Public versus private ownership: The federal lands case

“Privatization” of public lands has been urged on the grounds that it will provide a more efficient allocation of the nation's resources. However, there are some public policy objectives which private ownership and free markets are not equipped to achieve. Historically, these objectives have motivated legislation authorizing retention of some land in public ownership. Indeed, land in both forms of ownership is required to achieve a full range of both public and private goods and services. However, since inefficiencies in the allocation of resources will occur under either form of ownership, careful monitoring of economic activities in both sectors is more likely to achieve improvements than arguing for exclusive reliance on only one system of property rights.     

Political Control for China's State‐Owned Enterprises: Lessons from America's Experience with Hybrid Organizations

China's reform of state‐owned enterprises (SOEs) is intended to liberate the companies from bureaucratic control that hinders their management. Discussions of SOE reform, however, downplay the policy consequences. Can SOEs be “free” to succeed economically while some political control is maintained? Surprisingly, American experience with hybrid organizations—government‐created companies that straddle the line between public and private—offers some precedent for managing the balance between political control and enterprise independence. Three strategies are derived for China. First, welfare functions must be stripped from SOEs and replaced by policy objectives compatible with commercial purposes. Second, reducing financial dependence on SOEs will remove a barrier to rational control. Third, and most importantly, a robust regulatory framework for control must be developed as a substitute for the weakened administrative linkages. The emerging control infrastructure rooted in state asset commissions is likely to prove ineffective for its blurring of ownership, administration, and regulation.     

Does the public sector outperform the nonprofit and for‐profit sectors? Evidence from a national panel study on nursing home quality and access

Are public and private organizations fundamentally different? This question has been among the most enduring inquiries in public administration. Our study explores the impact of organizational ownership on two complementary aspects of performance: service quality and access to services for impoverished clients. Derived from public management research on performance determinants and nursing home care literature, our hypotheses stipulate that public, nonprofit, and forprofit nursing homes use different approaches to balance the strategic tradeoff between two aspects of performance. Panel data on 14,423 facilities were analyzed to compare measures of quality and access across three sectors using different estimation methods. Findings indicate that ownership status is associated with critical differences in both quality and access. Public and nonprofit organizations are similar in terms of quality, and both perform significantly better than their forprofit counterparts. When compared to nonprofit and, in some cases, for‐profit facilities, public nursing homes have a significantly higher share of Medicaid recipients. The paper proposes strategies to address the identified long‐term care divide. © 2008 by the Association for Public Policy Analysis and Management.     

The grapes of rent: A history of renting in a country of owners

Abstract

In a recent study of neighborhood development, Goetz and Sidney (1994) found an “ideology of property” separating the interests of homeowners from the interests of lower‐income tenants. According to this ideology, owners are better citizens than renters, and therefore public policy should benefit owners at the expense of renters. In spite of continuing research that shows this allegation to be false, a widespread bias against renters persists. Why is this so?

A deliberate bias favoring property owners and harming renters has been prominent in American public policy from colonial times to the present, although its exact form has varied over time—property requirements for suffrage, land redistribution schemes promising ownership but delivering tenancy and poverty, and tax policies that privilege ownership and punish tenancy. Public policy that stigmatizes renters represents a bias as pernicious as other biases of gender, race, religion, and nationality.     

The Emerging Federal Quasi Government: Issues of Management and Accountability

There has been a growing trend in the federal government toward reliance on organizations that commingle legal attributes of the government and private sectors. These hybrid organizations now constitute a quasi government that occasions both interest and concern by political leaders, practitioners, and scholars alike because these organizations touch the very heart of democratic governance: To whom are these hybrids accountable? How well is the public interest being protected against the interests of private parties? In this article, the author seeks to define the quasi government and place these hybrid entities into manageable categories from which legal and behavioral generalizations may be drawn. Are hybrid organizations a problem or a solution? Looking critically at this question, the author suggests the answer may depend in large measure on which of two management paradigms the reader accepts: the constitutionalist management paradigm or the entrepreneurial management paradigm, both of which are defined and discussed. The author concludes that the increasin reliance on hybrid organizations constitutes a threat not only to accountable management within the government, but to the fundamental values of democratic governance as well.     

Social conflict over property rights: the end,a new beginning,or a continuing debate?

