Assessing comparative efficiency of the state-owned mixed and private sectors in Indian industry

This paper evaluates performance differences between government owned, mixed sector and private sector enterprises in India for the period 1973–1974 to 1988–1989. The results establish that enterprises owned by the central government and state governments are less efficient than mixed or private sector enterprises, while mixed sector enterprises are less efficient than those in the private sector. The results contradict extant evidence finding no performance differences between government-owned and private firms in India. There have, however, been inter-temporal efficiency gains for the sector as a whole, perhaps resulting from reforms undertaken towards improving government-owned enterprises' performance.     

The Rise of Public–Private Partnerships in China: An Effective Financing Approach for Infrastructure Investment?

The rise of public‐private partnerships (PPPs) in China has spurred heated debates about their purpose and effectiveness. This article traces the fluctuation of China's PPPs over several decades and finds that PPPs have played a supplementary role in China's infrastructure investment, as a response to the pressures of fiscal shortfalls and government debts. The resurgence of PPPs in recent years aims to bridge the infrastructure gap and alleviate ballooning local debts. These expectations, however, are hard to realize. China's PPPs mainly involve state‐owned enterprises and place increasing financial burdens on the government. The central government has taken measures to attract private sector investment to mitigate the financial risk, but the prospects for PPPs remain unclear.     

Privatisation in Botswana: the demise of a developmental state?

This article argues that efforts by the Government of Botswana to embark on privatisation of some parastatals as well as contracting out the provision of certain services with the main intention of enhancing productivity and strengthening the private sector will not have a negative effect on the strength and nature of the existing strong developmental state. It is argued that the cautious and pragmatic approach adopted by the government, coupled with the fact that privatisation in Botswana is embraced voluntarily (that is not imposed on the country by either the World Bank or the International Monetary Fund (IMF) as a condition for financial assistance), hiving off parastatals to the private sector will not result in the weakening and ultimate demise of the state as it has happened in some countries within Sub Saharan Africa. Copyright © 2008 John Wiley & Sons, Ltd.     

Downsizing the civil service in developing countries: the golden handshake option revisited

In recent years, more and more calls are being heard in a growing number of developing countries to downsize their civil services. It is argued that downsizing is needed because of the increasing shortfalls in government recurrent and development budgets. This situation results in underutilized, underfunded staff and often in the siphoning-off of donor funds in the development budget for recurrent expenditure. The main problems addressed in this article are why should and how can the civil service in developing countries be downsized. The questions of how much to trim the bureaucracy and how to redeploy redundant public servants in the private sector are also addressed. The article examines alternative strategies for significantly downsizing the civil service. It is contended that problems in this area are indeed common to many developing countries. Various golden handshake options for civil service leavers receive particular attention. It is suggested that economic jumpstart is a better term than golden handshake to characterize the incentives package offered to induce staff to accept voluntary redundancy. Civil service reform is not presented here as a panacea for all developing countries' ills. The article makes a number of mostly untried but nevertheless attractive suggestions that bring some fresh thinking to bear on a difficult issue. Paths and avenues worth exploring when starting to design civil service trimming operations are presented, including some of their limitations. The point is finally made that this type of downsizing is overdue in many places. The article should be considered as a contribution to demystifying the process of downsizing the civil service in developing countries. © 1998 John Wiley & Sons, Ltd.     

STRATEGIC TRANSFORMATIONS AMONG CANADIAN CROWN CORPORATIONS*

Abstract: Among the developed and developing countries, the use of government corporations in business has come under increased scrutiny. Fundamental questions are being asked about the problems of public enterprise management, the roles of corporate executives, and their relationships to the governments and societies which they serve. Sadly, the interpretations of policy-makers often have been derived from cliches or myths, not from systematic appraisals of the phenomena propelling the behaviour of those firms. By reviewing the evolutionary tendencies among Canadian public corporations which are engaged in commercial activities, this paper seeks to clarify aspects of those debates. The suggestion is that, as an analysis steps back from the minutiae of day-to-day management, single decisions, and individual conflicts with government officials, developmental patterns can be identified across corporation histories. Public enterprises, like their counterparts in the private sector, move through phases which have configurations of business strategies and internal administrations, regimes of accountability, and dominant interpretations of organisational performance or "success". On a long-term basis, some corporations have come to compete directly against private firms, and their organisational and competitive practices have been modelled along the lines of those rivals. Others have been differentiated away from the orientations of private firms and niche positions have been adopted within their industries. The choices have reflected the structure of the markets in which the enterprises have operated, their financial status, and the command structures which have surrounded them.     

