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.     

Decentralisation,Economic Inequality and Insurgency

This paper investigates if devolution of political power in conflict-affected areas can reduce violence. Political decentralisation has been widely recognised to improve access to local public services. By providing institutional means to address local grievances, its role in diffusing social tensions has also been suggested. However, there is lack of systematic evidence on the role of local self-government in mitigating social-unrest arising due to local socio-economic issues. Our paper addresses this gap in the literature by assessing the impact of a local government institution, introduced in the Adivasi districts in 1996, on Maoist insurgency in India. The local councils aimed at addressing Adivasi grievances by recognising their traditional lifestyle and land, forests, and water rights, thereby reducing their incentive to participate in insurgency. However, empirical analysis performed using difference-in-difference methodology suggests that Maoist insurgency, as reported in Global Terrorism Database, increased post-decentralisation. We make sure this result is robust to various alternative explanations including state-level policy changes and political environment. Drawing on extensive empirical tests as well as existing qualitative studies, we show that an unequal local power structure and weak state-capacity in implementing the decentralisation programme resulted in local elites appropriating its benefits. This increased Adivasis grievances and consequently insurgency.     

Demotic humanitarians: historical perspectives on the global reach of local initiatives, 1940–2017

Abstract

This article focuses on over 70 years of demotic humanitarianism from a grassroots perspective. Using the archives of Hudfam and Elizabeth Wilson as well as more recent oral history of local nongovernmental organisations in the West Yorkshire region of the United Kingdom, this paper seeks to cast a new light on the complex network of humanitarianism enabled by local groups. The concept of demotic humanitarians will be used here to denote the modest scale of this work, but also the humanitarians’ self-perception as local agents of internationalism acting within localised networks. From the creation of Hudfam in 1942 (before Oxfam but in Huddersfield) to the birth of the Christian African Relief Trust or local partnerships with Ghana, this article shows how entangled in other social and political initiatives demotic humanitarians were.     

Society, community, and economic development

Studies of economic development and economic history have long been concerned with the relationship between the transparent and supposedly anonymous forces of markets, rules, and bureaucracies, on the one hand, and membership in groups, such as local communities, associations, or networks on the other. Economists are quite divided about these latter forces: for some, they are necessary underpinnings for the market, providing trust and social capital which in turn reduce transaction costs and moral hazards and hence promote development; for most, they are seen as archaic, leading to nepotism, rent seeking, and institutional rigidity. Indeed, throughout the social sciences, there is an opposition between the roles assigned to what may be called the “societal” and the “communitarian” bases of social and economic development. But each position in this theoretical standoff underestimates the contributions of either society or community to economic development. This is because both society and community have potentially positive and negative effects; together, however, they can act as mutual checks and balances on their potentially negative effects, while reinforcing the positive contributions of each to economic efficiency. Different levels and types of society and community, in interaction, define complex contexts of choice and incentives in economic development, and allow us to see more clearly the basis of different institutional configurations in relationship to development. Michael Storper is professor of regional and international development in the School of Public Affairs at UCLA; professor of economic geography at the London School of Economics; and professor of economic sociology at the Institut d’Etudes Politiques (“Sciences Po”) in Paris. He received his Ph.D. from UC Berkeley.     

To monitor or intervene? City managers and the implementation of strategic initiatives

Strategic initiatives represent a government's response to constituent and organizational needs, but are only effective if properly implemented. In local governments with a council‐manager form of government, city managers face a unique dilemma as compounding challenges of implementation often require them to step into leadership roles typically reserved for elected officials. For this qualitative study, 16 city managers and project leaders from US local governments were interviewed regarding the implementation of nine varied strategic initiatives. The responses indicate that city managers play an important dual role in implementation—first, monitoring the progress of the implementation team and the satisfaction of the stakeholder coalition; and second, choosing to intervene directly in implementation decision‐making when they observe missteps by the implementers or discontent from the stakeholders. These conclusions contribute to the practice perspective of strategic management theory and a better understanding of the institutional leadership role of city managers.     

