Decentralisation and Supply Efficiency: The case of Rural Water Supply in Central India

Demand for decentralisation of provision of public services is gaining ground in developing countries. Also, the policy advice to decentralise given by international agencies to the developing countries is turning into pressure. However, the benefits of decentralisation are not as obvious as the standard theory of fiscal federalism predicts. This article examines the effect of decentralisation of provision of drinking water in central India. The efficiency of water utilities under the control of the state government and those under the local governments is compared in terms of expense and asset utilisation. It is found that the decentralised provision of water supply is less efficient. The possible reasons for this counter intuitive result are analysed.     

Fiscal decentralisation and IDC economic growth: An empirical investigation

The impact of fiscal decentralisation on LDC economic growth and development is widely debated in the development literature. Notwithstanding this, there has been little attempt to test systematically this relationship. Accordingly, in this note we present an empirical examination of the relationship between the level of fiscal decentralisation and economic growth rates across a sample of twenty‐three LDCsfrom 1974 to 1991. We fail to find, however, any strong, systematic relationship between the two among our sample of LDCs.     

The expansion of the public sector in federalism: a comparative analysis of a macro level governing structure and government size

ABSTRACT

Utilising Oates’ fiscal federalism theorem, the Tiebout model and Berry’s common pool model, this paper examines the effects of four characteristics of a macro level governing structure on public sector employment using a mixed method approach. Regression analysis explores the individual effect of fiscal decentralisation, spatial fragmentation, interjurisdictional competition and jurisdictional overlap on the levels of local public employment; and the qualitative comparative analysis explores the complexities between the four macro characteristics and their combined relations to the levels of state public employment. The results of the statistical analysis suggest that more labour inputs are required to produce public goods and services to meet the needs of local residents. Moreover, the qualitative comparative analysis reveals causality asymmetry between these characteristics and highlights how different interactions of characteristics of a macro level governing structure affect different levels of public sector employment.     

Regional Inequalities,Decentralisation and the Performance of Local Governments in Post-Communist Romania

The economic growth that has occurred in post-communist Romania has polarised society and greatly increased existing inequalities. The aim of this paper is to investigate regional disparities, to underline the role of governmental mechanisms in smoothing out territorial inequalities, and to examine the possible effects of regional economic disparities on the performance of regional administrations in delivering public services, in the light of the new regionalisation debate. The conclusion is that Romanian counties' institutional performance does not completely correlate with regional wealth; but regional disparities and the mechanisms used to smooth out inequalities have to be taken into account in the public debate concerning further decentralisation.     

Decentralisation's Effects on Public Investment: Evidence and Policy Lessons from Bolivia and Colombia

This paper examines decentralisation in Bolivia and Colombia to explore its effects on the uses and spatial distribution of public investment, as well as government responsiveness to local needs. In both countries, investment shifted from infrastructure to social services and human capital formation. Resources were rebalanced in favour of poorer districts. In Bolivia, decentralisation made government more responsive by re-directing public investment to areas of greatest need. In Colombia, municipalities increased investment significantly while running costs fell. Six important lessons emerge from the comparison. For decentralisation to work well: (i) local democracy must be transparent, fair and competitive; (ii) local governments must face hard budget constraints; (iii) central government must be scaled back; (iv) significant tax-raising powers must be devolved; and (v) decentralisation is composed of distinct, separable components, the sequencing of which is important. Finally, (vi) what decentralisation achieves, and whether it is advisable, hinges on how central government behaved pre-reform.     

A comparative analysis of clientelism in Greece,Spain, and Turkey: the rural–urban divide

This article examines the evolution of patron–client relationships in Greece, Spain, and Turkey through the prism of the rural–urban divide. It traces which modes of clientelism (rural or urban) are more evident in these countries today, and why. Further, it finds that in rural modes of clientelism, normative bonds of deference and loyalty with a Weberian notion of ‘traditional authority’ and affective ties between political patrons and clients are more observable whereas urban modes of clientelism usually yield Downsian competition between political machines with more coercive motives. It suggests that these two notions of clientelism are not mutually exclusive but should rather be seen in a continuum. More generally, this article demonstrates the need in the existing literature for more contextualized analyses that take into account differences between socioeconomic and geographical antecedents of rural vs. urban clientelism and their divergent political reflections.     

An empirical assessment of local autonomy and special district finance in the US

In this article, we interpret local autonomy as a dimensional concept that includes local government importance, local government discretion, and local government capacity. Using longitudinal data from 1962 to 2012 covering all 50 states in the US, we examine how different dimensions of local autonomy affect the expenditure levels and debt levels of special districts. We find that the levels of debt and spending in special districts are lower when local governments have greater revenue diversification. However, fiscal decentralisation in the dimension of local government importance promotes the growth of special district finance. Moreover, our findings on local government discretion suggest that imposing too many fiscal constraints can affect the fiscal independence and capacities of local general-purpose governments. These constraints may also lead to the more extensive use of the fiscal power of special districts that are not subject to fiscal limits.     

