Business Associations and the Decentralization of Penury: Functional Groups and Territorial Interests

This article compares the responses of subnational business interest associations (BIAs) in declining industrial regions to the demotion of centrally-administered regional economic policy in favor of regional and local initiatives — a "decentralization of penury"— in Great Britain and West Germany. As an organization that represents chiefly functional membership interests, a BIA is not the most obvious candidate for economic initiatives based on territory. Drawing on a comparison of BIAs in two British administrative regions and two German Länder , I discuss the mix of elements that influence whether business is capable of fighting out politics about territory across territory, either on a local or regional basis. The analytical framework employed is based on Schmitter and Streeck's logics of membership and influence. The findings suggest that business associations formulate and pursue territorial economic interests consistently, yet face powerful constraints generated by their relations with members and by central government policies. Where the spatial economic interests of business are concerned, BIAs in both countries, despite the clear differences in organizational properties and capabilities, are best able to balance the tensions generated by the two logics when government policy encourages a local focus.     

The relevance,practicality and viability of spatial development initiatives: a South African case study

Policymakers have for long had an ambivalent attitude towards space and have been hesitant in dealing with intra‐national models of uneven development. Issues surrounding regional development have always been tainted with ideological and political influences rather than being a purely economic consideration. This article addresses the thinking behind regional development policies and questions the role of spatial policy. It confronts this question in the South African case where local government capacity is particularly constrained and the boundaries between government tiers unclear. The first section outlines a selected critical history of the regional policy literature as it applies to South Africa. This is followed by an examination of South Africa's post‐apartheid policy of spatial development initiatives (SDIs) focusing on the most contentious of these, namely the Fish River SDI, which has been plagued by controversy. It focuses on the tensions involved in development planning between government agencies and between politicians and technocrats. It also highlights the growing schism between government and civil society with the former emphasising mega‐projects which reinforce its global competitive strategy but with limited apparent benefit to the local community. Lastly, it concludes that little effort was made to integrate the SDI into a provincial poverty strategy and argues that instead of utilising industrial decentralisation to redress inequality and poverty, a ‘first‐best’ option may be for the government to target poverty directly by investing in various forms of human capital. Such an approach would lead to long‐term economic growth and also improve South Africa's international competitiveness. Copyright © 2003 John Wiley & Sons, Ltd.     

Policy actions for developing the infrastructure sector: Learnings from the Indian experience

The infrastructure sector is one of the major pillars for economic growth and development of a country. The responsibility to develop this crucial sector is shifting away from the public to the private sector. After the economic liberalization in 1991, India opened the infrastructure sector, among many others, to private domestic and foreign investment. The shortage of electricity, the poor state of roads, and limited telecom access necessitated a stream of persistent reforms, which were expected to play a significant role in the infrastructure sector's growth. Although some subsectors witnessed success, others continued to face hurdles. The paper highlights the role of infrastructure in socio-economic development through global literature. It also presents a story of infrastructure development in India since the inception of economic liberalization. It highlights various challenges that discourage private sector investments, thus providing a rationale for policy initiatives by the government. The paper also presents critical issues highlighted by multiple government committees over nearly three decades and identifies residual issues that merit attention. The outcomes of the paper are relevant in the context of developing and emerging economies.     

Regions with regionalism? The rescaling of interest groups in six European states

In many European countries a regional or meso level of government has emerged, with significant policy responsibilities. It has been suggested that the representation of social and economic interests has not followed, so that policy communities remain state‐wide, giving ‘regions without regionalism’. This study of interest groups in six European states examines their adaptation to devolution, focusing on organisation, cognitive change and relationships. It finds there has been a regionalisation of interest representation, but it is uneven, depending on the strength of regional government, territorial identities and the interests of social actors. Business, trades unions, farmer organisations and environmental groups are all cross‐pressured on the regional question. The region is emerging in some cases as a site of interest intermediation. Territorial policy communities are emerging in some regions, but in most cases these supplement, rather than replace, state‐wide policy communities.     

