Institutions and Economic Performance: The Use and Abuse of Culture in New Institutional Economics

Important research programs within New Institutional Economics advance culturalist arguments to explain failures of economic development. Focusing on the work of Douglass C. North and Avner Greif, this article argues that such arguments rely on an essentialist conception of culture that is both historically inaccurate and analytically misleading. Greif’s work in particular rests on a selective use of empirical data that ultimately distorts the deductive models that are at the core of his work. As a result, both scholars use culture to account for outcomes that are more adequately explained as the product of social conflict and political struggles—struggles in which culture plays a far more contingent and destabilizing role than the one they attribute to it. What is needed, I argue, is to link arguments about the persistence of inefficient institutions with a sociologically informed conception of culture as an ensemble of resources that enhance rather than constrain the scope of individual agency. To come to terms with the effects of culture on institutional formation and change it is necessary to replace the essentialism articulated by North and Greif with a strategic-instrumentalist view in which culture is compatible with a wide spectrum of economic behaviors, individual actions, and thus institutional trajectories.

国际制度竞争、利益分配与国际秩序转型

国际秩序转型的动力、过程和方向是政策界与理论界关注的核心议题。历史上的国际秩序转型通常以暴力方式实现,旧的秩序被完全推翻,获胜大国及其集团围绕自身利益建立一套新的秩序安排。在当今时代,暴力方式难以为继,新兴大国只能通过一些相对和平的手段改变既有利益分配格局,以此推动秩序的渐进调整。进入21世纪以来,国际制度竞争成为国际秩序转型的核心动力,崛起国寻求提升在制度体系内的物质利益和规则主导权,守成国则试图利用制度体系内的优势地位维护既得利益。崛起国的制度竞争策略包括改革既有制度、创建新的包容守成国的制度和排斥守成国的制度,守成国针对崛起国的行动而制定相应的反制策略。双方的制度竞争通过改变既有利益分配的不同维度来决定国际秩序的转型模式。当前,中国通过改革既有制度和创建新的包容守成国的制度实现了物质利益和规则主导权的提升,中美两国在国际制度领域的持续互动将决定未来国际秩序转型的进程。     

International Collaboration in Local Government Leadership Development: Insights Gained from a U.S. and Ireland Partnership

There is great value in international partnerships when developing leadership potential in local government. This article focuses on the lessons-learned from three innovative annual joint collaboration efforts under the auspices of the Institute of Public Administration (IPA) in Ireland and DePaul University (Chicago). The purpose was to provide an “outside in” perspective of how local government works in different countries. This was illustrated by a recent series of collaborative programs to develop 59 senior individuals in local authorities throughout Ireland. Approaches used included shadowing local government officials, collaborations with community partners, and benchmarking meetings with officials to learn about innovative projects.     

Institutional and Economic Factors Affecting the Adoption of International Public Sector Accounting Standards

This article investigates the environmental factors associated with countries’ decision to adopt International Public Sector Accounting Standards (IPSAS). Based on a sample of 110 countries, the results reveal a positive influence of external public funding (coercive isomorphic pressure), the degree of external openness (mimetic isomorphic pressure), and public sector organizations’ importance on IPSAS adoption. They show a negative effect of the availability of local GAAP on this decision, whereas education level (normative isomorphic pressure) is a nonsignificant factor.

This research contributes to the international accounting literature in the public sector. The results are relevant to standard-setters, regulators, researchers, international financial organizations, and non-adopting countries.     

Interlocal collaboration and local climate protection

ABSTRACT

The influences of state government have been curiously absent from most studies of collaboration among cities. Extant research on city collaboration which promotes on climate and environmental sustainability issues focuses primarily on local-level institutions, politics, and processes. Thus, the role of states to constrain or facilitate collaboration among local governments needs to be more fully accounted for. Building on transaction cost and institutional collective action theory and drawing on data from a national survey of US cities, we investigate the influences of city-level factors together with the hierarchical effects of state rules and policies on the extent to which mechanisms for interlocal collaboration are employed in pursuing climate protection and renewable energy development goals. The results confirm predictions that multilevel intergovernmental forces influence the extent to which cities collaborate. These results have both theoretical and practical implications for understanding interlocal collaborations.     

