Competitive Tendering In Local Government: A Review Of Theory And Evidence

The introduction of compulsory competitive tendering in UK local government reflected conventional public choice theories of bureaucracy. These theories suggest that competition for service contracts will lead to lower expenditure and higher efficiency. Extensions and criticisms of the classical public choice model yield very different conclusions. First, the problems of bureaucratic supply are less severe than originally assumed, and secondly competition may itself generate new problems such as transaction costs, erosion of trust between principals and agents, and rent seeking. The impact of competition on spending and efficiency is therefore indeterminate, and must be established empirically. However, studies which evaluate the effects of competitive tendering in local government are few in number, cover a limited range of services, and are methodologically flawed. Therefore neither the initial imposition of competitive tendering by the Conservatives, nor its planned abolition by Labour, can be traced to a solid foundation of theoretical or empirical support. Theoretical and methodological problems that need to be resolved by further empirical studies are identified.     

'Enabling' And The 1993 Local Government Act In New South Wales

Different conceptions of 'enablement' provide a framework for the analysis of the reform of local government in New South Wales. The enabling local authority is one that contracts out to the commercial and not-for-profit sectors, adopts a consumerist approach to the recipients of services, engages in strategic planning, influences other organizations, stimulates pluralist collectivism, and facilitates participation. In New South Wales the Local Government Act of 1993, though potentially enabling, especially in the delegation of a general competence, has had less effect than might have been expected. However, local government has traditionally been enabling in the narrow sense as well as in the sense of employing interesting forms of participative community management and in seeking to influence the decisions of other organizations which are part of local governance. Some councils are developing community plans to strengthen these relationships.     

Compulsory Competitive Tendering And Local Government Financial Services: An Analysis Of The Views Of Local Government Accountants In The North West Of England

Between 1979 and 1997, successive Conservative governments sought to reduce the scale of public sector activity and to introduce competition in the provision of public sector services. A central feature of this policy was the introduction of compulsory competitive tendering (CCT). CCT was initially confined to blue collar services but, by means of the Local Government Act 1992, it was extended to white collar, professional services, including financial services. However, though potentially extremely significant, the support for and implications of such a policy are issues which have been inadequately researched. Because of this, research has been under-taken into financial services CCT and has included a questionnaire survey of 300 professionally qualified accountants employed in 17 local authorities in the North West of England, drawn from county councils, district councils and metropolitan authorities. The article presents the findings of the survey, with a particular focus on the views of accountants on CCT in general and financial services CCT in particular. In addition, it provides evidence that the CCT process, irrespective of views on CCT and its appropriateness for specific activities, has changed culture and attitudes in the case of local government finance professionals.     

The Politics of Local Income Tax in Sweden: Reform and Continuity

Local authorities have played an important role in the Swedish model of the Welfare State. This state is characterised by high levels of welfare provision paid for through general taxation, the rates of which are very high and the application of uniform standards across the entire country based on the principles of equity and fairness. The main form of income for local authorities is a Local Income Tax which is paid by 85% of the population. In the 1980s and 1990s, Sweden went through an economic crisis which resulted in significant changes to the tax system, although the Local Income Tax was retained. Subsequent changes have followed a pendulum process, with deregulation of local government finances in the 1990s being followed by greater regulation in the following years. Today, Sweden is conducting a major debate about the role and functions of different levels of government in the light of social, economic and political changes in the international scene.     

Local Government Finance: Assessing the Central Governmant's Contribution

It is widely believed that between 60 to 66 per cent. of local authority expenditure (or income) is met by grants from central government alone. This popularly held view is challenged in this paper through a consideration of the current system of funding. We begin with the rate support grant procedure and identify some common sources of misunderstanding; these concern the definition of the rate support grant itself and the true nature of relevant expenditure. This leads us to examine the question of local authority miscellaneous income from fees, sales, rents and other sources from which we conclude that its contribution is underestimated. However it is general knowledge that besides miscellaneous income local authorities derive their income from two other principal sources namely, government grants and local rates. Accordingly the remainder of the paper examines in turn the contribution of these three sources towards (i) local authority revenue expenditure in respect of rate fund services, (ii) local authority revenue income and (iii) local authority income including both revenue and capital receipts. In no instance does central government's share approach 60 per cent. Thus, it would appear that the contribution of government is being overestimated while that of miscellaneous income underestimated. The implications of this are discussed.     