When market and territory collide: Thatcherism and the politics of regional decline

This article examines the politics of regional economic decline in two British administrative regions since 1979. Variations in economic problems and in government policy have combined with the presence or absence of indigenous resources to produce distinctive responses by groups and organisations in these regions. The findings highlight the strong influence of government policy in structuring the options for regional groups, as well as the mediational role played by regional civil servants. The politics of territory is alive and well in Britain, although it occurs within well‐defined parameters set largely by central government.     

中国边疆民族政策的实证调查

边疆多民族地区的经济建设和社会发展,是政府主导型的一个社会进程,中国政府在这个过程中承担着重大的政治责任和社会责任。本文通过对中国政府在边疆多民族地区经济、社会领域若干政策的回顾,以及对边疆多民族地区社会现状的调查,指出长期以来“效率优先”的改革思想,地方政府“效率单边独追”的畸形发展方式与中央政府“民族主义”的政策导向,是造成边疆地区对中央政府政策认同度低的重要原因。     

The efficiency of provincial governments in China from 2001 to 2010: measurement and analysis

Measurement and analysis of local government efficiency is important; however, it is also difficult. To measure government efficiency, this paper employs the relative measurement method described in the research literature. It develops and applies an index to measure and rank the government efficiency of 31 provincial governments in China (including autonomous regions and municipalities) from 2001 to 2010. This permits a comparative analysis of provincial government efficiency and of the factors that influence it, among China's eastern, central, and western regions. The findings suggest a high association between the degree of economic development and local government efficiency, and in this respect, a large disparity has been observed between central and western regions on the one hand and the eastern region on the other. It is argued that provincial governments in the central and western regions should focus on improving residents' welfare, the quality of regional economic growth, and the level of social development by constantly enhancing government efficiency, optimizing the supply of public services, controlling the size of government, and thus improving residents' disposable income. Copyright © 2014 John Wiley & Sons, Ltd.     

Ideas and experts: Indonesian approaches to economic and security cooperation in the Asia‐Pacific region

Indonesia has been a key player in various initiatives to promote both economic and security cooperation in the Asia‐Pacific region in recent years. This essay explores the role of policy experts in facilitating these moves. The central argument is that in both policy spheres it is indeed possible to identify networks of policy experts who have been directly and indirectly associated with efforts to strengthen regional cooperation. Although the dearth of primary research into policy‐making processes in Indonesia makes it difficult to weigh the inputs of experts against other likely causal factors, there are reasonable grounds for believing that their contribution has been an important one.     

An Evaluation of the Economic Approaches Used by Policy Actors towards Investment in Place-Based Partnerships in Victoria

Place-based partnerships are supported by the state and include various organisations and interests within particular geographic areas. The Victorian government has established place-based partnerships to plan and coordinate resource allocation decisions to meet objectives such as economic development and social inclusion. In the literature there are positive and negative views of these partnerships. One view is that they allow regions to build competitive advantage, while another is that they are a means of pursuing a neoliberal policy agenda that seeks to reduce government protection and investment. We help clarify the tensions between positive and negative views of partnerships by examining the economic approaches used by policy actors toward place-based partnerships in Victoria. We find that policy actors combine neoclassical and institutionalist approaches to argue that partnerships generate networks that enable more efficient and equitable resource allocation within places .     

Investigating the Institutional Norms and Values of the Productivity Commission: The 2011 and 2015 Childcare Inquiries

The Productivity Commission (PC) has a mandate to provide independent advice to government that promotes community wellbeing. Whilst it plays a significant role in social and economic reform, the underlying institutional values and norms of the PC that shape its advice have not been examined. This paper examines policy problematisations (Bacchi 2009, 2012) across two PC ‘inquiries’ into childcare (2011, 2015) between Labor and Coalition governments, and the advice provided by the PC. In doing so, this research demonstrates that PC recommendations are imbued with economic values that are highly institutionalised. These values give preference to targeted social welfare and traditional gender norms, despite current evidence suggesting alternative approaches would have better social and long‐term economic outcomes. Our findings raise questions over the conflict between the traditional economic values of the PC and providing social policy advice that reflects best practice, indicating that further investigation into the PC is urgently needed.     

