Financing Local Government

There has been much debate in the UK over the implications for local government accountability of the high proportion of central funding of local government. The question has received particular attention recently as a key issue in the government's 'Balance of Funding' review. Two forms of accountability can be distinguished: average accountability and marginal accountability. This paper provides an analysis of the relationship between the balance of funding and these two concepts of accountability and concludes that increasing the proportion of local funding would be beneficial. One method of addressing problems caused by high central funding would be to introduce a local income tax alongside council tax, enabling the central grant to be reduced. The paper examines practical issues involved in the introduction of such a tax.     

IMPLEMENTING PERFORMANCE‐BASED FUNDING FOR HEALTH RESEARCH: WHEN GOVERNANCE AND PROCEDURAL FAIRNESS MATTER

The article examines the implementation by the Italian Ministry of Health of performance‐based funding to allocate resources for research to IRCCS (Istituti di Ricovero e Cura a Carattere Scientifico) hospitals. The analysis provides evidence that ten years from its introduction the performance‐based funding system has persisted, but it has been implemented rather differently from what had been imagined by its proponents. By drawing on the theoretical frameworks of policy implementation, agency, and relational contracting, the study establishes that the overall design of the system has contributed to this final outcome only to a limited extent. Rather, the lack of procedural fairness, as well as of political leadership in linking the system to national research priorities, has undermined the basis for trust between hospitals and the Ministry of Health. The article discusses how, in this, the governance of performance‐based funding and its strong ownership by the ministerial bureaucracy has been determinant.     

Transparency for Results: Testing a Model of Performance Management in Open Government Initiatives

Government transparency continues to challenge existing frameworks for understanding organizational performance. Transparency has proven difficult to measure and results assessing its impacts are mixed. This article sets forward a model of performance-based accountability in open government initiatives. Data come from the Open Government Partnership’s (OGP) database of over 1,000 transparency initiatives across 50 countries in 2013. Ordered logistic regression estimates the effect of management practices on three different measures of transparency performance, and the results broadly support the model. Expert interviews from two country cases offer insight into how performance management is used in the context of transparency reforms.     

MANAGING GOVERNMENT-THIRD SECTOR COLLABORATION: ACCOUNTABILITY,AMBIGUITY, AND POLITICS

Recent years have witnessed increased revelations by watchdog agents of mismanagement and abuse in third sector organizations that collaborate with government resulting in a decline in public trust and signs of a portending legitimacy crisis. Strengthening accountability mechanisms seems an obvious response to this trend. Yet, Israeli attempts to improve accountability of government-third sector collaborations have largely failed. Politics of accountability theory provides an explanation as to why. The findings demonstrate that political, bureaucratic and third sector stakeholders have a mutual interest in maintaining a cloak of ambiguity over government-third sector collaborations. The effects of four alternative accountability types on accountability, ambiguity, flexibility and politics are examined in an attempt to identify feasible and effective accountability strategies. There is no one ideal accountability type for all situations. Attention to the pitfalls of each accountability type may alert accountability decision-makers to appropriate combinations of accountability types for particular circumstances. However, the actual choice of accountability types has more to do with the politics of accountability than with scientific analysis of what is most appropriate.     

The Cyberterrorism Threat: Findings from a Survey of Researchers

This article reports on a recent research project exploring academic perspectives on the threat posed by cyberterrorism. The project employed a survey method, which returned 118 responses from researchers working across 24 different countries. The article begins with a brief review of existing literature on this topic, distinguishing between those concerned by an imminent threat of cyberterrorism, and other, more skeptical, views. Following a discussion on method, the article's analysis section then details findings from three research questions: (1) Does cyberterrorism constitute a significant threat? If so, against whom or what?; (2) Has a cyberterrorism attack ever taken place?; and (3) What are the most effective countermeasures against cyberterrorism? Are there significant differences to more traditional forms of anti- or counterterrorism? The article concludes by reflecting on areas of continuity and discontinuity between academic debate on cyberterrorism and on terrorism more broadly.     

