Lessons from NPAs crisis in Indian banks

Nonperforming assets (NPAs) crisis in Indian public sector banks is one of the biggest challenges before the current government in 2017. The finance ministry, Government of India, and the central bank, the Reserve Bank of India, are worried about the surging NPAs in Indian public sector banks because of their huge macroeconomic impact and systemic risk to the financial system. If not paid timely attention, it can hamper the economic and financial stability of the nation. Rising NPAs in Indian public sector banks are a result of bank specific, macroeconomic, and political factors. In order to control the surging NPAs in Indian public sector banks, the government and the Reserve Bank of India have implemented new crisis management framework which however is not immune to several challenges. This paper looks at NPAs crisis from the lens of crisis management, stakeholder's engagement, government relations, and issue management. Harris and Fleisher ( 2016 ) identify crisis management, stakeholder engagement, government relations, and issues management as important organizational activities that constitute part of public affairs. This paper follows a tripartite structure where it first investigates the causes of NPAs in Indian public sector banks. Second, it examines the crisis management framework developed by the policy makers and highlights the key challenges. Third, in light of these challenges, it makes recommendations to tackle the NPAs crisis in Indian public sector banks.     

Long–Serving City Managers: Why Do They Stay?

The literature on council–manager government often mentions the political difficulties that city managers face with their elected officials and constituent groups. In addition, the generally accepted route to success for city managers is to move to larger and better–paying cities. As a result of these push–and–pull factors, the average tenure of city managers is short. There are, however, a relatively small number of city managers who enjoy long tenure in single cities. The authors identified the 146 city managers who are serving and have served for at least 20 years the same city and sought to determine the factors leading to their long service. The survey indicates that long–serving city managers are more likely to be found in smaller cities that are homogeneous and politically stable. The majority of these city managers are white males with above–average educational levels, strong support from elected officials, and personal commitments to the cities they serve.     

Two Decades of Change: A Ranking of Key Issues Affecting Intergovernmental Relations

This article describes the results of a 1981 survey of 1,000randomly selected scholars of American government and politicswho were asked to rank the most significant intergovernmentalevents and trends of the past twenty years. Responses were receivedfrom almost 40 percent of these scholars; no significant returnbiases were detected. These scholars ranked civil rights andvoting rights acts as the most significant events of these decades.General Revenue Sharing and the reapportionment cases were rankedsecond and third in importance. The increased flow of federaldollars to states and local governments was ranked the mostimportant trend affecting intergovernmental relations, followedby the increased public disaffection with government and thegrowing dependence of local governments on state and federalaid. The Vietnam War and the inflationary spiral it initiatedwas ranked as the most significant social event affecting thecourse of intergovernmental relations, followed closely by theenergy crisis and the beginnings of the "Great Society." Thearticle also examines the effects of party identification, age,year of degree, government experience, region, and city sizeon scholarly attitudes toward these events and trends. Whilethe overall rankings were not dramatically altered, partisanship,region, and city size all were factors found to be noticeablyrelated to scholarly rankings of these important events andtrends.     

How the spending patterns of cities change: Budgetary incrementalism reexamined

Do city governments generally behave in keeping with the assumptions underlying the incremental model when they allocate their resources among competing activities? That is to say, do they try to maintain everyone's historical “fair share” of the budget in order to minimize disputes among rival participants in the decision process? Earlier studies have lacked sufficient data to address this question. However, with data from 105 West German cities, the present study is able to provide an answer. The resource allocation behavior of many of those cities seems to conform with the incremental model's assumptions. Yet for other cities, major changes in expenditure patterns from one year to the next are common. The differences in the variability of expenditure patterns across the cities studied are far from random. They are systematically associated with certain characteristics of the municipal environment. These associations, in turn, offer plausible hints about the process that leads to change in cities' spending patterns.     

Reinventing Local Governments and the E-Government Initiative

The Internet provides a powerful tool for reinventing local governments. It encourages transformation from the traditional bureaucratic paradigm, which emphasizes standardization, departmentalization, and operational cost-efficiency, to the "e-government" paradigm, which emphasizes coordinated network building, external collaboration, and customer services. Based on a content analysis of city Web sites and a survey of Web development officials, this article shows that many cities are already moving toward this new paradigm. These cities have adopted "onestop shopping" and customer-oriented principles in Web design, and they emphasize external collaboration and networking in the development process rather than technocracy. The article also analyzes the socioeconomic and organizational factors that are related to cities' progressiveness in Web development and highlights future challenges in reinventing government through Internet technology.     

Incumbency advantage and candidate characteristics in open-list proportional representation systems: Evidence from Indonesia

We use evidence from Indonesia's April 2014 legislative elections to study the relationship between incumbency, list position, candidate characteristics, and electoral success in open-list PR systems. Contrary to a recent literature identifying an incumbency disadvantage in other large developing democracies, we identify a consistent personal incumbency advantage in Indonesia. However, we argue that this advantage is mediated by party choices over how incumbents and newcomers are ranked on party lists, a key heuristic for voters in low-information electoral environments such as Indonesia.     

