Territorial reforms in Europe: effects on administrative performance and democratic participation

Territorial reform is the most radical and contested reorganisation of local government. A sound evaluation of the outcome of such reforms is hence an important step to ensure the legitimation of any decision on the subject. However, in our view the discourse on the subject appears to be one sided, focusing primarily on overall fiscal effects scrutinised by economists. The contribution of this paper is hence threefold: Firstly, we provide an overview off territorial reforms in Europe, with a special focus on Eastern Germany as a promising case for cross-country comparisons. Secondly, we provide an overview of the analytical classifications of these reforms and context factors to be considered in their evaluation. And thirdly, we analyse the literature on qualitative performance effects of these reforms. The results show that territorial reforms have a significant positive impact on functional performance, while the effects on participation and integration are indeed ambivalent. In doing so, we provide substantial arguments for a broader, more inclusive discussion on the success of territorial reforms.     

Policy Reforms and Evolution of Market Structure in an Emerging Economy: The Case of India

Policy reforms have facilitated entry of quite a few transnational corporations (TNC) into Indian industries. This has important implications for the evolution of competitive industrial structure. This article focuses on the issue of the response mechanism of local firms to competition from new entrant TNCs and the possible strategies of TNCs in penetrating the Indian market. It develops a conceptual framework by incorporating elements of intangible assets theory and new institutional economics into a simple sequential entry oligopoly model. This yields interesting insights into qualitative behaviour of firms in the post-reforms period. A few hypotheses drawn from the conceptual framework are empirically tested on the basis of firm level panel data drawn from a set of Indian industries.     

Entrepreneurship and Participation in Public Management Reforms at the Local Level

This article seeks to discuss who the policy entrepreneurs are and who participates in the policy-making process of public management reforms at the local level. In order to answer the research questions, a multi-unit and multi-case research study was carried out in three municipal governments: Barcelona, Boston and Turin. The subjects of the study were 15 innovations in management implemented between 1992 and 2007. The first conclusion is that politicians predominantly take the entrepreneurial role in introducing innovations in public management, regardless of the technicality of the innovation. As far as political participation is concerned, public management reforms are still dealt with as in-house matters, even when public managers want to be recognised as promoting the positive values of political participation.     

Inter-Jurisdictional Economic Development: A Political Institution Explanation for Policy Choice

This study examines the role of formal institutions and rules of government in the formation of joint venture agreements for economic development. Research suggests local governing arrangements play an influential role in the policy area of local economic development. This study presents an argument that form of government provides incentives that influence the decision to establish a developmental, redistributive, or regional interjurisdictional agreement. The results of a multinomial logit model using survey data collected from 12 metropolitan areas provides evidence to support the hypotheses that unreformed governing institutions, compared to cities with an appointed professional manager, are more likely to form joint venture agreements that are developmental in nature.     

Modernisation and Political Management Arrangements: The Case of Redcar & Cleveland Borough Council

In the United Kingdom the Labour government has placed considerable emphasis on the need to modernise public services. In the case of local government, Labour's belief in the need for modernisation has resulted in radical measures to change local authorities' political management arrangements designed, in part, to achieve greater efficiency, transparency and accountability. In its response to the Labour government's agenda, Redcar &; Cleveland Borough Council established interim political management arrangements in May 2000 prior to the establishment of permanent arrangements. The permanent arrangements were to be decided upon following public consultation and a review of the interim arrangements. This article reports the outcomes and, in doing so, provides evidence of the impact of Labour's measures to achieve change in local government.     

Performance Review and Assessment of Public Managers: Some Evidence from Local Governments in Italy

Performance review and assessment (PRA) of public managers has been adopted in several countries, but we still lack detailed knowledge of what affects the effectiveness of PRA systems. Based on interview data and on a survey of Italian public managers, this article aims to investigate this issue by developing and testing a preliminary model of perceived effectiveness of PRA. The results suggest that PRA perceived effectiveness seems related to the clarity of the organizational design, the quality of the PRA process, the involvement of public managers in the PRA process, and the use of PRA results for tightening control.     

Everyday Fixers as Local Heroes: A Case Study of Vital Interaction in Urban Governance

This article exemplifies the importance of viable coalitions in processes of neighbourhood development and local governance. Elaborating on the notion of the ‘everyday maker’, discovered in Danish local politics by Bang and Sörensen, this article further explores the characteristics and conditions of organising capacity, using the case of the Neighbourhood Development Corporation in the Dutch city of The Hague as a paradigmatic case. This case shows that individual actors, ‘everyday fixers’ or ‘local heroes’, can make a real difference in local politics if they are well connected to a supportive structure and if they are sensitive to the logic of the situation at hand. Context matters, sometimes impedes, but smart individuals can also make it work.     