Local governments and their arm’s length bodies

ABSTRACT

In this paper, we discuss the state of the art on the creation of arm’s length bodies (ALBs) by local governments. We make three main contributions. First, there are many different types of ALBs and each country has its own categories; an expert survey was held identifying three common types of body, to enable future comparative research. Second, we point out that the creation of ALBs has led to a number of new challenges for local governments, particularly regarding governing bodies at arm’s length to ensure ALBs’ good performance. A lack of capacity and information have to be countered, for example, by increased monitoring – also for democratic accountability purposes. Special attention is needed for the multiple principal problem that arises when local governments jointly create ALBs. Third, research into local ALBs is still in its early stages. We present a research agenda to develop knowledge on the topic.     

A GENDER ANALYSIS OF WOMEN IN PUBLIC–PRIVATE–VOLUNTARY SECTOR ‘PARTNERSHIPS’

The nature of work and traditional notions of the public sector have been changing with increasing collaborative governance and delivery of public services among public, private and voluntary sector organizations. In the UK, governments at national and devolved levels of government have adopted collaborative governance for service delivery through various networks and partnerships. This article explores collaborative governance from a gender perspective, specifically the perceptions of women in public–private–voluntary sector partnerships. While previous research in this area has explored aspects of collaborative governance such as power, trust, accountability, decision‐making, performance, exchange of information and participation, there is very little research on women within these networks. The article therefore provides a gendered analysis, disaggregating survey data to better understand the dynamics, for women, of collaborative governance and partnerships among public, private and voluntary sector organizations.     

SELF‐REGULATION WITHIN THE REGULATORY STATE: TOWARDS A NEW REGULATORY PARADIGM?

An emerging feature of the modern regulatory state in Britain and elsewhere is the promotion of self‐regulation. This paper examines the relationship between the state and self‐regulation in the context of the challenge of meeting public interest objectives. It draws on research on the policy and practice of self‐regulation in recent years in Britain. The paper argues that the institutions, processes and mechanisms of the modern regulatory state and the ‘better regulation’ agenda in Britain, notably those that aim to foster transparency and accountability, can assist in the achievement of public interest objectives in self‐regulatory schemes. We conclude that a ‘new regulatory paradigm’ can be put forward which involves a form of regulatory ‘subsidiarity’, whereby the achievement of regulatory outcomes can be delegated downwards to the regulated organizations and self‐regulatory bodies while being offset by increasing public regulatory oversight based on systems of accountability and transparency.     

Meritocracy and the Singapore Political System

The separation of implementation from policy has been diffused as ‘agencification’ around the world. It is considered an organisational reform based on new public management (NPM). The semi-autonomous public organisations executing policy are set up and are given a greater flexibility in operations in exchange for strengthening accountability for results. The central government of Japan also adopted the organisational reform in which agencies were called independent administrative institutions (IAIs). The reform intends not only to make the public service more transparent but to improve efficiency and quality of services through separating the implementing functions from the policy units, ministries and departments. It is assumed that flexibility in operations and result orientation would improve organisational performance through a feedback instrument of evaluating results into the budget other than an incentive mechanism. This article investigates whether the intended objectives have been accomplished. The specific focus is on the impacts on the budgetary system in terms of performance. The analysis shows that in Japanese agencies, ex-post performance information has not been fed into the budget process. Also the actual outcomes are explained by an incremental funding system, technical problems in measurement of results (performance measurement) and bureaucratic motivation through adopting a principal agent model.     

Public accountability in higher education and health: an international perspective

Hospitals and universities in British Columbia (BC), and indeed in Canada generally, face a serious loss of faith in the self-regulatory model of funding and external governance whereby, essentially, they are given resources and the autonomy to use them as they see fit. Generally, the last two decades in Canada have been a period of scarce resources, loss of external confidence, general funding limitations, some additional pressures in the form of increased controls and accountability requirements, but little evidence that hospitals and universities are willing to respond positively to these new pressures. The argument of the paper is that responding to pressures for improved accountability reporting may be the price of preserving autonomy and relative funding levels. An active, cooperative response to external concerns about information will enable hospitals and universities to shape the information agenda to their advantage--at the very least, having it reflect reasonably accurately their circumstances and performance. The paper argues further that hospitals should begin by addressing patient care measures and universities should begin by dealing with measures of teaching performance.     

