Lights on the shadows of public procurement: Transparency as an antidote to corruption

The increased focus on marketizing mechanisms and contracting‐out operations following the New Public Management reform agenda has sparked a debate on whether the close interactions between public and private actors might drive corruption in the public sector. The main response to those worries has been increased transparency, but so far empirical evidence of its efficiency remains scant and mixed. This article argues that the beneficial effects of transparency on corruption are contingent on type of transparency, and in particular, who the intended receiver of the information is. Drawing on newly collected data of more than 3.5 million government contracts between 2006 and 2015, the analysis shows that overall tender transparency reduces corruption risks substantially, yet that the effect is largely driven by ex ante transparency, that is, transparency that allows for horizontal monitoring by insiders in the bidding process.     

Effective Practices for Interagency Data Sharing: Insights from Collaborative Research in a Regional Intervention

Data sharing adds considerable value to interagency programs that seek to tackle complex social problems. Yet data sharing is not easily enacted either technically or as a governance practice, especially considering the multiple forms of risk involved. This article presents insights from a successful data sharing project in a major region in east coast Australia involving a federally funded research partnership between two universities and a number of human services agencies. The Spatial Data Analysis Project sought to establish a community of practice for devising data sharing protocols and embedding data sharing into agency practices. Close dialogue between the project partners and mobilizing the authority of extant regulatory and legal frameworks proved effective in confronting risks and barriers. The article reveals effective practices for data sharing and derives lessons for other policy and governance contexts.     

Governing criminal markets: The role of private insurers in kidnap for ransom

The intersection between the formal and criminal economies presents a range of intractable coordination and enforcement problems. Who orders and facilitates the interactions between private, legal entities, and criminals (potentially) engaged in kidnap for ransom? I analyze the contracts, protocols, norms, and agencies created by insurers to govern this unusual market. Stringent insurance contracts, effective security measures, and orderly resolutions create a profitable market for kidnap insurance. Underwriters manage moral hazard and adverse selection. Business risk consultancies minimize the kidnapping of insured workers, high‐net‐worth individuals, and travellers. Crisis responders ensure that hostages are treated well, keep ransoms moderate and stable, and discourage kidnappers from reneging on agreed ransoms. The state, private sector, and mafias incentivize cooperation and enforce contracts. Understanding this complex polycentric governance architecture is crucial for remedying current trends in “terrorist” kidnap for ransom.     

Forgotten Outcomes for Rural Areas in Central Policy‐Making: The Case of Blue Gums in Australia

The expansion of private forestry and the partnership between government and private sector timber growers and processors highlights the issues associated with a functionally based rather than a place based approaches to changing patterns of land use in rural areas. Rural development through blue gum forestry was promoted as a means of revitalising rural communities, providing both economic and social gains to regional areas. The purpose of this study is to examine the economic consequences of policies designed to promote plantation forestry at a local level. It concludes that while plantation forestry may bring benefits to the national economy, these benefits may not be apparent at a local level especially if the industry operates in competition with a viable alternative.     

Reforming Service Delivery in China: The Emergence of a Social Innovation Model

In this paper, I find that the political economy of public goods provision by the local government in Shanghai influenced the decision to transition from the existing public service delivery model based on residency, to a social innovation model where the government contracts with non-profits and private firms to provide services at lower costs and experiment with different levels of provision (购买服务). Contracting also forms a bridge between old governance models and new ones, which potentially allow for a process of administrative modernization without social instability. Contracting for public-goods provision is increasing in prevalence not only in Shanghai but also in many other provinces, and is professionalizing participating organizations and providing public goods to vulnerable populations. While this practice is not yet increasing non-profit participation in the policy process, the creation of access channels that are currently operating solely in one direction may at some future date allow groups to participate in relevant policy areas. Contracting public goods might have the potential of significant effects beyond the term of the contract by increasing pluralism in local public policy and generating more demand for transparency and accountability of government services. As such, this is an interesting bellwether for future political change in China.     

Public–Private Partnerships: An International Performance Review

Public–private partnerships are enjoying a global resurgence in popularity, but there is still much confusion around notions of partnership, what can be learned from our history with partnerships, and what is new about the partnership forms that are in vogue today. Looking at one particular family of public–private partnerships, the long-term infrastructure contract, this article argues that evaluations thus far point to contradictory results regarding their effectiveness. Despite their continuing popularity with governments, greater care is needed to strengthen future evaluations and conduct such assessments away from the policy cheerleaders.     

Partnership in Economic Development: The Case of U.K. Local Enterprise Agencies

The rapid development of local enterprise agencies in Britain in the 1980s has been an important focus for the increasing involvement of the private sector in economic development. These agencies present themselves as locally oriented partnerships and the paper draws on evidence from a recent survey, undertaken by the author in Greater London, to show what partnership can mean in practice. A particular focus is the relation between enterprise agencies and local authorities. This leads to a discussion of some of the policy issues arising from the development of these agencies which is part of a wider growth of the non-elected state in Britain through the decade. It is argued that their development raises important questions concerning their lack of local democratic accountability.     