The ownership and control of private land is a core social value in the United States. Public planning can be seen as conflicting with this value. The long-standing tension between private property rights and public planning was heightened in the 1990s with the emergence of the so-called private property rights movement. This movement seeks to limit governmental authority over privately owned land through a multi-level strategy of legal, policy, political, and public relations actions. This paper explores the historical basis for this conflict, the legal framework within which it functions, and contemporary policy battles.

The paper concludes that there may be no final outcome to this debate. Property rights activists are impassioned and believe their view of history and law is correct. I argue that it may be best to see debate about land use and property rights as one of the central vehicles for a continual reframing of core values in the American experience.     

Social Heterogeneity and Optimal Mix Between Public and Private Provision of Public Goods

With a framework of incomplete contract, this paper shows that for provision of public goods such as medicare and education, pure privatization may not promote competition. On the contrary, the co-existence of public and private provision may enhance de facto competition. Two competitive effects are identified. When consumers are heterogeneous, the co-existence of public and private ownership gives consumers freedom to choose from different ownership, improving allocation efficiency (Tiebout effect). While consumers are homogeneous, the co-existence can promote yardstick competition, squeezing out information rents from both ownerships, improving production efficiency (benchmarking effect). In either case, the co-existence dominates unique ownership. The paper ends up with some implications for China.s medicare and education reforms. Yongqin Wang is an assistant professor at China Center for Economic Studies, Fudan University and Haibo Xu is a M.A. student in economics at the same center. We thank Te Bao, Zhao Chen, Sujian Guo, Ming Lu, Yew-Kwang Ng and Teague Savitch, and anonymous reviewers for valuable comments.     

The challenges facing public housing authorities in a brave new world

Abstract

Public housing authorities (PHAs) are entering a brave new world. Major proposed changes to the public housing program will force PHAs to compete with private sector providers for tenants. To succeed, they will have to act more like entrepreneurial market participants: to change their management practices, the types of tenants they house, and the kinds of developments they operate, and to attract private capital for the development and operation of public‐private public housing ventures.

PHAs must confront the challenges of transformation while pursuing four mutually conflicting goals: housing the neediest, achieving diversity of tenantry, cross‐subsidizing by attracting unsubsidized tenants, and attracting private capital. Success, or even survival, may require sacrificing one or more of these goals. Whether PHAs can increase housing production to such an extent that they can provide sufficient housing for the neediest while fulfilling the other goals as well remains unclear.     

From Responsiveness to Collaboration: Governance, Citizens, and the Next Generation of Public Administration

The evolution of the New Public Management movement has increased pressure on state bureaucracies to become more responsive to citizens as clients. Without a doubt, this is an important advance in contemporary public administration, which finds itself struggling in an ultradynamic marketplace. However, together with such a welcome change in theory building and in practical culture reconstruction, modern societies still confront a growth in citizens' passivism; they tend to favor the easy chair of the customer over the sweat and turmoil of participatory involvement. This article has two primary goals: First to establish a theoretically and empirically grounded criticism of the current state of new managerialism, which obscures the significance of citizen action and participation through overstressing the (important) idea of responsiveness. Second, the article proposes some guidelines for the future development of the discipline. This progress is toward enhanced collaboration and partnership among governance and public administration agencies, citizens, and other social players such as the media, academia, and the private and third sectors. The article concludes that, despite the fact that citizens are formal "owners" of the state, ownership will remain a symbolic banner for the governance and public administration–citizen relationship in a representative democracy. The alternative interaction of movement between responsiveness and collaboration is more realistic for the years ahead.     

利益冲突视域下的公共权力价值判断回归

公共权力的基本属性和核心价值是公共性,维护和实现公共利益最大化是公共权力运行的内在价值判断。从利益冲突发生的内在逻辑来看,起点是权力资源的配置与利益的获取之间的正比例关系,过程是委托——代理,主要场景是公与私的交界处,利益冲突实质上是对公共权力价值判断的一种扭曲。以公共性的原则来优化公共权力构成、强化公共权利归属、重塑公共行政道德、规范公共权力私人性走向、实现公共权力价值判断的回归,是防止利益冲突、确保公共权力在正确的轨道上良好运行的有效途径。     

Understanding multi-purpose hybrid voluntary organizations: The contributions of theories on civil society,social movements and non-profit organizations