Fiscal Transparency: Concepts, Measurement and UK Practice

Greater fiscal transparency is seen by its advocates as a means of improving economic governance arrangements in ways which, by promoting fiscal stability, will in turn improve the functioning of the government sector and facilitate improvements in the economic environment for the private sector. 'Fiscal transparency' is much acclaimed by policy-makers, not only in the UK Treasury but also by the IMF and OECD. Fiscal transparency can have substance or can just be voguish incantation. This article explores the meaning of fiscal transparency, by examining its structure and evaluating criteria for assessing the degree of fiscal transparency attached to particular sets of circumstances. It explores the link between transparency and accountability, developing the distinction between event and process transparency. Consideration is given to the trade-off between the value of sunlight (to employ an analogy) and the danger of over-exposure. The performance of the United Kingdom against emerging international best practice is examined, with regard to both public expenditure and taxation. By international standards, UK fiscal transparency is high. Nevertheless, there is a major gap between UK rhetoric and practice, indicating a  divergence between nominal and effective transparency. This is evidenced by: frequent changes in public expenditure definitions; the non-publication of important analyses; the location of certain liabilities 'off-balance sheet'; and a lack of candour about tax policy.     

Performance Reporting: Assessing the Annual Reports of Malaysian Local Authorities

There have been calls for Malaysian local authorities to be more transparent and accountable in the discharge of their functional responsibilities. This study empirically evaluates the extent and quality of current performance reporting by local authorities. The disclosure of relevant information for discharging accountability obligations, as defined by a broad range of stakeholders, falls short of best practice. Therefore, the performance of Malaysian local authorities lacks transparency. The findings could assist in the development of more comprehensive guidelines for local authority reporting and raise awareness of information stakeholders expect to be reported in the context of accountability.     

Cash is King: Financial Sponsorship and Changing Priorities in the Syrian Civil War

ABSTRACT

The role of resources in war has been much debated. What happens when foreign patrons provide lavish amounts of cash to rebels, without mechanisms of accountability? This article analyzes three major sources of funding and their micro-level effects on insurgent-groups in the Syrian civil war. Recipients of funding demonstrated opportunism in actions, alliances, and ideologies, directly related to the funding source. Funders thus set the agenda of the war, promoting Islamist ideologies and regional over local issues. Private donors rivaled state sponsors, in what may be a harbinger of future globalization trends.     

The Sources of Terrorist Financing: Theory and Typology

Terrorism costs money. Although the costs of specific operations may be relatively inexpensive, terrorist organizations require much larger budgets in order to function. But how do terrorist groups acquire funding? What explains the variation in the particular sources used by different groups? This article develops a theory of terrorist financing that identifies criteria by which we can evaluate the different sources of terrorist funding, particularly in terms of their advantages and disadvantages to the terrorist group. These criteria are then applied across a typology of four primary types of terrorist financing: state sponsorship, illegal activity, legal activity, and popular support.     

Can Knowledge of Islam Explain Lack of Support for Terrorism? Evidence from Pakistan

In this research note we employ the work of Wiktorowicz who suggests that persons who are knowledgeable of Islam may be more capable of critically evaluating the claims of militant recruiters and ideologues and thus be more resistant to their appeals than those who are not knowledgeable. This gives rise to an interesting research question: Does knowledge of Islam reduce support for Islamist militancy? To evaluate this research question, we employ data derived from a nationally representative survey fielded among 16,279 Pakistanis in 2011. Using several survey items, we construct a “knowledge index” to measure respondents’ basic knowledge of Islam, which is our principal independent variable. To operationalize support for militancy we use two survey items that query respondents about their support for two prominent Islamist militant groups based in and from Pakistan: the Afghan Taliban as well the sectarian group, Sipah-e-Sahaba-e-Pakistan (also known as Lashkar-e-Jhangvi and Ahle Sunnat Wal Jamaat). We use ordinary least squares regression to evaluate the impact of our independent variables upon support for these two groups, controlling for other relevant factors. We find that knowledge of Islam does predict less support for these two groups; however, other variables such as sectarian organization and ethnicity have greater predictive power.     

