COMPETITION OR MONOPOLY? COMPARING PRIVATIZATION OF LOCAL PUBLIC SERVICES IN THE US AND SPAIN

Differences in national traditions of public intervention, institutional arrangements and public service markets make local public services an area of great diversity. In this paper we undertake a comparative study of how local governments arrange for delivery of water and waste services in the US and Spain. We find levels of privatization are higher in Spain than in the US. We review organizational reform in the two contexts and compare service delivery data using national surveys from each country. We find lower and less stable privatization in the US stems in part from adherence to public choice emphasis on the benefits of market competition over public monopoly. By contrast, Spanish municipalities reflect an industrial organization approach, and create hybrid public/private firms which benefit from both market engagement and economies of scale available under monopoly production. We conclude that managing monopoly may be more important than competition in local service delivery.     

WILL THE PRIVATIZATION OF PUBLIC ENTERPRISES SOLVE THE PROBLEM OF CONTROL?

The Government's privatization programme has acquired such momentum that hardly any public enterprise is exempt from action or proposals. Evaluation of the programme must recognize the diversity of privatization policies, and the tensions inherent within their objectives. Ideological motivation has been supported by the inability of policymakers to design a viable framework of economic and financial control over public enterprises. This has led to a view that it is impossible to manage business efficiently within the public sector, the constraints of which can only be escaped by ‘setting the enterprise free’. However, decisions now will close future options, only be escaped and may be prohibitive to reverse. A list of unanswered questions remain about future relationships between hybrids and governments, the costs and benefits of the regulatory systems which will replace public ownership, and the balance between public policy and private interests. Can the market succeed where the state has been judged to have failed?     

THE COSTS AND RETURNS OF THE PRIVATIZATION OF NATIONALIZED INDUSTRIES

The sale of public sector industry has become a central plank of UK public policy. This paper concentrates upon the most contentious area of the opportunity cost of share sales. The nature of these costs is related to the revealed objectives of the policy, and the extent to which they differ from expected costs is identified. The nature of the benefits forecast for privatization is explod and questions posed concerning the balance of costs and benefits in current policy. Particular attention is paid to the distribution of returns on the share issues in privatized businesses and parallels are drawn with issues in the private sector.     

INDEPENDENT REGULATORY BODIES AND IMPOSSIBLE JOBS: THE FAILURE OF GERMAN PUBLIC SERVICE BROADCASTING REGULATION

This case study takes the rise and fall of licence fee indexation within German public service regulation as an example and traces mechanisms of re‐politicization of independent regulatory agencies (IRAs). According to the evidence, agency contestation is likely when: (1) administrative cultures result in incoherencies in institutional design; (2) IRAs deal with redistribution; (3) conflicts about principles of regulation persist; (4) IRAs pursue one particular regulatory ideology; (5) controversial regulatory output is highly visible; and (6) affected interests are not given a say. The article points to the relevance of new regulatory technologies that are likely to embody regulatory bias. Moreover, it seems that successful contestation of IRAs requires the conjunction of escalating factors. Nevertheless, such contestation might not result in a return to old modes of command and control.     

PUBLIC SERVICE MOTIVATION,CIVIC ATTITUDES AND ACTIONS OF PUBLIC,NONPROFIT AND PRIVATE SECTOR EMPLOYEES

Using the 2005 Australian Survey of Social Attitudes dataset, this study compares the public service motivation (PSM), and civic attitudes and actions of public, nonprofit and private sector employees in Australia. Sectoral similarities and differences were noted. This research also analyses the relationships between PSM and civic attitudes and behaviours of these groups of employees. High PSM employees were found to have higher confidence in key national public and private institutions, place more importance on citizens' rights, and engage in more non‐electoral political and prosocial acts than low PSM employees.     

DOES DISPERSED PUBLIC OWNERSHIP IMPAIR EFFICIENCY? THE CASE OF REFUSE COLLECTION IN NORWAY

Corporate governance theory suggests that companies with dispersed and indirect ownership suffer from agency costs. A worst case is where several political authorities jointly own a company, which allows managers to operate with inferior efficiency. In political economy, the manager is not the major agency problem. Elected politicians may impair efficiency to improve their re‐election prospects. Since politicians have less influence in jointly owned firms, such companies are expected to perform better than those owned by a single public authority. Consistent with corporate governance – but not political economy – the empirical analysis suggests that dispersed municipal ownership impairs cost efficiency. In the Norwegian case of municipal refuse collection presented here, costs of dispersed ownership often outstrip gains from economies of scale. Use of jointly owned companies is not necessarily a proper response to efficiency problems inherent a fragmented local government structure.     

