Privatising Local Public Services: Between Industrial Legacy and Political Ambition

Since the 1980s, research on the privatisation of local services has analysed the factors affecting government's delivery choices; but this research has not given unanimous results, for reasons connected both to the different methodologies adopted and the dynamic nature of privatisation processes. This article introduces the case of Italian water services reform, drawing attention to the economic and political dynamics that make privatisation an extremely complex choice, in which the preferences of politicians have to be balanced with industrial heritage and the strategies of the utilities. By privileging a historical analysis of the conditions in which such choices take place, it is possible to grasp the changing relations between local governments and utilities and to look at the relative power of firms, citizens and governments in the process of service delivery choice.     

Beyond privatisation and cost savings: alternatives for local government reform

Unsatisfactory results from privatisation have caused local governments to seek alternative reforms. Inter-municipal cooperation, mixed public/private delivery and contract reversals are three alternatives that have gained traction in the last decade. These alternatives help local governments manage markets for public service delivery as a dynamic process. They maximise government/market complementarities and address a wider array of public goals beyond cost efficiency concerns. The alternative reforms show how local governments balance citizen, labour and community interests to ensure efficiency, coordination and stability in public service delivery.     

Community Participation in Local Governance – An Empirical Analysis of Urbanized Local Governments in the Philippines and Uganda

This article addresses community participation in local government, a controversial issue in the era of governance. Under the context of decentralisation reform in particular, active participation of the community in local governance has been expected, where as a range of critical arguments has been made on its concepts, ideas and feasibilities. Despite the significance of the issue, practices of community participation at the local level are academically under-examined, even in developed countries, let alone in developing countries. Given such situations, empirical observations from local governments of the Philippines and Uganda are introduced and comparatively analysed with in a specific analytical framework of participation. By doing so, the artide leads us to some keys to success for community participation schemes in the development context, which include the local leadership, functions of the central government and enhancing awareness of values of community participation both in the public and the local government.     

Forms of Communication between Large-scale Farms and Local Administrative Authorities in Russian Villages: About Benefactors and Sponsors

This article investigates the forms of communication emerging between local administrative authorities and large-scale agricultural enterprises with regard to public service provision in two Russian villages. Using a systems theory approach and conceptualising Soviet society as an organisational society, privatisation and local government reform may be observed as attempts to disentangle former collective farms and local authorities and adjust them to the logics of functional differentiation. Empirical evidence from a former kolkhoz and an agro-holding shows that both react to the contradiction between global transformation imperatives and local expectations, using a specific combination of formality and informality as a condition of their reproduction in the villages.     

State budget support to local government

The principle of self-government is essentially a new phenomena in the Czech Republic. Under the previous regime, almost everything was ruled by the central government. At the present time, the major constraint to local budget reform is primarily from the local authorities’ lack of experience. While on one hand, this gives the Czech Republic a challenge to avoid some of the mistakes made in several developed countries, it is, on the other hand, difficult to make estimates of the possible responses to any change. Next to the lack of experience, there is a strong feeling both at the local and the central levels of government that the self-government bodies should have almost no regulation from the central government. The current opinion is that their control should be left only to the respective electorate. There is also the belief that self-government units should become increasing financed by tax revenues derived from within their own area. An additional complication is the lack of common non-governmental institutions (different associations and others) which usually smooth the the relationship between local and central governments. The changes in the Czech Republic are not yet complete. After the changes in the legal framework, the complete reform of the tax and social systems were to follow. While the essentials of tax reform were introduced in January 1993, the changes in the social systems are still under consideration. In spite of the relatively short history of having true local authorities functioning in the Czech Republic, the establishment of an additional level of government is being proposed. This issue is reopening some already closed matters and will bring a change to the whole system. As in many other countries, the division of responsibilities between different levels of government will probably continue to be discussed until the end of time.     

Can alternative service delivery save cities after the Great Recession? Barriers to privatisation and cooperation

ABSTRACT

Cities continue to face fiscal challenges after the Great Recession and alternative service delivery is being emphasised as a solution. How promising is alternative service delivery as a solution and what are its barriers? Regression analyses using 2012 survey data of US local governments show that local governments manage procedural barriers, but structural barriers of economy and demography hinder privatisation and cooperation. Places with a housing bust (measured as decline in home values) can use privatisation, but not places with more or increased poverty. Cooperation is more promising for places with increased poverty, but lack of a willing partner hinders this spatially constrained tool. Neither cooperation nor privatisation is promising for places with low home values. State governments must level the playing field for localities with weak economies if market approaches to service delivery are the main tools for local governments to survive fiscal stress.     

