BETTER REGULATION IN EUROPE: BETWEEN PUBLIC MANAGEMENT AND REGULATORY REFORM

Can the European regulatory state be managed? The European Union (EU) and its member states have looked at better regulation as a possible answer to this difficult question. This emerging public policy presents challenges to scholars of public management and administrative reforms, but also opportunities. In this conceptual article, we start from the problems created by the value‐laden discourse used by policy‐makers in this area, and provide a definition and a framework that are suitable for empirical/explanatory research. We then show how public administration scholars could usefully bring better regulation into their research agendas. To be more specific, we situate better regulation in the context of the academic debates on the New Public Management, the political control of bureaucracies, evidence‐based policy, and the regulatory state in Europe.     

Regions and regionalism in the european community

Regionalism and European integration are two forces which are modifying the nation state. They are in contradictory in some respects but complementary in others. Their combined effects raise a number of policy and institutional issues. A new triangular relationship is emerging, among the Community, states and regions. Most links between regions and the Community pass through national governments but both regions and the Commission are seeking direct links. The Community's structural funds have become an object of contention among the three levels. Both regional development and European integration have ceased to be matters regulated at elite level in a technocratic manner and become highly politicised and contentious. In the new Europe, the differing capacities of regions to project themselves within states and the Community is likely to enhance the trend to a variable geometry Europe.     

Regulation Inside Government: Public Interest Justifications and Regulatory Failures

Regulation is normally thought of as government regulation of the private sector, particularly business. However, there is a developing literature on regulation inside government, exploring the ways in which government regulates itself through a range of bodies which set standards for public sector organizations, monitor them and seek to bring about compliance with those standards. Reading across economic theories of business regulation to regulation inside government, this article suggests that the current wave of reform inside the UK public sector implicitly reflects a public interest view of regulation. However, the analogous public interest justification for the regulation of business has been heavily criticized and regulatory failures have been suggested including regulation in the interest of regulated bodies, regulation in the interest of regulators and the high costs of operating regulatory systems.     

SELF‐REGULATION WITHIN THE REGULATORY STATE: TOWARDS A NEW REGULATORY PARADIGM?

An emerging feature of the modern regulatory state in Britain and elsewhere is the promotion of self‐regulation. This paper examines the relationship between the state and self‐regulation in the context of the challenge of meeting public interest objectives. It draws on research on the policy and practice of self‐regulation in recent years in Britain. The paper argues that the institutions, processes and mechanisms of the modern regulatory state and the ‘better regulation’ agenda in Britain, notably those that aim to foster transparency and accountability, can assist in the achievement of public interest objectives in self‐regulatory schemes. We conclude that a ‘new regulatory paradigm’ can be put forward which involves a form of regulatory ‘subsidiarity’, whereby the achievement of regulatory outcomes can be delegated downwards to the regulated organizations and self‐regulatory bodies while being offset by increasing public regulatory oversight based on systems of accountability and transparency.     

Regulating lobbying through voluntary transparency clubs: The connoisseurs’ assessment. Evidence from the European Union

Regulating private actors’ participation in policy‐making is key to democratic governance. Across political systems, targeted transparency is used to regulate lobbying activities. We examine the extent to which primary regulatory targets (organizations with frequent access to policy‐makers) support the architecture of lobbying regulation regimes set up as voluntary transparency clubs. Our empirical testing ground is the European Union. We conceptualize the EU Transparency Register as a Voluntary Transparency Club, elaborate on its club goods, and derive a set of theoretical expectations about its members’ evaluations of the club's transparency standards, membership size, and monitoring and enforcement mechanisms. We find significant differences between members’ and non‐members’ assessment regarding the regulatory performance of this transparency club. Members with frequent access to executive policy‐makers criticize the club's transparency standards and do not consider the Register a useful regulatory instrument. Yet, they support expanding its regulatory remit and increasing the club membership.     

Beyond social regulation? New instruments and/or a new agenda for social policy at Lisbon?

