Hardening Budget Constraints: A Cross-National Study of Fiscal Sustainability and Subnational Debt

This study explores the financial sustainability of subnational governments in four different countries. Scholars argue that subnational fiscal capacity helps local governments deliver better public services and provide public goods, which in turn helps to promote economic growth. While administrative control by the central governments contributes to reducing moral hazard from the soft budget constraints, bottom-up strategies to manage fiscal profligacy also need attention. The study first provides understanding about the characteristics of central-local governance and management of subnational government debt of each country. Then, we test our hypotheses regarding local fiscal capacity and administrative control, including political-economic factors that may affect debt spending by local governments. Our findings show that subnational fiscal sustainability improves when the central governments have clear rules to intergovernmental transfers in place and more (market) liberal policies, meanwhile when subnational governments have a more fiscal capacity and less intergovernmental transfers they are able to manage their debt more soundly.     

Risk Factors and Drivers of Financial Sustainability in Local Government: An Empirical Study

The current international crisis in public finances has made financial sustainability a key issue for governments. Although the European Union (EU) and other international organisations have recommended governments to monitor demographic and economic variables, few studies have considered the influence of these variables on financial sustainability. This paper seeks to identify and analyse the drivers and risk factors that influence the financial sustainability of local government. The findings identify both risk factors (unemployment and population aged under 16 years) and drivers (budgetary outcome) of financial sustainability, which may constitute a useful basis for decision-taking by managers and policy-makers.     

Collaborative leadership and financial sustainability in local government

This research examines whether collaborative leadership significantly influences the financial sustainability of local government. Unlike other studies on financial sustainability, ours examined collaborative leadership’s effect on both subjective and objective financial sustainability by controlling for socio-demographic and economic factors (i.e., population size, population density, population aged over 65 years, unemployment rate, and gross domestic regional product) that influence the financial sustainability of local government. Ordinary least squares (OLS) regression analysis of data collected from local revenue officers as well as secondary data from local governments in South Korea revealed that collaborative leadership has a positive effect on the subjective perception of financial sustainability and a negative effect on the objective financial sustainability (net debt) of local government. These findings underscore the necessity of collaborative leadership for financial sustainability as well as the strategies needed for its development in local government.     

What Drives For-Profit and Nonprofit Organizations’ Entry into Voucher Markets?

This study investigates a social service voucher program in Korea to examine why local governments rely on external actors, such as for-profit and nonprofit organizations, in provisioning social services and what encourages such market entry in view of the transaction cost theory. The social service voucher program, first introduced in 2007, offers a unique dataset of 1,101 local markets to examine how local governments are willing to stay in control of provisioning the nationwide program while promoting private actor entry. This study finds that local governments with lower fiscal capacities or in markets in which multiple existing organizations operate are more motivated to foster for-profit entry, whereas only existing nonprofit organizations in the market that provide the same services predict nonprofit entry. The implication is that the facilitation of for-profit entry is associated with local governments’ need to manage transaction costs, although this may not be true for nonprofit entry.     

Balance Between Local Economic Development and Environmental Sustainability: A Multi-level Governance Perspective

This study seeks to explain why U.S. local governments utilize environmental sustainability to promote economic development. Economic development and environmental protection need not be competing objectives, but rather, environmental protection can enhance local economic competitiveness. Using data from the ICMA Economic Development Survey, this study tests an empirical model that includes state sustainability initiatives, participation in climate protection networks, and political attitudes toward economic development as predictors of local policy decisions. The findings reinforce a multi-level governance perspective on explaining the balance cities seek to achieve between environmental protection and economic growth.     

The role of local government in rural communities: culture-based development strategies

ABSTRACT

This paper discusses local development and various governance strategies that local governments can use to engage actors in rural communities and resources from a broader environment to achieve desired socio-economic outcomes. We ask: How can local governance vary in rural communities? How can governance arrangements lead to contrasting socio-economic outcomes? Our conceptual framework combines a typology of local governance roles with socio-economic outcomes associated with neo-endogenous development theory. We explore culture-based development projects from three rural communities. We find that local governance strategies vary between relatively similar rural communities and that they represent compromises in terms of socio-economic outcomes. Local government in rural communities can act strategically through use of local networks. Local governance here is best understood as an emergent quality of the local context, history, institutions, culture, and, power relations. Therefore, governance strategies in rural contexts should be based on careful reflection on potential roles, trade-offs and desirable outcomes.     

Does the Gown Help the Town? Examining Town–Gown Relationship Influence on Local Environmental Sustainability in the United States

A US municipality environmental sustainability index, the OSSPI (Opp-Saunders Sustainability Practices Index), found an overwhelming percentage of top-ranked sustainable cities were home to higher education institutions. While this may be a coincidence, this research seeks to determine if and how local communities partner or collaborate with higher education institutions for environmental sustainability purposes. The results of two case studies, San Antonio, Texas and Dubuque, Iowa, suggest there is considerable variability in the town-gown relationships. However, it is found that larger, public universities are more likely to have stronger relationships and effects on local sustainability efforts.     