Political participation and municipal population size: A meta-study

Do municipal amalgamations enforce or do they weaken (local) political participation? This is an important question considering a worldwide tendency for municipalities to merge. This question will be answered using a mixed-method approach based on a literature overview (meta-study) in general and additional quantitative (turnout figures, election studies) and qualitative (interviews) data regarding the situation in The Netherlands in particular. Political participation is consistently measured using indicators that measure behaviour (especially turnout figures) instead of perceptions and opinions such as trust or internal and external political efficacy. Local political participation seems to decrease with an increase in municipal population size.     

The Survival of Spanish Provincial Governments in a Quasi-Federal Polity: Reframing the Debate

Despite harsh criticisms, Spanish provincial governments (diputaciones) have survived for 200 years and have remained practically unchanged since the Transition. The survival of diputaciones in a proto-regional state is clearly a paradox that requires consideration of a range of potential explanations. Drawing upon extensive empirical investigation within and around three provincial governments in 2013–2014 (Seville, Barcelona, and Valencia), the survival of the diputaciones is illuminated by the path dependency and functional arguments, but it is most convincingly explained in terms of cartel (party) politics. The impact of the 2008 economic crisis has stretched these “party bargains” to breaking point.     

Local Government Reforms in (Seven) European Countries: Between Convergent and Divergent,Conflicting and Complementary Developments

In selecting the United Kingdom/England, Germany, Sweden, France, Italy, Spain and Hungary as comparative cases, and in focusing on three institutional tracks (local leadership, internal administration and external operation), this article first discusses, on the one hand, whether local government has been institutionally strengthened, and on the other, whether governance-type actor networks have expanded in the countries under consideration and whether, across-countries, this developments has shown convergence or divergence. Secondly, it addresses the question of whether the two currents (strengthening of traditional local government and expansion of local governance networks) are conflicting or complementary.     

Coping With the Great Recession: Theory and Practice for County Governments

This article explores “best” and actual practices of county governments coping with fiscal stress. Using survey results from county commissioners in California and Georgia, it is possible to assess the recession's impact and identify strategies that have been used to deal with revenue shortfalls and how different taxes may have changed these tactics. It becomes clear that reducing expenditures is more commonplace than increasing taxes, and almost no counties are able to “do nothing” as the academic literature prescribes (Marlowe, 2009 Marlowe, J. 2009. “Can local government leaders formulate strategies that will actually—rather than hopefully—stimulate their local economies? Has history any record of such successes?”. In Navigating the fiscal crisis: Tested strategies for local leaders, Edited by: Miller and Svara. Prepared for the ICMA.  [Google Scholar]). Overall, the counties that are most successful at coping with the recession began to take action before they felt the recession's impact and subsequently are able to maintain service levels without dramatic changes to the way they budget.     

Public Enterprise Reforms and Financial Performance of Government Commercial Companies of Fiji

Public enterprise reform is no new phenomenon. Since the late 1970s, state intervention in the market has been increasingly challenged, acquiring a more ideological form with the rise of ultra-conservative governments in the UK and USA. Like other countries across the world, Fiji has also attempted to reform its public enterprises. This article compares the performance of corporatized public enterprises that sit at different levels of financial performance. Such enterprises have experienced reforms but with mixed financial outcomes. Overall, the major finding of this research is that there is no single factor that can lead to better or poor financial performance.     

Political Fragmentation and Fiscal Status: Evidence from Municipalities in Israel

Abstract

This article analyses the link between fiscal balance and political fragmentation. While a large body of literature states that political fragmentation leads to fiscal deficits, others suggest that political fragmentation is associated with political competition, which tends to improve fiscal balance. These hypotheses are tested using budgetary and political data of municipalities in Israel for the years 1998–2006. The results suggest that both hypotheses may be correct, depending on voting behaviour. In Arab municipalities, where residents vote according to clan affiliation, low levels of political fragmentation are associated with large debts. On the contrary, in Jewish municipalities, low levels of political fragmentation are associated with small debts, since in these cases, coalition formation requires less spending and is easier to sustain.     

Problem,Process and Product: Implementing Key Reforms in Local Government in Northern Ireland Since the Belfast Agreement

This article maps the key findings from empirical research on how local government mainstreamed new statutory duties to promote equality and good relations in a change implementation process emerging from reform introduced in 1998 to embed the Northern Ireland peace process. It departs from the elite political focus of much of the international literature on peace building and addresses organisational change developments in a context that was intensely politicised, highly contentious and required radical organisational change. Newry and Mourne District Council addressed their problem of perceived inequality in employment, by engaging in a lengthy process of change and development to achieve ‘product’ in the form of a more balanced workforce, power sharing in the Chamber and more participative democratic arrangements for decision-making, both inside the organisation and in external relations. The key factors that facilitated this change process included the availability of political will, change champions, appropriate resources and structural adaptation.     

