Local Capitalism and Civic Engagement: The Potential of Locally Facing Firms

The twin forces of globalization and devolution have created administrative circumstances that strain the problem‐solving capacity of local governments and increase the importance of nongovernmental processes and institutions. The literature suggests that locally owned firms are more likely to engender higher levels of civic engagement critical to buttressing that problem‐solving capacity. This research adds an additional dimension, investigating to whom those firms sell and through which supply channels. Using survey results from hundreds of local firms across five study sites, this research demonstrates that locally facing firms—that is, firms that intentionally interface with community members and other local businesses—are associated with greater levels of civic and political engagement compared with locally owned firms that sell their products to customers elsewhere. Findings suggest that local governments should look beyond the local/nonlocal ownership binary to consider how private firms can be partners in serving and supporting their communities.     

Promotion Tournament,Labor Market Tightening and Pension Generosity: A Comparative Public Policy Analysis of Pension System for Urban Workers in China (1997–2013)

Abstract

This article conducts a comparative public policy analysis of China’s generous urban worker basic pension system. It is commonly believed that Chinese local governments, which are motived by office-seeking incentives under decentralization, may foster economic growth at the expense of citizens’ social rights and thus “promotion tournament competition” comes into being. This article challenges this view by arguing that such competition can increase the generosity of social programs such as public pensions, especially in the condition of labor scarcity. This argument is supported by time-series cross-section analysis of 31 Chinese provincial units (1997–2013) using a novel indicator of the intensity of inter-locality competition. When the labor market tightens, workers can leave a locality to seek better compensation. Motivated by the promotion tournament competition to develop the local economy, which requires the issue of labor shortage to be addressed, local governments then provide generous local pension schemes to retain workers. Operating in a macroeconomic climate of labor scarcity, promotion tournament competition becomes an unlikely catalyst for welfare expansion in China.     

The Effects of Fiscal Decentralization on Public Spending: The Korean Case

The local government reforms of the 1980s and 1990s in Korea involved devolution of substantial resources from the central to local governments. Fiscal realignment between the levels of government occurred during the same period of time. This article places these changes within the context of fiscal decentralization, using a variety of time-series regression techniques, in an effort to assess its impact. Findings suggest that fiscal decentralization serves as a constraint on the behavior of central government, while it serves as a booster on behalf of underdeveloped local governments. Fiscal decentralization may be a very effective means of self-government, and plays a key role in improving the fit between the provision of public goods and citizens' demand in Korea.     

Learning how to be efficient property owners and accountable governments: the case of Kyrgyzstan's cities

As a result of government decentralization and property devolution from central to local governments, many city governments in transition countries became the largest real property owners in urban areas. For transitional countries lacking sufficient democratic traditions, efficient asset management represents a dramatic and multifaceted challenge. Kyrgyzstan happened to be among the first transitional countries where cities obtained systematic technical assistance in adapting the most advanced methodology of municipal asset management, which was recently developed under the auspices of the World Bank. Based on experience of work within five pilot cities, the article summarizes factors and methods that help develop a sense of strong ownership and internalization of new asset management vision and approaches among local officials and elected members of city councils. The article presents the experience of how the government of Uzgen, a city of about 40,000 people in South Kyrgyzstan, has changed its attitudes and approach regarding management of municipal property. The article demonstrates how two key processes—improving professional aspects of municipal asset management and developing local democracy though public involvement—have been reinforced by each other. One of the main lessons from Uzgen's experience is that municipal property asset management—because it deals with tangible issues—is a perfect focal point for developing local democracy and communication between a local population and its government. Copyright © 2001 John Wiley & Sons, Ltd.     

