Coming to grips with corporate governance in local government

Local government, the tier of government closest to the people, provides services and infrastructure which impact daily on the well‐being of local communities. Despite the Australian state‐based regulatory framework, governance dysfunction regularly results in dismissal of councils. This paper seeks to gain an insight into what is understood by corporate governance at the local government level, an area not addressed in previous research. The methodology was a case study of one local municipality in Tasmania using explanatory sequential mixed methods. Findings revealed a narrow compliance‐based understanding, with effective accountability strategies not included in that understanding. Diverse information sources, such as previous employment experience and industry‐based training, led to embedded beliefs about the meaning of corporate governance which were not necessarily shared by all. This study has implications for state governments seeking to find long‐term solutions for dysfunctional councils, and to bring about positive change.     

Impact of compulsory competitive tendering on the structure and performance of local government systems in the State of Victoria*

Around the world, the public sector is introducing private sector management practices. Abandoning the binary model of public and private sectors the State Government of Victoria introduced the compulsory competitive tendering system under which local government bodies are required to tender out their services to private sector service providers. The aim was to encourage local government bodies to operate in contestable situations so that they can increase efficiency, decrease operating costs, develop clear programme goals and objectives, become responsive to client goals, and improve the quality of goods and services. The article describes how the practice of the compulsory competitive tendering system has introduced major changes to organizational cultures, attitudes of employees, power and authority structures, sytems of decision making, delegation of financial and managerial authority, and the nature of control and accountability. In addition, the article explains the degree of competitiveness and efficiency that local government bodies have achieved and describes how the corporatized structure has helped to achieve the financial objectives. The article also discusses how the role of the elected councils is diminishing under this new management structure and argues that in the absence of a genuine monitoring system and accountability mechanism the local government bodies find it difficult to assert their role as quality service deliverers. This has forced the councils to comply with the requirements of the competition laws which have reduced direct accountability of government to the public. Copyright © 2000 John Wiley & Sons, Ltd.     

Participation in the Budgetary Process in Local Government

Direct democracy is seen as a means of reengaging citizens in the political process. However, it is a contested concept that requires further development by being grounded in a specific context. This article reports on research undertaken in Victorian local government where the New Public Management (NPM) has been in evidence for a number of decades which according to the literature has impacted on accountability to the broader community. The possibility of consultation and citizen participation in the local government budgetary process was examined. The results reported suggest that participation in the budgetary decisions in local government is possible.     

Decentralization in Tanzania: An assessment of local government discretion and accountability

A large part of the decentralization literature is fragmented along political, fiscal, or administrative lines. In this article we employ a diagnostic framework to draw these dimensions together in a coherent manner to focus on analyzing local government discretion and accountability in Tanzania. Tanzania seems to have a deconcentrated local government system with central appointees having large powers at the local level. Centrally‐funded mandates—such as constructing secondary schools—dominate local government plans and budgets. Central control over administrative functions has ensured that administrative decentralization is yet to occur. In the fiscal sphere, progress has been made in transparency and harmonization of transfers in the last 5 years but local governments still have some way to go in raising own revenues, being less reliant on transfers, and ensuring downward accountability. Copyright © 2010 John Wiley & Sons, Ltd.     

LOCAL REGIMES: Does Globalization Challenge the “Growth Machine”?

This article explores the possible impacts that globalization might have upon the nature of local governments and the economic development policies that they adopt. We begin by outlining the theory of how “corporate regimes” dominate most urban centers, why they implement skewed economic development policies, and why globalization appears to be exacerbating these problems. Research on state‐and‐local economic development outside urban centers indicates that several types of business development exist and that they differ significantly in their implications for improving conditions in a community. This suggests that other types of corporate regimes are possible. The logic of globalization points toward the need to establish more progressive corporate regimes willing to implement some of the reforms advocated by critics of the “growth machine.”     