MEETING THE CHALLENGE OF TECHNOLOGY‐DRIVEN CHANGE WITHIN AN INSTITUTIONAL CONTEXT: THE GREEK CASE

Propelled by the driving forces of globalization and technology explosion, public institutions face the challenge of rapid and discontinuous change. Such change has come to undermine the relevance of traditional approaches on how an institution should be managed. We analyse a technology‐driven change effort, the implementation of an Integrated Information System (IIS), that unfolds within the boundaries of the institutional context of the Hellenic Parliament. The purpose of our research, which reports on a qualitative field study, is to explore and understand how the particularities of technology‐driven change on the one hand, and institutional change on the other, can be integrated, paying particular attention to how the different actors involved in the process interact and affect the unfolding of such a change effort. Our findings show that strong friction did indeed occur between old and new institutional factors, but that the key factor enabling the change effort to advance and finally gain legitimation was the encouragement and support in the institutional change process of opportunity‐based and emerging changes, as proposed by the technological change literature.     

VARIETIES OF NEW INSTITUTIONALISM: A CRITICAL APPRAISAL

New institutionalist approaches reflect a common commitment to the significance of institutional arrangements and a common criticism of atomistic accounts of social processes. Beyond these core assumptions, new institutionalism is characterized by a great variety of positions, which are sometimes complementary and sometimes conflicting. The different positions can be captured in six'vignettes': the mythic institution, the efficient institution, the stable institution, the manipulated institution, the disaggregated institution, and the appropriate institution. The vignettes differ in the significance they accord to: formal and informal institutional rules; change and stability within institutions; and the role of rational action and norm-governed behaviour in creating and sustaining institutions. The comparative critical assessment of the vignettes can provide the basis for a multi-theoretic approach to the study of institutions and institutional change.     

Citizens’ Initiatives: How Local Governments Fill their Facilitative Role

In the context of drastic cutbacks many Dutch municipalities consider citizens’ initiatives (CIs) as an attractive alternative for municipal policies aimed at improving the livability and safety in neighbourhoods, simultaneously building responsible citizenship. In this paper we combine different theoretical perspectives to analyse the institutional settings in which CIs are being realised, and how municipalities try to facilitate such initiatives. Municipalities can do this by either trying to structure the relevant networks or by various forms of process management. This analysis sheds light on how municipalities use a variety of instruments to mobilise citizens to participate in CIs. In using such instruments they can influence various factors (like motivations, personal resources, social capital and expected responsiveness; cf. Lowndes et al.’s CLEAR model) that increase the likelihood of civic engagement.     

Local Democracy in a Digital Age: Lessons for Local Government from the Manchester Congestion Charge Referendum

Local government in England has, in general, struggled with exploiting the much heralded democratic potential of the Internet. Evaluations of the local e-democracy initiatives, funded as part of the New Labour Government's e-government programme, were largely unfavourable. Since this initiative ended usage of the Internet has arguably reached a critical mass opening new opportunities for local policy makers interested in more effectively involving citizens in the local decision-making process. This article illustrates these opportunities by drawing on new empirical evidence of the online political activity associated with the 2008 Manchester Congestion Charge referendum. It also serves to highlight the political challenges facing local government and argues that if the Internet is to be used for strengthening local democracy then local government must become a fit for purpose institution and develop strategies that tackle the online influence of vested economic interests and the problem of enacting local citizenship online.     

Beyond Paternalism Towards Social Capital: Local Governance Reform in Portugal

An urge to reform local government in Portugal requires a sensitive approach to the role of social capital and, particularly, to the consequences of local governance arrangements in its formation. This research agenda, greatly influenced by the identification of positive externalities of social capital, has generated several claims regarding the need for proactive and objective top-down initiatives. Though assuming that institutions and public policies can have positive effects on social capital building, this article tries to contribute to the debate, focusing on the challenges met by local administration reform, arguing that it requires a four-fold approach: the identification of local government functions and the role of the State; a close look at institutional design and citizen engagement mechanisms; correct tools for allowing civil society reinforcement and social capital building; and recognizing political leadership as a fundamental aspect of a governance arrangement.     