Accountability of Public Servants under Dominant Political Settlements of China: Effects,Challenges, and Issues

Some scholars think that accountability is attainable only under the electoral political system. However, it is argued that China could achieve some weak accountability even without general election system. How could this be achieved in China? The paper attempts to analyze this question with the following steps: first, it describes the specific accountability system by categorizing different approaches based on four dimensions, then focuses on the impacts that these approaches would have, which are based on finance, fairness and efficiency. It is concluded that under a dominant political settlement, only weak accountability exists in China, not real or strong accountability.     

ARE ICTs IMPROVING TRANSPARENCY AND ACCOUNTABILITY IN THE EU REGIONAL AND LOCAL GOVERNMENTS? AN EMPIRICAL STUDY

This paper conducts an empirical study about the effect of e‐government on transparency, openness and, hence, accountability in 15 countries of the EU. Thus the effects examined cover over 84 per cent of EU population. The population also represents the different types of public administration styles that exist in Western developed countries. The paper compares the development and sophistication of 318 government web sites at sub‐national level and tests the impact of contextual and organizational factors. The study refers to regional and local governments since they play a key role both in the national pattern of government and in administering welfare policies. Benchmarking studies of e‐government are undertaken regularly by consultancy firms. Most of this literature focuses on central and federal governments in terms of examining trends in digital government. However, little research has been conducted from a comparative perspective on analysing the movement of EU countries to digital government at a sub‐national level.     

STREET‐LEVEL BUREAUCRACY AND PUBLIC ACCOUNTABILITY

The concept of ‘street‐level bureaucracy’ was coined by Michael Lipsky (1980) as the common denominator for what would become a scholarly theme. Since then his stress on the relative autonomy of professionals has been complemented by the insight that they are working in a micro‐network of relations, in varying contexts. The conception of ‘governance’ adds a particular aspect to this: the multi‐dimensional character of a policy system as a nested sequence of decisions. Combining these views casts a different perspective on the ways street‐level bureaucrats are held accountable. In this article some axiomatic assumptions are drawn from the existing literature on the theme of street‐level bureaucracy and on the conception of governance. Acknowledging variety, and arguing for contextualized research, this results in a rethinking of the issue of accountability at the street level.     

A street‐level perspective on government transparency and regulatory performance: Does relational distance matter?

This study investigates the extent to which inspectors perceive government transparency as impacting regulatory performance. It theorizes that when inspectors perceive an increase in transparency, they find that the perceived relational distance between themselves and their inspectees rises and this, subsequently, increases regulatory performance. The findings from a survey among Netherlands Food and Consumer Product Safety Authority inspectors (n = 466) confirm that inspectors view an increase in transparency as enhancing regulatory performance. This study further investigates this mechanism by comparing two divisions with different levels of factual relational distance (i.e., frequency of inspector–inspectee interactions). The findings reveal that only in the division with small factual relational distance does perceived relational distance mediate the effect of transparency on regulatory performance. More specifically, in divisions with small factual relational distance, more perceived transparency increases perceived relational distance; this in turn, increases perceived regulatory performance.     

Governance,economy, and foreign aid

Much of the current donor discussion of governance takes place outside of a historical or theoretical context. This article locates the governance issue within recent political science, development management, and institutional economics literature. The review focuses on accountability, participation, transparency, and predictability or the rule of law, and includes a discussion of the impact of these variables upon economic performance. It concludes that donors can best assist good governance to develop by helping to foster conditions under which developing societies can push their governments to deliver the accountability, transparency and rule of law that sustainable development requires. Deborah Brautigam is assistant professor in the department of political science at Columbia University. She has written and published on various aspects of foreign aid and development, in particular, on China’s foreign aid program in West Africa. Her current research is on the comparative politics of industrial adjustment in Asia and Africa.