The role of government in economic development: the chinese experience

This study examines the role of government in China's economic reform and development years. The study first provides a literature review about major functions government played in the modern economic system and the importance of government policies to economic development. It then evaluates the experience of the Chinese government in the process of reform and development by focusing on five major roles: (a) promoter of growth, (b) manager of economy, (c) distributor of income, (d) regulator of industry, and (e) protector of citizen and business. The implications of the Chinese experience are discussed.     

The fusion of the private and public sectors*

ABSTRACT

Much of contemporary analysis treats the public and private sectors as two rather separate and fundamentally different realms. Many see one of the two sectors as inherently virtuous and the other as corrupt. The paper shows, in considerable detail, that the two sectors are deeply intertwined. It follows that we need a rather different framework to study state and society.     

Decentralisation and government provision of public goods: The public health sector in Uganda

While many developing countries have devolved health care responsibilities to local governments in recent years, no study has examined whether decentralisation actually leads to greater health sector allocative efficiency. This paper approaches this question by modeling local government budgeting decisions under decentralisation. The model leads to conclusions not all favourable to decentralisation and produces several testable hypotheses concerning local government spending choices. For a brief empirical test of the model we look at data from Uganda. The data are of a type seldom available to researchers–actual local government budgets for the health sector in a developing country. The health budgets are disaggregated into specific types of activities based on a subjective characterisation of each activity's ‘publicness’. The empirical results provide preliminary evidence that local government health planners are allocating declining proportions of their budgets to public goods activities.     

The role of local government in the review of public administration in Northern Ireland: The challenges of enhancement,devolution and modernisation

A very limited system of local government has been one of the main characteristics of public administration in Northern Ireland for the past 35 years. Yet in the recently completed Review of Public Administration changes in local government occupied a very dominant position. This article gives an account of the reasons for this, analyses the processes which led to what may be viewed as an enhancement of local government but argues that the principles adopted by the UK Government to guide the reforms, of subsidiarity, strong local government, coterminosity and good relations have not been met. The lack of an analysis in the Review of the implications of devolution for local government reform and the distribution of functions is highlighted including the relevance of the distinction between administrative and political devolution. How the proposed reforms relate to the UK-wide local government modernisation agenda is also discussed.     

The real economic costs of granting foreign aid

Scholars interested in assessing the comparative economic burdens assumed by advanced nations in their loans and grants to the L.D.C.s have pointed out that adjustments are necessary for many factors such as rate of interest charged (if any), time pattern of repayment (if any), whether or not interest and repayment is in hard or soft currency or in kind, rate of return on capital invested at home, and so forth. Clearly, a loan or grant is more burdensome to the donor, if, for example: the interest charged is low, the rate of return at home is high, and repayment is in soft currency or in kind and extended over a long period of time.

In this paper, an additional important adjustment is suggested. It is argued that a grant or loan involves a social cost to the donor only if the donor is deprived thereby of the use of current output for domestic purposes. To the extent that aid is provided by (i.e. results in) the employment of otherwise unemployed labour and other primary factors, it may be viewed as socially costless to the advanced nation. In fact, by eliminating further unemployment via the multiplier, the granting of aid may (with a lag) leave the donor with more output available for home use than before. This type of analysis would not apply to western nations at or close to full employment, or to the usually fully employed centrally planned economies, since the granting of aid in these instances necessarily reduces the amount of output available for home use. For this reason, the granting of aid generally represents more of a sacrifice to centrally planned than to market economies. This is illustrated by estimates.

Loan repayment must also be evaluated in terms of its employment effects. Analysis shows that the employment effects of loan repayment is likely to be quite asymmetrical to that of disbursement.     

The economic perspective on public administration

Public administration as a body of thought and field of study is changing from a paradigm dominated by political science to an eclectic array of theoretical contributions from all of the social sciences, particularly economics. Basic education and training in economics is essential to an effective contemporary public administration. Without a fundamental understanding of economics the “do-it-yourself-economics” which is practiced in policy-making contributes to basic errors in policy.

As the size and significance of the public sector has grown, increased attention has been paid to the discipline of public administration. What began as a structured way of describing the operation and structure of public management and public organizations has evolved into a discipline that has a much broader scope—the analysis of policy making in the public and not-for-profit sectors. In addition, employment in the public administration profession is more likely to be viewed as a vocation rather than as an avocation, in contrast to the past.

Once the repository of generalists in the areas of public management and organizational behavior, public administration has become a hodgepodge of individuals with varied backgrounds and training. This has resulted in a discipline that has notable strengths and weaknesses. A major weakness, and source of criticism from outsiders, is the discipline's lack of a paradigm—there is no easily identifiable intellectual structure. Its strength lies in the diverse theoretical, conceptual, and methodological contributions borrowed from other disciplines.

The most prominent contributor has been political science, where the discipline of public administration had its origins. Political science's influence on public administration still is evident: numerous public administration programs are located in political science departments; a large number of faculty in public administration programs are political scientists by training; and public administration professional societies and publications are dominated by political scientists.

Economics has made forays into public administration and established garrisons in some of the larger and more prominent programs. But, economics has failed to have a distinct impact on everyday public policy making. This is evident in many policy decisions that lack much semblance of basic economic understanding on the part of decision makers. Recent examples include the handling of the federal deficit, solutions to airway and airport congestion, the war on poverty, housing programs, dealings with international trading partners, proposed solutions to the third world debt crisis, resolution of the acid rain problem, and so forth.