THE DYNAMICS OF POLICY CHANGE: WBBYING AND WATER PRIVATIZATION

The privatization of the water industry was one of the most controversial and turbulent privatizations of the 1980s. The government undertook the project somewhat reluctantly, then the first plans had to be withdrawn, but eventually, the privatization of the industry was successfully completed in 1989. In this article, we first set out to provide a thorough account of the process of privatizing water, based on primary sources and exhaustive interviews. In doing so, we identity some major problems of established theories of British policy making: the process of water privatization clearly does not conform to any single model of policy making. Instead, individual 'episodes' of the policy process conform to different models. Arguing that existing theories of British policy making may have focused too narrowly on routine decision-making processes, we propose that a theory of the transformation of policy communities is required to understand the dynamics of radical policy change in Britain.     

EXPLAINING THE WILLINGNESS OF PUBLIC PROFESSIONALS TO IMPLEMENT PUBLIC POLICIES: CONTENT,CONTEXT, AND PERSONALITY CHARACTERISTICS

The willingness of public professionals to implement policy programmes is important for achieving policy performance. However, few scholars have developed and tested systematic frameworks to analyze this issue. In this study, we address this by building and testing an appropriate framework. The aims have been: (1) to build a three‐factor model (policy content, organizational context, and personality characteristics) for explaining willingness to implement policies; and (2) to quantitatively test the model through a survey of Dutch professionals. The results show that policy content is the most important factor in explaining willingness. Nevertheless, organizational context and the personality characteristics of implementers also have a significant effect and should be considered when studying the attitudes of professionals towards policies. This research helps in understanding the willingness or resistance of professionals when it comes to implementing policies.     

MIXED SIGNALS? PUBLIC SECTOR CHANGE AND THE PROPER CONDUCT OF PUBLIC BUSINESS

What begun after the 1979 General Election as an exercise to reduce the public sector's size and cost developed during the 1980s into continuous change to its organization, functions and structure. Throughout this process it appeared that certain assumptions were made about the presence and continuity of standards of conduct, the proper conduct of public business and the sense of public service. Such assumptions appear to have been based on a belief that these standards were general throughout the public sector and would be maintained or adapted during change. Little attention was given to what comprises the standards, how they are perceived and implemented across the public sector and who monitors or polices them, particularly in times of change. Various aspects of the changes, from devolved management to privatization, have brought a number of new pressures and perspectives on the conduct of public business which have led to cases involving failure to follow established procedures, the lack of expertise, conflict of interest, mismanagement, and misconduct. Together various cases have raised questions about dysfunctional consequences of change, the signals given to officials in terms of how change affects their functions, and the implications for the continued adherence to and effectiveness of both standards of conduct and of the means and procedures whereby probity and standards of conduct are maintained.     

PUBLIC VALUE AND POLITICAL ASTUTENESS IN THE WORK OF PUBLIC MANAGERS: THE ART OF THE POSSIBLE

The public value framework, with its call for more entrepreneurial activities by public managers, has attracted concern and criticism about its implicit breaching of the politics/administration dichotomy. This article explores the role of political astuteness not only in discerning and creating public value, but also in enabling public managers to be sensitive to the dichotomy. We employ a conceptual framework to identify the skills of political astuteness, and then articulate these in relation to identifying and generating public value. Drawing on a survey of 1,012 public managers in Australia, New Zealand, and the UK, and in‐depth interviews with 42 of them, we examine the perceptions and capabilities of public managers in producing value for the public while traversing the line (or zone) between politics and administration. We conclude that political astuteness is essential to both creating value and maintaining allegiance to democratic principles.     

PUBLIC PROCUREMENT,PUBLIC VALUE AND THE NORTHERN IRELAND UNEMPLOYMENT PILOT PROJECT

This paper analyses the regulatory, commercial and socio‐economic goals underlying UK public procurement policy, highlighting the conflicts inherent between them and arguing that there is an overemphasis on commercial goals. A critique of the market model leads to consideration of the utility of the ‘public value’ concept as a means of assessing the achievement of public procurement goals in a balanced way through a greater emphasis on public consultation and the impacts and outcomes of procurement. An analytical framework is proposed, based on public value, against which to assess the delivery of public procurement policies. The framework is used to analyse a pilot project conducted in Northern Ireland on increasing employment through public service and construction projects. The paper demonstrates the achievement of a range of procurement goals and values and concludes by calling both for further research into the validity of the concept of public value and more extensive application of the framework.     

SERVANT LEADERSHIP,TRUST, AND THE ORGANIZATIONAL COMMITMENT OF PUBLIC SECTOR EMPLOYEES IN CHINA

So‐called servant leaders strive selflessly and altruistically to assist others before themselves, work to develop their followers' greatest potential, and seek to benefit the wider community. This article examines the trust‐based mechanisms by which servant leadership influences organizational commitment in the Chinese public sector, using data from a survey of civil servants. Quantitative analysis shows that servant leadership strongly influences affective and normative commitment, while having no impact on continuance commitment. Furthermore, we find that affective trust rather than cognitive trust is the mechanism by which servant leadership induces higher levels of commitment. Our findings suggest that in a time of decreasing confidence levels in public leaders, servant leadership behaviour may be used to re‐establish trust and create legitimacy for the Chinese civil service.     