The consistent failure to match EU market integration with social policies provoked the development of new modes of European governance for welfare provision in the early 1990s. Based on policy co-ordination rather than integration, these new governance modes were consolidated as the 'Open Method of Co-ordination' (OMC) at the Lisbon Summit in 2000. This article analyses the scope and limits of the OMC, locating it in the context of broader trends and tendencies in governance and social provision. Indeed, the perceived 'success' of the OMC may reflect a deeper trend in social policy across western Europe and beyond, towards 'active' welfare policies. In many ways the OMC is consistent with the influential 'regulatory state' vision of the EU. Yet by 'activating' welfare the OMC may challenge market liberal theories of European economic regulation. The first seeks to integrate economic and social policies while the latter is premised on their separation.     

INDEPENDENT REGULATORY BODIES AND IMPOSSIBLE JOBS: THE FAILURE OF GERMAN PUBLIC SERVICE BROADCASTING REGULATION

This case study takes the rise and fall of licence fee indexation within German public service regulation as an example and traces mechanisms of re‐politicization of independent regulatory agencies (IRAs). According to the evidence, agency contestation is likely when: (1) administrative cultures result in incoherencies in institutional design; (2) IRAs deal with redistribution; (3) conflicts about principles of regulation persist; (4) IRAs pursue one particular regulatory ideology; (5) controversial regulatory output is highly visible; and (6) affected interests are not given a say. The article points to the relevance of new regulatory technologies that are likely to embody regulatory bias. Moreover, it seems that successful contestation of IRAs requires the conjunction of escalating factors. Nevertheless, such contestation might not result in a return to old modes of command and control.     

THE GOVERNANCE OF FINANCIAL REGULATORY REFORM: THE AUSTRALIAN EXPERIENCE

The dominant perspective in the literature linking governance, globalization and public policy argues that globalization undercuts state capacity, weakening a government's ability to effectively regulate its domestic affairs. This paper shows otherwise with special reference to the Australian experience in financial regulation. It challenges the conventional wisdom that the Australian state is weak and cannot adopt anticipatory industrial policies. This paper argues that the adoption of the ‘twin peaks' model of financial regulatory arrangements is an example of the existence of government‐led steering in Australia which can adopt a proactive approach to financial regulation by steering and coordinating policy networks. ‘Governance through hierarchy’ in the financial services industry may be a function of the government's political entrepreneurship; its skill in setting and implementing an agenda; and an ability to create new policy communities and networks.     

Weberian Public Administration Versus New Public Management in Eastern Europe: The Case of Romania

As a recent member of the European Union (EU), Romania aligned its public policies to Westernized models of civil service reform. This article critically analyzes the impact of Human Resource Management (HRM) models as compared to a Weberian Easternized public administration culture, which continues to display strong hierarchical relationships, rather than the “networked” governance favored by some Western European countries.

The focus will be on the development of HRM policies and practices, taking as a set of case studies Romanian central government organizations. The key problem to be addressed is to understand why such organizations remain locked in ineffective systems of personnel administration. Yet, Romania, along with other Eastern European states, has been exposed to international reform movements in public management through policy transfer. The article will look for evidence of New Public Management (NPM)-type practices, in addition to HRM.

Moreover, the countries of Eastern Europe are far from homogeneous, and so an understanding of both the institutional and cultural context is crucial to ascertain the acceptability of NPM. In the case of Romania, this article considers HRM developments in a multi-culturally influenced state, which has also experienced Socialist regimes. However, policy innovations have started to appear, not only as a consequence of the international diffusion of “good practice” and “policy learning, ” but also stemming from the demands of European directives. Thus, the aim of this article will be to assess the role of policy learning in relation to HR reform in the public service.     

