Economic Aid and Peace Implementation: The African Experience

Abstract

This paper examines the potential importance of externally-facilitated peace dividends and donor coordination in sustaining peace after the signing of an accord. We extend our previous research on US performance after civil wars to learn if adversary assumptions on peace dividends have additional positive impact when a wider sample of major Western European donors is included. Was the lack of US follow-through compensated for in whole or in part by the extension of development assistance allocations from European allies? We find that cases in which donors provide significant and sustained post-conflict aid are somewhat less likely to return to civil war than those who do not receive comparable assistance. Moreover, we find in such cases that donor coordination reinforced behaviour that encouraged the implementation process, providing an extra incentive for maintaining the peace agreement over the five-year threshold and beyond.     

The Federal Photovoltaics Utilization Program: An evaluation and learning framework

The Federal Photovoltaics Utilization Program(FPUP) was established in 1978 with the belief that getting photovoltaic cells into the market was a “bootstrap problem” - one of eliminating market uncertainties through federal procurements to enable investments in improved production processes. A lack of clearly defined program objectives and expected results, however, was translated into continuing difficulties in implementation. Using the FPUP experience as an example, an alternative model of photovoltaic procurement is proposed which is simultaneously more structured (in that greater analytical control is used in selecting applications to fund) and more adaptive (in that continuous feedback is built in). A discussion of such a framework and sequential evaluation design is followed by some comments pertaining to the future of other commercialization efforts.     

The Effects of Changes in Federal Aid on State and Local Government Spending

This study suggests federal grants-in-aid had an important influenceon state and local government spending during the 1960s andmost of the 1970s. This positive stimulation also seems to havecontinued during 1982–1985, despite the Reagan administration'sefforts to cut the level of federal aid to states and communities.The stimulative effect of federal aid, however, was showingsigns of diminishing after 1977 and was conspicuously absentfor the 1977–1981 and 1985–1988 periods.     

Federal Aid and Afro-American Political Power in Three Mississippi Towns

Since 1967 Afro-Americans have made great strides in electoralpolitics in the rural South. However, comparable progress inacquiring material resources to satisfy escalating demands fromnewly mobilized constituents has not been achieved in many instances.This article examines the experiences of three, rural, Mississippitowns which elected their first Afro-American mayors in the1970s. In responding to the separate demands of representation(direct citizen benefits) and institutionalization (maintenanceof Afro-American leadership), the new mayors made successfuluse of various federal aid programs. While helping the mayorsto improve public services and construct new community facilities,the federal aid did not contribute to the more long-range goalof institutionalization. The continuing problem for such localareas under Afro-American political control is the lack of independentresources.     

Politics, Economic Development, and Second-Generation Strain in India's Federal System

Since the late 1960s, India's federal system has experiencedsevere strain in center-state relations. Such strain was almostnonexistent during the first generation of Indian federalism(1950–1966). During the second generation, which followedthe death of Prime Minister Lal Bahadur Shastri in 1966, therise of a powerful leader of the ruling Congress party, IndiraGandhi, and the emergence of dissent inside the party led toa greater emphasis on centralization and regimentation withinthe party and, thereby, the federal system as well. At the sametime, economic development had helped to produce new politicalelites from rural areas who benefited from the "green revolution"of the 1960s. These new elites challenged the professional andindustrial elites who had long controlled the Congress party,the national government, and many state governments. Feelingfrustrated in their efforts to influence national economic policyin a significant way, these new elites have formulated demandsthat call for substantial decentralization, greater state autonomy,and more tolerance for opposition parties whose electoral supportis mainly state-based.     

Performance Funding in Federal Agencies: A Case Study of a Federal Job Training Program

Our case study highlights important details that enter into developing performance contingent budgeting schemes—details that do not emerge in more general discussions of the subject—and shows how the handling of these details can be crucial to these schemes' success. We study a federal job training program that gives state and local decision makers discretion over the program's operation, but through performance funding holds them accountable for achieving specific objectives. We find that states' modifications to the scheme's construction produced over time highly individualized performance funding schemes that likely varied in their effectiveness.     

Changes in Federal Aid and City Finances: A Case Study of Oregon Cities

Federal aid was not found to stimulate spending for cities inOregon during 1984–1989. Oregon cities relied primarilyon their own-source revenues to finance spending increases.The exception was capital spending, where receipt of federalaid in 1989 positively influenced the rate of spending change.This most likely reflected lower spending by those cities thatdid not receive competitive federal grants. The amount of federalaid received is greatly influenced by the grants skill availableto the community. Growth in total direct current spending wassignificantly associated with increases in user fees and charges.A closer look at specific spending categories revealed a hierarchyof reliance on cities' own-source revenues. Cities increaseduser fees and other benefit charges where possible, and seeminglyonly resorted to property-tax increases when these other revenueswere inappropriate.     

Federal Goverment Credit Program: Privatization Through Loan Sales

Privatization by sale of governmental financial assets provides a means to achieve program goals but does not preclude continued policy involvement. By loan guarantees the government has already privatized some aspects of its credit programs. Issues raised by loan sales differ from those concerning capital assets.     

Federal Intervention in the Municipal Bond Market: The Effectiveness of the Build America Bond Program and Its Implications on Federal and Subnational Budgeting

The American Recovery and Reinvestment Act of 2009 (ARRA) included several new federal programs intended ostensibly to “unfreeze” the credit markets as a result of the global financial crisis. One such program, the Build America Bond (BAB) program, aimed to lower the borrowing costs for state and local governments by increasing their access to capital and providing a more generous federal subsidy than the traditional indirect tax exemption subsidy. BABs are taxable bonds sold by subnational governments, which carry a 35 percent direct federal payment subsidy to the borrower. In creating this program, the federal government hoped that the large direct federal subsidy along with greater potential investor interest in taxable securities would result in lower borrowing costs for state and local governments vis‐à‐vis traditional tax‐exempt bonds. This research study examines the relative effectiveness of the BAB program and details the various quantitative and qualitative implications on federal and subnational budgeting by moving from an indirect to a direct federal subsidy approach in facilitating state and local government capital raising.     