Mayoral Public Sector Work Experience and Tax Collection Performance in Colombian Local Governments

ABSTRACT

Local governments in Latin America tend to have limited capacity to collect taxes. Existing theory explains tax collection performance as a function of political, socio-economic, and cultural factors. Yet across Latin America, tax collection performance varies greatly between localities that are similar along these dimensions. We suggest that organizational capacity, represented by managers' human capital, explains variation in local tax collection performance. We test this theoretical idea against panel data on most Colombian local governments, where elected mayors are the top managers determining the local tax collection strategy. We examine two indicators of tax collection performance: (1) the per-capita amount of property tax collected and (2) property tax collected as a percentage of total property valuation. Controlling for important confounders, the length of the mayor's prior public sector work experience is positively associated with the per-capita amount of property tax collected but not the percentage of total property valuation collected in property tax. Our results suggest that Colombian mayors gain relevant skills over their career. Our study has implications for other developing countries with a similar property tax collection system.     

Let Them Eat Marblecake: The Preferences of Michigan Citizens for Devolution and Intergovernmental Service-Provision

Based on a survey of Michigan residents, this study explorespublic support for devolution of public services to state andlocal governments. The survey allowed respondents to choosemore than one level of government to provide services. On onehand, a large majority endorsed the devolution of services fromthe federal government to the states in general. On the otherhand, for most of 11 specific services studied, respondentspreferred arrangements involving all three governments. Regressionanalysis indicates that a preference for having services deliveredby state and/or local governments only is stronger among Republicans,conservatives, whites, and older citizens. Overall, however,Michiganians embrace "marblecake " federalism.     

Public management reform and organizational performance: An empirical assessment of the U.K. Labour government's public service improvement strategy

We present the first empirical assessment of the U.K. Labour government's program of public management reform. This reform program is based on rational planning, devolution and delegation, flexibility and incentives, and enhanced choice. Measures of these variables are tested against external and internal indicators of organizational performance. The setting for the study is upper tier English local governments, and data are drawn from a multiple informant survey of 117 authorities. The statistical results indicate that planning, organizational flexibility, and user choice are associated with higher performance. Conclusions are drawn for the theory and practice of public management reform. © 2006 by the Association for Public Policy Analysis and Management     

On the Determinants of Local Government Debt: Does One Size Fit All?

ABSTRACT

This article analyzes the factors that directly influence levels of debt in Spanish local governments. Specifically, the main objective is to find out the extent to which indebtedness is originated by controllable factors that public managers can influence, or whether it hinges on other variables beyond managers’ control. The importance of this issue has intensified since the start of the crisis in 2008, due to the abrupt decline of revenues and, simultaneously, to the fact that the levels of costs these institutions face has remained the same or, in some cases, increased. Results can be explored from multiple perspectives, given that the set of explanatory factors is also multiple. However, the most interesting finding is the varying effect of each covariate depending on a municipality's specific debt level, which suggests that economic policy recommendations should not be homogeneous across local governments.     

Iron Houses in the Tropical Heat: Decentralization Reforms in Africa and their Consequences

Abstract

Decentralization reforms introduced to Africa have not always delivered the intended outcomes. Through interaction with the broader historical, political, social and economic context, reforms seem to have engendered political consequences beyond decentralization itself. Most of the literature on decentralization and development emphasizes questions of institutional design and policy, but here we expand the focus of analysis and incorporate the harder-to-pin-down political patterns marking the workings of decentralization in Africa. Through the case-studies of Ghana, Senegal, Zimbabwe, Namibia, Ethiopia and Uganda we seek to connect the debates on development with the scholarly literatures on comparative federalism, comparative decentralization and local democracy. The conclusion that emerges is that no magic formula which can turn countries into peaceful, stable and prosperous democracies overnight exists. And, importing formal institutions without regard to the local historical, political, social and economic context risks leaving us with elegant but dysfunctional iron houses in the tropical heat.     

Devolution Paradox and the US South

There is an inherent trade-off in federalism regarding representation and equity. With the devolution of responsibilities to regional governments offering increased representation, there comes the inequity of services provided by some governments and not others. However, citizens in these federations may want the best of both worlds—desiring regional control but without the regional policy variation. This tension, dubbed ‘the devolution paradox’ in a study of federal countries in Europe, was less apparent in one key group of regions—those with historic ties through language, culture, or experience. This article examines US respondents to identify whether the devolution paradox is evident in this country and looks specifically at the South, a region with long-standing distinctiveness. We find that there is evidence of the devolution paradox among the American public and that the South is indeed different.     