Antitrust policy in a hostile environment: institution building in venezuela's procompetencia

Theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies. One product of market liberalization in Venezuela was the creation of the anti-monopoly agency called “Procompetencia”, which managed to survive a change of government and a move toward interventionist, anti-market mechanisms hostile to its survival. The strategy and tactics of this agency are reviewed with the objective of detecting bureaucratic responses to threat and successful efforts to survive. Some lessons are derived for infusing more stability into weak institutions.     

Conversationalism,constitutional economics,and bicameralism strategies for political reform in Hong Kong

Hong Kong has at long last regained the economic momentum lost in the wake of the Asian financial crisis and the collapse of the local property market. However, political friction and uncertainty have escalated rather than subsided, because of deep‐rooted divisions over the pace of democratic reform. There are no simple remedies for the constitutional deadlock that has emerged. Nevertheless, it might be possible to improve the overall political climate and both the form and substance of the dialog regarding fundamental institutional reform by borrowing some ideas from constitutional economics.     

THE ODYSSEY OF ADMINISTRATIVE REFORMS IN GREECE, 1981–2009: A TALE OF TWO REFORM PATHS

In Greece, two distinct reform paths led to institutional building and economic managerial types of reform. These two reforms, with the exception of the period 1996–2004, when both institutional and economic reforms were attempted, did not attract the same degree of attention. Institutional reforms were more successful than attempts at managerial reforms; reform implementation on the other hand varies. Economic and managerial reforms can be observed with regard to economic competition, the opening up of the market, and reducing the size of public sector, all areas where pressure from the EU has been stronger. Decentralization reforms were more important politically than administratively. Citizens' rights and service delivery were conceived as reforms of democratization and modernization rather than as managerial reforms. ‘Agencification’ amounted to circumventing existing ministerial structures. Change was incremental, and reforms were minimally guided by the New Public Management paradigm, because of little emphasis on changes imbued by managerial and economic values. Reform dynamics benefited not only from outside pressures but also from the operation of internal, ‘modernizing’ forces.     

Majority Rule in Consensual Democracies: Explaining Political Influence in Norwegian Local Councils

Norwegian local government has traditionally been strongly rooted in the consensus ideal. When the new Local Government Act of 1992 allowed the municipalities to introduce parliamentary models and abolished the statutory requirement of qualified majority decisions in the councils, this therefore implied a significant change in the local government ideal. Even though the municipalities have been reluctant to formally adopt a parliamentary model, this paper argues that in practice a majority system is replacing the traditional consensual model, with functional roles for a governing majority and an opposition. The empirical analysis employs data on local politicians from 1994 and 1998 to test the proposition that representatives of the governing parties exert more influence on local policies than members of the opposition. Two different indicators of political influence are used: (1) the councillors' budgetary influence measured as the distance between the councillors' ideal point and the actual decision outcome, and (2) the councillors' ability to have initiatives accepted in the various local political bodies. In addition to the variable representing membership of the governing majority or the opposition, the model also controls for factors such as the representatives' formal institutional affiliation, individual characteristics and community context. Even when controlling for these determinants, the empirical results strongly support the hypothesis.     

The Institutional Context of Market Ideology: A Comparative Analysis of the Values and Perceptions of Local Government CEOs in 14 OECD Countries

During recent decades, various versions of market practices have, in most nation states, diffused into the public sector. We analyse variations in the adoption of market ideologies and examine plausible explanations for these variations. Four managerial ideal types are constructed, based on their attitudes towards two dimensions of market ideology. Managerial attitudes and perceptions are conceived as embedded in a global process of diffusion highly affected by varying institutional preconditions. The impact of five types of institutional contexts is examined: the national context, the organizational context, the context of interaction, the context of socialization and the norms of the manager.     