Public choice theory and petroleum policies in Canada, Britain and Norway

Abstract. It is assumed that the development of an economically promising resource such as petroleum would be amenable to analysis from an economic viewpoint, and that government initiatives in this area might reveal the essential economic interests of the state. If governments are assumed to have similar economic and political objectives (i.e., to attain the greatest revenues possible from the exploitation of a depleting natural resource and to maintain public office), then it is to be expected that the petroleum policy outputs in various states would likewise be similar. Such differences as do exist should be amenable to explanation by examining the differences in the political constraints and economic situations of the states in question. The study models petroleum policy in four areas: state participation, pricing, depletion (including exploration and production policies), and fiscal arrangements, based on assumptions central to public choice theory. A comparison of policy outputs in the three case states illustrates the usefulness of the public choice approach to comparative policy analysis.     

Decentralisation of regional development policies in the Netherlands ‐ A new type of state intervention?

During the past decade, regional development policies in the Netherlands have been dismantled. At the same time, economic development policies have been decentralised to regional and local government level. This has given rise to ‘local initiatives’ for implementing market‐oriented and market‐related development strategies. In the long run, decentralisation of economic policies results in a new type of regulation. It is not through administrative measures and public control that the state intervenes in economic development, but through indirect mechanisms to improve economic growth and innovation. The Keynesian model of regulation, based on far‐reaching intervention, is gradually being transformed into a more ‘modem’ model, characterised by flexible, fragmented, indirect and ‘invisible’ measures. The result is a fundamental change in the relationship between state and economy.     

EMPLOYMENT AND TRAINING POLICY AND AMERICAN IDEAS: OLD PROBLEMS AND EMERGING PROGRAMS

The federal government has, relative to other areas of social welfare program activity, been especially slow in the development of employment and training policy. The reasons for this can be found in terms of an understanding of the most basic American political and economic ideas. The history of federal initiatives in employment and training policy is traced briefly and the impact of certain American political ideas on this pattern of development is analyzed. Particular attention is given to the issues of coordinating of employment and training programs and the increased role of the state and private sector in designing and managing such programs. It is suggested that in light of certain historic American political patterns, there might be costs to moving in commonly sought after ways that are not readily evident.     

“强县扩权”体制改革的文本分析

在发展县域经济的原动力下，我国诸多省份相继出台政策推行“扩大县（市）经济社会管理权限”改革，赋予县级政府地市级的经济社会管理权限，减少行政层级，成为探索“省直管县（市）体制”的又一路径和研究热点。通过分析各地政策文本中关于时间进程、改革目标、改革原则、改革内容、扩权方式与类型以及相应的配套措施等内容可以发现，由于“示范效应”的存在，各地在改革目标、改革原则、改革内容和扩权方式等方面存在着较大的共性，只有部分省份因地制宜地提出了有省情特征的改革举措，说明此项改革目前仍处于探索阶段，还有较大的完善空间。     

The centralization vs decentralization tug of war and the emerging narrative of fiscal federalism for social policy in India

ABSTRACT

This paper examines the relationship between fiscal federalism and social policy in India through an analysis of the effects of a recent effort to increase fiscal decentralization to state governments on the nature of social policy investment at the sub-national level. Through its analysis, this paper highlights the persistence of a strong centralisation bias in India’s fiscal architecture for social policy. We trace this centralisation bias to the political and administrative dynamics of the federal bargain. The peculiar dynamics of this bargain have created a context where the core goal of centralization – to ensure equity – is undermined while the expectation of decentralization – greater accountability through alignment of expenditure with local needs and preferences, fails to take root. India is thus likely to continue to witness significant regional variation in social policy outcomes, despite a centralised financing architecture.     