The Discursive Resistance to EU-Enticement: The Russian Elite and (the Lack of) Europeanisation

This article explores the discourse of the Russian elite on foreign policy in general and on the European Union in particular, and identifies the main reasons for Russia's resistance to Europeanisation. At a theoretical level, the article builds upon the study of discourse conceived in ‘structural’ terms, and argues that discursive incompatibility at a deeper discursive level prevents the socialisation of elite members to attitudes more sympathetic to Europe at a more superficial level. Methodologically, the research is based on content analysis of major Russian foreign policy documents, presidential speeches and, in particular, of a set of interviews with Russian foreign policy-makers and academics most frequently in touch with the European Union.     

POWER LEARNING OR PATH DEPENDENCY? INVESTIGATING THE ROOTS OF THE EUROPEAN FOOD SAFETY AUTHORITY

A key motive for establishing the European Food Safety Authority (EFSA) was restoring public confidence in the wake of multiplying food scares and the BSE crisis. Scholars, however, have paid little attention to the actual political and institutional logics that shaped this new organization. This article explores the dynamics underpinning the making of EFSA. We examine the way in which learning and power shaped its organizational architecture. It is demonstrated that the lessons drawn from the past and other models converged on the need to delegate authority to an external agency, but diverged on its mandate, concretely whether or not EFSA should assume risk management responsibilities. In this situation of competitive learning, power and procedural politics conditioned the mandate granted to EFSA. The European Commission, the European Parliament and the European Council shared a common interest in preventing the delegation of regulatory powers to an independent EU agency in food safety policy.     

CENTRALIZATION, DECENTRALIZATION AND THE EUROPEAN UNION: THE DYNAMICS OF TRIADIC RELATIONSHIPS

The accession of the UK into the European Community in 1973 and the growth in power and competence of European institutions in subsequent years prompts a rethink of relationships between central and local governance. Rather than a dyadic process between two sets of bodies, the new triadic system is based on varying interactions between the three groups of actors at each level. The article develops six possible scenarios of new relationships which can be simplified into centralization, no change or decentralization. To appraise the nature of the changes, the article examines the operation of the European Regional Development Fund, the additionality controversy, lobbying over the 1994 reform of the structural funds and aspects of environmental regulation. Rather than one scenario dominating, the findings show several types of new relationships emerging.     

Central banks under stress: Reputation,accountability and regulatory coherence

This symposium homes in on an area of public administration that has been through a period of significant change in the last ten years. Since the global financial crisis, central banks have expanded their operations in financial markets, buying up vast quantities of assets as part of expansive monetary policy strategies. They have also played a leading role in the reform of financial regulation and have been entrusted with enhanced authority to supervise financial institutions. This activity has taken place amid heightened political contestation, with central banks increasingly viewed as the quintessence of a technocratic mode of governance that eschews traditional democratic control. The purpose of this symposium is to consider how central banks’ reputation, accountability and regulatory roles have changed since the financial crisis, and what those changes tell us about the balance of power between independent regulatory agencies and elected policy‐makers.     

The world's trading system in the post cold war era: implications for public administration

The authors of this article argue that the world is evolving into a regional bloc trading system with important public policy implications. Recent developments in North America and Europe suggest that regional integration is becoming an alternative approach to the multilateral trade deliberations under the auspices of the General Agreements on Tariffs and Trade (GATT). The reasons for the evolution are suggested in this article, and arguments are presented on how the negative implications of this trend in world trade can be countered effectively by constructive domestic and international government action.     

NUDGING,SHOVING, AND BUDGING: BEHAVIOURAL ECONOMIC‐INFORMED POLICY

In recent years, behavioural economics has gained considerable traction in the policy discourse, with a particular conceptual framework called libertarian paternalism, which informs nudge policy, dominating. Libertarian paternalism requires policies to protect individual liberty, to be focused specifically upon improving the welfare of those towards whom the intervention is targeted, and to be informed by the findings of behavioural economics. In practice, however, many of the interventions that are being advocated as nudges do not meet all of these criteria. Moreover, libertarian paternalism is not the only framework in which behavioural economics can inform policy. Coercive paternalism and behavioural regulation, frameworks that respectively underpin shove and budge policies, both use behavioural economics to inform public policy, and both face their own set of limitations. This article attempts to bring a degree of intellectual clarity to the potentially important contribution that behavioural economics can make to public policy.     

