Reconceptualizing layering—From mode of institutional change to mode of institutional design: Types and outputs

Due to its popularity, the term layering is often used generically, and it risks being transformed into a catch‐all concept. Layering has become synonymous with incremental change, thus making it a synonym for change without any specification in terms of the change and its effects. To make the term more conceptually coherent and empirically useful, this article problematizes the historical neo‐institutionalist definition of layering as a mode of change and, above all, its use in the literature. It argues that layering should be conceptualized in terms of modes of institutional design through which different types of additions to the actual institutional arrangement can be activated to pursue not only institutional and eventually policy change but also stability. As an approach to institutional design, layering can be distinguished according to that which is layered and the results that layering can achieve in terms of institutional and policy effects.     

Prediction and management of currency crises in latin America

In recent decades, currency crises in Latin America have often marked the beginning of prolonged periods of inflation, economic recession, and depressed foreign investment. Attempts to anticipate such financial breakdowns have met with relatively little success. As the survey of existing models indicates, there seems to be little hope for the development of a forecasting framework able to predict exchange rate movements with a sufficient degree of accuracy and anticipation that would allow policy makers to mount a timely intervention in currency markets. The analysis of past currency crises, however, shows some common elements which might help formulate benchmarks that could be used as predictive parameters in the future. This paper provides a survey of the models and tools currently used to predict exchange rate movements. It analyzes the origin and evolution of the 1994 Mexican Peso crisis, its contagion effects on other Latin American economies, and the measures taken by the affected countries to manage the crisis. We summarize some of the market solutions, economic policy measures and institutional arrangements adopted in the wake of the December 1994 events as well as some of the lessons that seem to have transpired from this experience.     

Putting power into practice: Administrative and political capacity building in the European Parliament's Committee for International Trade

As the formal powers of the European Parliament have increased with successive treaty changes, its committees' administrations have seen a parallel growth. We argue that such administrative capacity is necessary but not sufficient for acting on formal treaty powers. Administrative capacity has to be combined with political capacity in order to muster policy impact in European Union decision‐making. By differentiating between intra‐institutional administrative and inter‐institutional political capacity, we offer a fine‐grained conceptualization of policy capacity while broadening the theoretical and empirical understanding of the European Parliament's administration as an organizational structure of formal and informal working practices, intra‐institutional coordination and inter‐institutional relations. Based on expert interviews, document analysis and participant observation, the case of the Transatlantic Trade and Investment Partnership illustrates how societal politicization of a specific policy issue triggered the European Parliament to exploit the latent potential of its post‐Lisbon administrative capacity by transforming it into a more readily deployable political capacity.     

Public Sector Reform in Central Asia and the Caucasus

Many developing countries are constantly seeking to reform their public services as part of a wider agenda which supports moves to a market economy and better governance arrangements. Some have embraced public management reforms as the template for their activities with limited success. This paper considers existing research on the impact of public sector reform in developing countries and offers an alternative approach, through case studies of Azerbaijan, Georgia and Kazakhstan, based on two keys elements: an agenda which attempts to shift developing countries to an outcomes based accountability approach operationalized through a “quality of life” framework; and, peer‐to‐peer learning.     

Accountability and hybridity in welfare governance

Hybridity has become a central characteristic of accountability in public governance. Contemporary service delivery is increasingly defined by the mixing and layering of public, market and social accountability regimes operating as overlapping ‘hybrid’ accountability arrangements. Although hybrid accountability is not a new phenomenon, recent trends have accelerated the process of hybridization, particularly in welfare state governance. In this symposium, we seek to advance our understanding of the under-theorized concept of hybrid accountability and empirically examine what is actually going on. In this introductory article, we put forward a definition of what hybridity means in public welfare governance and explore its origins and dynamics. We then present the articles of this symposium, showing how they go beyond fixed and static typologies to grasp the dynamics of interactions between actors, values and mechanisms under hybrid accountability. We conclude by reflecting on a future research agenda for studying hybrid accountability arrangements.     