The Not So Good,the Bad and the Ugly: Over Twelve Years of PPP in Ireland

Public–private partnerships have been adopted extensively in Ireland for over 12 years. This article analyses the practice of PPP procurement at the level of local government. It adopts economic and governance perspectives on PPP which highlight challenges with procurement under PPP such as complexity, uncertainty, hold-up, transparency and accountability. These perspectives provide a basis for an analysis of three cases of PPP procurement. Two cases from the water services sector illuminate problems arising from the complexity of value for money assessment at the ex ante contracting stage. These cases were also characterised by governance problems stemming from central government's role as policy advocate and steward of public funds. The case of PPP to deliver social housing also demonstrated the challenges of procurement under conditions of economic uncertainty and difficulties with achieving appropriate levels of risk transfer. All three cases demonstrate the value of stakeholder consultation in terms of meeting the governance challenges faced when adopting PPP.     

Technology Transfer: A Mode of Collaboration Between the European Union and China

BEING ONE OF THE EUROPEAN UNION'S MAIN TRADING PARTNERS-ranking fourth in terms of both imports and exports expressed in value-China has emerged as an indispensable market for any multinational enterprise willing to avail itself of the opportunities represented by one of the fastest growing economies at the turn of the century. In order to close the technological gap with the developed economies of the world, China launched its open door policy in the late 1970s, the priority of which was to acquire foreign technology, capital, skills and management, as well as to cut dependence on imports. Foreign direct investment (FDI) and collaborative ventures in China, as important channels for technology transfer, have consequently grown massively. Owing to its size and development requirements, the People's Republic of China is one of the largest importers of technology in the world. During the 1950s it used to import technology from the former Soviet Union and from other East European countries. Since the late 1960s the EU and Japan have been the main sources of Chinese technology imports. Today, the EU-15 is China's major supplier of advanced technology and equipment. The EU represents 43.8% of China's total imports of technology (US$764.4 million), a share which is well ahead of that of Japan (at 25.5%) and of the United States (18.3%).1 These figures need to be appraised against the background of poor EU performance in terms of FDI in China compared with its Japanese and American counterparts. Over the past 15 years total FDI from the EU accounted for less than 5% of total direct investment from overseas firms in China (Qian, 1998). Nevertheless, in the recent past a greater awareness among EU policy makers and businesses of the potential represented by the Chinese market has emerged. The Essen European Council of 1994 endorsed a 'new Asia strategy', which 'called for a higher profile of the EU in Asia' (CEC, 1995, p. 17) and which broadly involves developing a long-term relationship with China. A 'Technology Window' programme was emphasised in the policy, which encourages EU companies to embrace broadly the business opportunities on offer, and to transfer much needed technology to China. This article sees technology transfer (TT) as a practical and strategic means of increased collaboration between the EU and the Chinese economies. Research and studies that have touched on this issue are rare, mainly because the demarcation line between technology transfer and technology imports is blurred. Technology transfer differs from technology imports in conceptual as well as in real terms, as we discuss in this article. It goes along with FDI which requires a full involvement in occupying a new market. After an attempt at defining technology transfer and clarifying the optimal context in which TT can be performed, we shall briefly assess the positive impact of technology transfer from the standpoint of both the transferor and the receiver. We then provide a concise review of Sino-EU relations, with a specific emphasis on technology transfer in two selected industries.     

Multi-party elections in the Arab world: Institutional engineering and oppositional strategies

Recent moves toward multi-party competition for elected legislatures in numerous Arab countries constitute a significant departure from earlier practices there, and create the basis for democratic activists to gradually chip away at persistent authoritarian rule. This article explores the institutional mechanisms by which incumbent authoritarian executives seek to engineer these elections. It documents examples of rulers changing electoral systems to ensure compliant legislatures, and demonstrates the prevalent use of winner-takes-all electoral systems, which generally work to the regimes’ advantage. I then review various strategies of opposition forces—boycotts, non-competition agreements, election monitoring, and struggles over election rules—and the dilemmas that these entail. Surmounting differences in terms of ideologies, as well as short-term political goals and prospects, is a central challenge. The future should see greater electoral participation among opposition activists, along with cleaner elections. As vote coercion and ballot box stuffing is restricted by opposition pressures, electoral institutions will take on greater importance, and struggles for proportional representation are likely to increase. Marsha Pripstein Posusney is associate professor of Political Science at Bryant College and an adjunct associate professor of International Relations (Research) at the Watson Institute for International Studies at Brown University. Her first book,Labor and the State in Egypt: Workers, Unions, and Economic Restructuring (Co-lumbia University Press, 1997) was co-winner of the 1998 Albert Hourani prize, awarded annually by the Middle East Studies Association for outstanding original scholarly work on the Middle East. She is currently completing work on a co-edited volume,Privatization and Labor: Responses and Consequences in Global Perspective (Edward Elgar Publishing, Forthcoming). Earlier versions of this article were presented at Middle East Studies seminars at Harvard and columbia Universities in April, 1998, and at a Brown University Political Science Dept. seminar in April, 1999. In addition to the feedback at these events, I would like to acknowledge helpful comments on earlier versions from Miguel Glatzer, Iliya Harik, John Kerr, Ann Lesch, Vickie Langohr, Rob Richie, Wendy Schiller, Jillian Schwedler, Joe Stork, Greg White, and especially Ellen Lust-Okar and four anonymous reviewers. I am also grateful for the research assistance of Myrna Atalla, Daria Viviano, Laurent Fauque, and Colleen Anderson. The article draws on presentations and discussion at the conference on “Controlled Contestation and Opposition Strategies: Multi-Party Elections in the Arab World”, Brown University, October 2–3, 1998. Sponsored by the Watson Institute for International Studies at Brown in cooperation with the Center for Middle Eastern Studies as Harvard, it brought together ten democratic activists from seven different Arab countries. It is referenced here (to save space) as the “Brown elections conference.”     