Joint care and joint funding

One of the most important possible sources of conflict of interest between central and local governments is difference in political preferences with respect to, for example, income redistribution. If local governments are of a different political composition than the central government, they may be inclined to reinforce or weaken the redistribution policies as pursued by the central government. We empirically test whether local governments in the Netherlands do pursue income redistribution policies over and above the central government's redistribution policy and we find that the distribution of the local tax burden over the various household types differs according to the political composition of the local council.     

Withering governmental power in China?: A view from below

Based on findings from a field research conducted in Pengzhe County in the People's Republic of China, the following study shows that county and sub-county governments in Pengzhe perform enormously important tasks in political, economic, and other areas. The reform period has seen the strengthening of local government power in Pengzhe. Party organizations at various levels are still the power center. Moreover, subordinate government officials (either at the county level or the township level) are still quite compliant with the policies of higher authorities due to the latter's power in personnel promotion/demotion and resource allocation. Relations between central government and local government is by no means a zero-sum game. As shown in the study, local officials at the county and township levels in places like Pengzhe are effective foot soldiers and functionaries of the central government in actually governing the vast population in China.     

Partial Privatisation in Local Services Delivery: An Empirical Analysis of the Choice of Mixed Firms

Mixed public–private firms are increasingly used in several European countries. This paper makes use of survey data from Spanish municipalities to examine the motivations of local governments for engaging in partial privatisation of local service delivery of water distribution and solid waste collection. The empirical analysis indicates that mixed firms emerge as a pragmatic middle way between purely public and purely private production. Indeed, local governments make use of mixed firms when cost considerations, financial constraints and private interests exert contradictory pressures. Political and ideological factors play no significant role in that decision.     

Reform: intergovernmental relations

The Italian system of territorial government-traditionally a quite centralized one- is presently sustaining deep changes that expand the role played by sub-national governments. Tax autonomy of sub-national governments has been expanded and new legislation has devolved many of central government administrative responsibilities to regional governments, provinces and municipalities. In Italy, the growing dissatisfaction with the dismal performance of the central government and with the redistribution among regions operated through the central budget seems to be the main factor behind the reform movement.     

Reconsidering the Role of the Prefects in Turkey: Public Policies and Metropolization

Prefects are considered important actors in the formation of different public policies in Turkey. While prefects and sub-prefects are empowered by means of new policies, their roles are also altered during the process of strengthening local governments. This alteration process represents the spirit of the state reform in its broadest range, that is, the conflict between the central and the local. Another new public policy for Turkey is metropolization. The administrative structure of Turkey has been dramatically changed by the introduction of the new Metropolitan Municipality Law (Law No. 6360, 2012). Representing a major change, this law added 14 more metropolitan municipalities to the already existing 16, and abolished Special Provincial Administrations within the metropolitan municipalities. This study aims to explain the reforms made on a metropolitan level together with the transformation of the government, the central–local conflict, and the prefects’ role in these reform and transformation processes in Turkey.     

LOCAL ADMINISTRATION OF SOCIAL ASSISTANCE PROGRAMS IN RUSSIA

Competent administration is fundamental to successful reform of social assistance programs in transition economies. Only with such administration is there assurance that benefits are being delivered as intended in enabling legislation. Moreover, the perceived efficiency and fairness of administration influences the public's views of the new programs. In the Russian Federation local governments have primary responsibility for the administration of social assistance programs enacted by all levels of government.

This paper presents the results of surveying nine offices charged with administering social assistance programs in four Russian municipalities. The accent is on the basics of program administration and management. Topics studied include client flow, eligibility verification procedures, the presence of a procedures manual for in-take workers, quality control procedures, and training. The findings are sobering and emphasize the need for the Russian government to assist municipalities to strengthen their administrative capacity through a combination of exhortation and leadership, provision of written guidance materials—on good administrative practices and program-specific regulations and procedures—and a national program of seminars for supervisors of various programs.     

Inter-regional diffusion of policy innovation in China: A comparative case study

Classic theoretical research on the diffusion of policy innovation is usually based on decentralized democratic regimes. However, in authoritarian centralized countries such as China, questions such as, ‘What are the driving forces and the structural dynamics behind local government policy innovation and inter-regional diffusion?’ and ‘How do the governmental structural factors lead to the different patterns of diffusion of policy innovation across local governments?’ are interesting research topics. The theoretical framework proposed in this study highlights the roles of the contingent vertical and horizontal governmental relations in innovation diffusion. I extract two key properties: vertical mandatory intervention from the central government and horizontal political competition among peer governments. This research uses four models to develop a new typology of the inter-regional diffusion of policy innovation in China: (1) the enlightenment model, (2) the championship model, (3) the designation model, and (4) the recognition model. A comparative case study is conducted in this research, with four policy cases showing that China has developed diversified mechanisms to encourage local governments to perform policy innovation and inter-regional diffusion.     