Decreasing Improper Payments in a Complex Federal Program

Since the early 2000s, the U.S. federal government has placed increasing focus on combating improper payments. Implementing policies to control improper payments is no easy task. Federal programs are often large, complex, riddled with moral hazard concerns, and jointly implemented. In 2011, the U.S. Department of Labor adopted a national strategy to combat improper payments in the Unemployment Insurance program. This article examines the effect that the Department of Labor's strategic initiative had on lowering states’ improper payments. Findings show that two of its tools—mandatory cross matching of employment records between the National Directory of New Hires and State Directories of New Hires and a communication strategy known as messaging—played a statistically significant role in halting the rise of improperly paid unemployment insurance claims. These results suggest that information technology tools and increased communication among stakeholders can be effective in lowering improper payments and improving government performance.     

Economic and Monetary Union: Pillar of a Federal Polity

The Masastricht Treaty commitment to the economic and monetaryunion (Emu) follows a lengthy process of building up monetaryintegration, starting with the European Monetary System (1979),then, in the 1980s, the free movement of capital and integrationof financial markets. Emu, representing the final stage of thisprocess, is seen by most federalists as a pillar in the structureof the European Union, contributing to its development by stagesinto a federal polity. With the economic and monetary union,the European Union's economic and environmental powers are becomingcomparable to those of some federations, and with institutionsthat have over time acquired substantial federal elements, furtherreforms may well make the European Union into a federal system.This article identifies the forces, interests, and methods involvedin an incremental process that may be called a new federalism.     

Federal Aid to Local Governments in the West: An Irony of the Reagan Revolution

Despite the fact that the Reagan election was viewed as a power shift toward the West, the decade of the 1980s produced cruel disappointment. The region was generally left out of the economic recmery of the nation because of the bust in the agricultural and mineral industries. These state and local gmernments which sufferfrom high costs and low resources were particularly dependent on the national gmernment at the very time when the Reagan Administration was cutting federal aid and transferring power to the states. Unlike Nixon's New Federalism which helped the state and local governments of the West, Reagan's policies caused their relative position in federal aid flows to deteriorate. Although the Reagan revolution in cutting domestic programs was viewed as the embodiment of western rugged individualism, the region lost in terms of federal aid to small rural local governments.     

Community Development Block Grant: The Role of Federal Requirements

The CDBG program provides an excellent opportunity to studywhat local governments do to carry out national policy whenit is stated in general terms and they are left to their owndevices, and what they do differently when policy is interpretedin explicit regulations which are enforced. This article reviewswhat happened with two major legislative guidelines (low incometargeting and community participation) during the first sixyears of the CDBG program, including a period during which HUDinterpretations and enforcement varied greatly. It appears thatstrong federal enforcement caused a small increment in low incometargeting overall; but rigorous HUD direction and enforcement,combined with strong citizen participation, was necessary forsome jurisdictions to emphasize targeting. The research is pertinentin the present era of attempts toward major relaxation of federalgrant conditions and enforcement programs.     

The Life and Death of UDAG: An Assessment Based on Eight Projects in Five New Jersey Cities

The federal Urban Development Action Grant program, begun in1977, provided $5 billion over eleven years revitalizing severelydistressed urban places through the encouragement of privatesector investment. Designed to assist commercial, industrial,and housing projects that "but for" the federal grant wouldnot be built, the program was characterized by a streamlinedgrant-making process administered by finance and developmentexperts. Eight UDA G projects in five New Jersey cities, firststudied in the proposal stage in 1979 and revisited in 1987,show that the UDAGs succeeded in attracting development to thesehard-pressed cities. Although the projects succeeded, the programwas unable to arrest the more general distressed conditionsof the cities. During the Reagan years, the administration soughtto end the program. Congress supported it, but reduced the fundingeach year. In an effort to gain support for the program, eligibilityrequirements were broadened to include more localities. Theseefforts failed, and in 1988 Congress did not fund the program.Despite its demise, UDAG is recognized as having stimulatedurban revitalization and having created a new model for privatesector and public sector collaboration in economic development.     

Mandates As Both Hardship And Benefit: The Clean Water Program In Small Communities

No other intergovernmental policy has been so costly and difficultfor small local governments to implement as the 1972 versionof federal Clean Water legislation. This legislation has requiredthousands of localities to construct new or upgraded sewagetreatment systems. Rural governments have been hard pressedto cope with the demands of the anti-pollution standards, becauseof limited fiscal and managerial capacities and local valuesoften in conflict with national and state policy goals. Yet,as this study of eight rural California communities suggests,implementation can bring local benefits as well as hardship.As a result of their decade-long experiences with the CleanWater program, the small municipalities generally improved theirsewer system finances, acquired new organizational skills andresources, and increased their capacity to accommodate populationgrowth and stimulate economic development. These were long-runimpacts, occurring after initial problems and delays in theplanning, funding, and construction of the new plants.     

Economic Aid: The End of Phase II and the Impact on Sustainable Peacebuilding in Northern Ireland

Abstract

Economic aid has been a critical component of the peace process in Northern Ireland allowing for community-based interventions, employment, social inclusion and regional stability. With the second round of funding coming to a close this essay explores the thoughts and perceptions of civil servants, fund administrators and community group leaders in Derry, Belfast and the Border Area to consider peoples reflections on the outcome of funding, concerns for the future once funding ends, what vital work is still needed and what strategies exist to continue the work of peace after the cessation of Phase II.