Managing economic reform: An alternative perspective on structural adjustment policies

The structural adjustment policies of international development organizations have been undermined in many developing countries by weaknesses in administrative capacity to manage economic reforms. If economic reform policies are to be implemented more effectively in the future, international organizations must take a broader view of the development process and assess more carefully the administrative and political capacity of the state to guide the decisions of public and private organizations toward development goals in four policy arenas. The experience of developing countries that were more successful at economic and social development during the 1970s and early 1980s, indicates the characteristics of development administration that policy analysts must assess in order to determine governments' capacity to implement economic reform policies effectively.     

Devolution and outsourcing of municipal services in Kampala city,Uganda: an early assessment

The late 1980s saw the beginning of wide‐ranging economic and political reforms in Africa, prompted by both external and internal pressures. Demands for political reform pushed for democratisation, including decentralisation of power and resources to lower levels of government. Alongside pressures for democratisation were those for economic liberalisation, including the rolling back of the state characterised by, among other things, reducing its role in service provision. This article looks at aspects of political and economic liberalisation in Uganda, involving devolution and outsourcing of service provision in Kampala city. It focuses on the city's experience with devolution and outsourcing of solid waste management. It shows that, pockets of resistance notwithstanding, the reforms enjoyed widespread popularity and led to many positive changes. In addition, it shows that they begot problems and encountered others that rendered the process of change more problematic than its advocates had anticipated. Its major conclusion is that while devolution and outsourcing are useful tools for improving service delivery, they cannot ensure long‐term success in the absence of financial, technical and managerial capacity on the part of contractors and contracting authorities. Copyright © 2003 John Wiley & Sons, Ltd.     

Regional politics: The European union and citizenship

This article examines the development of citizenship within the European Economic Community as a model for citizenship as such, within a global environment. In historical terms, citizenship evolved within the nation‐state, but the nation‐state, which is no longer valid as the exclusive model of economic development, may be inappropriate as a framework for social rights. The fluidity of labour within the European community means that traditional means of political representation within the nation‐state are irrelevant. Within a global context, the economic barriers which are required by nation‐states constitute political barriers to social rights through the vehicle of citizenship. The article considers the European experience of regional politics as lessons for citizenship reform in a global system.     

Good government and sustainable anti-corruption strategies: A role for independent anti-corruption agencies?

Aid donors are increasingly seeking to link assistance to sustainable reform, including the provision of a responsible and responsive political and legal framework, the improvement of recipient countries' social, health and educational prospects, and the promotion of economic development and liberalization. Much attention is given to the first of these because of the size and cost to the state and the perceived constraints it exercises on the longer-term changes to the economy and society; in general terms, good government is an essential precondition for good governance and economic development. Increasingly donors have focused on corruption, both as a core obstacle to the encouragement of good government, and on the steps taken to dealing with it as evidence of commitment and the will of recipient countries to their introduction. While the types of activity associated with corruption are readily identifiable, as are the means to attempt to deal with it, it is usually much more difficult to determine effective implementation, particularly with limited resources at a time when longer-term political and economic reforms are also being promoted. It is therefore especially important that, in relation to corruption and good government, a practicable, effective and sustainable means is available to deal with corruption from preventative, investigative and reform perspectives.     

Governments and unpopular social policy reform: Biting the bullet or steering clear?

Abstract. Under which conditions and to what extent do governments pursue unpopular social policy reforms for which they might be punished in the next election? This article shows that there exists substantial cross‐cabinet variation in the degree to which governments take unpopular measures and argues that current studies cannot adequately explain this variation. Using insights from prospect theory, a psychological theory of choice under risk, this study hypothesises that governments only engage in unpopular reform if they face a deteriorating socio‐economic situation, a falling political position, or both. If not, they shy away from the risk of reform. A fuzzy‐set Qualitative Comparative Analysis (fs/QCA) of the social policy reform activities pursued by German, Dutch, Danish and British cabinets between 1979 and 2005 identifies a deteriorating socio‐economic situation as necessary for unpopular reform. It is only sufficient for triggering reform, however, if the political position is also deteriorating and/or the cabinet is of rightist composition. This study's findings further the scholarly debate on the politics of welfare state reform by offering a micro‐foundation that helps one to understand what induces political actors aspiring to be re‐elected to engage in electorally risky unpopular reform.     