Probing the Strategic Intricacies of Public–Private Partnership: The Patent as a Comparative Reference

This article pursues a detailed understanding of strategic considerations in large-scale partnership negotiations that have implications for public service over the long term. Specifically, this study focuses upon the strategic context of negotiation between governmental entities and private firms as fundamental to partnership viability. Metaphorical comparison between U.S. patent policy (especially as it pertains to cutting-edge biotechnical and digital information issues) and public–private partnership is used to coax out new insight about the latter. The first section sketches an outline of U.S. patent policy as a means of generating analogous questions that can structure discussion of strategy in public–private partnerships. The second section explores the intricacies of public partnership by responding to four questions derived from the patent metaphor. In probing the implications of strategic partnership issues for public managers, the final section defines new capacity-building roles that are consistent with governance as an emerging form of public administration.     

Financing Homeland Security and Emergency Preparedness: Use of Interlocal Cost‐Sharing

Before this study, much of the research on interlocal collaboration has focused broadly on interlocal service agreements, of which interlocal cost‐sharing is but one dimension. This study is one of the first to examine the nature of interlocal cost‐sharing agreements for a specific (and critically important) functional area. A mail survey of Florida city and county finance officers finds that the most common interlocal cost‐sharing partnership is between local general purpose governments rather than with local special purpose governments. The strongest incentives for interlocal cost‐sharing are (1) inadequate funding for emergency management in a jurisdiction's capital budget, (2) the perceived inadequacy of federal and/or state homeland security funding, and (3) greater faith in horizontal (local‐to‐local) than vertical (federal‐state‐local) intergovernmental agreements. The research also highlights the importance of asking fiscal condition survey questions in a more functionally specific manner rather than as an “overall fiscal condition” question.     

Adjusting to New Ways of Working: Experiments with Service Delivery in the Public Sector

In response to the perceived failure of both the state and market models of service delivery, governments have embarked on a reform program that draws on the community sector to expand the suite of available policy and service delivery arrangements. This paper explores and identifies the nature of changed relationships between government and the community sector. It uses a case study that examines the operation of a new type of community organisation, and analyses the affectivity and outcomes from the experience of a community based networked arrangement. Although there is evidence of a shift to more relationship‐ oriented models of operation because of either mandate or preference both community and government sectors have found it difficult to make the necessary adjustments to these new ways of working. Community has begun the shift to this new relational approach but finds it difficult to sustain the momentum and tends to revert to more independent and competitive modes. Governments find it difficult to make the necessary adjustments to power‐sharing and resource allocation and continue to operate as ‘business as usual’ through the traditional bureaucratic authority of command and control. In this way, the rhetoric of collaboration and partnership between government and the community sector is not necessarily matched by policy and action supporting the practice of ‘new ways of working’ although these ‘experiments in service delivery’ have opened the way for adopting more innovative and effective approaches to service delivery.     

Governing public–private partnerships: A systematic review of case study literature

Governance plays a critical role in determining the success and failure of public–private partnerships (PPPs). We conducted a systematic review of case study literature on PPP governance and developed a governance framework consisting of 21 issues in four groups: institutional, organizational, contractual, and managerial. Then, we investigate the dynamics of governance issues, including the relative importance, interrelationships, and connections with PPP success and failure. Results suggest that PPPs should emphasize cooperation, trust, communication, capability, risk allocation and sharing, competition, and transparency in their governance. We also found that the governance practice of emphasizing dominant and direct factors and ignoring recessive and indirect ones has hindered PPPs’ success.     

Street Trees,the Private Finance Initiative and Participatory Regeneration: Policy Innovation or Incompatible Perspectives

In common with other northern cities, Sheffield has experienced a dramatic reduction in funding from central government. Its response has been twofold. Firstly, to reduce the cost of service delivery, in part through augmenting or replacing public sector service provision through transfer to voluntary bodies and/or the private sector; the latter through private finance initiative (PFI) contracts. Secondly, the local authority has sought to promote economic regeneration through increased citizen involvement and participation. The problem for this combined strategy is that the two approaches have clashed over a previously underrated and overlooked area of public provision, namely the maintenance of street trees. Issues relating to the design of the contract, the economic imperative inherent within PFI contracts, initial reaction to popular protests, and reluctance to acknowledge the authority of alternative perspectives, have combined to undermine the salience of the participatory regeneration model for key sections of the local community.     

Privatization and cost reduction

In this paper several examples of government contracts with private firms are examined to see how experience conforms to a principal-agent model of cost minimization via competitive bidding and how important are the many qualifications to the model. Fifteen cases of local government contracting are examined.The course of private contracting is not always smooth — as judged by the many contract disruptions observed and by the number of cities that believe they are no longer saving money by contracting and those which have resumed public production. It also seems to be the case, however, that competition generally reduces initial costs, that in many cases cost savings persist, that it is possible to stimulte competition, and that providing for continual interaction, as contrasted with simply monitoring performance, can prevent disruption.     