Local Politics,Central Power: The Future of Representative Local Government in England

When Labour took power in 1997, local government was battered and bruised, but it had survived, and indeed retained much of its vitality. What would happen next? Where the Conservatives had used the language of competition, New Labour promoted its policies around an ideology of modernisation, and rapidly introduced a new legal framework, new powers and strong incentives to improve performance. But by 2004, in the run-up to another general election, Labour increasingly emphasised the rights of consumers to choose providers of services, and the value of involving the private sector in public sector provision. There were proposals to take the finance for education and social services out of local authority control. A complex geography of partnerships and networks had developed, which required small executives of salaried councillors, far fewer than the large numbers needed by the committee system. But turnout in local elections remained low, and membership of both Labour and Conservative parties declined. The paper uses a simple stakeholder analysis to show how councillors and local activists were marginalised. It suggests that the government has a choice: it could either accept that the era of multi-skilled councillors responsible for the multi-purpose local authorities is ending, or it could radically rationalise the present quangos, partnerships and other governance structures to re-create it.     

Participatory Initiatives and Political Representation: The Case of Local Councillors in Sweden

The health of political parties and the institutions of representative democracy have been extensively questioned during the last decade due to evidence of a widespread decline in voting turnout, political trust, and party membership as well as identification. An often-proposed, but also often-questioned, strategy to strengthen representative democracy is for political institutions to offer alternative forms of political participation through so-called participatory initiatives. The literature suggests that participatory initiatives will have little impact on representative democracy if no adaptation among political representatives is apparent. This paper explores the consistency between participatory initiatives in Swedish municipalities and the attitudes, practices and role-taking of local councillors, comparing pioneer municipalities where extensive numbers of participatory initatives have been executed vis-à-vis hesitator municipalities where few initiatives have been implemented. The study indicates that local participatory initiatives may stimulate political representation by creating new channels for citizen input and communication between citizens and representatives that are supported by local councillors in the pioneer municipalities. However, the core roles of parties and councillors in representative democracy appear not to be challenged by these initiatives, being similar in both groups of municipalities. The article is concluded by a discussion of the implications of these results for the function of participatory initiatives in local democracy.     

Public Services, Quangos And Women: A Concern For Local Government

The past eighteen years have witnessed a shift in the locus of much public sector service provision from elected and heavily regulated local government to the more opaque, appointed sector of quasi-autonomous non-governmental organizations (QUANGOs). This shift has been the basis of much debate about the nature of democratic accountability and whether the users of public services are empowered by such decentralization. What has yet to be considered is how the displacement of local authority representation and service delivery may affect different groups of service users. This article is concerned with such issues in relation to women as consumers of public services who, from genuine political as well as expedient motivations, have been relatively well represented by local authorities. The concern here is that as decision making moves away from public view, the need to be seen to accommodate difference is lost, and representative diversity will suffer.     

Urban Governance And Policy Networks: On The Urban Political Boundedness of Policy Networks. A French Case Study

The paper analyses the changes within two policy domains in one French city. The aim is not so much to demonstrate the role of policy networks but to stress the importance of their articulation within a given political space. The paper does not conclude on the emergence of a new type of network governance but rather shows how urban political élites have deliberately encouraged the formation of policy net-works in Rennes. That strategy makes sense in their attempt to strengthen an urban collective actor. Policy networks therefore should not be analysed autonomously as their impact is largely shaped by the interest and collective goals of the existing regime of governance in Rennes.     

Partnership and Policy Networks in Rural Local Governance: Homelessness in Taunton

In this paper we discuss the importance of 'partnership' and 'policy networks' in the new contemporary governance of rural areas. We use these notions to contextualize the representation of, and policy response to the particular issue of homelessness in the rural service centre of Taunton in Somerset. Here particular partnership networks have been brokered by the local authority which bring together a wide range of business, voluntary and community interests with a stake in the homelessness issue. Strong pre-existing discourses of homelessness in Taunton characterize the issue as one of a town centre problem of 'beggars, vagrants and drunks'. We offer evidence from the local press to suggest that these discourses have been persistently peddled by particular interests in the town. New forms of partnership were inevitably embroiled with the pursuit of these existing discourses, and contrary voices were unable to redefine existing social relations within policy networks. The evidence from Taunton suggests that where partnership merely involves attempts to repackage existing resources, it seems unlikely that it will fulfil some of the more optimistic claims for a more pluralist form of governance in the local arena.     