Tackling unemployment in China: state capacity and governance issues

Abstract

This paper considers China's state capacity and changing governance as revealed through its policies to tackle unemployment. Despite high levels of growth, economic restructuring has resulted in rising unemployment over the last decade. The Chinese state has been able to manage job losses from state enterprises, demonstrating some state capacity in relation to this sector and some persistent command economy governance mechanisms. However both design and implementation of policies to compensate and assist particular groups among the unemployed have been shaped by weak state capacity in several other areas. First, capacity to gather accurate employment data is limited, meaning local and central governments do not have a good understanding of the extent and nature of unemployment. Second, the sustainability of supposedly mandatory unemployment insurance schemes is threatened by poor capacity to enforce participation. Third, poor central state capacity to ensure local governments implement policies effectively leads to poor unemployment insurance fund capacity, resulting in provision for only a narrow segment of the unemployed and low quality employment services. Although the adoption of unemployment insurance (and its extension to employers and employees in the private sector), the introduction of a Labour Contract Law in 2007, and the delivery of employment services by private businesses indicate a shift towards the use of new governance mechanisms based on entitlement, contract and private sector delivery of public-sector goods, that shift is undermined by poor state capacity in relation to some of these new mechanisms.     

Making Good Use of Partners: Differential Effects of Managerial Networking in the Social Care Domain

ABSTRACT

Public managers engage in networking relationships with a wide variety of external actors and organizations from which they can draw different types of support and resources. Most empirical studies on managerial networking merely present different intensities of external networking in general, as if it were a unidimensional concept. In practice, however, public managers strategically differentiate between functional or task-related groups of external partners, based on the specific policy context. Moreover, such differentiation in networking behavior can be expected to systematically impact agency and public program performance outcomes. This article derives contextualized hypotheses on how managerial networking affects the performance of Dutch local governments in the social care domain. Multilevel structural equation analyses of 3,257 social care clients in 71 local governments provide evidence that bilateral client-interest networking is more beneficial to the Social Support Act's overall goal of improving the level of social participation of clients than professional networking. Moreover, the effect is indirect: managerial networking with client interest groups improves the physical self-reliance of clients, enabling them to engage in social activities.     

Radio days: Media-politics in Indonesia

In the recent excitement about the democratizing potential of the 'new' electronic media, theorists have largely ignored the role of the oldest of the electronic 'mass' media, that is, radio. This paper suggests several parallels between the oldest and the newest electronic media in the transmission of anti-authoritarian politics in Indonesia. While the Internet aided sections of the civil society in subverting the state's control over public discourse, in the post-authoritarian politics, radio may remain by far the more significant technology of democratization. Radio's importance is only in part explained by the economic limits on the distribution of the Internet in Indonesia. We need to look at the particular tessellation of culture, politics and technology in Indonesia to understand the role of radio in the articulation of local politics, in a democratization process whose success depends on the politics of ethno-cultural decentralization and devolution of power from urban elites.     

Determining Factors of E-government Development: A Worldwide National Approach

ABSTRACT

The implementation of e-government aims at simplifying and improving the relationships and transactions between public administrations and their users or customers. In this vein, the objective of this work is to analyze the factors that promote the development of e-government in the national governments of 192 countries worldwide, differentiating between developed and developing countries. Our findings emphasize that the development of e-government requires that countries have a degree of economic development that enables their citizens to have a certain standard of living, both economic and cultural, as well as important internal government reforms which promote administrative effectiveness. Once these essential factors are fulfilled, the national government's online presence is favored by governments that rule with a majority in their parliaments and with an important fiscal capacity.     