‘Selective Affinities’: The Reactions of the Council of Europe and the European Union to the Second Armed Conflict in Chechnya (1999 – 2006)

This article aims to compare how the main bodies of the European Union and the Council of Europe reacted to the issues raised by the armed conflict in Chechnya: human rights violations; the necessity (or otherwise) of political negotiations between the Chechens and the Russians; and Chechen terrorism. While the requests for political negotiations were quickly dropped by nearly all organs of the Council of Europe (CoE) and European Union (EU), the issue of human rights abuses uncovered a chasm between the legislative and decision-making bodies. The terrorist acts had no impact on either the EU's or the CoE's definition of the conflict in Chechnya, but they did influence EU policy. In sum, this comparison suggests the presence of ‘selective affinities’ between the CoE and EU bodies depending on the issue involved.     

Municipal Activism on Irregular Migrants: The Framing of Inclusive Approaches at the Local Level

Abstract

This article explores the ways in which city policymakers in Europe frame the reasons for provision of welfare services to migrants with irregular status. In the context of restrictive national legal and policy frameworks, the article explores a tendency toward municipal activism in extending access to services, providing a typology of six policy frames used by policy makers that identify the intended beneficiaries and stated policy aims. Drawing on interviews with local policymakers and documentary sources, the article contributes to our understanding of the reasons why some European cities provide services to this particular section of the migrant population.     

Hypocrisy as a crisis response? Assessing changes in talk,decisions, and actions of the European Commission in EU environmental policy

In this article, we assess the changing role of the European Commission in EU environmental policy. In line with organizational theory, we expect organizational hypocrisy, namely a decoupling of talk, decisions, and actions, to characterize the Commission's behaviour in the aftermath of the financial and economic crisis. We analyse the extent to which the Commission (1) promotes environmental matters and concepts in press releases and public statements; (2) proposes new and stricter environmental policy changes; and (3) takes action against member states in cases of non-compliance between the years 2000 and 2016. Our empirical analysis reveals that the Commission has indeed moved towards a pattern of hypocritical policy entrepreneurship in the post-crisis period. We argue that the decoupling of talk, decision, and action allows the European Commission to keep up its reputation as an environmental policy entrepreneur while, at the same, satisfying member states’ preference for economic recovery and less environmental regulation.     

Performance regulation in a networked healthcare system: From cosmetic to institutionalized compliance

This article studies the role of a public regulator in managing the performance of healthcare professionals. It combines a networked governance perspective with responsive regulation theory to show the mechanisms that have added to significant changes in medical cost management in the Netherlands. In a five-year period, hospital practices transitioned from cosmetic compliance with performance regulation and strategic upcoding to institutionalized compliance more in line with regulatory goals. The article demonstrates how policy changes transformed incentive structures, introduced new forms of accountability, and added actors to the network with technocratic disciplining tasks. The networked character of performance regulation offered opportunities for a responsive, non-coercive regulatory strategy that engaged various actors in a regulatory conversation about strategic coding. Responsive regulation can reduce strategic responses to performance regulation and manage the gap between administrative and clinical logics. The case study contributes to our understanding of the effectiveness of responsive, non-punitive regulation in networked settings.     

Constituting 'the public' in public participation

The emphasis on public participation in contemporary policy discourse has prompted the development of a wide range of forums within which dialogue takes place between citizens and officials. Often such initiatives are intended to contribute to objectives relating to social exclusion and democratic renewal. The question of ‘who takes part’ within such forums is, then, critical to an understanding of how far new types of forums can contribute to the delivery of such objectives. This article draws on early findings of research conducted as part of the ESRC Democracy and Participation Programme. It addresses three questions: ‘How do public bodies define or constitute the public that they wish to engage in dialogue?’; ‘What notions of representation or representativeness do participants and public officials bring to the idea of legitimate membership of such forums?’; and ‘How do deliberative forums contribute to, or help ameliorate, processes of social inclusion and exclusion?’