Privatization Within the Chinese State

This article suggests that China's public and collective enterprises have contributed to its economic growth and socio-political stability. The efficiency of these enterprises has been improved not through the privatization of the state (transferring public ownership to private hands) but privatization within the state (decentralization, appropriation, and marketization). This article first provides statistics to juxtapose the growth of the Chinese economy to the continued expansion of public and collective enter-prises. I t then explains the causes and benefits of privatization within the Chinese state. A case study of privatization within the state in Shanghai City follows. The article concludes that China's economic reform has been a transformation of socialism, not a transition to capitalism, and that it is a less costly but more effective alternative to the privatization of the state approach. The former communist countries in Europe have painfully followed this latter approach and have suffered from its political, social, and economic consequences.     

儒家道德权利与政治权利要义

作为社会身份和政治资格的人权在儒家“孔仁孟义”的思想体系中被表达为“内圣外王”之道,其在“修齐治平”的实现程序之中又以“公私之辨”和“义利之辨”标志出政治伦理原则和“以德限权”的社会治理特色。儒家以“公权利”揭示人的自然权利,以其公平性和自然性引申为人的道德权利;再以道德权利为基础推演出人的政治权利,而“私权力”则仅为政治权利的异化形式,其极端化的结果就是“以权谋私”,后者因其“侵害公权利”的实质,儒家的人提倡以“道德权利”加以限制,故称为“德治”。儒家的道德权利与政治权利不仅影响了中国社会的思想和制度传统,而且其思想特色通过“为人民服务”、“改革开放”、“三个代表”和“三为”等原则亦被创造性地运用于当代中国共产党人的治国理政事业之中。     

THE MARKET PROVISION OF MANDATORY SOCIAL SECURITY: Protecting the Public Interest in Perpetuity

Pressures to introduce market reforms to public social security system emerged as a reaction to state welfare paternalism, drawing strength from the spirit of liberalism and emphasizing the virtues of the marketplace. Market reform advocates seek to shift the prevailing social security paradigm away from community solidarity to individual responsibility, with a view to divesting government of some of its statutory social security responsibilities. Market reform of public social security provision redefines the public‐private boundary, making socio‐political governance more a process of co‐ordination, steering, influencing, and balancing pluralist interactions, with the civil service increasingly expected to act as trustee of the public interest. What, however, the public interest is and how it differs from private interest is problematic and it should reflect the shared values that create social bonds and identity within a society. The daunting twin challenges facing governments are to design a set of regulatory arrangements that can protect the public interest in perpetuity, and to resist calls for government subsidies to support the economic rent expectations of privatized providers. To meet these challenges the “hollowed‐out” state must become a “smart” state.     

Waiting for privatization in developing countries: Towards the integration of economic and non-economic explanations

The intention of this paper is to examine the political and administrative limits on the effective implementation of privatization in developing countries and so to present a challenge to the view that slow progress is primarily attributable to economic constraints. After examining these economic aspects, the paper provides an explanatory framework which incorporates those political and administrative processes central to an understanding of what happens to state economic policies in practice. The significance of these processes is demonstrated by drawing on research material from India, Pakistan, Thailand, and Sri Lanka. The conclusion drawn is that responses to pressures for economic reform will be determined, not so much by economic criteria as by the political and bureaucratic resources available to decision makers. Since policy processes in developing countries show considerable variety it is likely that there will be substantial variations in the practical achievement of privatization objectives.     

State Retrenchment and Administrative Reform in Ireland: Probing Comparative Policy Paradigms

Abstract

Policy choices in response to crisis may carry consequences both for distributive outcomes and for the future policy capacity of the state itself. This paper uses conceptual heuristics to interpret policy practice. It examines the underlying policy paradigms shaping Irish government decisions in the aftermath of the European financial and economic crisis. Drawing on comparative political economy literature, it distinguishes between two such paradigms – market-conforming and social equity – and applies them to three reform themes: reconfiguration of public budgets, the public service pay bargain, and the organizational profile of state competences. The findings entail lessons for understanding the malleability of policy choice, and how state policy choices in response to crisis are framed and implemented.     

