GOVERNANCE AND ECONOMIC DEVELOPMENT: CHANGES AND CHALLENGES

This paper examines the issue of governance in the process of economic development. The paper first provides a literature review on the various arguments regarding the role of government in promoting economic development and the major issues emphasized in recent government reform projects. The paper then focuses on three major policy changes and reforms that are related to the area of governance and economic development: (1) regulatory reform, (2) privatization policy, and (3) decentralization policy. The paper concludes with discussions about the continuing arguments about the role of government, the increasing importance of local governments, and the contribution of nongovernmental or nonprofit organizations in economic development.     

Economic development policy in Taiwan: achievements,challenges, and implications

This study examines Taiwan's economic development experience and identifies major achievements and challenges. The study first provides an overview of the past development record by analyzing several key economic indicators. It then explores major factors contributing to economic development, including general social background and supporting economic conditions as well as government development policy and activities. The paper especially focuses on changes and challenges resulting from the implementation of internationalization and liberalization of economic policy and the introduction of political democratization since the 1980s. The paper concludes with the implications of Taiwan's achievements and challenges.     

Administrative reform in china: Issues and prospects

China's experience of organizational reform is representative of the country's attempts to implement more general administrative reform. Forty years of organizational reform have produced only short-term successes. In the 1988 reforms, however, leaders proposed for the first time to re-define the role of the state in society. In general, the reforms have been undermined by political, economic, and institutional problems. These include conflicting elite priorities, cycles of economic centralization and decentralization, the interdependence of government agencies and economic enterprises, and the lack of incentives to economize. Consequently, the organizational reform management institutions are very weak. Successful implementation of organizational reform in the future depends to a large extent on further economic development.     

Public policy and management issues in Taiwan's development

This symposium examines the experience of Taiwan's development and focuses on the role of government and the importance of public policy and management to the development. The symposium introduction paper consists of three sections addressing the following issues. First, the introduction section offers reasons for studying Taiwan's development experience. The second section provides an overview of the literature related to the relationship between government and economic development. Finally, the last section summarizes the major issues and findings emphasized in each symposium paper.     

Retrospective and perspective on China's administrative reform

To promote China's modernization and development, the post-Mao Chinese leaders have implemented several reform measures that gradually changed the country's traditional cadre system. This study examines the experience of China's post-Mao administrative reform implemented since the late 1970s. First, the study reviews the background and scope of the administrative reform. It then analyzes several issues that may affect the future development of administrative reform. The implications of the Chinese experience are provided.     

Sequencing,resistance and forced innovation: a longer view of china's financial reforms

Gradualist in nature, China's economic reform has been criticized as being wrongly sequenced. Serious problems of inertia and delayed changes, particularly in the macroeconomic and financial spheres have built up since 1979. To rectify the situation, the Chinese government launched in 1994 major reform initiatives covering taxation, central and commercial banking, and the foreign exchange system. This paper looks at the historical background to these financial reforms from the perspective of sequencing and examines the factors behind their partial and uneven successes.     

Russia’s local government in the process of authoritarian regime transformation: incentives for the survival of local democracy

In 2003, the authorities of Russia launched a comprehensive reform of local government. One of the elements of this reform was the replacement of the previously predominant form of local government, characterised by the presence of directly elected mayors, with the council-manager model. While originally motivated largely by the desire to enhance the efficacy of local government, the reform was implemented concurrently with Russia’s transition to electoral authoritarianism, with the council-manager model emerging as a major tool of authoritarian transformation. This study uses the data from 79 capitals of Russia’s regions in order to identify those factors that facilitated the survival of directly elected mayors in these cities. The analysis reveals that the past trajectories of regime transitions at the regional level in the form of elite settlement, economic resourcefulness, and the lack of politically motivated deference to the federal authorities contributed to the survival of local democracy in Russia.     

Privatization -- a major strategy of public service provision in china: a case study of urban housing policy and management

Challenged by its economic liberalization and financial constraints, the Chinese government has used privatization as its major strategy to manage service programs since China opened its door a decade and a half ago. Based on the commercial nature of housing, selling the national housing stock, vouchers and co-financing are the major ways for the government to withdraw from the provision of housing for urban Chinese. The government has been prudent about the process and has taken incremental steps. Privatization is a mixed blessing. It has brought some problems such as fraud, inequality in availability and price inflation. The Chinese government must build its institutional and managerial capacities to deal with these problems.     

