowledge and the intersections of practices of power, embodied understandings and socio-structural location with hierarchical matrices of status and privilege; disrupts the presumed accuracy of certain forms of knowledge by foregrounding the insights of those in positions of subordination; and exposes ineffectual HIV/AIDS interventions in northern Tanzania.     

Son Preference and Household Income in Rural China

Why is it that couples who have a son or whose last child is a son earn higher conditional income? To solve this curious case we tell a detective story: evidence of a phenomenon to be explained, a parade of suspects, a process of elimination from the enquiry, and then the denouement. Given the draconian family planning policy and a common perception that there is strong son preference in rural China, we postulate two main hypotheses: income-based sex selection making it more likely that richer households have sons, and an incentive for households with sons to raise their income. Tests of each hypothesis are conducted. Taken as a whole, the tests cannot reject either hypothesis but they tend to favour the incentive hypothesis; and there is evidence in support of the channels through which the incentive effect might operate. To our knowledge, this is the first study to test these hypotheses against each other in rural China and more generally in developing countries.     

Participation in a School Incentive Programme in India

Education policy has recently focused on improving accountability and incentives of public providers for actual learning outcomes, often with school-based reward programmes for high performers. The Learning Guarantee Programme in Karnataka, India, is prominent among such efforts, providing cash transfers to government schools that achieve learning at specified high levels. This study examines whether schools that self-selected into the incentive programme are different than those that did not. The answer has important implications for how to evaluate the impact of such a programme. Although we find no significant differences in resources and characteristics, we do find significant and substantial differences in test scores prior to selection into the programme, with better performing schools more likely to opt-in. These findings also provide insight into how incentive-based programmes that focus on levels of (rather than changes in) achievement can exacerbate inequality in education. Failing schools, since they are more likely to opt-out of incentive programmes, are likely to require other targeted programmes in order to improve. In addition, our findings reinforce the value of randomised controlled trials to evaluate incentive programmes since evaluations that rely on matching schools based on resources (if, for instance, pre-programme test scores are unavailable) will be biased if resources poorly predict test scores.     

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.     

Effective exchange rates for exports in Pakistan

Effective exchange rates for exports in Pakistan can be calculated which take into account the major export incentive measures in operation and their divergent treatment of specific exports. This quantification of export policies into an overall measure of the implicit (effective) foreign exchange rate structure permits an evaluation of the impact of export promotion measures on foreign exchange earning capacity. The major export incentive schemes were found to provide the highes’ subsidies to those exports with the highest total import components and the lowest relative earnings of net foreign exchange. Thus de velopment policy in some cases failed adequately to encourage these producers with relatively higher levels of domestic value‐added to export their products.     

A study of the operationalization of management controls in United Kingdom Private Finance Initiative contracts

Utilizing evidence from a United Kingdom (UK) road case study Private Finance Initiative (PFI) project, this article considers how the UK central government's infrastructure strategy is operationalized through accounting-based performance measures and incentive systems, and articulates how the adoption of such systems is moderated by trust practices. The findings indicate that initial government policy objectives, translated as performance indicators in the case study, failed to offer adequate incentives for contractors and created tensions. However, controls were later developed through inter-party trust practices for managing performance and relational risk. These findings have important implications for PFI policy and practice, including that negotiation can: (i) lead to pragmatic controls being introduced to foster cooperation and trust-building; and (ii) provide opportunities for adapting the monitoring and incentive mechanisms. This study also contributes to the previous literature where PFI control systems were largely regarded as inadequate for dealing with unforeseen conflicts between parties.     

Institutional design for credence goods: Can the existence of financial incentive be problematic? Evidences from childbirth system of Bangladesh

The introduction of an incentive system in order to increase the provision of credence goods such as health services can be problematic. This article identifies the possible magnitude of overtreatment by physicians in private clinics compared with the situation in government and nongovernment health facilities in Bangladesh. The five to ten times higher volume of cesarean childbirths in private clinics (higher incentive institutions) compared with the volume in government/NGOs health facilities (lower incentive institutions) is indicative of the problem of overtreatment. This problem may become acute where there is only one private clinic in an area; however, the mere increase in the number of private clinics may not solve the problem.     