Institutional and management building in sub-saharan africa: the role of training

In this essay, I intend to argue that in Mexico public administration as a discipline has not achieved the necessary theoretical cohesion, because rather than understanding and explaining the state, the government and the administrative structure, it has devoted itself to justifying the proposals made from the heights of power. The challenge facing public administration in countries such as Mexico is that of seeking a more specific space for study and creation. I believe this space should result from a deep analysis of the institutional capabilities that must be generated, and from the design and implementation of public, non-governmental policies, with the participation of different, so to make real the transit to democracy. From a brief review of some decisions derived from the political project of the Salinas Administration, I argue that public administration's concerns are absorbed by the issues that are set over them from the summit of power, thereby impeding the necessary distance that scientific proposals should take. This paper includes, therefore, a brief analysis of the issues that, since the governmental relay in December of 1988, have hold the attention of Mexican scholars in this field. The aim is to show that public administration's theoretic-methodological development cannot be solid and long-term as long as public administration studies are forced to justify or do justify the governmental proposals. Finding in public administration a true social science, with the complete theoretic structure social sciences must have, is a concern shared in many academic fields around the world. However, the problem facing the discipline in Mexico might be set forth as that of the “object” of public administration, which makes the concern for the requirement of a scientific character secondary. This does not hide public administration's limitations and conditioning factors, even as a not “heavily” scientific discipline.     

Strengthening local political leadership through institutional design: how and why

ABSTRACT

Over recent decades, the institutions of political leadership have been criticised for being caught up in outdated designs that are not adapting to societal changes. In many western countries, this diagnosis has spurred design reforms aimed at strengthening political leadership at the local level. Based on a study of reforms in Norwegian and Danish municipalities, this article first develops a typology of reforms aimed at strengthening local political leadership. Leadership reforms are categorised into four types aimed at strengthening Executive, Collective, Collaborative, or Distributive political leadership. The typology is used to map the prevalence of the different types of reforms in the two countries. The results show that design reforms as such are more widespread in Danish than in Norwegian municipalities. In particular, reforms aimed at strengthening Distributive political leadership are used more extensively in Denmark than in Norway. The article discusses the contextual differences that may explain this variation.     

Evaluating US soft power in Asia: military,economic and sociopolitical relationships between Asia and the United States

The changing dynamics of international politics such as the expansion of the European Union, the growing importance of Asia, and the post-11 September environment have raised great concern about US soft power all over the world. At the governmental level, transpacific relationships may have encouraged military, economic and sociopolitical collaboration. The Asians' perceptions about US soft power at the individual level, however, may not be consistent with the governmental level. By using the 2003 AsiaBarometer survey, this article examines the factors that contribute to individuals' perceptions about US soft power in seven Asian nations – China, India, Japan, Malaysia, South Korea, Sri Lanka and Thailand. Three main factors – military, economic and sociopolitical – are considered. Higher assistance by the US government engenders positive responses from the respondents. For causal relationships, economic and sociopolitical variables, rather than the military variable, enforce individuals' positive perceptions about US soft power, according to the multilevel estimates.     