社区股份公司的发展困境:逆向嵌入与信任消解——基于深圳市L区的实证研究

社区股份公司是城市集体经济的重要组成部分,对于城市的经济发展与空间拓展具有重要意义。面对现阶段我国多样的市场机会,社区股份公司却长期固守低端物业和租赁经济,经济发展模式单一,发展处于停滞状态。基于深圳市L区31家社区股份公司的实证研究,发现股民通过“出身”股权和宗族网络逆向嵌入社区股份公司,严重束缚了社区股份公司管理层的自主性。由于社区股份公司与地方政府缺乏有效的正式沟通渠道,以及过往合作质量较低等因素,极大地消解了双方的信任,社区股份公司不能很好地回应地方政府的扶持政策。未来需要从做实集体股份、完善公司治理、调整股权结构、重建信任机制以及提高政府服务质量等方面入手,破解社区股份公司的发展困境。     

State and Corporate Cash Management: A Comparison

Public and private sector portfolio managers pursue similar goals even though they perform their portfolio management responsibilities in significantly different environments. This article compares and contrasts corporate cash management with state government practices. The comparison and analyses are based on data drawn from a survey of state government portfolio managers and an earlier study which reviewed corporate cash management practice.
The comparison and analyses consider investment objectives, permissible assets, assets held, and asset holding period, among other factors. The results suggest that portfolio management practices are quite similar even though the cash management environment is significantly different.     

Measuring the Performance of Community Organisations in Queensland and New Zealand

The need to measure qualitative outcomes is well documented. This article argues that despite this recognition many programs are still evaluated using unreliable numerical indicators. This has particular ramifications for community service programs that deal with the sharp end of social problems. While the New Zealand government has instigated a comparatively detailed approval standards, the Queensland government's community service guidelines are still applied almost on an ad hoc, case by case basis. Both New Zealand and Queensland performance indicators are directed towards process outputs, with a primary focus of government being centred on financial accountability. The satisfaction of the client remains the core responsibility of the service provider, but there is little assessment of how successful programs are in meeting individual requirements. This article suggests that there needs to be the development of a more collaborative relationship between governments and community service organisations, to ensure both financial and social objectives are fully realised.     

RESPONSES TO GROWTH IN THE SUN-BELT STATE: PLANNING AND COORDINATING POLICY INITIATIVES IN QUEENSLAND

Abstract: Queensland's population growth phenomenon has demanded responses from the state government for greater intervention in planning land use and resources utilisation. Planning, especially regional planning, represents an area of traditional policy neglect in Queensland, explained in part by the division of powers such that local authorities, rather than the state, have the major responsibility for land-use development and physical services. Local government jurisdiction in planning poses a challenge for the state government in how best to strategically manage regional growth, while at the same time respecting local authority autonomy in planning decision-making.
Over the last three years, the Goss government has undertaken both administrative reforms and a comprehensive and innovative planning exercise to shape urban development in south-east Queensland, the area of greatest population density and growth. In particular, it has adopted a model of corporate government as a framework for the planning process. The corporate model promotes a "whole of government" approach to strategic planning, emphasising efficient and effective outcomes for clients. The model's client orientation has elevated and formalised the role of community input in decision-making, and provided a process for negotiation between the players in planning policy development. In an intergovernmental environment, consultation with local authorities is important but the managerialist aspects of corporate government are likely to encourage central control of the planning policy agenda. Both are necessary for improved urban outcomes, yet it remains to be seen how these potentially conflicting processes can be reconciled in practice.     

Outcome‐focussed planning in Australian local government: How council plans and cultural development plans measure up

Contemporary public policy increasingly emphasises a focus on outcomes, the difference that occurs in the lives of citizens from policy and activity of government. Other contemporary imperatives for effective planning include: recognition of the values of the community whom plans serve, direction towards goals and objectives, utilisation of evidence, articulation of theories of change that underpin planning and responsiveness to evaluation. This article reports a desk‐based research project to assess how local government planning documents meet these imperatives. Two documents are examined for 67 councils across Australia: the major strategic document, council plan or other‐named document and the cultural development plan (CDP) or other‐named document that directs staff and investment aimed at cultural enrichment of the LGA. Findings indicate that the majority of councils’ documents appeared only concordant with one or two of these planning imperatives. No plan addressed more than three. Overall, council plans and cultural development plans did not clearly indicate their responsiveness to values of their communities, nor include objectives that formed measurable steps towards goals or formally refer to the use of evidence in decision‐making. No plans included theories of change to underpin decision‐making. This analysis indicates clear areas of improvement for planning for local governance.     