The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure

In this article we analyse the effects of political business cycles and fiscal decentralisation on the expenditure categories of Polish municipalities. We find convincing evidence demonstrating the impact of strong political business cycles in almost all expenditure categories, particularly for the categories of expenditure relevant to electoral success, such as infrastructure and social programmes. We find evidence that transfers to municipalities increase the strength of the electoral cycle.     

Territorial upscaling of local governments: a variable-oriented approach to explaining variance among Western European countries

Local government systems change at varying speeds. While some countries have dramatically reduced the number of local governments during a short period of time, other countries have seen only incremental change or relative inertia. A number of explanations for structural change have been put forward in the comparative local government literature, but these explanations have to a small extent been tested empirically. This article uses statistical indicators to analyse changes in the local government systems in 17 Western European countries between 2004 and 2014. Some often-cited explanations for what drives structural change receive little support. Still, the article demonstrates that changes tend to occur in situations marked by different combinations of decentralisation, urbanisation, fiscal stress and a recent history of territorial upscaling.     

Linking Leader Social Skills and Organisational Health to Positive Work Relationships in Local Governments

This study examines the links between leaders' social skills, organisational health (decline) and positive work relationships. In particular it tests whether leaders' social skills are more strongly associated to work relationships when the organisation's fiscal health is more precarious. Using data from both surveys and annual financial statements of 103 public sector organisations, the results indicate that a leader's social skills and organisational fiscal health are positively related to work relationships. However, the interactive effect of leaders' social skills and organisational fiscal health on positive work relationships was not significant.     

Adjustments in municipal fiscal crises. Are they different according to the gender of the mayor?

The literature on gender has attempted to explain the differences between the public outcome depending on whether the ruler is male or female, on the basis that men and women have different preferences. This scientific research has not yet examined issues related to fiscal crises, and our research aims to fill this gap. In a context of generalised economic crisis, our research examines if the gender of the mayor affected the fiscal adjustment policies carried out by municipalities with fiscal deficits in the Spanish region of Galicia. Our paper suggests that although gender of the mayor does not seem to have affected the level of adjustment in total current expenditure, it does seem to have influenced the way in which social and non-social spending were adjusted. Our study also highlights that female mayors are associated with lower levels of tax revenues and this could slow the adjustment processes of fiscal imbalances.     

Factionalism and secession in North Sulawesi Province,Indonesia

This article begins with an analysis of the national programme of economic decentralisation and regional autonomy that was introduced in Indonesia in 2001. It discusses the impact of decentralisation in North Sulawesi Province by examining the changes in its ethnic and religious composition during 1998–2001 and the consequences of these changes. Unlike other provinces in Indonesia, North Sulawesi has not experienced any ethnic and religious conflict as it is dominated by Christians and protected from attacks by Muslim organisations by four Christian militias. However, the decentralisation programme has strengthened the regencies at the expense of the provinces and can result in a third generation of conflicts in Indonesia between the provincial governments and the regencies, and between the regencies themselves.     

Decentralisation,Governance and the Structure of Local Political Institutions: Lessons for Reform?

Many governments are devolving power to elected local councils, hoping to improve service delivery and citizen representation by bringing officials closer to the people. While these decentralisation reforms hold the promise of improved governance, they also present national and sub-national leaders with a complex array of options about how to structure newly empowered local political institutions. This article draws on cross-national experience and the latest research to identify the trade-offs inherent in structuring local political institutions. The study's specific interest is in the impact of strong, locally elected councils on governance and representation. Proceeding from an empirical basis that competitive elections are vital for the legitimacy and efficiency of local political institutions, the analysis first questions the impact of four institutional features – central versus local control, local executive versus local council authority, local council structure, and the role of parties – on service provision and fiscal solvency. The article's second section analyses the impact of decentralisation on political representation, with a particular focus on the role of institutional design in combating the threat of extremist parties. A final section summarises empirical findings and advances some policy-relevant conclusions.     