Local Heroes? Learning from Recent Community Strengthening Initiatives in Victoria1

Policies and programs which aim to strength the engagement, connectedness and resilience of local communities have increasingly become a core element in public policy responses to the challenges posed by globalising social and economic relations. However, for many politicians, policy makers and citizens the conceptual framework and practical benefits of ‘community strengthening’ remain vague and unclear. This article aims to contribute to debates about the significance of community strengthening by providing a concise overview of the development and implementation of community strengthening initiatives by the Bracks Labor government in Victoria. Initial learning from this experience suggests that engaging and linking local communities can make a useful contribution to local social, environmental and economic outcomes as well as providing a foundation for the democratic renewal of local governance. Key factors underpinning successful community strengthening programs include strong local ownership and leadership, backed by sustained government investment in the social and physical infrastructure priorities identified as important by local communities. However, while local community strengthening strategies can lead to real improvements in community networks, infrastructure and capacity they are no substitute for the inclusive and redistributive taxation, income security, service delivery and labour market policies needed to create the conditions for sustainable reductions in poverty, inequality and social exclusion.     

Both glue and lubricant: Transnational ethnic social capital as a source of Asia-Pacific subregionalism

Social capital not only forms and functions at the individual, group, and organizational levels, but also permeates and transcends the political and geographic boundaries of nation-states. This paper examines transnational ethnic social networks based on ancestral and kinship ties as a form of social capital that facilitates economic growth and transformation in a transborder subregional context. Transnational ethnic social capital works by gluing multiple economic actors on opposite sides of a border together and by lubricating economic transactions among them. When purposefully mobilized by government policies, transnational ethnic social capital in turn induces more responsive and efficient policy initiatives and implementation. This paper also considers whether ethnic social capital is both a necessary and sufficient condition for successful transnational subregionalism by demonstrating its interaction with certain crucial complementary or contradictory factors.     

The Development of Competitive Industries: The Role of State Government Actors

Despite widespread adoption of Porter's Industrial Cluster Theory as a policy development framework by federal and state governments over the past decade, Australia remains significantly below the OECD average in terms of its industries' economic contributions to real wealth creation ( Brown 2000 ; OECD 1998 ). The major cause cited for this relatively poor performance has been inability of key government officials to implement effective industry policy that simultaneously avoids de facto protectionism and distortion of competition. This article provides an insight into the key policy decisions undertaken by the Tasmanian state government that coincided with development of an internationally successful shipbuilding industry in that state. As such, this article provides a reflection on policy initiatives that may be valuable for government officials elsewhere.     

Public policy and competition amongst foreign investment projects: A case study of the Daya Bay economic development zone in South China

By the second half of the 1980s, economic reform in China had produced differentiated interests between regions and a decentralized authority in the country. The central government had increasingly delegated its powers over funding, foreign exchange, resources and investment to local governments, and local governments in different regions had gained more autonomy to control the resources. This situation resulted in the proliferation of power centres at local levels where independent policies were generated to protect and pursue regional interests and resist the general policies of the centre. Conflicts of interest and competition intensified and became more popular than during previous periods. This tendency particularly manifested itself in local policy making concerning the introduction of foreign investment and projects. The case of the founding and evolution of the Daya Bay economic development zone in South China indicates the extent to which the competition between different coastal regions, and between the coastal regions and the central government had been generated. In this case study, the contextual changes that created a competitive environment will be reviewed briefly; the general conditions and motivation to establish the zone will be introduced; then the focus will be on analysing a series of policy formulations surrounding the competition for foreign investment projects. The case study is concluded by an assessment of the ‘incremental’ nature of Chinese policy making.     

Negotiating universalism in India and Latin America: Fiscal decentralization,subnational politics and social outcomes

ABSTRACT

This is the introductory paper for a special issue which focuses on an exploration of how vertical inter-governmental political and fiscal bargains and horizontal variation in political, social and economic conditions across regions contribute to or undermine the provision of inclusive and sustainable social policies at the subnational level in Latin America and India. The papers incorporate both federal, as well as decentralized unitary states, pointing to common political tensions across unitary and federal settings despite the typically greater institutionalization of regional autonomy in federal countries. Jointly, the papers examine the territorial dimension of universalism and explore, in greater and empirical detail, the causal links between fiscal transfers, social policies and outcomes, highlighting the political dynamics that shape fiscal decentralization reforms and the welfare state. This introductory essay reviews existing scholarship, and highlights the contribution of the special issue to understanding these issues beyond OECD contexts.