Registered Traveler Program: The Financial Value of Registering the Good Guys

We discuss how the Registered Traveler (RT) program can enhance simultaneously aviation security and passenger convenience. We point out some of the potential weaknesses in the program from both a security and civil liberty perspective. The RT program is a public–private partnership between the Transportation Security Agency (TSA) and the private sector. As in any partnership between private enterprises and the public sector, there are tensions that must be monitored, managed, and resolved. We note that financial distress of a RT service provider will place increased pressure on TSA resources. We review the resources allocated by the public and private sectors and the natural tensions that exist between companies investing capital with the expectation of earning a market rate of return and an agency of the Department of Homeland Security, the TSA, with one of its responsibilities being to assure the safety and security of air travel.     

The risky business of public–private partnerships

Public–private partnerships (PPPs) are now a common strand of third way government policy, with better efficiency promised from the private funding of public infrastructure through the transfer of risks to private parties. This paper aims to investigate, on an empirical basis, the realities of risk transfers in PPPs and compare this experience against both the rhetoric of project proponents and the formal contract conditions. The paper outlines some conceptual frameworks underpinning PPPs and establishes the notions of risk shifting and risk sharing. The range of typical risks encountered in infrastructure projects is specially considered, and differences to traditional project delivery arrangements are articulated. Some empirical experience on the transfer of risks under PPPs is then outlined through a case study. This analysis shows the extent to which risks were shifted to the private parties as planned, or whether risks remained with government. It is argued that while commercial risks were largely well managed, governance risks were not. It is critical to understand better the nature of risk transfers in PPPs in view of the large financial implications of these deals along with long contract terms.     

The Westminster Model and the “Indivisibility of the Political and Administrative Elite”: A Convenient Myth Whose Time Is Up?

This article argues that the principle of indivisibility in the relationship between political and administrative elites acted as a central convention of the Westminster system for much of the twentieth century. It explores how in more recent decades this principle has been challenged by the shift to a principal–agent approach. It considers the extent to which this shift diminishes the traditional Westminster model's understanding of the minister–civil servant relationship as one based on a symbiotic interdependent partnership. In its place has emerged a more universal command and control relationship that is seen as necessary to meet the demands of modern accountability and transparency. Such a change has fundamentally altered a long‐established power‐bargain between ministers and civil servants and undermined a core tenet of the Westminster model.     

Public sector innovation,e-government,and anticorruption in China and India: Insights from civil servants

Both China and India are adopting information and communication technologies to facilitate openness and transparency in their governments, and hence reduce corruption. Distinctive from their traditional anticorruption approaches, is the innovative e-government approach an effective solution to corruption in these two large developing countries? This paper addresses the question through comparative in-depth interviews with 44 mid- or senior-level officials in the public sector in these two countries. The first study of its kind, our research shows that civil servants in both countries overall think positively about transparency and technology in reducing corruption. However, to what extent these innovative measures will be effective is conditional on various factors, such as political willingness, income inequality, and infrastructure readiness. What is worth noting is that the Chinese respondents were more positive regarding the role of transparency, whereas the Indian respondents were more positive about the role of technology, which may reflect the different facilitators of corruption and the constraints of anticorruption in China and India.     

Information Sharing for Infrastructure Risk Management: Barriers and Solutions

There is a public interest in ensuring that infrastructure systems are appropriately protected and prepared for disruptions. While infrastructure protection is usually viewed as a public responsibility, infrastructure risk management actually requires a high degree of cooperation between the public and private sectors, particularly in the sharing of information about risks to infrastructure. Discussions with Chief Security Officers across sectors of the US economy reveal the complexity of the task, as they describe at length the private sector's requirements of multiples types of information about a range of potential threats. While the US government has established many mechanisms for sharing information, barriers remain that inhibit both the private and public partners from obtaining the information needed to protect infrastructure. Overcoming these barriers requires new thinking about the intelligence generation process, the mechanisms and practices upon which the process relies, and the responsibilities of those in the private sector who participate in it.     

Rationale,Strategies, and Economics for Exploration and Mining of Asteroids

The development of off-world sources of critical minerals is creating an opportunity to transform space activity from a consumer of resources into sources of value. This article provides an overview of the rationale for and the feasibility of asteroid mining, based on current technology and information. It concludes that the mining of asteroids is a medium-term to long-term project (20 to 30 years) that requires a stepwise approach. An important step in the development of asteroid mining is the confirmation, through exploration, of the minerals’ abundance on the asteroids. A mission capturing and returning to lunar orbit a single 10-meter-diameter asteroid or a rock off the surface of a larger asteroid accomplishes this goal. This mission would also allow the testing of automated mining and processing equipment, reducing the risks of future large-scale asteroid mining operations. Suggested herein is that asteroids’ exploration be carried out through a partnership between space agencies and private space companies, whereby the two partners can achieve their strategic interests.