The Effect of EU Accession on Internal Migration in Poland

This article examines the impact European Union (EU) policies have on internal migration in Poland. It argues that the EU indirectly through its cohesion funding and internal market policies creates push and pull incentives that affect internal migration. It focuses on the impact of three EU regulated factors: foreign direct investment, international migration, and EU funding. It contends that both foreign investment to a voivodeship as a result of the EU’s internal market policy, and EU funding to a voivodeship as a result of the EU’s cohesion policies, attracts internal migrants to that voivodeship and discourages residents from leaving. The article further argues that increasing international migration from a voivodeship as a result of the EUs labor policies decreases the incentive for internal migration. A cross-sectional time-series statistical analysis finds that higher levels of foreign investment and EU funding attract migrants to a voivodeship, while higher levels of international migration, FDI inflow, and EU funding decreases the incentive for residents of that voivodeship to relocate internally.     

Energy conservation policy in the united states and Sweden: Comparing research and development responses

This study assesses the comparability of public sector responses to energy conservation research and development (R&D) in the United states and Sweden. Using the evaluative criteria of policy objectives, organizational structure, and funding, the extent to which the institutional context for R&D either constrains or fosters conservation as an element of each nation's energy policies is examined. Sweden, unlike the United States, appears to have been successful in achievement consensus primarily through an open, deliberative process of mutual partisan adjustment regarding where specific allocations should be made in the energy R&D budget for optimal conservation results. To a great extent, it is within these differing institutional contexts of policy uncertainly that the content of specific energy conservation policies and strategies should be evaluated.     

How to Harness the Positive Potential of KKN: Explaining Variation in the Private Sector Provision of Public Goods in Indonesia

This article argues that the two prevailing perspectives that explain private sector participation in infrastructure in developing countries – new institutional economics and the rent-seeking approach – cannot account for the evident variations within and across sectors in a given country. This study uses two cases from Indonesia's attempt to promote private investment in toll road construction to demonstrate that a firm-level analysis is adequate to the task. In particular, the specific incentive structure that a rent-seeker faces may explain whether positive or negative rent will be facilitated.     

Professional leadership in local government

Local public service professionals are experts who temper their use of expertise with public service ethics. Public service ethics differ from the ethical codes of most professions in that they stress external accountability. Ethical codes of private sector professions create a sense of responsibility to the profession and help undergird professional autonomy. Public service ethics emphasize public responsibility and help create public accountability. City and county managers show how public service ethics can help make experts accountable to the public.     

Fiscal incentives and direct foreign investment in less developed countries

This study found no support for the belief by the governments of most less developed countries (LDCs) that the provision of fiscal incentives is necessary to attract direct foreign investment and that the greater the generosity of these incentive programmes the greater would be the level of such investment. What mattered were the presence of natural resources and a proven record of economic performance. The provision of incentives could not compensate for the absence of either of these two factors. The study is a cross‐sectional one of 27 LDCs for the period 1965–73.     

The impact of direct trade controls and an overvalued exchange rate on factor proportions in manufacturing

This paper is an analysis of certain aspects of manufacturing development under a regime of import and foreign exchange controls, where such controls are accompanied by an overvalued exchange rate. The analytical framework is a modification of the ‘effective rate of protection’ analysis. The argument proceeds from the fact that the overvalued rate represents a subsidy on imported capital equipment and intermediate goods. Two implications are drawn from the analysis. First and most important, the subsidy on imported intermediate goods will exacerbate the oft‐noted tendency of import‐substitute industry to take the form of ‘processing and packaging’ operations with minimal domestic value added. Second, the subsidy on imported capital equipment will give entrepreneurs an incentive to substitute imported capital equipment for domestic labour.     

Changes in surveillance of regulatory enforcement progragrammes in Singapore

In recent years Myanmar underwent drastic political changes. While many see these changes as first tentative steps towards democratization, we argue that the current political transformation is not a deliberate process of liberalization, but a survival strategy of the military regime. Using arguments of the ‘new institutionalism’ as a theoretical foundation, this article explores the hypothesis that the high degree of professionalization of the Burmese military creates the incentive to institutionalize power-sharing among the ruling elite. Our empirical analysis finds evidence for both a highly professionalized military and institutions that by securing the military's continuing dominance serve the purpose of institutionalizing military power- sharing. These results imply that further democratization is unlikely as it must be initiated from within the still dominating military itself.     

Building Ladders out of Chains: China's Hybrid-led Technological Development in Disaggregated Value Chains

In China, entrepreneurs hailing from ethnic Chinese transnational technology networks have linked up with global capital to create hybrid firms that combine relatively efficient foreign financing with a strategic commitment to intensive utilisation of domestic resources to create their core corporate competencies. This article refers to these firms as global hybrid firms and to development driven by these firms as hybrid-led development. Hybrids, given their generally small scale and scope, work best in sectors exhibiting disaggregated value chains, fast clockspeeds and high technology-intensity. Patent data demonstrates that hybrids outperform other firms generally and especially in sectors exhibiting these three characteristics.     