Cross-sector collaboration in times of crisis: findings from a study of the Funing tornado in China

ABSTRACT

The recent occurrence of several large-scale crises, such as the Wenchuan and Yaan earthquakes, the Gansu mudslides, the Tianjin port blast, and the Funing tornado, has led decision makers in China to increasingly recognise the need to engage non-government organizations (NGOs) in responding to crises. In this study, we establish a framework to analyse collaboration between government and NGOs during crises. This framework consists of four levels for cross-sector collaboration, and six conditions explaining them. The framework is used to analyse a case study on collaboration between local government and NGOs during the Funing tornado. Collaboration occurred at the information sharing and action coordination levels. We conclude the formal collaboration between government and NGOs in this case was still limited and it was not based on negotiations and interactions. Instead, it was essentially hierarchical and control-oriented. This type of collaboration might have the advantage of responding to crises in an effective way, but it comes at the cost of trust, commitment and reciprocity.     

Corporate Governance of Nonprofit Organizations: Cooperation and Control

Abstract

This article explores the limits of institutional economics regarding the cooperation of boards of directors and executive directors of nonprofit organizations. The normative separation of power between these central actors resulting especially from arguments derived from institutional economics is being reflected using the analytical approach from the resource-based view and empirical evidence based upon group and motivational theory. After analyzing the board’s role and the individual board member’s role within a nonprofit organization, the paper explores the limits to decision-making within governing bodies. The paper shows why a unitary board can improve the quality of decision-making within nonprofit organizations by raising the incentives for the executive director to act as desired. The paper also explores the impact of trust and different types of control upon the key actors within the governance process in order to derive the suitable form of control from that analysis.     

Citizen Participation in German and Spanish Local Governments: A Comparative Study

In recent decades, citizens have become more and more disenchanted with the traditional institutions of representative government, detached from political parties, and disillusioned with old forms of civic engagement and participation. This has favored a renewed interest in citizen engagement and citizen participation and a growing re-emergence in academic and political discourse of ideas and values of community, localism, and citizen participation. This article analyzes the main objectives and the actual implementation of citizen participation initiatives in the local governments of two European Continental countries, Germany and Spain. The aim is to find out the factors that affect the possible decoupling between the objectives and the “real” uses of citizen participation. Our results show that most local governments in these two countries are using citizen participation only to increase the level of perceived legitimacy or to comply minimally with legal requirements, without really taking advantage of citizen participation to enhance decision-making processes. These findings confirm that institutional theory becomes the rationale to explain the implementation of citizen participation in these two European Continental countries.     

Righting the Resource Curse: Institutional Politics and State Capabilities in Edo State,Nigeria

Abstract

The poor record of liberal reforms sponsored by the international community in postcolonial settings underscores the real politik of institutional change. What we call a ‘new normal’ in development policy and practice foregrounds the role of agency – leadership, networks of connectors and convenors, entrepreneurs and activists – but it has less to say about the political and economic conditions of possibility in which agents operate. The putative powers of agency seem most challenged in contexts of extreme resource dependency and the resource curse. The particular case of Edo, a state in the oil rich Niger delta region of Nigeria, illustrates the intersection of agency and structural conditions to show how ‘asymmetric capabilities’ can emerge to create, constrain and make possible particular reform options.     

Upgrading Traditional Technologies in Small-Scale Industry Clusters: Collaboration and Innovation Adoption in Indonesia.

There is by now sufficient evidence that small-scale industry clusters matter in developing countries. This article intends to contribute to the discussion on cluster transformation by focusing on innovation adoption in a roof tile cluster in Indonesia. Clustering allows small-scale enterprises to grow in 'riskable steps' by sharing the costs and risks through collaboration. Using data from longitudinal field surveys we find that technological change is not only a matter of comparing costs and benefits of technologies, but also a matter of access. Collaboration among leaders is crucial in innovation adoption when technological indivisibilities play a role. In our case study it appears that joint action should be viewed as a means to an end only; it was given up in favour of traditional hierarchies in the cluster as soon as possible.     

Local governance and learning: in search of a conceptual framework

This article proposes a conceptual framework explaining the phenomenon of local governance learning. The framework is grounded in organisational learning, institutional theory and in a case study of local governance practices undertaken in the process of public dispute resolution. Our analysis offers an advancement in the knowledge on governance learning by (1) specifying different types of governance learning, which are linked to the structure of learning not to its motivation, (2) linking the micro level of local governance practices with the mezzo level of organisational structures, and with the institutions regulating governance on the macro level and (3) explicating the difference between learning and institutional change. We introduce the category of astonishment, which we treat as a prerequisite of governance learning. It is defined as a cognitive state caused by a disruption of institutionalised patterns of thinking and behaviour deployed by a (public) organisation to deal with a specific (social) problem.