State Reform in Turkey: Reasons, Needs and Strategies

The state structure in Turkey including all its branches of government (executive, legislative and judicial) at both the national and local levels has been shown to be ineffective, even irrelevant, to the ingrained demographic, social, economic and political exigencies of the country. One of the main reasons behind this is the collapse of public finance. Conventional rhetoric limiting solutions to administrative reform fails to provide a sufficiently broad enough context within which public sector reform in Turkey can be discussed. Turkey's determination to become a full member of the EU also necessitates a comprehensive and radical overhaul of the Turkish public sector with respect to efficiency and productivity. Five main strategies are proposed to assist Turkey in overcoming its state governance predicament: initiating and carrying out a state-wide reform by employing modern principles of public management; understanding and solving the problem of internal and external debts; enhancing the conditions of governance; reintroduc-ing and strengthening the principle of meritocracy in public sector and cooperating more with the EU.     

Public Spheres and Urban Space: A Critical Comparative Approach*

China's mounting unemployment in recent years is an unintended but predictable consequence of the economic reform with an open labor market. It has turned into a major political crisis in a "socialist state" where not only security but also sovereign dignity of labor remain central to the constitutional mandate and, however lingering, to popular expectation as well. This article traces the origins of the crisis, explores linkage between participation and recognition, explains mutual relevance of the EuroAmerican "future of work" debate and the Chinese experience, and argues for creative adaptation toward an alternative. It concludes with an observation that participatory activities beyond salaried jobs would require guaranteed social security; and only institutional innovations in public policy that enable democratic control by citizens over resources and management can forge a new social contract for overcoming unemployment.     

Public administration reform in Vietnam: problems and prospects

Public Administration Reform (PAR) in Vietnam is an ambitious programme that seeks to implement ‘rule by law’ within a centralized, state management framework. It is a political strategy by the key party and state officials with the aim of institutionalizing and legitimizing the transition to the ‘socialist market economy’ through creating a dependable system of rule‐bound public administration. This programme has received extensive donor support. In the content and trajectory of PAR, external models and technical assistance are influential but the political struggle over control of state resources shapes the process. This is seen in the attempts to constitutionalize the powers of state organs and to distinguish them from the party; to separate owner and manager roles and to replace political with economic criteria in the operation of state owned enterprises; to combat corruption in ‘street level’ decision making; to rationalize the machinery of government; to create a centrally managed, professional civil service; and to reform the system of public finances. In each of these areas, there is resistance to reform proposals and evidence of implementation gaps. In these circumstances, concentration of donor support on the centrally managed PAR programme is a high risk strategy. Continued support for local, ‘bottom‐up’ reform initiatives could help sustain the demand for reform. Copyright © 2002 John Wiley & Sons, Ltd.     

UK Privatisation Revisited: Ideas and Policy Change, 1979–92

Privatisation in the UK was facilitated by the interplay of ideas, institutions, actors, and economic interests. The motivations of the programme were ideational and political, but the objectives were economic and administrative. Together these paved the way for the success of the policy. Although several rationales were at play in the unfolding of privatisation, the ideological predilection of the Thatcher governments underpinned this far-reaching policy reform. This explains why the Thatcher government did not reform nationalized industries within the public sector, but instead shifted them into the private sector. Privatisation succeeded because it was championed by new right policy entrepreneurs, was supported by interest groups prepared to support, or least not impede, such dramatic policy change, and when the public enterprise status quo was deemed in need of reform. Of course, ideas only act as a catalyst for policy change when an established policy agenda having withered, been worn-out or otherwise discredited, can then be successfully challenged.     

Structural Adjustment and Political Adaptation: The Politics of Neoliberal Reform in Mexican Agriculture

Through a study of recent policy change in Mexico, this article shows that even a strong state, implementing a radical reform via purportedly neutral policy changes, inevitably must adapt to a context shaped by previous policy choices and outstanding political imperatives. In this case, the prior organization of commercial export growers in the fresh fruit and vegetable subsector, the strength of an independent peasant movement, and the state's long-term commitment to a rhetoric of development and social welfare significantly qualify the reform effort. In the export sector, Mexican production is largely shaped by the still powerful Confederation of Growers of Fruits and Vegetables. In regard to peasant agriculture, the government has had to make significant concessions to independent peasant organizations in an effort to regain political support. The neoliberal program has thus been qualified and to some extent reshaped by both immediate political considerations and the longer-term institutional and political structures of Mexican society. In this sense, economic forces remain "embedded" in prior social structures and political choices.     