Local Authorities and Non–elected Agencies: Strategic Responses and Organizational Networks

This article deals with developing relationships between local authorities and local non–elected public service agencies in England and Wales. It classifies local authority responses to the growth of the non–elected state. Account is taken of varying agency characteristics and the constraints and dilemmas they face. From the local authority vantage point what is at stake is organizational (re)positioning in a changing institutional environment. Insights derived from strategic management are therefore utilized. But resource dependencies and exchanges also manifest themselves in these emerging relationships. Moreover, account must be taken of the scope for local authorities to be 'network managers' given the structural reconfiguration of the local state. The analysis therefore takes on board organizational networking theoretical frameworks. Although central government remains best placed to manipulate the 'rules of the [new and uncertain] game', interesting possibilities present themselves if local authorities can show more strategic skill than in the recent past.     

Linking Policy Networks and Environmental Policies: Nitrate Policy Making in Denmark and Sweden 1970-1995

The policy network literature has provided important insight into the way in which public policy is made in Western societies. Most network studies have focused on processes within networks and have paid little attention to the conceptualization of policy outcomes and the theoretical link between network type and policy type. This article defines and categorizes environmental policy and suggests a proposition on the link between network types and environmental policy types. It is argued that the existence of tight and closed policy communities in sectors subject to environmental regulation is associated with the introduction of low cost environmental policies. In contrast, open and loose issue networks are associated with high cost environmental policies.     

Indirect Causes And Effects In Policy Change: The Brent Spar Case

This article discusses the occupation of an oil-related structure called the Brent Spar in the British sector of the North Sea by Greenpeace protesters in 1995. Shell intended to 'dump' the buoy in the deep North Atlantic. The aftermath of the occupation and associated publicity was a change of policy about the disposal of the Spar by Shell, Europe's largest multinational company. The article considers alternative explanations for policy change – most importantly the influential propositions by Baumgartner and Jones (1993). The general importance of their work means that the opportunity is taken to set out their themes at some length, but the particular case suggests that their notion of change stemming from a redefinition of the problem may only imperfectly fit sudden policy changes of the Brent Spar type. The article argues that their 'venue shopping' concept better illuminates the case – but the significant venue change was geographical – i.e. from Britain to Germany – rather than institutional – i.e. from a policy community to an issue network. The case study superficially accords with an influential body of literature in the 1980s and 1990s that sees outcomes as changing through the mobilization of a wider range of participants in issue networks, but it is argued that there is no automatic link between an expanded roster of participants and outcomes if the decisive decision-making power is retained in the original closed system. The case study suggests there can be an illusion of an issue network when the dominance of a policy monopoly is publicly challenged – but where decision-making power is retained among original participants.     

British Steel And Government Since Privatization: Policy 'Framing' and the Transformation of Policy Networks

Privatization has its own distinctive dynamics, resulting particularly from the institutional restructuring which tends to transform policy networks and communities. This happens principally for two reasons. Firstly, the crucial balance of resource dependencies is changed irrevocably, and established policy communities break down. Secondly, the separation between the principal actors tends to produce a 're-framing' of major policy issues. Here, Schön and Rein's (1994) concept of issue 'framing' offers a useful metaphor for how actors give a coherent organization to a complex reality by selecting for attention a few salient features. At the same time, they argue also that the nature of 'objective' reality might be found in the world's tendency to resist our interpretations, leading to a discovery of the limitations of particular frames. The case of British Steel offers a good example of the dynamics of this process. In the days of state ownership, the British Steel Corporation and government generally shared similar 'frames' on major issues. Since privatization, however, the two actors have tended to adopt separate 'frames' and have become more independent of each other. Multi-arena politics, such as Europeanization, can drive them still further apart. Nevertheless, in recent years British Steel has come to appreciate some of the limitations of its own frame, and has sought to reconstruct its relationship with government. There is an imbalance in the resource dependencies, however, which precludes the reconstruction of a policy community     

Local Government Reforms in Great Britain,Sweden, Germany and France: Between Multi-Function and Single-Purpose Organisations

This four-country comparison has four sections. First, some remarks on appropriate definitions and concepts are made (inter alia by introducing and emphasising the distinction between 'traditional' and New Public Management-inspired administrative reforms). Then, country by country accounts of the pertinent reforms are submitted 'in a nutshell'. Third, with the 'convergence or divergence?' question in mind, the conclusion is put forward that significant differences persist (and even increase), particularly between Sweden and Germany, on the one hand, and England and France on the other. In the final section, an attempt is made to assess the 'performance' of the different local government systems in looking at their capacity to 'co-ordinate' policies and activities. It is argued that Sweden's and Germany's traditional type of democratically accountable, multi-functional and territorially viable local government does relatively well in achieving policy co-ordination, democratic participation and political accountability. Great Britain and France, however, could do better.