The Changing Facets of Public Administration in the United Arab Emirates

ABSTRACT

This article is an in-depth profile of the public administration system in the United Arab Emirates (UAE). It specifically focuses on the relationship between the state, the market and civil society, the structure of the government and the civil service system and its functional areas. Reform initiatives undertaken in all these areas over the last decade have also been discussed. The findings reveal that the public administration system in the UAE has demonstrated considerable developments in facilitating the market forces, opening space for civil society and modernizing the civil service system.     

Demonized,domesticated, virtualized: fortification buildings as a case of Prussian heritage in present-day Kaliningrad

The article explores ways in which the nineteenth-century Prussian military architecture has been used and promoted as a part of the local heritage in the Russian exclave of Kaliningrad. Accommodation of the old fortification buildings to tourism and museum work has been publicly discussed since the beginning of the 2000s, but neither local nor federal authorities have proposed a plan to adapt them to non-military purposes. As a result, these structures, which are protected by federal heritage laws and uniformly built of characteristic red bricks, have become an arena for various initiatives, experiments, and games with the past. Strategies of virtualization discussed in the paper reveal a lack of open public discussion about dark episodes of Russian and Soviet history. Consequently, it is important to learn more about how and why contemporary Kaliningraders appropriate the local German legacies, use globally accepted strategies of heritage construction, and develop cooperation with the EU countries, while remaining receptive to official historical narratives promulgated by the national center.     

FISCAL FEDERALISM, PROFESSIONALISM AND THE TRANSFORMATION OF AMERICAN STATE GOVERNMENT

A combination of political and economic forces have helped to return the states to the centre of the political stage. Whether measured by objective indicators (employment, share of government expenditure, elasticity of state revenues) or political institutional changes (the rise of career governors, the increasing influence of the intergovernmental lobby and the spread of state responsibilities), the states have become increasingly important in the formulation and implementation of American domestic policies. However, these changes have by no means reduced the level of intergovernmental conflict. On the contrary, cuts in federal expenditure, the introduction of block grants and public opposition to increases in state and local taxation are likely to intensify debate on distributional questions at the state level.     

Anti-Corruption Policy: China’s Tiger Hunt and India’s Demonetization

ABSTRACT

This paper examines the different styles of anti-corruption strategy, particularly at the local level in China and India. In China there has been a central push with a role of anti-corruption agencies that have law-enforcement power. In India there has been a focus on institutional building together with a visible role of the civil society. China has had a top-down approach while India has more of a bottom-up approach combined with top-down initiatives such as demonetization. Interviews with 44 mid-career and senior officials investigate the two approaches and the impacts of anti-corruption measures in China and India. Interviewees support the approaches adopted by China and India but doubt their effectiveness and sustainability. The way forward, they suggest, is to reduce the influence of political parties especially in India and to enhance e-governance in both countries. Experiences of the two countries have significant implications especially on capacity building, institutional development, and law enforcement.     

国际制度竞争、利益分配与国际秩序转型

国际秩序转型的动力、过程和方向是政策界与理论界关注的核心议题。历史上的国际秩序转型通常以暴力方式实现,旧的秩序被完全推翻,获胜大国及其集团围绕自身利益建立一套新的秩序安排。在当今时代,暴力方式难以为继,新兴大国只能通过一些相对和平的手段改变既有利益分配格局,以此推动秩序的渐进调整。进入21世纪以来,国际制度竞争成为国际秩序转型的核心动力,崛起国寻求提升在制度体系内的物质利益和规则主导权,守成国则试图利用制度体系内的优势地位维护既得利益。崛起国的制度竞争策略包括改革既有制度、创建新的包容守成国的制度和排斥守成国的制度,守成国针对崛起国的行动而制定相应的反制策略。双方的制度竞争通过改变既有利益分配的不同维度来决定国际秩序的转型模式。当前,中国通过改革既有制度和创建新的包容守成国的制度实现了物质利益和规则主导权的提升,中美两国在国际制度领域的持续互动将决定未来国际秩序转型的进程。