Agrarian reform and structural change in Latin America: The Chilean case

Agrarian reform has been a central political issue in Chile during the last decade although less than 30 per cent of the country's population is agricultural. The Christian Democratic government elected in 1964 in tiated a land reform over rightist opposition with the pirmary objective of eliminating the traditional latifundia and granting land to some 100,000 peasant families. Only one‐fourth of this goal had been met in 1970 when a coalition of socialists, communists and other leftist parties elected socialist Salvador Allende president. The new government's programme promises a ‘transition to socialism’ including a far more profound and sweeping agrarian reform than the one begun by the previous administration. Realization of such an agrarian reform poses difficult political, social and economic problems. In this article we attempt to define the major issues and to analyse policy alternatives facing the new government.     

State budget support to local government

The principle of self-government is essentially a new phenomena in the Czech Republic. Under the previous regime, almost everything was ruled by the central government. At the present time, the major constraint to local budget reform is primarily from the local authorities’ lack of experience. While on one hand, this gives the Czech Republic a challenge to avoid some of the mistakes made in several developed countries, it is, on the other hand, difficult to make estimates of the possible responses to any change. Next to the lack of experience, there is a strong feeling both at the local and the central levels of government that the self-government bodies should have almost no regulation from the central government. The current opinion is that their control should be left only to the respective electorate. There is also the belief that self-government units should become increasing financed by tax revenues derived from within their own area. An additional complication is the lack of common non-governmental institutions (different associations and others) which usually smooth the the relationship between local and central governments. The changes in the Czech Republic are not yet complete. After the changes in the legal framework, the complete reform of the tax and social systems were to follow. While the essentials of tax reform were introduced in January 1993, the changes in the social systems are still under consideration. In spite of the relatively short history of having true local authorities functioning in the Czech Republic, the establishment of an additional level of government is being proposed. This issue is reopening some already closed matters and will bring a change to the whole system. As in many other countries, the division of responsibilities between different levels of government will probably continue to be discussed until the end of time.     

Towards Strong Local Governance: Current Reform Scenario in Fiji

This article examines how the historical context of poor central-local relations and inefficient service delivery structure is used by the current military-led government in Fiji as a ploy for its local government reform agenda. Based on an analysis of secondary information on local government structure and a review of the reforms undertaken by the Review/Reform Committee, this article identifies the concentration of economic and political power at the central level as one of the major obstacles towards empowering local governance in Fiji. The article emphasizes the need for effective institutional reforms to devolve governance and resources from the centre to the grassroots.     

Corruption and anti-corruption in reform China

During the transition period, the extent of corruption in China is higher than before. Meanwhile the forms and characters of Chinese corruption are also different in many important aspects from those of its past and of other countries. This paper explores the causes, consequences of corruption and anti-corruption campaigns of the Chinese government. The major conclusion of this paper is that further political reform toward democracy should be the direction of future anti-corruption efforts.     

DRAWING LESSONS FROM US EXPERIENCE: AN ELECTED MAYOR FOR BRITISH LOCAL GOVERNMENT

Taking as a starting point the suggestion that US-style elected mayors might be appropriate for British local government this article explores the implications of such a development. It analyses the experience of the United States and notes crucial differences between the local government systems of Britain and the United States. These differences require a discussion of certain adaptations and changes that would need to be considered before an elected mayor in Britain could be established. The extent to which such an emulation would constitute an improvement to the current British local government system is considered. The article demonstrates the potential of prospective evaluation. It asks what we can learn from the experience of another country by projecting that experience onto the particular setting an circumstances of our own country. It provides otherwise unavailable evidence about the likely effects of a potentially important reform. The article concludes with an assessment of the general case for experimenting with an elected mayor in British local government and the prospects that such experiments will be taken forward.     

Implementing pay reform in the public sector: Different approaches to flexible pay in sweden and the united states

A set of implementation criteria drawn from the United States experience provide a framework for examining pay reform in the Swedish public sector. The study finds that the Swedish approach is quite distinct and this may be attributable to unique features in the Swedish labor market. The reform toward flexible or individualized pay in government agencies appears to be based on an assumption of greater cost efficiency in human resource management and a broad unwillingness to employ objective measures of individual or organizational productivity. Consequently the study calls into question the utility of an analytical framework based on the Anglo-American experience for examining the Swedish case.     