War-torn countries,natural resources,emerging-power investors and the UN development system

The unsustainable aid dependency of war-torn countries – most of which are rich in natural resources – makes it imperative to start gradually replacing aid with foreign direct investment (fdi) and exports. This article identifies ways in which stakeholders – governments, the international community, including the UN development system, foreign investors, and local communities – could work together in a ‘win-win’ situation. Most crucial is avoiding conflict-insensitive policies that fuel discord by putting governments and foreign companies, often from emerging markets, in direct confrontation with local communities. The control of natural resources is often a root cause of conflict, and the latter’s exploitation can become a major challenge as wars end. The peculiarities of war-torn countries are discussed along with the specific impediments to attracting fdi into the exploitation of natural resources. An effective and fair legal framework is necessary to ensure that investors do not operate as ‘enclaves’, creating new conflicts.     

Local Government Public Servants Performance and Citizens Participation in Governance in Nigeria

Abstract

This paper examines the performance of public administrators at the local government level in Nigeria. It traces the development of local governments in Nigeria from 1945 to present times. It argues that the shift in the critical decision‐making powers and functions of local government requires its public administrators to be better‐trained professionals. However, without citizens' participation in governance, public servants' accountability will be low. The study addresses the following questions: How do public sector performance and development of actions by citizens affect accountability in the local governments? How much training do public administrators in Nigeria's local governments have in public management? What is the relationship between performance and citizenship participation in local governments' development process? The question of interests in this study is how public administration at the local government level can better serve Nigeria's communities and in so doing develop authentic relationship with citizen groups, and equitably enhance public trust, legitimacy, and performance of the public sector in the nation.     

Evaluating the Effectiveness of Public Procurement Performance Management Systems in Local Governments

Increasing the effectiveness, efficiency, and compliance of public procurement (PP) has become an ongoing concern for governments. Public administrations at different levels are realising that – in order for PP to fulfil its mission – appropriate control and diagnostic systems must be put in place. This study aims to investigate the architecture of PP performance measurement systems (PP-PMSs) in local governments, drawing on four case studies from Italy and four from Wales. The theoretical background is provided by the emerging literature on procurement PMSs in the private context as well as the specific literature on the public sector. PP-PMSs are specifically analysed with respect to performance areas covered (i.e., cost, quality, time, compliance, innovation, sustainability). Results show that performance dimensions should be extended beyond traditional cost measures, with KPIs not limited to those imposed by national/regional regulation. Furthermore, we show that this is likely to happen where the procurement function is recognised as strategic in the public institution.     

Improved budgeting and financial management as a tool for enhancing the performance of local government in developing countries

Rapid economic and social changes in developing countries are impacting on their governments' ability to manage those changes, and local governments in these countries are becoming the core of decentralization experiments. This article examines the problems local governments face in meeting the challenges of rapid transformation and change. This paper suggests that budgeting be used as a means for strengthening local governments' abilities to deal with such changes. Until now, budgeting has not been used as a key intervention tool for strengthening local governments. A working model to assess the state of financial and related management conditions of local governments is provided. This model can serve as a useful point of reference for change agents involved in the strengthening of local governments.     

Can the cultural environment affect governmental transparency on sustainability? Useful measures for policy makers and practitioners

The aim of this study is to provide useful knowledge to policy makers and practitioners on how to promote the practices of sustainability transparency in local governments, based on the influence of the cultural environment on the disclosure of governmental information on sustainability, including social, environmental and economic information. We perform a comparative analysis of the effects of four types of variables (demographic, sociological, economic and financial) on the disclosure of information on sustainability in two different contexts: Anglo-Saxon and Nordic administrative cultures. Our results show that the factors of the administrative culture context do influence practices of transparency on governmental sustainability. In the Anglo-Saxon environment, the explanatory variables are population size, dependent population and education level. For the Nordic area countries, the main variables are unemployment, dependent population, financial autonomy and debt per capita. Taking into account the study results obtained, we propose measures to facilitate the dissemination of sustainability information in each cultural environment.     

Enhancing sustainable development in Sub-Saharan Africa: concepts,recommendations and illustrations

In recent years, the concept of sustainable development has received renewed attention. As global resources shrink and needs continue to grow, the staying power of development impact is becoming central concern of both governments and donors. Recent studies have shown that only a small percentage of projects throughout the world have achieved sustainability, and the need for improving the long-term vitality of development investments is growing. No area in the world has shown more need of this than Africa. This paper outlines a conceptual approach for analyzing sustainability and synthesizes the lessons learned from the application of this model in recent field work. The model is based on the theory that two preconditions must exist before sustainability can occur: 1 ) commitment to long term sustainable development; and 2) beneficiary and stakeholder involvement via incentives which support achieving sustainability . Fieldwork-based recommendations to enhance sustainability include: 1) understand the long-term incentive structure that drives the project; 2) identify performance targets and communicate results early-on; 3) identify long-term recurrent costs and funding options; 4) build in flexibility to the project plan; 5) build-in ways for participants to support and “take ownership” of the project; 6) use local resources, both human and physical, and keep technologies simple; and 7) use marketing strategies to reinforce perceived, satisfactory benefits of the project. Case examples of successful African projects from West Africa, Burkina Faso and Kenya illustrate the application of the sustainability concepts. In the context of these illustrations, the sustainability framework appears useful for understanding and analyzing sustainability and provides a necessary addition to thinking about development projects and programs.     