PUBLIC BUDGETING AND ECONOMIC DEVELOPMENT: EVOLUTION AND PRACTICE OF AN IDEA

One of the major dimensions of public budgeting relates to the generation of growth, employment, and more favorable income redistribution in the economy. This dimension had come to acquire a good deal of importance during the last seventy years. The use of public budgeting for purposes of promoting economic growth, employment, income distribution, has so far been considered as a part of development economics in general, and more specifically, as a part of economic planning. Indeed, such use has been so extensive that it is difficult to consider budgeting for economic development without a consideration of organized economic planning and associated formulation of medium term and annual plans. Planning itself has gone through several vicissitudes during these decades. As an extension, budgeting too has gone through several phases. By 1985, nearly 300 plans were formulated by developing countries. During the same period, the approaches in industrial countries of the west incorporated some elements of organized planning into their budgetary systems. By early 1990s, however, there was a noticeable sense of fatigue with planning. The state which was seen thus far as a solution to market failure, came to be viewed as a major problem in itself, standing between the legitimate aspirations of the community and their realization. Countries, particularly those belonging to the Soviet block, moved away from planning for economic development and came to adopt market friendly policies. In the process, several countries have abandoned formulation of economic development plans. In these countries, there has been a revival, and, therefore, strengthening of public budget as the one and only instrument of economic development conceived, sponsored, funded, and to a significant extent, implemented by the government. Plans, which at one stage had generated the illusion of permanence, proved after all, to be as transient as many other things in the world.     

PUBLIC ENTREPRENEURSHIP: RHETORIC,REALITY, AND CONTEXT

ABSTRACT

Public Entrepreneurship: Rhetoric, Reality, and Context

The concept of entrepreneurship has entered the discourse of public management amongst practitioners and scholars across a range of different public service organisations in different countries. It has been recognised, for example, in the UK,[1] 1999. Modernising Government: White Paper London: HMSO. Cabinet Office [Google Scholar]the USA[2] Osborne, D. and Gaebler, T. 1992. Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector Reading MA: Addison Wesley. [Crossref] , [Google Scholar]and Australia[3] Wanna, J., Forster, J. and Graham, P., eds. 1996. Entrepreneurial Management in the Public Sector Brisbane, , Australia: Centre for Australian Public Sector Management.  [Google Scholar]and variously interpreted by its promoters as:

• An integral part of a transformational political philosophy, affecting not just the delivery of public services but also community life (e.g., the ‘Third Way’ in the UK).

• More modestly, a response to the ‘dead hand’ of bureaucracy which inhibits public organisations becoming more responsive to their customers, clients and communities,

• A way of allowing public service managers the ‘freedom to manage’, deploying skills and approaches identified with private sector management.

Entrepreneurship is used primarily to make normative judgements. The form that entrepreneurship takes in a public service management context and the extent to which it exists, are undeveloped empirical questions. This paper examines three main sets of questions:

• Why there has been a call for entrepreneurial government–the rhetorical dimension.

• What practising managers perceive the term to mean to the services they are responsible for–the reality dimension.

• Whether public entrepreneurship has any meaning outside of the particular political, economic and social context found in western, industrialised democracies–the context dimension.

The paper explores the nature of the discourse within which notions of public entrepreneurship are located and given legitimacy by different groups of stakeholders. It also seeks to uncover some variables that have an impact upon the practice of public entrepreneurship in different countries, organisations and social, economic and political cultures and organisations.

Although organisations such as the OECD identify universal themes and trends in the delivery of public services, there is little empirical evidence of convergence or universality.[4] Pollitt, C. 2001. ‘Clarifying Convergence: Striking Similarities and Durable Differences in Public Management Reform’. Public Management Review, 3(4): 471–492. [Taylor & Francis Online] , [Google Scholar]This paper notes that although the concept of entrepreneurship is not unique to one or two contexts, there is limited convergence on what it means and whether and how it is ‘practised’.     

POWER, RATIONALITY AND LEGITIMACY IN PUBLIC ORGANIZATIONS

In this paper we propose answers to the research question: how does power shape the construction of legitimacy in the context of public organizations? We suggest that while organizational structures of dominancy will be embedded, not all structures of dominancy align with those that are normatively presented as legitimate and authoritative. Such situations make the creation and sustenance of legitimacy problematic for organizational action. This paper advances our understanding of the relation between power, rationality and legitimacy by showing how structures of domination recursively constitute, and are constituted by, legitimacy that may not be authoritative. We show, empirically, how these relations prevented a police organization from reforming by breaking the recursive patterns of domination and legitimization. Theoretically, we argue that understanding organizational change must be connected to issues of power and legitimacy.