Confronting the challenges of urban development in São Paulo: the Operações Interligadas/Urbanas

This article examines the contribution of international municipal cooperation (IMC) to the resolution of long standing planning challenges in the city of São Paulo (Brazil), South America's largest urban agglomeration. Specifically, the study investigates the early development and subsequent evolution of a planning‐related project developed in collaboration with the city of Toronto, Canada. In its first phase–dubbed the Operações Interligadas (OI)–the initiative was directed towards expansion and improvement of São Paulo's housing stock. The second phase, known as the Operações Urbanas, has focused more broadly on urban renewal. As will be shown, both phases of the programme have provided an important fund‐raising mechanism for confronting the challenges of urban growth and change. At the same time, however, the study reveals a number of limitations to the overall strategy, perhaps restricting its use as a model for other developing world cities. Copyright © 2001 John Wiley & Sons, Ltd.     

Evaluating City Financial Management Using Fuzzy Rule—Based Systems

Financial management is one of the most important management tasks of government. The complexity of financial management systems has discouraged overall evaluations of financial management. The objective of this article is to develop a method for evaluating government financial management that can handle this complexity. A fuzzy rule–based system (FRBS) is a methodology that can use many different types of data, produce robust input measures and can capture the complex contextual judgment of experts. Using data collected as part of the Government Performance Project survey of large cities, we develop an FRBS for city financial management.     

Learning how to be efficient property owners and accountable governments: the case of Kyrgyzstan's cities

As a result of government decentralization and property devolution from central to local governments, many city governments in transition countries became the largest real property owners in urban areas. For transitional countries lacking sufficient democratic traditions, efficient asset management represents a dramatic and multifaceted challenge. Kyrgyzstan happened to be among the first transitional countries where cities obtained systematic technical assistance in adapting the most advanced methodology of municipal asset management, which was recently developed under the auspices of the World Bank. Based on experience of work within five pilot cities, the article summarizes factors and methods that help develop a sense of strong ownership and internalization of new asset management vision and approaches among local officials and elected members of city councils. The article presents the experience of how the government of Uzgen, a city of about 40,000 people in South Kyrgyzstan, has changed its attitudes and approach regarding management of municipal property. The article demonstrates how two key processes—improving professional aspects of municipal asset management and developing local democracy though public involvement—have been reinforced by each other. One of the main lessons from Uzgen's experience is that municipal property asset management—because it deals with tangible issues—is a perfect focal point for developing local democracy and communication between a local population and its government. Copyright © 2001 John Wiley & Sons, Ltd.     

The resolution trust corporation in historical perspective

Abstract

This paper contrasts the asset disposition challenges facing the Resolution Trust Corporation (RTC) with similar challenges that faced two earlier government agencies: the Home Owners Loan Corporation (HOLC) and the Federal Asset Disposition Association (FADA).

The paper first compares the quantity and diversity of RTC assets with the somewhat fewer but more uniform assets (one‐ to four‐family homes) sold by the HOLC. The FADA's challenge was quite modest compared with the RTC and the HOLC. The paper then contrasts current RTC policy issues with those that arose with the HOLC and the FADA. The paper does not, however, make specific policy recommendations.     

Fiscal Crisis and Community Development: The Great Recession,Support Networks,and Community Development Corporation Capacity

Community development corporations (CDC) are a cornerstone of neighborhood improvement in legacy cities. Yet they face challenges that threaten their financial sustainability, challenges that grew exponentially with the Great Recession. This article examines the impact of the Great Recession on the revenue and survival of CDC in Baltimore, Maryland; Cleveland, Ohio; and Detroit, Michigan. An analysis of financial data from the National Center for Charitable Statistics from 2004 to 2011 highlights issues of industry contraction, revenue concentration and loss, and CDC survival. Interviews and examination of multiple secondary sources of information on CDC activity and support networks in each city further our understanding of the financial results. We find that the CDC industry in all three cities was severely impacted by the Great Recession and that the CDC support networks in each city had a significant intervening effect on the ability of CDC to adapt to the fiscal and service pressures created by the recession. We discuss the implications of the shared trends and the city-specific dynamics for the role of CDC in neighborhood improvement in legacy cities.     

New Federalism and Midwestern Cities: 1981-1985

President Ronald Reagan introduced a major new domestic initiativeduring his first term. The intent was to reduce the size andscope of the federal government and to increase the fiscal responsibilityof local governments. Mail questionnaires were sent to mayors,city managers, and finance officers in cities over 25,000 populationin Illinois, Indiana, Michigan, and Wisconsin asking the respondentsto indicate their perception of the impact the Reagan programhad had on their cities in the previous year and their perceptionof its anticipated impact. Response rates were nearly 50 percentfor each survey. The respondents consistently overestimatedthe impact the Reagan program would have on their cities. Thefollowing analysis explores the relationship between perceivedeffects and city and respondent characteristics, such as size,partisan identification, and state. While the Reagan policieshave had a substantial impact on these cities, the impact isnot as negative as the respondents originally thought.     