Social policy as nation-building: identity formation,policy feedback,and social citizenship in Ghana

Beyond economics-centric discourses about issues like “social investment,” in recent years scholars have argued that social programs, like education, healthcare, and income support arrangements, can be instrumental in the construction and reconstruction of national identities and solidarities at both the ideational and the institutional level. Drawing on this scholarship, this article makes a direct contribution to the comparative politics and policy literature by examining the trajectories of nation-building and social policy development in Ghana. It extends existing scholarship by providing an in-depth study of Ghana while using that case to further explore the understudied connection between social citizenship, identity formation, and policy feedbacks from existing social programs.     

SUPRANATIONAL GOVERNANCE OR NATIONAL BUSINESS‐AS‐USUAL? THE NATIONAL ADMINISTRATION OF EU STRUCTURAL FUNDS IN THE NETHERLANDS AND DENMARK

The partnership principle in EU cohesion policy was introduced in order to involve subnational authorities and interest organizations in policy formulation and implementation. In this article we examine how the member states have reacted to this call for a new way of making public policy. We argue that the multi‐level governance literature and the critics of the multi‐level governance framework have not examined implementation structures properly, but have focused on regional influence. We conduct a comparative analysis of the Dutch and Danish implementations of the European Social Fund and the European Regional Development Fund. Our findings show that when examining implementation structures it becomes clear that member states are in full control of the re‐allocation of EU funds. They show that Denmark and The Netherlands have been able to absorb EU cohesion policy within already existing national implementation structures of labour market policies and regional development. One central theoretical implication of our study is that the focus of studies of any fundamental re‐allocation of power resources in cohesion studies should comprise the entire network of implementation rather than the strategies of its individual component actors.     

A dynamic theoretical framework of gradual institutional changes

How do institutions transform? To answer that question, this article introduces a dynamic theoretical framework of gradual institutional changes. Instead of looking at each mode of gradual change—like layering or drift—as a stand‐alone process, we examine how the application of one mode of change affects the opportunities of change agents to induce additional modes of gradual transformation. We first point to the fact that any single mode of change produces a real but limited transformation. Nevertheless, since the application of a gradual mode of change alters the institutional context, it opens new change opportunities by affecting the support in the targeted institution and/or its internal coherence. Consequently, change agents who aspire to comprehensive transformation will be able to use these new opportunities to implement additional modes of gradual transformation. Two case studies of gradual social policy transformations in Israel exemplify these theoretical assertions.     

Governance,federalism and organizing institutions to manage complex problems

In managing complex policy problems in the federal system, state and local governments are organized into different arrangements for translating policy goals into policy outcomes. Air quality management is used as a test case to understand these variations and their impact on policy outcomes. With data from Clean Air Act implementation plans and a survey of state and local air quality managers, five separate institutional designs are identified: (1) central agencies; (2) top-down; (3) donor–recipient; (4) regional agencies; and (5) emergent governance. Findings indicate that some arrangements (donor–recipient and emergent governance) result in notably better air quality than others (central agencies, top-down). Specifically, when designed to allow bargaining between state and local officials, intergovernmental management is still the most effective approach to complex policy problems; but, in absence of this, conventional federalism arrangements are less effective than public agencies self-organizing around shared policy goals.     

Impacts of Institutional Rules and Spatial Context on Public Management

Abstract

Public management occurs within institutional and spatial contexts that define constraints and shape opportunities for public action. Importantly, the creation, adaptation, and nurture of institutions are socially valuable results of governmental action. Similarly, all human action occurs in and has effects in spatial contexts. The quality of life available to humans is dramatically affected by location and making places more valuable is an important goal of much public policy. Analyses at the nation state level find government creation and maintenance of institutional rules supporting democratic polities and market‐based economies are the most important factors in the long‐term economic performance of nations. When considering institutional context at the regional and local levels, or in specific policy arenas, at least three measures—(1) existing capacity for collective action; (2) complexity; and (3) volatility—need to be considered. Spatial contexts can be usefully analyzed along several dimensions, including structure of the economy, distribution of assets/liabilities and public, business, nonprofit and household activities, geography and population dynamics, among others. Estimating transaction costs of collective action can be a common entry point into analyses of institutional and spatial contexts. Both analysis and practice of public management will be advantaged by systematic attention to institutional and spatial context.     