ROAD GRANTS, INTERGOVERNMENTAL COMPETITION AND THE BENEFITS OF DUPLICATION

Abstract: This article argues that direct commonwealth involvement in road funding and road policy has benefited the states and local government. Although inefficiencies and friction are evident as a result of joint funding, the benefits of multiple accountability outweigh the costs. A competitive dynamic underlies the involvement of all three levels of government, producing outcomes that no single government dominates, but which reflect in part the responses of each to their respective constituencies. The commonwealth has been driven to more intrusive forms of intervention as existing controls failed to achieve the commonwealth's objectives, and to expanding its financial contributions to counter the diversion of funds by state governments. Its commitment to funding the road program is likely to be highest when its specific purpose grants can be identified closely with the provision of roads in particular regions and localities. In sum, joint funding of the road program produces a system that is responsive to competing conceptions and interests, and the commonwealth's "voluntary vacancy" from all but "national" roads is on balance likely to be detrimental to the program.     

Citizen Involvement and Performance Management in Special-Purpose Governments

Performance management and citizen participation are being used by local governments to improve government accountability and responsiveness. In some cases, local governments are integrating these two trends. One area of local government in which this trend has not been assessed is special districts. This paper uses data from a study of nine special districts in the state of Texas to fill this void. To assess citizen participation in performance management among the districts, we interviewed district managers, analyzed minutes from governing board meetings, and conducted citizen focus groups in three regions of the state. Our findings suggest that although districts may not yet be in tune with the latest performance management trends, they are making efforts to engage citizens in other ways. We recommend ways that districts can build on these experiences and more effectively incorporate citizens in the development, analysis, and reporting of performance measures.     

Congressional Supervision of America's Secret Agencies: The Experience and Legacy of the Church Committee

In 1947, the United States created a modern intelligence community to guard against another surprise attack like the one at Pearl Harbor. This community consists of 13 major agencies, among them the CIA and the FBI. Concealed from public view, they pose a significant challenge to the concept of government accountability in a democratic society. This article examines the failure of congressional lawmakers to hold the secret agencies accountable during the Cold War. Contrary to recent theoretical research on legislative oversight, which suggests reasons that accountability has been strong in the United States, this study finds that a weak system of legislative review has permitted a dangerous erosion of civil liberties. The study also explores the efforts of the Church Committee in 1975 to fashion new safeguards that would reduce the probability of further abuse of power by the intelligence community.     

Economic Democracy and the Expediency of Worker Participation

The increased discussion of economic democracy in America in recent years makes sense given the context of crises in Keynesianism, the welfare state, corporate legitimacy and American 'competitiveness'. Departing from Dahl's recent analysis, this paper argues that one notion of economic democracy - the internal democratization of the firm - can be conceived and plausibly linked to objectives of increased American competitiveness and community stability. The argument rejects purist schemes of universal cooperative ownership as well as so-called shareholder democracy. It proposes a representative system for the firm based on a balance among shareholder, employee and community interests, a separation of powers between boards of directors and management, and a concept of transition based on democratic development of already widespread employee stock-ownership plans.     

A commentary on local authority commercialisation strategies

As growing numbers of local authorities in England are facing up to funding challenges, many of them are looking to commercialising services to increase revenue and to balance their budgets. This commentary paper outlines the characteristics of commercialisation and the drivers for it, reviews the commercial strategies being introduced by a number of local authorities, and offers some general reflections on commercialisation within local government. Although local authorities have created their own individual commercialisation strategies, a number of general themes can be identified within these strategies. These common themes include the drivers for commercialisation; the vision, aims, and objectives of commercialisation strategies; delivery plans and priorities; measurement; and risk management. In reflecting on local authority commercialisation strategies, the authors highlight the importance of developing both a communications plan and new skills and knowledge bases for employees, and they link their findings to the privatisation of public sector services and to neoliberal models of local service provision.     