Decentralization or deconcentration: struggle for political power in poland (1)

This paper argues that the 1989 commitment to political and administrative decentralization has weakened over five years. As the point that it has become a rhetorical formula voiced by the governing political leadership when convenient, but in reality never realized. Two sets of factors contributed to such a state of affairs: (1) the inability of the center to reform itself, and (2) center's increasing commitment to regain the power lost over the last few years.

The first part of the paper lays a theoretical framework for analysis of pressures and barriers to decentralize. Second, examines the process of implementing in Poland, of local government and public administration reform over the 1989-1995 period. Finally, the third analyzes in detail the three most significant forces that central states utilized to gain control: (1) political; (2) power resources and (3) fiscal. It concludes by asserting that beyond 1990, while much of the program has been achieved in designing legislative and territorial aspects of the public administration and local governments reform, what was lacking was the political commitment to implement both.     

After the fall of the soviet union: the changing status of local governments in the republic of latvia

When the Republic of Latvia gained its independence from the Soviet Union in 1991, one of Latvia's first priorities was to rebuild its system of local government. This article describes many of the problems local governments in Latvia faced after 50 years of communist rule. The article also discusses the new Latvian laws which changed the structure of local government in that country. Also discussed are Latvian central government institutions which impacted on local governments in general and local government finances in particular. The unique status of the Capitol City of Riga, Latvia's largest municipality is also reviewed in detail.     

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.     

Transformation in Philippine local government

This research examined the challenges, enablers and outcomes of organisation transformation in Philippine local governments. We combined a multi-case study research design and backward mapping approach in collecting and analysing narratives from 55 leaders in 9 Filipino local government units (LGUs) that have successfully undergone transformation. Results show that the transformations of the LGUs appear to have been catalysed by three interrelated elements: vision, LGU leadership and citizen engagement. The transformation in the local governments concentrated on multiple foci of reform including structure and systems improvement, culture change, human-resource development as well as policy and programme development. This holistic approach enabled the transformation of bureaucratic and unprofessional government service to transparent, professional and efficient public service that engendered pride, transparency and social equity. Implications of the proposed model for transforming LGUs and in developing LGU leaders for good governance are discussed.     

Local Government Modernisation in England: A Critical Review of the LGMA Evaluation Studies

New Labour has subjected English local government to an unparalleled period of reform. This article reviews the Local Government Modernisation Agenda evaluation studies commissioned by central government. The review identifies valuable insights from the studies into the contemporary state of English local government, central government and central–local relations. However, the studies also illustrate the need for research on public service reform to include analyses of the political origins of reform policies and the political–bureaucratic issues involved in their implementation. It is also argued that future research needs to rediscover the value of studying local politics ‘in the round’, the impact of socio-economic and non-local factors on local policy outcomes and the role of new sources of policy influence in the channels of central–local relations.     

The Great Survivor: The Persistence and Resilience of English Local Government

This article is about the persistence and resilience of the form of local government that emerged in England in the nineteenth century and took shape in the twentieth century. English local government has adapted to successive reorganisations and changes to its functions; it has survived centralisation, privatisation, the imposition of quangos, regional governance, elected mayors, performance management and latterly fiscal austerity by responding to opportunities and meeting the continual need for administrative tasks at the local level. The centralised structure to political management in English local government has generated a high level of organisational capacity and a pragmatic sensibility that ensures the institution remains in place even in unpropitious circumstances. Other local organisations, such as voluntary sector bodies and quangos, have less capacity to compete and work to shorter timescales. Such resilience has come to the fore in the period of fiscal austerity since 2009 when local authorities have had to manage severe declines in their budgets whilst taking on additional functions, such as council tax benefit. The organisational capacity and pragmatism of English local government create path dependence as its very efficiency at managing services may have shut off options for democratic renewal and participation.     

Municipal Socialism Then and Now: some lessons for the Global South

Given the large and growing literature opposed to the privatisation of services such as water and electricity, it is peculiar that so little has been written about the experience of ‘municipal socialism’—a set of roughly analogous historical movements that used local governments to challenge private service delivery and advance ‘socialist’ agendas from the late 1800s to the 1940s. Although primarily a European and American phenomenon, and emerging from different contexts than those prevailing today, municipal socialism found widespread support and transformed many public services. Results were mixed, with some experiments being little more than (pre)Keynesian attempts to revitalise capital accumulation in the face of ‘irrational’ private sector services, but the lessons are important as these experiments provided the first intellectually and politically sustained resistance to privatisation and other prototypical forms of what we now call neoliberalism, and demonstrated the possibility of effective service delivery by the public sector. This paper reviews these experiments, focusing on the experience of the United Kingdom and drawing lessons for contemporary efforts to build alternatives to privatisation in cities in the South, where local-level, socialist-oriented reforms have been relatively strong.