THE NEW GOVERNANCE ARRANGEMENTS FOR NHS FOUNDATION TRUST HOSPITALS: REFRAMING GOVERNORS AS META‐REGULATORS

New governance arrangements for NHS Foundation Trusts (FTs) aimed to replace centralized state ownership of acute English hospitals with a new form of social ownership. Under this, trusts would exist as independent public interest organizations on the model of mutuals and co‐operative societies. Assessing the impact of the new arrangements on the management structure of four acute hospitals, we demonstrate that FTs have failed to deliver social ownership and local accountability on this model. We suggest that policy‐makers should re‐frame the governance apparatus associated with mutualism and social ownership in terms of the concept of meta‐regulation. By re‐framing governors as meta‐regulators, regulatory institutions would acquire new powers to steer FTs towards sustainable forms of compliance via non‐coercive, non‐intrusive means.     

BETTER REGULATION IN EUROPE: BETWEEN PUBLIC MANAGEMENT AND REGULATORY REFORM

Can the European regulatory state be managed? The European Union (EU) and its member states have looked at better regulation as a possible answer to this difficult question. This emerging public policy presents challenges to scholars of public management and administrative reforms, but also opportunities. In this conceptual article, we start from the problems created by the value‐laden discourse used by policy‐makers in this area, and provide a definition and a framework that are suitable for empirical/explanatory research. We then show how public administration scholars could usefully bring better regulation into their research agendas. To be more specific, we situate better regulation in the context of the academic debates on the New Public Management, the political control of bureaucracies, evidence‐based policy, and the regulatory state in Europe.     

Different Seeds in the Same Plot? Competing Models of Capitalism and the Incomplete Contracts of Partnership Design

This article explains the differing nature of UK government and European Commission approaches to partnership, drawing on the ‘competing models of capitalism’ debate. Comparative studies have typically considered the impact of the same institutional arrangements across different territories – the ‘study of identical seeds sown in different plots’(Putnam 1993, p. 7). However, this article is concerned with the study of different seeds sown in the same small plot: an area within the city of Sheffield. The different approaches to partnership enshrined in UK and EU regeneration programme documents structure different prospective outcomes. However, regeneration programme requirements must be understood as ‘incomplete contracts’ and as such, policy implementers play a key role in shaping policy outcomes.     

Different Seeds in the Same Plot? Competing Models of Capitalism and the Incomplete Contracts of Partnership Design

This article explains the differing nature of UK government and European Commission approaches to partnership, drawing on the 'competing models of capitalism' debate. Comparative studies have typically considered the impact of the same institutional arrangements across different territories – the 'study of identical seeds sown in different plots'(Putnam 1993, p. 7). However, this article is concerned with the study of different seeds sown in the same small plot: an area within the city of Sheffield. The different approaches to partnership enshrined in UK and EU regeneration programme documents structure different prospective outcomes. However, regeneration programme requirements must be understood as 'incomplete contracts' and as such, policy implementers play a key role in shaping policy outcomes.     

THE ROLE OF POLITICS AND INSTITUTIONS IN THE ITALIAN ADMINISTRATIVE REFORM TRAJECTORY

This article applies broad conceptual categories of comparative politics to the explanation of administrative reforms in Italy. It takes as its argument some lines of influence on public sector reform of the features of the party system in Italy, the executive‐legislative balance, the politician‐bureaucrat relationship, and the role of administrative law. In the search for explanations for the trajectory of administrative reform, pre‐existing political and institutional factors also have to be interpreted through the lens of negotiated change occurring via processes of conversion and layering involving new and old institutions that has taken place in Italy since the ‘political crisis' began in 1992.     