Ethnic Decentralization and the Challenges of Inclusive Governance in Multiethnic Cities: The Case of Dire Dawa,Ethiopia

Abstract

Ethnic decentralization which could emerge in the form of autonomy and/or federalism has become an important way of responding to the challenges of ethno-nationalist conflicts. Since 1991, Ethiopia has adopted an ethnic federal structure which provides territorial autonomy to its various ethnic groups. This approach to autonomy, however, has brought challenges to multiethnic cities and ethnic borderlands where different ethnic groups coexist. By examining the experience of Dire Dawa, the second largest city in Ethiopia, this article shows how federalism and territorial autonomy by themselves are not enough to address problems of participatory governance in multiethnic cities. The article finally underscores the need for policy innovations that would ensure power-sharing in multiethnic cities.     

Human rights and the city: Including marginalized communities in urban development and smart cities

The idea that the city belongs to all individuals inhabiting the urban space is grounded in the Universal Declaration of Human Rights and the New Urban Agenda, and it is referred to as “right to the city” or “rights in the city.” This article discusses how human rights relate to the city and its inhabitants, examines the meaning of the right to the city and human rights in the city in today’s urban environment, and deliberates how to transform cities into spaces that reflect fundamental human rights principles. By looking at the situation of marginalized groups in cities, the article focuses on the questions of how to build inclusive, fair, and accessible cities and how to eliminate inequalities seen in urban communities. Because technology is often cited as one way to foster integration of marginalized communities, special attention will be given to the smart city and the opportunities and challenges presented by information and communication technologies (ICTs) for human rights, accessibility, and inclusion. Using the case of persons with disabilities as an illustration, the article argues that urban development needs to be fundamentally transformed to live up to human rights standards. Only a multi-stakeholder urban design process will produce truly inclusive urban spaces that fulfill the right to the city.     

Performance management system in developing countries: A case study in Jordan

The performance management system (PMS) is critical to the success of any organisation, and this article investigates the PMS of the Greater Amman Municipality (GAM) in Jordan, which is one of the largest public entities in the country. The article identifies various problems that are faced by GAM, such as HRM and staff, management behaviour, and performance management, which significantly affect GAM's performance. Additionally, the article discusses the process of goal and indicator setting and development of the PMS of GAM. The article adopts a phenomenological approach and a qualitative case study methodology to collect primary data from 15 purposeful semi-structured interviews with GAM's experts. Thematic analysis is used as the data analysis technique to identify the PMS activities and address problems and difficulties in GAM's performance. The findings highlight eight major activities of GAM's PMS, which include performance sourcing, targeting, development, setting and responsibility, gauging, information, results, and alignment. These activities need to be managed properly if GAM wanted to meet its performance targets. Hence, the article presents a set of recommendations to improve GAM's PMS and overcome the identified difficulties, such as improving HRM practices and staff role, enhancing management behaviour, and establishing a performance management culture. Overall, the article provides valuable insights into the PMS of GAM and highlights the importance of an effective PMS to achieve organisational success.     

Building Green: Local Political Leadership Addressing Climate Change

Municipal agreements have been instrumental in communicating commitment to addressing climate change at the local level. However, what is the practical implication of this potentially symbolic decision? This study examines the power of mayoral participation in climate change agreements in driving the proliferation of sustainable or “green” building in a city as a mechanism to reach its climate change goals. In addition, mayors can localize what is otherwise a public good by framing green buildings as having other tangible impacts on a community. We analyze the impact of political leadership on green building projects in 591 cities in 50 U.S. states, controlling for a variety of city‐ and state‐level variables. Hierarchical models indicate that mayoral leadership in climate change policy fosters green building, while state‐level predictors are not as important as city policy in creating green buildings. Our research concludes that local governments can be a very effective venue in addressing broad climate change goals.     

Evaluating Capital Management: A New Approach

The objective of this article is to develop a methodology for evaluating capital management performance. We have employed a new methodology, fuzzy rule–based systems (FRBS), that allows evaluators to break down complex systems into manageable components. FRBS can also use a variety of data types by converting data into ordinal input measures that are not overly sensitive to small measurement errors. In developing an overall performance measure, the evaluator under an FRBS creates explicit rules for combining inputs that can reflect the complex contextual judgments commonly made by evaluators. Using survey data on 35 large American cities from the Government Performance Project, we develop an FRBS for city capital management.     

Urban citizenship of rural migrants in reform-era China

One paradoxical reality of today's China is that urban citizenship does not necessarily go to those who have already moved to the city. Rural migrants are now allowed to work in cities but are deprived of a wide range of entitlements. Taking Shanghai, the most populous city in the world's most populous country, as a case study, this article establishes significant empirical content to elucidate how the notion of urban citizenship is interpreted in China, what criteria are applied for granting the urban citizenship, to what extent the entitlements of migrants in cities are comparable to those of the bona fide urban residents, and whether the lack of urban citizenship influences migrants' integration into host cities. Empirical investigation shows that granting of the urban hukou (household registration) is based largely on migrants' contribution to, rather than simply on their presence in, the host city. In the context of reform-era China, urban citizenship is used by city government not only to exclude some members of society from accessing urban welfare but also to make the urban economy more competitive by grabbing capital and human resources possessed by migrants.