Interacting Capacities: The Indirect National Contribution to Subnational Service Provision

Different levels of government often interact on the ground, providing closely related services. While multilevel governance arrangements have been studied broadly, scarce literature has explored the contribution of national governments to achieving subnational policy goals. By reconceptualizing administrative decentralization as coexisting devolution (to subnational governments) and deconcentration (through field units), this research explores the indirect national contribution to subnational performance by delivering associated services. This article tests the following hypotheses: (1) there is a positive effect of national deconcentrated capacity on subnational policy outputs, and (2) under policy overlap, this contribution diminishes with increasing levels of subnational capacity. While Colombian schooling is decentralized, the national government indirectly contributes to education through a national agency that administers child protection services. Analyzing data for Colombian subnational governments over a decade reveals that national capacity boosts education provision while the least endowed regions benefit the most, thus providing evidence supporting both hypotheses.     

Decentralization and Development in Contemporary Uganda

Abstract

There has long been an emphasis on the importance of decentralization in providing better quality public services in the developing world. In order to assess the effectiveness of decentralization I examine here the case study of Uganda, which has seen major decentralization of power over the last quarter-century. In particular the current government has introduced a five-tiered local government structure, decentralized both fiscal and political power to local governments and introduced regular local government elections. However, initial excitement about Uganda's decentralization programme has tapered off in recent years due to a number of problems outlined here. In particular, I show that decentralization in Uganda has suffered from a lack of independence from central government control, which has led to a lack of effectiveness in the provision of high quality public goods.     

Limits of Devolution: Localism,Economics and Post‐democracy

This article challenges the narrowly founded but untroubled consensus about the alleged benefits of the Conservative government's devolution programme. It suggests that too much attention has been paid to purported benefits and too little regard to the potential risks, and draws attention to international evidence that suggests that the distribution of the benefits of devolution is crucially dependent on its design. It critically examines the case for the currently offered model of devolution and finds the underpinning economic model and limited forms of democratic accountability are likely to produce regressive social outcomes and the reinforcement of existing local elites. It calls for a wider public debate and fuller democratic scrutiny of the model of devolution on offer.     

Citizen political knowledge and accountability: Survey evidence on devolution in Kenya

Devolution complicates citizens’ ability to assign responsibility for the provision of public goods and services to different tiers of government. Misattribution of responsibility limits the effectiveness of electoral accountability in the nested principal–agent relationships comprising voters, politicians, and bureaucrats. This raises two important questions. First, how do citizens learn about the functions of different tiers of government under devolution? Second, how do levels of political knowledge condition citizens’ evaluations of subnational governments? Using cross‐sectional and panel survey data from Kenya (2014–2018), this article shows that voters accumulate knowledge through exposure to government services, and that gender and partisanship mediate knowledge accumulation. In addition, exposed citizens are more likely to give positive evaluations of subnational politicians, despite the fact that such exposure may reveal subnational governments’ low capacity, ineffectiveness, and governance gaps. These findings advance our understanding of the dynamics of political accountability under devolution.     

Capacity,Leadership, and Organizational Performance: Testing the Black Box Model of Public Management

According to recent “black box” models of public management, managerial capacity is a critical component for achieving service delivery improvement. In particular, black box models assume that the impact of management systems is maximized through integration with effective leadership. This assumption is tested by analyzing the effects of managerial capacity and organizational leadership on the performance of English local governments, while controlling for a range of other variables, including organizational size, resources, external constraints, and past performance. Empirical results show that capacity possesses a positive statistical association with local government performance and that leadership can enhance the impact of effective management systems.     

The Impact of the Fiscal Crisis on Public Administration Reforms: Comparison of 14 European Countries

Abstract

This study aims to empirically test a widespread assumption that fiscal crises instigate administrative reforms. The empirical analysis relies upon an international comparative study of the responses of 14 European governments to the fiscal crisis of 2008–2013. It is found that fiscal crisis and public administration reforms are not necessarily closely connected. In the majority of cases, the fiscal crisis did not have an instant effect of triggering structural public administration reforms or substantial shifts in existing reform trajectories. The crisis intensified the pressure to reform public administration to some extent, but the European governments’ responses predominantly followed a combination of straightforward cutbacks and incremental change. More substantial reforms were carried out in countries most severely hit by the crisis and/or where administrative reforms were conditioned by international financial assistance.