政府绩效视角下的行政管理体制改革战略反思——基于地方政府公务员的感知调查

改革开放以来,我国行政管理体制改革一直坚持以组织结构调整为主的模式.对于这一模式的影响,尤其对地方政府的影响,一直缺少科学层面的检验和理论层面的反思.本文选取政府绩效作为标杆,利用地方政府公务员的问卷调查数据,探索政府部门间关系和部门管理制度建设影响部门绩效的路径和程度,使用结构方程模型实证检验了行政管理体制改革战略在地方层面的有效性.结果表明,部门间关系作为政府结构的核心特征对于政府绩效并没有直接的影响作用,其影响作用是通过部门制度建设和部门文化间接发挥的;部门制度建设对政府绩效的整体影响要大于部门间关系.因此,在今后的改革中应该给予管理制度层面的改革更多的重视,通过局部的、具体制度的改革为整体的、基本制度的变革创造条件.同时,还应在改革过程中维护政府组织文化的凝聚力和激励性.     

Political Control for China's State‐Owned Enterprises: Lessons from America's Experience with Hybrid Organizations

China's reform of state‐owned enterprises (SOEs) is intended to liberate the companies from bureaucratic control that hinders their management. Discussions of SOE reform, however, downplay the policy consequences. Can SOEs be “free” to succeed economically while some political control is maintained? Surprisingly, American experience with hybrid organizations—government‐created companies that straddle the line between public and private—offers some precedent for managing the balance between political control and enterprise independence. Three strategies are derived for China. First, welfare functions must be stripped from SOEs and replaced by policy objectives compatible with commercial purposes. Second, reducing financial dependence on SOEs will remove a barrier to rational control. Third, and most importantly, a robust regulatory framework for control must be developed as a substitute for the weakened administrative linkages. The emerging control infrastructure rooted in state asset commissions is likely to prove ineffective for its blurring of ownership, administration, and regulation.     

Cleaning up and invigorating the civil service

Reliable quantitative estimates are not available of: (1) the quality of civil service performance and changes therein as the result of development projects, or (2) the importance of civil service performance for various development outcomes. Nonetheless, anecdotal evidence indicates that in some countries government performance has indeed collapsed, with calamitous effects on development. Although poor government performance is theoretically overdetermined—there are many possible causes, which we cannot disentangle in practice—a plausible story can be told based on institutional economics, using such concepts as information, incentives, and credible commitment. This version of both problems and solutions is supported by examples of successful reforms. The article argues that “institutional adjustment’ deserves more consideration as a basis for reforms. Two practical examples are discussed in some detail: improving incentives in the public sector and strategies to combat corruption. © 1997 John Wiley & Sons, Ltd.     

Government administration in a small microstate: Developing the Cayman Islands

The Cayman Islands use some of the increasingly familiar methods of resolving administratively the problems of smallness. The country's development and administrative performance depend on human resources which need to be planned in order to reduce dependence on outsiders, especially among the middle ranks of technical and professional staff. Education and training for the public service in the Cayman Islands is inadequate. Control of the administration is weak, especially among the independent boards and commissions, and there is a need for appeal procedures when the principles of natural justice have been breached. Political manipultion in personnel matters adversely affects performance, and there is a need for an effective civil service association to deal with other abuses. The problems of public administration are solved by scaling down the role of government in favour of private enterprise and against the provision of social welfare.     

Municipalities’ Choices of Service Delivery Modes: The Influence of Service,Political, Governance,and Financial Characteristics

This study investigates the influence of service, political, governance, and financial characteristics on municipalities’ choices of four service delivery modes (in-house, inter-municipal cooperation, municipality-owned firm, and private firm) in the Dutch local government setting. The results show that as a service involves more asset specificity and more measurement difficulty, the likelihood that municipalities contract this service out is lower. Also, although some differences in preferences are found between boards of aldermen and municipal councils, for both political bodies a more right-wing political orientation is shown to be positively related to privatization of services. Furthermore, contracting out is also shown to be related to the governance model of municipalities, as services of municipalities that (in general) put relatively less emphasis on input, process, and output performance indicators, and more on outcome performance indicators, are more likely to be privatized. Finally, the results also show that services of municipalities that have a better financial position are less likely to be contracted out to a private firm.     

