Defense Business Operating Fund: Description and Implementation Issues

The Defense Business Operating Fund initiative in the Department of Defense (DoD) consolidates existing industrial and stock funds. This initiative is intended to enhance the departmental management of an estimated $81 billion sale of goods and services in fiscal year 1993. Revolving funds have a long history in the department. This article examines the role of revolving funds and their performance in DoD. The potential benefits of consolidation of funds are discussed. Emphasis is given to budgetary, management, and accounting changes intended to enhance management of the funds. The effect of implementation issues on the realization of potential benefits is also explored.     

Testing the Policy Capacities of Budgetary Agencies: Lessons from Finance

The Commonwealth Department of Finance, together with the Treasury from which it was hived off in 1976, constitutes the central budgetary agency at the Australian federal level. For the purposes of this article, I identify Finance as a convenient working model of central budgetary agencies, at least in their traditional Australian incarnation. I accept that Finance is unlikely to be fully representative of all such Australian agencies, and I acknowledge that the federal government's annual budget is officially introduced into parliament by the Treasurer, and that the Treasury is deservedly regarded as the core budgetary agency. But my focus here is on Finance's special responsibility for the public management framework, and Finance's role in providing policy advice to government organisations on how to make the best use of budget funding. This article then presents the findings of a recent evaluation of selected policy-advising activities with the department.     

Civil Servants, Economic Ideas, and Economic Policies: Lessons from Italy

Building on theoretically oriented and empirically grounded research on two key macroeconomic institutions in Italy, this article explains how and why civil servants can engineer major policy changes, making a difference in a country's trajectory. Italy provides a challenging testing ground for this kind of analysis, as it is generally portrayed as a highly politicized system in which political parties and politicians fully control public policies. Three general lessons can be learned, the first being that the role of civil servants in changing modes of economic governance depends on the resources that they master in the system in which they operate. "Intangible assets" are of primary importance in complex and perceived technical policies, such as monetary and exchange rate policy, which have high potential for "technocratic capture." Second, in these policies, certain intangible assets, such as specific bodies of economic knowledge or policy paradigms, have a considerable impact on policy making. Third, besides interactions in international fora, the professional training of civil servants is a mainstream way through which economic policy beliefs circulate and gain currency, laying the foundations for policy shifts. By highlighting the importance of the intangible assets of macroeconomic institutions, this research makes an unorthodox contribution to the primarily economic literature on central bank independence.     

Defense Business Operations Fund (DBOF): Problems and Promise

In 1991, the United States Department of Defense established the Defense Business Operations Fund (DBOF). The DBOF includes support activities with a business volume well in excess of $80 billion annually, and it provides activities and services that are essential to the operation of the military forces. The necessity to reduce the defense budget and to find innovative ways of producing more defense than would be possible under prior operating and management arrangements caused the Department of Defense (DoD) to look to alternative economic and business models. The changes made are dramatic. The implementation has not gone as smoothly as some observers expected, and Congress and former Secretary of Defense Aspin each considered reversing the innovation. This article addresses the problems and the promised improvements in the context of the economic and management concepts undergirding the DBOF, concepts that are dramatically different than those previously applied in the DoD     

Certificates of Participation and Capital Markets: Lessons from Brevard County and Richmond Unified School District

This article analyzes the genesis of certificates of participation (COP) in the municipal securities market. We document the trend in the use of COPs and illustrate problems in the market through case studies of the Richmond Unified School District default and the Brevard County referendum crisis. The valuable fiscal administration lessons drawn from the growing pains of a maturing sector of the municipal securities market can help municipal governments and investors avoid the tragic consequences that seem to inevitably accompany the circumvention of legal debt restrictions and public accountability.     

Linking Accounting and Budget Data: A Discourse

Although the federal government has long been required to provide a reliable linkage between its accounting and budget data, it has only recently developed tools that can provide a consistent, government‐wide solution. This article analyzes these tools by a discussion of the criteria necessary for linkage and by providing examples of certain key budget linkages. In addition, the history of the development of these linkage tools is discussed. This article was developed from ideas presented by the authors while participating on a Linking Accounting and Budget panel at the Fall 2001 American Association for Budget and Program Analysis (AABPA) Symposium.     

Empowering Consumers Through Data and Smart Technology: Experimental Evidence on the Consequences of Time‐of‐Use Electricity Pricing Policies

This paper investigates the extent to which technology used to automate household responses to time‐of‐use pricing for electricity leads to higher energy savings than simply providing households with information on current prices and quantities. Using a large randomized field trial, we find that informed households with “smart” thermostats achieve impressive reductions in consumption during on‐peak periods of up to 48 percent, but also engage in substantial load shifting to off‐peak hours. We also document the extent to which household responses to time‐of‐use pricing are heterogeneous and vary significantly by demographics, weather, and across the usage distribution.     