Participatory Initiatives and Political Representation: The Case of Local Councillors in Sweden

The health of political parties and the institutions of representative democracy have been extensively questioned during the last decade due to evidence of a widespread decline in voting turnout, political trust, and party membership as well as identification. An often-proposed, but also often-questioned, strategy to strengthen representative democracy is for political institutions to offer alternative forms of political participation through so-called participatory initiatives. The literature suggests that participatory initiatives will have little impact on representative democracy if no adaptation among political representatives is apparent. This paper explores the consistency between participatory initiatives in Swedish municipalities and the attitudes, practices and role-taking of local councillors, comparing pioneer municipalities where extensive numbers of participatory initatives have been executed vis-à-vis hesitator municipalities where few initiatives have been implemented. The study indicates that local participatory initiatives may stimulate political representation by creating new channels for citizen input and communication between citizens and representatives that are supported by local councillors in the pioneer municipalities. However, the core roles of parties and councillors in representative democracy appear not to be challenged by these initiatives, being similar in both groups of municipalities. The article is concluded by a discussion of the implications of these results for the function of participatory initiatives in local democracy.     

Reputation reform strategies in local government: investigating Denmark and Norway

This article investigates reputation reform in Norwegian and Danish local government and whether they have the same strategy content depending on the degree of administrative involvement and municipality size. Political and administrative actors are likely to cultivate different types of reputation strategies (place or organisational reputation), which explicitly embrace the potentially diverging interests cultivated by the two types of actors. We use a comparative design and quantitative method with an empirical ambition to explore local government reputation strategies in two national contexts. We find that local government responses to reputation reform depend on the size of the municipality and the type of actors involved; the larger the municipality, the more the administration is involved. And the more that administrative actors are involved, the more the strategies target organisational reputation. The country-specific factors do not appear to be the most important determinants for reputation reform strategies.     

The Effect of New Legislation on the Disclosure of Performance Indicators: The Case of Spanish Local Governments

This article analyzes the effect of new accounting legislation on the disclosure of performance indicators in the financial statements of Spanish local governments. Based on agency and institutional theories, the article also assesses whether the disclosure of performance indicators is used to make the monitoring of local government performance easier for stakeholders or merely to project an image of good management. The results show that the enactment of new legislation has only led to a partial implementation, most local governments disclosing financial and budgetary indicators but very few providing indicators related to the performance of public services. The institutional theory (symbolic value) seems to be the rationale that best explains this pattern of disclosure.     

Chinese Intergovernmental Relations and World Development: Origins and Impacts of Chinese Export Credits

Generously offering loans for development projects around the world, China has recently brought them to Eastern Europe, namely to Belarus. By reviewing relevant development literature and using Belarus as a case study, this article contributes to the debate on China’s emergence as a source of investment and aid. It addresses four concerns: the tools used by China, the driving forces behind proactive investing behavior, the advantages and disadvantages for a recipient country, and the conditionality attached. The article demonstrates that Chinese export credits resolve a latent conflict of interests between the central and local governments by transferring Chinese businesses abroad. Meanwhile, the borrowers have to deal with extra costs, for instance, high expenses to maintain final facilities or the cost of Chinese labor adaptation. In Belarus, the situation is exacerbated by the language barrier and a general anxiety of the local population derived from the lack of experience with foreigners.     

Functioning and Impact of Incentives for Amalgamations in a Federal State: The Swiss Case

In Switzerland, where most amalgamations are voluntary, supportive measures for municipal mergers vary considerably between cantons. This study focuses upon the interests of higher-ranking state levels in amalgamation, the design of incentive systems set by the Swiss cantons, and their influence on the municipalities’ amalgamation activities. Empirical results show that with a higher number of municipalities, the canton sets more incentives for mergers. Also, financial incentives positively influence the municipalities’ merger activities. The data sources include comprehensive surveys of the Swiss municipal secretaries (2009/2010) and of the cantonal administrations (2010).     

Implementing Environmental Sustainability in Local Government: The Impacts of Framing,Agency Culture,and Structure in US Cities and Counties

This article focuses on the organizational factors of environmental sustainability implementation in local government. We investigate the interactions, as well as direct and indirect impacts, of the framing of environmental sustainability and organizational culture and structure on implementation outcomes. We use a survey of 217 city/county planners and managers in 146 randomly selected American mid-sized cities and counties. The survey was specifically designed to tease out organizational features and their impacts. We model these impacts using structural equation modeling. We find that horizontally and vertically integrated organizational structure supports two essential dimensions of organizational culture: innovation adoption and consensus building. These cultural traits positively impact the framing of environmental sustainability at the core of organizations’ logic, which in turn significantly supports implementation outcomes. These findings provide important insights into city/county managers seeking to promote sustainability, and provide a base for future studies of the organizational factors of implementation.