Withering governmental power in China?: A view from below

Based on findings from a field research conducted in Pengzhe County in the People's Republic of China, the following study shows that county and sub-county governments in Pengzhe perform enormously important tasks in political, economic, and other areas. The reform period has seen the strengthening of local government power in Pengzhe. Party organizations at various levels are still the power center. Moreover, subordinate government officials (either at the county level or the township level) are still quite compliant with the policies of higher authorities due to the latter's power in personnel promotion/demotion and resource allocation. Relations between central government and local government is by no means a zero-sum game. As shown in the study, local officials at the county and township levels in places like Pengzhe are effective foot soldiers and functionaries of the central government in actually governing the vast population in China.     

Controlling Resources in the Ukrainian SSR during the Sovnarkhoz Reform (1957–1965): Testing the Idea of Decentralisation

In 1957, Nikita Khrushchev initiated a reorganisation of economic administration in the Soviet Union that became known as the Sovnarkhoz reform. The reform had a major impact on the perception of the role of the republic-level authorities in the system. It also put to the test the ability of central managers and planners to consider alternative ways of administering industry. The article examines the experience of the Ukrainian republic-level authorities in the most crucial aspect of the reform, management of resources, paying particular attention to the controversies related to control of inter-republic deliveries.     

Federal politics and market reform in the developing world

Prior research on the politics of market reform in developing nations has generally ignored the significant role of federal political and economic arrangements in shaping adjustment processes. In contrast, this research develops a model of macroeconomic reform that accounts for the significance of subnational economic policy in the developing world’s nine major federations. I examine five hypotheses which are expected to influence the capacity of developing federations to conduct polity consistent with the exigencies of market pressures. With the use of a cross-sectional time-series analysis of fiscal and monetary policies, I show that the policy divergence between levels of government shrinks when provincial governments have greater fiscal power and there are high degrees of party centralization across levels of government. These findings have important implications for the political economy of market reform, the widespread move toward fiscal decentralization, and the design of regional supranational institutions. This research is based on work supported by the National Science Foundation under Grant SBR-9809211. I would like to thank Karen Remmer, Ken Roberts, Wendy Hansen, Alok Bohara, and excellent reviewers for helpful comments.     

Extraordinary politics in the Polish transition

Among the arguments for rapid economic reform in transitions to the market in Central and Eastern Europe, scholars have argued that rapid reformers could better take advantage of the period of `extraordinary politics' at the beginning of the transition. Regime transitions provide a unique opportunity for politicians to implement economic reform since the public is more likely to grant the government room to reform. If the public is more likely to give politicians this window of opportunity, politicians should implement far-reaching reforms during that period. I test two propositions in this paper: (1) politicians in office during a period of liberalization will get high positive ratings at the polls which will gradually deplete over time; and (2) at the beginning of the transition, views of the current economic situation will not predict views of politics. I find that approval of the Polish government was unusually high in the first one and one-half to two years of the Polish transition. In the same period, assessments of the current economic situation only weakly affected assessments of politics. After the period of extraordinary politics comes to an end, the relationship between political and economic assessments is much stronger. Thus, in a country with a harsh economic reform program and six contentious national elections within eight years, there is strong evidence that politicians benefited from a period of extraordinary politics at the beginning of the regime.     

Administrative development issues in china's economic reform: an introduction

This introduction article provides the background information about the present symposium and the summary of the articles addressed in the symposium. On the background information, the article reviewed the process of economic reform and key measures of administrative reforms. On the symposium summary, the article explained issues and conclusions of the following articles: administrative decentralization and state-society relations, the role of government in economic development, ethical codes in China's civil service, transportation infrastructure and regional economic development, characteristics of recent financial reforms, and privatization of urban housing provision.     

A Fast Herd and a Slow Tortoise?

During the last three decades, the Dominican Republic has experienced a rapid process of transformation in its export structure and an acceleration of economic growth. Since the mid-1980s, the government promoted export processing zones (EPZs) and the tourism sector aggressively, providing generous incentives and creating effective institutions to regulate them. These vertical policies succeeded in developing pockets of excellence. Lack of accumulation of social- and firm-level capabilities in the rest of the economy, however, contributed to a parallel increase in structural heterogeneity that may hamper the Dominican Republic's long-term performance. The Dominican experience has at least three significant implications for the way we conceptualize and apply industrial policy in small countries: (a) the need to overcome sterile debates between horizontal and vertical policies, (b) the advantages of conceptualizing the process of development as one of continuous elimination of structural constraints to upgrading, and (c) the urgency of policy adaptation in the era of rapid globalization and Chinese competition.