民间商会的绩效与发展——基于浙江省温州市的研究

基于浙江省温州市行业协(商)会的问卷调查及利用SPSS工具的统计分析,对近年来温州工商行业协(商)会的绩效与发展进行了多角度的分析与比较.通过分析与比较,得出:温州商会在整体上呈良性发展态势,其行业管理职能的总体实施情况较好,但不同行业之间的商会职能在履行上有差异性,各项职能的发挥程度在不同行业之间也有所不同;无论是协会组织还是会员企业对行业组织的评价都较高,未来预期也较高;近年来行业协(商)会的市场化、民间性、独立性、自主性特征表现明显,并不断得到增强;行业会员企业对行业协(商)会的支持率普遍较高;政府对行业协(商)会发展有着重要的影响,行业协(商)会仍对政府有较大的依赖性;行业协(商)会的治理机制还有待于进一步完善.深化政府管理体制改革,建立健全与社会主义市场经济体制相适应的、能够促进社会力量蓬勃发展的社会管理体制,是民间商会得到快速、健康、持续发展的最重要保证.     

Public sector reform in the Latin American and Caribbean region—issues and contrasts

Public sector reform in both Latin American and Caribbean countries has become a high priority for governments in their search for a new role for the state. Common principles have included the objective to privatize, or contract out services or responsibilities where the private sector has a comparative advantage while at the same time improving government efficiency in areas that are considered core government functions at different levels of government. These include integrated government financial management, social security and social safety nets, tax administration, provision of basic services (education and health), legal/regulatory reform, and judicial enforcement. Guiding principles in all countries have been predictability, transparency and accountability. While the degree of reform has varied amongst countries, there are a number of distinguishing features of the Commonwealth Caribbean that set its public sector reform experience apart from that of Latin America. These include the legacy of a professional civil service, long-standing democratic institutions and an active civil society, the relatively small size of the countries, and the emphasis on rule of law that can help explain some of the differences in the reform paths taken. Nevertheless, government ownership and commitment to public sector reform has been shown to be the most important element in determining results within the Latin American and Caribbean region.     

Drifting towards convergence? Motivation and performance management in state and private companies in the provision of telecom services in Ghana

The concept of expectancy on which many of the theories of workplace incentive programmes are based, claims that when employees are given a particular level of motivation, it will result in some level of performance. The general perception in Ghana is that public sector employees do not perform as efficiently as private sector workers because they lack incentives to do so. However, few studies have compared the incentive structures of the two sectors. Using empirical evidence from four telecom companies in Ghana, this article shows that the gaps between ‘state’ and ‘private’ have narrowed. Also, while incentive structures such as salary, fringe benefits and job (in)security are converging, critical performance management processes like employees' participation in decision‐making, performance appraisal, monitoring and credibility of sanctions are drifting apart. This article concludes that differences in performance between state and private companies may be explained by performance management processes and not incentive structures. It cautions that improved salaries and other office perquisites may not by themselves achieve organisational performance. Rather, incentives should be embedded in a broader approach through effective performance management processes. The information in the article is relevant to the ‘borderline’ part of the public sector under a deregulated environment. Copyright © 2007 John Wiley & Sons, Ltd.     

NATIONAL SETTINGS AND PUBLIC ENTERPRISE: AUSTRALIA AND ISRAEL

Abstract: There are sharp differences between the public enterprises of Australia and Israel. Australia relies on the structure of statutory authorities for enterprises of the Commonwealth and the States; managers express a narrow view of what is permitted to them; and tend to spend their careers within single firms. "Public" enterprise in Israel reflects a complex amalgam of three public sectors, with Arms owned wholly or in part by the State, the labour federation, and institutions of the international Jewish community. Israel emphasizes the more flexible structure of public sector holdings in limited liability companies. Entrepreneurialism is more apparent in the public enterprises of Israel than Australia, but problems of service delivery are also more apparent in Israel. This article relates national differences in enterprise traits of control by government, styles of management, career patterns and service delivery to the national settings of government structure, economics, and political culture.     

韩国政府绩效评估及其对中国的借鉴意义

20世纪90年代,韩国政府启动了以创建廉价、高效和服务型政府为目标的行政改革。为推动行政改革和提高政府绩效,韩国政府开展了一系列绩效评估的实践,包括成立政府经营诊断委员会、加强政府绩效审计、推行制度评估和以目标管理为基础的公务员绩效评估制度以及制定实施政府绩效评估框架法案等。韩国政府绩效评估对我国政府绩效评估制度建设有重要的借鉴意义:要把政府绩效评估与行政改革结合起来;提高公民对绩效评估的参与度;要重视对公务员个人的绩效评估;绩效评估要与管理模式相适应;绩效评估要制度化和规范化。     

The Challenging Business of Long-Term Public–Private Partnerships: Reflections on Local Experience