LOCAL GOVERNMENT DISCRETION AND ACCOUNTABILITY IN TURKEY

After ratification of the European Charter of Local Self‐Government in 1993, Turkey has witnessed major local government reform efforts in 2000s. The policy objectives of these reforms were granting more political, administrative and fiscal discretion to local governments along the principles of democratic decentralization and strengthening accountability linkages between citizens and local governments. We employ a diagnostic framework to analyse the impact of these reforms. We argue that reforms have achieved limited success in improving decision‐making autonomy and accountability of local governments. Copyright © 2013 John Wiley & Sons, Ltd.     

Strengthening Efforts to Engage the Hispanic Community in Citizen‐Driven Governance: An Assessment of Efforts in Utah

How can the Hispanic community in Utah strengthen its active engagement in government? Interviews by the authors with key government and community‐based organization representatives offer evidence on (1) who is being engaged in the Hispanic community, (2) what are the barriers to engagement, and (3) which modes of engagement are likely to be effective and under what conditions. Findings indicate that only a small elite in the Hispanic community is currently involved. Even for the elite, engagement is fairly superficial. Historical patterns characterize the Hispanic community limited interaction. The peculiar nature of Utah government also reduces their participation. Pragmatic lessons are drawn to enhance substantially improved partnerships, build comprehensive action plans, and strengthen government commitment to civic inclusion that transcend Utah and apply to diverse minority communities everywhere.     

“Carrying the black pot”: Food safety and risk in China's reactive regulatory state

This paper explores the struggles of China's party-state to address chronic food safety problems by adopting international best practices of risk-based regulation. Despite formally adopting risk-based approaches for targeting inspections and enforcement in 2002, implementation has been halting and uneven, as we show in the first analysis of risk-based regulation beyond its OECD heartlands. Drawing on policy document analysis and 36 key informant interviews with food business operators and government officials working on food safety regulation at every level of the state, we identify contradictions between official commitments to risk-based inspection and top-down demands for zero tolerance and strict accountability, which leave local inspectors preoccupied with avoiding blame more than reducing safety risks. Our analysis advances recent scholarship on regulatory states of the global South by highlighting how risk-based ideas, instruments, and practices are refracted through the distinctive norms and style of China's reactive regulatory state.     

Can We Plan Too Much? – The Case of the 2010 Metropolitan Strategy for Adelaide

With a Labor government in power in South Australia since 2002, a series of interlocking plans for the state have been developed of which the most important are the strategic plan for the state, the strategic infrastructure plan for the state and the metropolitan strategy for Greater Adelaide. The metropolitan strategy of 2010 reflected the ambitious population and employment targets of the state strategic plan and provided a liberal supply of residential land for urban expansion together with ambitions for a more compact city with higher densities. There are inconsistencies in these objectives which have not been resolved and reflect the optimistic forecasts of the state strategic plan and the nature of the metropolitan planning process with strong input from the development industry. Preliminary evidence is that the plan is not tracking as proposed and more attention needs to be paid to short‐ and medium‐term prospects, and community involvement particularly in strategic localities.     

The Government's Plans for Decentralisation and Localism: A Progress Report

This article assesses progress on the coalition government's ambitious agenda for decentralisation and localism against six actions set out in the government's own guide to decentralisation. It critically examines the government's case that the previous government's centralised approach failed. The six actions cover reducing bureaucracy, community empowerment, more local control of public funding, provider diversification, more public scrutiny and stronger local accountability. The paper concludes that accountability is the most challenging and that progress is hampered by tensions between the actions and between government departments. It argues that the government needs a clearer, shared vision for localism going forward.