Economic Crisis and Sub-national Elections in Selected European Countries. Three Types of Possible Relationships

During the past two decades, decentralisation issues have generated a keen interest in a large number of countries. However, this notion is very difficult to define as it refers to a wide range of institutional arrangements on the political, economic and social levels. There are many good reasons why the allocation of fiscal resources and budget transfers among levels of government must come after a strict assignment of spending powers. Hence, decentralisation as a silent revolution in public sector governance has swept across the globe and has reemerged as a valued political and economic goal in most countries, significantly varying from country to country. The purpose of this article is to show the impact of financial and economic crisis on sub-national government and sub-national elections in chosen European countries such as Poland, Ireland, Denmark and Greece. In some of the countries mentioned the sub-national run-offs were conducted with national parliamentary elections, but not in other countries, including Poland. Because of its uniqueness, however, the explanation of which constitutes an essential part of the article, Poland can be ‘a matiere a penser’ and a starting point for interesting analysis. As can be seen, the economic situation can not only change the election results, but also stabilise the political system, which is a good example of how the government party can manipulate public opinion, or even make elections a referendum on economic policy. The main determinant is the financial situation of sub-national government units and the country concerned.     

State transformation and cross-border regionalism in Indonesia’s periphery: contesting the centre

Abstract

This article examines how the decentralisation and fragmentation of the Indonesian state and resultant central–local dynamics affect cross-border regionalism in Indonesia’s periphery. It argues that cross-border regionalism projects are best understood as sites for scalar contestation over regulatory control between central and local government. Moreover, scalar contestation around cross-border regional projects is characterised by the struggles to control relationships with transnational capital between elites operating at different tiers of the state. When elites at different scales have conflicting interests and strategies, this can cause policy incoherence, inhibiting the development of cross-border regionalism. Conversely, when they align, and intersect with the interests of transnational business, cross-border regionalism can succeed. To illustrate the argument, this article utilises the comparative case studies of the Batam free trade zone and West Kalimantan–Sarawak cross-border cooperation.     

The Depoliticisation of Development and the Democratisation of Politics in Tanzania: Parallel Structures as Obstacles to Delivering Services to the Poor

Local democracy and the involvement of local communities in the provision of social services are central issues in the local government reforms that are presently being implemented in many developing countries. At the same time, institutions that run parallel to local authorities, such as social funds and various user-committees, are established to improve accountability and participation. By focusing on actual political processes rather than administrative, legal and fiscal aspects of decentralisation, this article traces the breakdown of two development projects in Tanzania to the existence of parallel structures. It suggests that user-committees and social funds should be integrated in local authority structures to avoid fragmentation of participation and to enhance local democracy.     

Notes on contributors

A right to health is one of a range of socioeconomic rights for which states accept an obligation under international law. However, the politics of rights has meant that socioeconomic rights are rarely given the same status as liberal freedoms associated with civil and political rights. This article discusses the liberal rationale for rejecting socioeconomic claims as rights and examines the basic rights challenge to liberal arguments. Given the dominance of liberalism, the article concludes with an examination of the potential for promoting a right to health within the context of globalisation.     

Resources,Sovereignty, and Governance: Can Mongolia Avoid the ‘Resource Curse’?

The revenue generated from Mongolia's natural resources has the potential to transform the Mongolian state and society. Indeed, investment in mining has already led to a spate of urban growth in Ulaanbaatar and rural development throughout the rest of the country. Yet Mongolia's natural resources could also contribute to a ‘natural resource curse’ if not properly managed. Effective governance in relation to the state's natural resource sector is, therefore, essential. This article examines Mongolia's sovereignty in order to determine whether or not the state is capable of ‘good governance’ in relation to the mining sector.     

Assets and Poverty Traps in Rural Bangladesh

Using longitudinal survey from rural Bangladesh, this article examines the determinants of land and asset accumulation over time and explores why some households may be trapped in asset poverty. Non-parametric and parametric methods are used to discern the shape of the asset accumulation path, and whether unique or multiple equilibria exist. We find evidence for concavity of the dynamic asset frontier but no evidence for multiple equilibria. It is suggested that the existence of well-functioning factor markets in rural Bangladesh and elsewhere in South Asia explain the contrasts between our results and those for several African countries.     

HRM Reform in Decentralised Local Government: Empirical Perspectives on Recruitment and Selection in the Philippines and Thailand

Over the recent decades decentralisation has been an influential process for public sector reform. Like many countries in Southeast Asia, the Philippines and Thailand have experienced a transitional period of decentralisation since the 1990s, but its corresponding results are considered to be poor, allowing for an increase in corruption associated with local elites and other interested parties. This article addresses the problem by focusing on Human Resource Management (HRM), with an emphasis on recruitment and selection in decentralised local governments, as there exists limited research in this area. Despite similar outlook of decentralisation reforms in these countries, the comparative analysis will illustrate differences in HRM policy arrangements between the central and local government, which reflect on the roots and backgrounds of the reform initiatives in each country. Moreover, empirical case observations at the local level from four case cities will present positive HRM practices, as well as the negative ones. Such evidence cannot be explained by contemporary theories on decentralisation, most of which doubt feasibility of the reform in developing countries.