The European Neighbourhood Policy: Conditionality Revisited for the EU's Eastern Neighbours

The European Neighbourhood Policy (ENP) is modelled on the institutional and procedural experience of the EU's eastward enlargement, although it explicitly excludes a membership perspective. It thus aims to define an alternative incentive for domestic reform in neighbouring countries, referred to as ‘a stake in the internal market’. This article suggests that the ENP amounts to a form of ‘conditionality-lite’ for non-candidate countries. Within the ENP the key defining elements of conditionality—clear incentive and enforcement structures—are vague for both the EU and its neighbouring countries. Thus, the ENP is conceptually and empirically weak when measured against a simple, rationalist conditionality model. In line with the alternative understanding of conditionality as a process rather than a clear-cut variable, the main function of the ENP is twofold: it provides an external reference point which domestic political actors in the ENP countries can choose to utilise when it fits their agenda (both pro-EU or anti-EU); and a loose framework for socialisation. This process of socialisation involves both the EU and the ENP countries. Through an analysis of the ENP process in Ukraine and Moldova it concludes that while the ENP tries to prevent a repeat of the EU's ‘rhetorical entrapment’ in further eastward enlargement, it paradoxically paves the way for a ‘procedural entrapment’ in ENP countries that harbour membership aspirations and provides a momentum, though not a guarantee, for conflict resolution.     

Civil Service Reform in Ethiopia: Issues,Lessons, and Future Directions

This article provides an in-depth review of the successes and challenges of public sector reform efforts in Ethiopia with a view to help other developing countries, particularly African countries, learn from Ethiopia's experiences in this regard so that they can improve the content of and approach to their public sector reforms. It also identifies the gaps in the existing literature and puts forward implications for further research in the area. The public sector reform program of Ethiopia has shown successes particularly in the areas of service delivery to citizens. However, the reform program is entangled with challenges such as lack of accountability and transparency on the part of implementing institutions, inadequate material and moral incentive to employees thus crippling the capacity to manage the implementation process, and participation from the side of different stakeholders.     

The ‘green militarisation’ of development aid: the European Commission and the Virunga National Park,DR Congo

To ‘save’ the Virunga National Park, located in the east of the Democratic Republic of the Congo, the European Commission (EC) allocates development aid to the paramilitary training of the park guards, their salaries, and mixed patrols of the guards together with the Congolese army. Moreover, the ‘development’ projects the EC supports around the park have militarising effects as they are based on a soft counter-insurgency approach to conservation and to address dynamics of violent conflict. This amounts to the ‘green militarisation’ of development aid. This article describes how a personalised network of policymakers within the EC renders militarised conservation-related violence and controversy around the Virunga park invisible, by framing contestations and violence in and around the park as solely caused by economic factors and motivations. Moreover, by ‘hiding’ the fact that the EC aid is used to fund armed conservation practices, policymakers circumvent political debate about the use of development funds for (para)military expenditures. While the existing literature focuses on the importance of securitised discourses to explain the militarisation of conservation, this article indicates that in addition, it is important to focus on these more mundane practices of securitisation within international organisations that ultimately fund the militarisation of conservation.     

Merging legality with illegality in Paraguay: the cluster of order in Pedro Juan Caballero

Paraguay is often described as a territory of drug trafficking, smuggling and commercial piracy. However, the country remains understudied by academics researching criminality and illegal markets. Pedro Juan Caballero, a city located on the northern border with Brazil, is an interesting case study to illustrate how legality and illegality merge in Paraguay to create hybrid social orders. The daily life in the city, one of the best places in the world for cultivating marijuana, unfolds between the higher homicides rates and some of the lowest levels of common criminality in Paraguay. Far from being a matter of state weakness, the expansion and tolerance of illegal activities is framed within a cluster of order that combines both rational legal practices and neo-­patrimonial norms. The presence and roles of state institutions are re-signified, generating alternative hierarchies, practices and values to supply social, political and economic outcomes. Through in-depth interviews with key informants, ethnography visits and analyses of aggregated data, this paper describes the hybrid order of Pedro Juan Caballero by tallying the incentives that encourage social and institutional tolerance of illegality and describes how illegal practices create access to goods, services, protection and expectations not provided by the legal framework.