Abstract

The paper offers a theoretical framework to study the conditions that lead to the emergence of multi-purpose hybrid voluntary organizations and the factors that influence their ability to mobilize resources and enlist commitment. These organizations are characterized by four interrelated attributes: (a) they set out as their mission to uphold and promote cultural values that are typically at variant with dominant and institutionalized values; (b) they offer services to members and the public that express their distinct values, using the services as a model and catalyst for social change; (c) in addition to their instrumental goals, they aim to meet the expressive and social identity needs of their members by promoting a collective identity; and (d) they evolve into hybrid organizations by having multiple purposes—combining to various degrees goals of value change, service provision and mutual-aid. Because they deliberately combine features of volunteer-run associations, social movements and non-profit service organizations, we articulate a theoretical framework that melds concepts and propositions from the various theoretical perspectives used to study each of these organizational forms. We argue that the expanded theoretical framework offers a more comprehensive and dynamic view of civil society and a better perspective to the study of third sector organizations.     

State Capitalism,Chinese‐Style: Strategic Value of Sectors,Sectoral Characteristics,and Globalization

Scholarship on the institutional foundations of Chinese‐style capitalism emphasizes the impact of liberal reformers and China's participation in international organizations, devolution of economic decision making and local experimentation, and the proliferation of market actors to explain their origins. This article investigates distinct patterns of sectoral variation in market governance in China today, examining the extent and scope in which dominant forms of market coordination and distribution of property rights reflect variation in national goals of economic power, security, and growth; structural sectoral attributes; and the path‐dependent effects of institutional arrangements. The reinforcement of state coordination and the dominance of state ownership and shareholding in strategic industries, such as telecommunications, and the relinquishment of state control and the dominance of market stakeholders in nonstrategic sectors, such as textiles, characterize the rise of bifurcated capitalism in the period before and after China's accession to the World Trade Organization.     

No Solutions,Only Trade‐Offs? Evidence about Goal Conflict in Street‐Level Bureaucracies

Theories of goal conflict suggest that public organizations confront two possibilities when they face multiple policy goals: (1) organizations attain synergy among lower‐order, instrumental goals in order to achieve higher‐order objectives, or (2) organizations face a zero‐sum trade‐off among goals. Implicit in this debate is the proposition that trade‐off is more likely when performance toward the attainment of multiple goals is measured with substantively exclusive metrics and under varying environments of task difficulty. This research examines which of these theories appears to explain the implementation and interaction of multiple policy goals in the context of Georgia public high schools. The findings demonstrate the highly contingent nature of goal synergy and trade‐off. While goal synergy is possible in the interaction of multiple lower‐order goal attainment, more robust gains can be made toward a higher‐order objective by focusing on one particular lower‐order goal rather than an all‐inclusive approach to goal attainment.     

Large‐Scale Social Protest: A Business Risk and a Bureaucratic Opportunity

The public versus private nature of organizations influences their goals, processes, and employee values. However, existing studies have not analyzed whether and how the public nature of organizations shapes their responses to concrete social pressures. This article takes a first step toward addressing this gap by comparing the communication strategies of public organizations and businesses in response to large‐scale social protests. Specifically, we conceptualize, theorize, and empirically analyze the communication strategies of 100 organizations in response to large‐scale social protests that took place in Israel during 2011. We find that in response to these protests, public organizations tended to employ a “positive‐visibility” strategy, whereas businesses were inclined to keep a “low public profile.” We associate these different communication strategies with the relatively benign consequences of large‐scale social protests for public organizations compared with their high costs for businesses.     

On the design of optimal mechanisms for the Arrow-Hahn-McKenzie economy

This essay presents necessary and sufficient first-order conditions for the general design of allocation mechanisms that decentralize Pareto optimal decisions in Arrow-Hahn-McKenzie (AHM) economies. An AHM economy is distinguished from the usual Arrow-Debreu private ownership economy since the consumption or production of any commodity may induce externalities, including initially endowed commodities. Because competitive markets will not generally internalize all externalities efficiently, the mechanism design must be generalized to include a rule that computes prices for commodities appearing as initial endowments so as to define consumers' individual budget sets. A natural design criterion for the generalized allocation mechanism is to have agents communicate both price and allocation messages to the center, enlarging the message space relative to that necessary for implementing mechanisms in Arrow-Debreu economies. The larger message spaces give agents increased flexibility, which has two significant consequences: (1) the dominant-strategy property of the Demand-Revealing Mechanism in economies with only public goods, a single pure private good, and quasilinear preferences, is lost unless the center adopts an enforcement structure that suitably restricts the allocation messages that agents may transmit; (2) if an endowed commodity is not a pure private good, then the Demand-Revealing Mechanism loses the dominant-strategy property, regardless of the enforcement structure adopted or of the nature of consumers' preferences, so that the problem is exacerbated in general AHM economies.     