Although other explanations can be offered for the absence of good economic reasoning in many policy decisions, a lot of the blame lies with public administration's failure to adequately integrate economics. Economics does not wield substantial influence in either the discipline's curricular matter or administrative structure. This failure partially can be attributed to a lack of understanding of what economics has to offer the discipline and partially can be attributed to the insolent demeanor of many economists.

This paper proposes to discuss what role economics can and should play in public administration. First, the relationship between public administration and economics is discussed. Second, deficiencies within the economics discipline that keep it from becoming an integral component of everyday policy making are discussed. Finally, ways to better blend economics into public policy making are proposed.     

The Atlantis of personnel: The lost world of public employee discipline in the state government

Though there are many procedural job protections afforded public employees, there is a surprising amount of disciplinary actions meted out. A survey of 50 State governments showed that the magnitude of employee discipline is relatively high; there is a positive relationship between states which have low disciplinary records, and their lack of control of the disciplinary process; and there is a “progressive disciplinary profilet” prototypes state that exhibits a high degree of discipline when corrective and minor disciplinary actions are multiples of major disciplinary actions.     

Evaluating public policy: The administrative role

If public administrators are not heavily involved from the beginning in the development of public policy, policy implementation and program evaluation may not be possible. The tasks and people needed for organizing policy change are identified and the roles of the public administrator in these efforts are discussed. This article describes three legislative efforts in which public administrators were heavily involved at the beginning stages of policy development; administrators helped to create programs that were subsequently more amenable to evaluation.     

Drug testing in the public sector: The role of unions

Not surprisingly, unions have traditionally played an active role in employee drug testing. And, although the U.S. Supreme Court upheld the constitutionality of drug testing in two 1989 decisions, unions have continued to wage challenges to urinalysis under the U.S. Constitution and in the labor arena. As this research shows, federal as well as state and local government unions have had some success in challenging the categories of employees targeted for testing, good faith bargaining over drug testing, and due process and equity violations around testing.     

The role of local government in rural communities: culture-based development strategies

ABSTRACT

This paper discusses local development and various governance strategies that local governments can use to engage actors in rural communities and resources from a broader environment to achieve desired socio-economic outcomes. We ask: How can local governance vary in rural communities? How can governance arrangements lead to contrasting socio-economic outcomes? Our conceptual framework combines a typology of local governance roles with socio-economic outcomes associated with neo-endogenous development theory. We explore culture-based development projects from three rural communities. We find that local governance strategies vary between relatively similar rural communities and that they represent compromises in terms of socio-economic outcomes. Local government in rural communities can act strategically through use of local networks. Local governance here is best understood as an emergent quality of the local context, history, institutions, culture, and, power relations. Therefore, governance strategies in rural contexts should be based on careful reflection on potential roles, trade-offs and desirable outcomes.     

The politics of HIV/AIDS in South Africa: government action and public response

A decade ago it seemed likely that African governments would be destabilised by the impact of the HIV/AIDS epidemic. This article tests some of the presumptions in such forecasting with an examination of the South African case. It begins with an assessment of the effects on the public health system of the South African government’s efforts to cope with the illness. Efforts to implement universal treatment of people who are HIV-positive appear to have strengthened government, while the costs have been affordable. The efforts have extended the embrace of the public health system and prompted the engagement of civil society in policy formation and implementation. Survey evidence suggests that the government has gained public approval and that its health service delivery has become more socially accountable. Civil protest to engender political reforms in the treatment of AIDS patients has enhanced the role of constitutional checks on executive authority.     

Some economic costs of corruption in LDCs

It has often been argued that bribery creates auction‐like conditions and, hence, improves the allocative efficiency of bureaucratic decisions. This article shows that these auction‐like conditions are not likely to exist because officials will restrict access to bribery in order to reduce the risks of detection. Alternatively, officials may engage in supply‐stretching whose long‐term costs are likely to outweigh any gains in allocative efficiency. It is also shown that bribery may impose other costs resulting from the efforts of officials to create or augment the opportunities for receiving bribes.     

Managing economic crises: The role of the state in Bahrain and Kuwait

Bahrain and Kuwait adopted sharply divergent responses to the economic crisis in the Gulf during the 1980s. The Bahraini government reduced the level of state intervention in the local economy, opened up opportunities for private investment and relied on the operation of the unregulated market; Kuwait's government, on the other hand, imposed a greater degree of state supervision over domestic economic affairs and expanded central planning to allocate resources to the most profitable enterprises. Two influential bodies of neo-Marxist writing on the state—the state-derivation school and the writings of Claus Offe—have difficulty accounting for these differences. A more adequate explanation for Bahraini and Kuwaiti policy can be formulated in terms of the strength of each country's indigenous rich merchant community relative to that of the ruling family/central administration and the political activities of the labor movement in each amirate. Fred H. Lawson is associate professor, Department of Government, Mills College, Oakland, CA 94613. He received his Ph.D. from UCLA in 1982 and has also taught at the University of North Carolina and Smith College. His most recent publications include “Political-economic trends in Ba'thi Syria: a reinterpretation,”Orient 29 (December 1988) and “Libéralisation économique en Syrie et Irak,”Maghred/Machrek 128 (April–May 1990). He is currently exploring the connection between class conflict and foreign policy in contemporary Syria and Iraq.     

The role of capital accumulation in economic development

In an open dual economy, the reallocation of factors to the industrial sector is accelerated whenever the region can sell its industrial product on a world market, or can invest at a level greater than domestic savings, by borrowing abroad. The industrialization is slowed, however, by any increase in the demand for ‘backward'‐sector products, as for example, when such products are demanded as inputs into the industrial production process. In the model presented here, these industrial input requirements are an important determinant of the growth of per capita income and, especially, the borrowing‐lending position of a developing region.