Many widely publicized arrangements bearing the popular "public–private partnership" label are complex, long-term contracts between municipalities and private companies. In theory, these innovative contracts offer substantial public benefits, including improved service quality, risk sharing with the private sector, and cost savings. In practice, however, the challenges that long-term contracts pose can undermine their successful implementation at the local level. Drawing on illustrative cases, this article explores some practical impediments to achieving market-driven competition, equitable risk sharing, effective performance guarantees, and appropriate transparency in innovative long-term contracts. It examines the inapplicability of the partnership model to most commercial transactions between government and business, the risks of uncontrollable circumstances, the impact of local resource constraints, and barriers to transparency in long-term contracts. It concludes that local governments embarking on long-term contracts must invest in specialized expertise, effective contract management, and strong governance structures.     

PRIVATE PRISON MANAGEMENT: PANACEA OR PRETENCE?*

Abstract: Private prison management has been examined as a policy initiative by at least two state governments in Australia. Queensland boasts the only privately managed gaol in the country, and New South Wales has expressed interest in the possibility of contracting out the management of one of its new gaols. In the United States where it had its genesis, private management of adult correctional facilities has existed since the mid-1980s. Governments in America at federal, state and local levels have turned to private prison management because of budgetary constraints and chronic levels of overcrowding in their prisons and gaols due to an escalating rate of crime and incarceration. Private prison management in the United States has provided a last resort to a crisis situation. Among policy-makers in Australia there seems little appreciation of the factors which have motivated private prison management in the United States. In Queensland and New South Wales there is a view at government level that the private sector may well be a better manager of gaols than government, and that private management will achieve cost savings for government. Even in the United States, however, private prison management is still at an experimental stage and there is no evidence as yet to support assumptions about superior management and cost effectiveness. Governments in Australia are not experiencing the same crises which have prompted certain governments in America to adopt private prison management. Instead of introducing private corporations into the field of corrections in Australia, governments should be attempting to improve the performance of their own gaols and to make greater use of the private sector in those areas where its contribution can be of most significance — in the design and construction of prison facilities.     

The Civil Service under One Country, Two Systems: The Cases of Hong Kong and the People's Republic of China

Under the principle of "one country, two systems," Hong Kong's and China's civil services are changing, but they clearly are not converging. The civil service reforms made in Hong Kong and China appear to be heading toward two logical extremes: one toward strengthening political authority over the civil service, and the other instituting greater institutionalization. What appears to be a problem in Hong Kong may be seen as a solution in China. Not only reform problems, but also reform options, are defined in relation to wider political institutions and changing socioeconomic dynamics. The study shows that while some things do need to be uniform, such as loyalty to the state and central government, a great deal of flexibility regarding administrative systems within one country is possible. There can be a modern nation without a truly national civil service.     

中国公共政策制定中的政府俘获及其解决对策

中国公共政策制定中的政府俘获主要有国有垄断企业有力影响政府的决策、地方支柱企业绑架地方政府的决策、向政府官员提供非法的个人所得三种表现形式。政府俘获产生的原因包括企业与政府形成利益共同体、以GDP增长为核心的政绩考核体系、政府反腐败不力及廉政建设滞后、各社会群体参与不均衡、政府权力缺乏制约,法治不健全等方面。解决这一问题应从以下几方面采取措施:减少政府对市场经济的干预、保障民众的结社权利,培育公民社会、实现政策制定的公开透明和广泛参与,严惩政府官员腐败行为、加强廉政制度建设,建立以科学发展观为指导的政绩考核体系。     

Administrative reform in a changing political environment: The case of Hong Kong

Since 1989, the Hong Kong government has implemented a programme of public sector reform that is based on the principles of ‘new public management’. The reforms initially focused mainly on financial management reform, including delegating responsibilities for resource allocation; re-defining the roles of the central resource branches; setting up trading funds in departments that provide services directly to the public; and instilling a new corporate culture of service throughout the government. Some progress has been made in implementing the reforms. In 1993, the government realized that further civil service reform was necessary to support the reforms. The government proposed to delegate more authority to department heads on personnel matters; give managers more freedom to manage personnel; and simplify personnel regulations and procedures. These ‘new public management’-type reforms are usually associated with stable, relatively unchanging environments. In Hong Kong, however, the reforms have been proposed and carried out in an environment of considerable political turbulence which has both facilitated and hindered their implementation. Because of the declining legitimacy of the colonial government, British authorities may not have the political capacity to implement the reforms. Opposition from both department heads and civil service unions to aspects of the reforms has already emerged.