Under What Conditions Can Local Government Nurture Indigenous People’s Democratic Practice? A Case Study of Two Ho Village Assemblies in Jharkhand

This paper asks whether and under what conditions participatory local government can best nurture indigenous peoples’ democratic practice. Based on fieldwork in two similar Ho communities in the Indian state Jharkhand, we show that their village assemblies function differently with regard to meetings, wood access regulation, development projects, and participation. Neither prevents exclusion and co- option. This supports the argument that while local governments can hardly challenge existing power structures, they can under certain conditions nurture democratic practice and democratisation. Our study indicates that high literacy, social cohesion, active state support, and proactive leadership are conditions under which this best happens.     

Revitalizing Local Government Performance Management: Further Dissecting the Role of Socioeconomic Status and Social Mobilization Policy

ABSTRACT

This article examines how socio-economic status and social mobilisation are linked to local government performance management in Nepal. As part of local government reform, Nepal adopted a social mobilisation policy in selected local governments to empower communities for their effective participation. Our results show that socio-economic status and social mobilisation have a significant relationship with performance management. Female literacy, for example, is strongly and significantly associated with performance management, while area has a significant positive relationship but population has only a weak positive relationship. In contrast, poverty has a significant negative correlation. More importantly, mobilisation has a significant, though modest, positive association with performance management particularly in participatory planning and budgeting, fiscal discipline, and administrative management. This indicates that improving the socio-economic status of citizens and their mobilisation for empowered collective action can be one important strategy to improve the performance capacity of local government.     

Local government revenue policies in new Mexico

This examination of the revenue patterns of local governments in New Mexico finds that communities with the greatest social needs for public services-- small population rural areas, less affluent communities, and rapidly growing districts-- are precisely those that have the weakest revenue bases. Moreover, none of these types of disadvantaged jurisdictions receives above-average redistributive assistance from the federal government.Variations in revenue effort, especially among municipalities, exacerbate this problem because certain communities gain huge revenue windfalls which bear little relationship to either their social needs or taxing efforts but stem, rather, from fortuitous geographic positions. This advantage works its way through the entire revenue system, directly because state transfers are linked to place of collection and indirectly because of the overwhelming effect of revenue effort on revenue sharing allocations in the state. The local revenue system in New Mexico, therefore, works against the communities that have the greatest need for government services. Most of these inequities, however, do not appear to be the explicit goal of economic or political policy. Instead, they are the unintended consequences of a supposedly “neutral” allocation formula. This state of affairs certainly argues for policymakers paying more attention to the actual results of their policies.     

Social Capital and the Number of Governments within a County: A Potential Problem with Social Capital

Social capital has been demonstrated to be a benefit to a community in a variety of ways. However, researchers have begun to point out that social capital does have a downside. Communities that use bonding social capital to mobilise residents to action have the potential to exclude outsiders from their communities. The number of governments in a county could be used as an indicator of bonding social capital within a region. Residents use their local government to create and pass laws that have the potential to exclude others. The current analysis used the number of governments as a proxy for bonding social capital. Findings demonstrate that as the level of bonding social capital (the number of governments) increased the social capital in the county increased. Residents use their bonding social capital to respond to others, which then increases the level of social capital to be able to mobilise in the future.     

What Encourages Cities to Become Sustainable? Measuring the Effectiveness of Implementing Local Adaptation Policies

This research seeks to understand which essential characteristics are necessary to drive municipal governments to adopt smart growth measures. By testing previously expected outcomes for why a local government would adopt a particular policy, we find an inherent need to create strong needs-based policies promoted by interest groups. We conducted a principal component analysis and a linear regression model to test several hypotheses. A discussion of this analysis is provided along with policy recommendations to explain why and when metropolitan areas use sustainability plans and how to encourage more to do so.     

Local government’s disaster management capacity and disaster resilience

ABSTRACT

The questions in this research are as follows: How does the disaster management capacity of local governments affect the disaster resilience of local communities? The research distinguished local communities by type according to their level of exposure to natural disaster hazards and the analysis compared the impact of the disaster management capabilities on disaster resilience by the type of natural disaster exposure. The analysis results are as follows: While the frequency of disasters local communities experience is low, the magnitude of disasters experienced is large; external network and manual had a positive effect on disaster resilience. When disaster frequency experienced by local communities is high, the magnitude of disasters experienced is small, and internal network and public relation contribute to increased disaster resilience. In conclusion, this research will help expand the externalities of disaster management discussed in the fields of public administration and policy.