Strength and Commitment of the State: It Takes Two to Tango – A Case Study of Economic Reforms in Argentina in the 1990s

This paper addresses the question of why radical economicreforms became a reality in Argentina in the 1990s byconcentrating on the political andinstitutional dimensions of economic policy reform. Itpresents a framework for analyzing the determinants ofthe quality of economic institutions, notably thepolitical commitment of the state to provide propertyand contract rights, and its administrative capacity(``strength'') in implementing them. The framework isapplied to Argentina under the government of presidentCarlos Menem. The results of an empirical analysisclearly show an improvement in institutional quality,the state strength and commitment during Menem's firstterm. In turn, during his second term, the indicatorsshow ongoing signs of decline. Considering theprospects for Argentina in the near future,deficiencies of commitment with regard to democraticcontrol mechanisms represent a permanent threat tothe economic reforms realized so far.     

Political science,political ideas and rhetoric

The article reviews ‘ideational’ analysis and theory in political science. It argues that this is an important area of research limited by lack of a clear sense of what ideas in politics are and of how to analyse them as directly as possible. It is argued that political science should learn from the ‘rhetorical turn’ in various areas of the social sciences, developing ways, appropriate to political science, of analysing the language, rhetoric and argumentation of political and policy discourse in its governmental contexts. Such an approach rests on a strong sense of the dynamic, contested and creative nature of political activity.     

Bureaucracies,Neoliberal Ideas,and Tax Reform in New Zealand and Ireland

Why did New Zealand adopt one of the most neoliberal tax systems in the world, whereas Ireland pursued a heterodox tax policy of low rates, deep deductions, and distortionary tax incentives? The diverging tax policy trajectories of these two small liberal market economies since 1980 are not well accounted for by conventional ideational, partisan, or political‐institutional explanations. The article argues that the varying degree of neoliberal reform is better understood as the result of differences in the institutionalization of economic knowledge within the state. Distinct administrative institutions in New Zealand and Ireland gave rise to profound differences in the identities, expertise, economic ideas, and policy advice approach of tax policy bureaucrats, which had a major impact on tax policymaking in the two countries.     

Institutional competitiveness in the global economy: Denmark,the United States,and the varieties of capitalism

Despite high taxes, a large welfare state, and much economic regulation, Denmark competes successfully against other advanced capitalist economies. Denmark’s success is based in large part on its institutional competitiveness – its capacity to achieve socioeconomic success as a result of the competitive advantages that firms derive from operating within a particular set of institutions. The institutional basis for successfully coordinating labor markets and vocational training programs are examined for Denmark and the US – two countries that were very different institutionally but very successful in the 1990s and in the 2000s. We show that there is no one best way to achieve success in today’s global economy, except with respect to social inequality; that the mechanisms underlying institutional competitiveness are more complex than often recognized; that institutional hybrids can be as successful as purer political economic cases; and that high taxes and state spending can enhance socioeconomic performance. As such, this paper challenges both neoliberalism and the varieties of capitalism school of comparative political economy.     

Political allegiance and European integration

Under what conditions and to what extent do national publics come to accept the increasing efforts of state elites to build new political institutions that transcend the constitutional frontiers of the nation-state and affect their interests beyond their direct control? This paper explores the role of national publics and social policy in the process of national and European integration. A theory of allegiance is proposed as particularly useful for analyzing this topic. Allegiance is defined as the willingness of a national public to approve of and to support the decisions made by a government, in return for a more or less immediate and straightforward reward or benefit. National publics accept the efforts of their national state elites to build new trans- or supranational political institutions on the condition that this guarantees or reinforces economic (e.g. employment) and social (e.g. income maintenance) security in the national context. European integration depends on a double allegiance, consisting of a primary allegiance to the nation-state and its political elite and a secondary or derived allegiance to the EC or EU. Secondary allegiance, however, exists only to the extent that European integration facilitates nation-states to provide the resources upon which primary allegiance hinges. The theory of double allegiance specifies theoretically the mechanism explaining the link between national economic and social conditions, and public support for the European Union.