PATIENT CHOICE IN HEALTHCARE IN ENGLAND AND SWEDEN: FROM QUASI‐MARKET AND BACK TO MARKET? A COMPARATIVE ANALYSIS OF FAILURE IN UNLEARNING

This paper compares elements of choice introduced under the market orientated reforms in health systems in the UK and Sweden in the 1990s, and the recent patient choice policy in both countries. It reviews empirical evidence on the impact of choice on users and services under these reforms to examine whether, and how far, these past developments have informed the current choice reforms. The paper asserts that the reappearance of issues and solutions in patient choice policy in the English NHS and in Sweden signifies limited learning from their own past and cross‐national experience, resulting in blurred and mutually exclusive policy agendas. The study argues that this absence of learning happens because of the seeming inability of governments and policy‐makers to unlearn effectively their preconceived ideas and schemas, pointing out the limitations of social learning theory in understanding health policy development.     

SYMPOSIUM OVERVIEW: CONCEPTUALIZING NEW GOVERNANCE ARRANGEMENTS

This symposium, ‘Conceptualizing New Governance Arrangements', takes up the challenge of refining governance theory to better integrate work in several disciplines, most notably politics, public administration and law. To this end, we argue for a theoretical framework that profiles three key dimensions of governance: institutional, political and regulatory. This framework, in our view, offers new insights into the nature and operation of various governance arrangements, and offers the potential to assess and measure change within such arrangements over time. After describing our methodology for selecting and analysing the case studies profiled in the symposium, we introduce each of the articles that apply our three‐dimensional governance framework. These articles employ the framework to consider a variety of contemporary governance scenarios that vary widely by sector (environmental, climate change, forestry and education policy) and level of analysis (sub‐national, national, and bi‐national).     

COOPERATIVE INTERACTIONS AMONG FRIENDS AND FOES OPERATING WITHIN COLLABORATIVE GOVERNANCE ARRANGEMENTS

Perhaps nowhere is the inclination to interact with friends over foes more apparent than in the realms of politics and policy, and public managers increasingly operate within collaborative governance arrangements that are highly politicized. To further the existing knowledge on policy‐based interactions, this article examines factors that lead to cooperative interactions between foes. The Advocacy Coalition Framework, Resource Dependence Theory, and Policy Analytical Capacity are utilized to examine effects of resources and beliefs on interactions of climate policy supporters and opponents within Colorado. Despite the contentious nature of climate policy, a majority of individuals interacted equally with friends and foes, with opponents more likely to interact with foes. Extreme beliefs made individuals more likely to interact with friends, while resources had mixed effects. These findings offer an improved understanding of cooperative interactions between foes, which may help public managers operating within collaborative governance arrangements to promote greater cooperation and understanding.     

NEW GOVERNANCE ARRANGEMENTS AT THE INTERSECTION OF CLIMATE CHANGE AND FOREST POLICY: INSTITUTIONAL,POLITICAL AND REGULATORY DIMENSIONS

This article investigates emerging governance arrangements at the intersection between forest management and climate policy. The authors deploy the symposium's three‐dimensional framework to describe and evaluate developments within two distinct policy sectors (forestry/climate change adaptation and mitigation) at several levels of governance (bi‐national, national, and sub‐national) to explore the nature and operation of the emerging governance arrangements, and assessing and measuring change within these arrangements over time. Drawing on four contemporary case studies from the US and Canada, New Zealand, British Columbia and Alaska, the authors discern little evidence of a generalized, linear trend from ‘government to governance’. Instead, they conclude, across institutional, political and regulatory dimensions of governance, a more variegated and diverse picture emerges. Their analysis also lends support for the Trubek and Trubek (2007) hypothesis that emerging governance arrangements typically interact with extant ones through modalities of rivalry, complementarity and transformation.     

Coevolution of policy sectors: A comparative analysis of healthcare and public health

This article analyses the institutional coevolution of policy sectors – in other words, the mutual influence and adaptation of the institutional connection between related policy areas. The article proposes a two‐dimensional analytical space ranging from separation to unity on one axis and from superiority/subaltern to equality on the other. The article argues that the overall governance framework behind the coevolving sectors affects the institutional relationship between the sectors. In its empirical part, the article focuses on the healthcare and public health sectors. Based on a comparative historical examination of three countries with different healthcare systems – Australia, Germany, and the United States – the article shows that healthcare and public health coevolve differently depending on the type of national healthcare system. Further research can transfer the concepts introduced in this article to the analysis of other policy challenges, such as immigration or environmental protection.