International Capital Mobility and Domestic Institutions:Corporate Finance and Governance in Four European Cases

This article considers the impact of international capital mobility on thecharacter of corporate finance and corporate governance in four European countries (Germany, France, Spain, and Italy). We take issue with the widespread view that the growth of international financial markets and the lifting of capital controls will in themselves produce convergence in national systems of corporate finance and governance. Although we find evidence of convergence in specific aspects of financial regulation (e.g., the abandonment of selective credit regulation and the dismantling of barriers to universal banking), these regulatory changes have not produced any clear convergence toward either the Anglo-Saxon model of corporate finance and governance predicted in much of the literature or the alternative German bank-based model. The reasons for this, we suggest, have much to do with the way in which the politics of financialreform are likely to differ from those postulated in market-driven models of regulatory change and the fact that countries are susceptible to international pressures in different ways.     

Exploring Social Capital: as Concept and Practice in Australian Public Health Policies and Programs

Over the past twenty years interest has grown in the concept of social capital in international and Australian public policy. We explore how social capital is understood as a concept and used in practice for guiding policy development and program delivery in South Australian public health programs. The empirical research compared policy makers’ and practitioners’ understandings of social capital and how theories about social capital and health inequality were translated into practice in three case study projects. It found that there are shifting discourses between social capital and related concepts, including community capacity building, and social inclusion/exclusion. Policy makers reported less use of the concept of social capital in favour of social inclusion/exclusion reflecting changing political and policy environments where terms come into favour and then go out of fashion. In this transition period the two terms are often used interchangeably although there are some conceptual points of difference.     

Enron/Andersen: Crisis in U.S. Accounting and Lessons for Government

Accounting and auditing play a key role in the belief of ordinary taxpayers and investors in their institutions. This is equally true of the private and governmental sectors. The Enron/Andersen scandal, regrettably, is not an isolated case, but rather merely indicative of underlying, structural flaws in our financial systems. Moreover, there is evidence that some of these flaws may be present in governmental accounting and auditing. The Sarbanes‐Oxley Act of 2002 is an attempt to address these problems in the private sector, but does not address concerns in the public sector. Public sector accounting issues that need to be addressed and monitored include substandard audit work and related liability issues, the appropriate funding of GASB so as to ensure its independence, auditor fees, and auditor independence questions including protection of elected and appointed state auditors.     

Intelligence Learning and Adaptation: Lessons from Counterinsurgency Wars

Critics of US intelligence focus extensively on the alleged inability and unwillingness of intelligence agencies to learn and adapt. Analysis of eight counterinsurgency wars suggests instead that external factors largely influence the intelligence-related performance of whole governments, including organizational structures, unity of effort and command, adequacy of resources, and leadership quality. Assessment of the performance of US intelligence since 9/11 indicates that the same variables influence the performance of US intelligence, suggesting that the US intelligence reform debate focuses too narrowly and on the wrong factors.     

Externalised Justice and Democratisation: Lessons from the Pinochet Case

The attempt to try Pinochet in Spain exemplified and publicised a trend to use 'externalised justice' to tackle impunity for human rights crimes. It also demonstrated the possibilities and limitations of externalised justice initiatives, in terms of securing democracy at the national level, and of advancing accountability for serious crimes under international law. In Chile, Argentina and Spain the Pinochet affair served to restart stalled impulses towards accountability, accelerate democratic reform and challenge the legitimacy of compromises conceded during earlier democratic transitions. With regard to the wider role of international law in limiting impunity, expectations for rapid or consistent replication of 'the Pinochet precedent' have not been met. Despite some notable achievements, the exercise of universal jurisdiction by national courts remains inconsistent and controversial. The International Criminal Court (ICC) provides a new mechanism for external justice. An aggressive US campaign to undermine it, and to reverse progress in international law, is a serious obstacle to fulfilment of the ICC's enforcement role. However, at the domestic level the ICC may have similar indirect effects to the Pinochet litigation, boosting domestic enforcement prospects and strengthening democratic commitment. In both cases the key role for externalised justice is as stimulus or back-up. This suggests that progress in tackling impunity depends on incremental and dynamic interaction between domestic and international law, and between national and transnational actors.     

Low-level Radioactive Waste Compacts: Lessons Learned from Theory and Practice

The interstate compact as a policy tool has a long history ofuse in the United States. Yet some observers feel that interstatecompacts have never lived up to their potential. Nevertheless,in 1980, the compact was chosen as the policy instrument tosolve one of the thorniest environmental policy issues of thedecade: the siting of low-level radioactive waste (LLRW) disposalfacilities. Drawing from research on interstate compacts andon alliance theory developed in international relations, thisarticle applies five key questions to the case of LLRW: Whydo states join compacts? Which compacts will they join? Howstable are the compacts? How important are outside factors?What types of situations are compacts most suited to address?It concludes with lessons that should be useful to future policymakersabout the use of interstate compacts to solve salient, nationwidepolicy problems.