Corporate governance,property and democracy: a conceptual critique of shareholder ideology

Despite the resilience of national institutions and practices there are increasing signs that national systems of corporate governance are giving way to an idealized American model of shareholder activism and liquid equity markets. These pressures are ideologically backed by 'shareholderism', which consists of three claims: a prudential, a functional and a moral claim. The prudential one claims superior efficiency for shareholder control and market allocation of capital. The functional one bases its claim for shareholder control on the contribution of risk-carrying capital. The moral one is based on a liberal doctrine of ownership that grounds exclusive control rights in title-holders. This paper addresses the functional and moral claims. It argues that public equity markets do not contribute capital and that the Lockean conception of property is both untenable and morally reprehensible. Instead corporate democracy is proposed as a way to accommodate the conflicting claims of stakeholders. To do so an intelligent division of democratic labour is required. The paper ends with a sketch of such a model, through short outings to the real world of Dutch corporate governance.     

The Other Side of the Coin: NGOs,Rights‐Based Approaches,and Public Administration

The majority of the world's population resides in low‐ and middle‐income countries, where the problem of sustainable development is among the most pressing public administration challenges. As principal actors within the international development community, transnational nongovernmental organizations (NGOs) play a leading role in piloting a wide variety of development‐focused strategies. During the past decade, many of these transnational NGOs, along with the United Nations, have embraced a rights‐based approach (RBA) to development as an alternative to traditional service delivery. Despite the growing popularity of RBA among NGOs and other development actors, surprisingly little attention has been paid to understanding the significance of RBA for public administration and for public managers—the “other side of the coin.” Drawing on current research in NGO studies and international development, this article describes several varieties of contemporary rights‐based approaches, analyzes their impact on development practices, and examines the intersection of RBA and public administration.     

A comparative study of Twitter utilization in disaster management between public and private organizations

Twitter has become a commonly used platform by both public and private organizations to assist with the dissemination of information related to disaster management. This research makes use of a mixed‐method approach in determining the extent and manner in which Twitter is used to disseminate disaster management information by both public and private organizations. This research found that public organizations are bound by strict regulations resulting in a lower volume and smaller variety of disaster‐related information being disseminated. The nature of an organization and the processes of decision making therein are suggested to influence the ability of an organization to successfully use Twitter as an effective tool for disaster management. Organizations in Thailand currently underutilize Twitter for disaster management, as neither public nor private organizations use Twitter as a multidirectional communication disaster management tool.     

Lawnscape: semiotics of space,spectacle, and ownership

While seemingly straightforward, the boundaries of ownership can be confusing. Take the front lawn, for instance. Some local ordinances prohibit such things as parking on one's front lawn or displaying celebratory storks, “For Sale” signs, or political displays out of concern for the neighbours. However, what happens when the front lawn is taken over by an unstoppable lava flow? On the Big Island of Hawai'i, countless front lawns are now vast expanses of hardened black lava. These lawns exist now under changed jurisdiction as legal spaces. No longer are these lava-ed lawns now simply purely private property as state authorities now control the area. On front lawns with or without lava, the notion of ownership is confused by two competing rights: the rights of those who inhabit the property versus the rights of those who view the property. Here, the context of rights expands traditional claims and lines of ownership according to the activity of spectaclizing. This paper will examine the tension of ownership and pursuant competing rights that challenge the construction of traditional boundaries and their enforcement within the framework of the semiotics of space. In this paper, the semiotics of space found in front lawns challenges the standard faculties of law to remedy conflicting rights.     

Public Allocation by Private Organizations: The Case of Finland*

Research on government-group relations has primarily concentrated on policy stages related to agenda-building, consultation and negotiation. However, interest organizations also play an increasingly important role in the final stage of allocation as they have in several instances been entrusted with the execution of state authority. This is especially true in the field of so-called indirect public administration. The paper reviews various forms of public allocation by private organizations in Finland and presents some empirical data indicating the growth of this form of allocation.