The university and approaches to problems of state and local governments

There is a growing interest within universities in the operation of state and local governments, and in the services they provide. An example of this interest is the Program for Urban and Policy Sciences (UPS) at the State University of New York at Stony Brook.Since its inception two years ago, it has been the operating policy of the Program to direct its principal research activities to real and immediate problems facing state and local governments in the New York area. In each of the collaborative efforts undertaken with an outside agency, we have seen our role as that of both problem analysts and catalytic agents for bringing about change. This means our faculty and students actively participate in the policy formulation and policy implementation processes. A case study of a cooperative effort undertaken with the Environmental Protection Administration of New York City illustrates these ideas.We believe that a successful university program should combine research with real world experience; the university should encourage the faculty to broaden the scope of their activities; and students, particularly those from minorities, should be trained for professional careers as planning and program analysts.Work reported in this paper has been supported by the National Science Foundation under grant GI-5. A similar version of the paper was presented at the American Political Science Association Conference, September 6–11, 1971, Chicago, Illinois and at the ORSA Conference, October 28, 1971, Anaheim, California.     

Good Government Means Different Things in Different Countries

Work on good governance implies a one‐best‐way model of effective government. This has isomorphic influences on development, whereby governments are influenced to adopt a one‐size‐fits‐all approach to get things done. This article challenges whether such an approach exists, proposing that models actually do not hold even for the so‐called effective governments. Governments look different, even if they are similarly called models of good government. This proposition is examined through a study of public financial management practices in a set of Organisation for Economic Co‐operation and Development (OECD) and non‐OECD countries. The study shows that effective governments are not more likely to exhibit better practice characteristics implied in one‐best‐way models. Good public financial management means different things in different countries. The article concludes by suggesting that good governance models give way to menus and the development community invest more time in examining why different countries select different menu items.     

The Development of Competitive Industries: The Role of State Government Actors

Despite widespread adoption of Porter's Industrial Cluster Theory as a policy development framework by federal and state governments over the past decade, Australia remains significantly below the OECD average in terms of its industries' economic contributions to real wealth creation ( Brown 2000 ; OECD 1998 ). The major cause cited for this relatively poor performance has been inability of key government officials to implement effective industry policy that simultaneously avoids de facto protectionism and distortion of competition. This article provides an insight into the key policy decisions undertaken by the Tasmanian state government that coincided with development of an internationally successful shipbuilding industry in that state. As such, this article provides a reflection on policy initiatives that may be valuable for government officials elsewhere.     

Conditional Punishment: A Comparative Analysis of the Electoral Consequences of Welfare State Retrenchment in OECD Nations, 1980–2003

Do incumbent parties that retrench the welfare state lose votes during the next election? That is the guiding question for our paper. We analyse elections and social policy reforms in 18 established OECD democracies from 1980 to 2003. We show that there is no strong and systematic punishment for governments which cut back welfare state entitlements. The likelihood of losing votes is the same for governments that retrench the welfare state as for those that do not. Rather, electoral punishment is conditional on whether governments have the chance to stretch retrenchment over a longer period of time, and whether social policy cuts are made an issue in the electoral campaign. If other political parties and the mass media do not put the theme on the agenda of the campaign, and if the retrenchment can be carried out in small steps during a longer governmental term, governments may considerably reduce welfare state effort without fear of major electoral consequences.     

Using Local Government Corporate Plans in Victoria

The Victorian state government has required local governments to publish their corporate plans and this paper explores the information provided by their corporate plans. These plans demonstrate diversity in the form and content, but several themes emerge. First, despite the purpose of corporate plans being to demonstrate accountability to the local community, the lack of performance targets reduces the usefulness of these plans for accountability purposes. It also explores objectives which are of major importance to the sector, such as local economic development, which is an issue difficult to control in the local area, being largely determined by federal and state policy. Other important objectives include financial and asset management together with emphases on the local community and accountability, issues which were the drivers of the state government's reform agenda. This article assists those who want to enhance the practice of corporate (strategic) planning in local government.     

What Have We Learned about the Performance of Council‐Manager Government? A Review and Synthesis of the Research

The 100th anniversary of the International City/County Management Association provides an excellent point to review and assess research on the performance of the council‐manager form of government. The development of the council‐manager form arguably has been the most important innovation in American local government over the last century, yet its impact on the performance of municipal governments is not well understood. This article reviews and assesses the empirical evidence for 10 propositions that council‐manager governments perform better than mayor‐council governments. This evidence indicates that although progress has been made on demonstrating differences in representation and functionality, the proposition that council‐manager governments are better managed than mayor‐council governments has yet to be seriously engaged in this literature. Filling this critical gap requires progress in two areas: the development of theory to explain why council‐manager governments are better‐managed organizations and the production of evidence assessing the major propositions of this theory.     

Federal Aid and Economic Development in Nonmetropolitan Communities: The UDAG Program

In 1977 Congress enacted the Urban Development Action Grant(UDAG) program to help distressed communities develop economically.This article draws from case studies of ten nonmetropolitancommunities with Action Grants. It focuses on the factors thataffect the completion and benefits of projects, particularlyrelations with private developers and local management capacity.The studies show that the UDAG program has been flexible inaccommodating differences in economic development needs as perceivedlocally. However, many of the projects have not produced thenumbers of jobs originally proposed. Several communities encounteredproblems with private developers who either abandoned the projectsor failed to produce expected results. Smaller communities inthe sample tended to lack grantsmanship, management, and legalresources.     

From Nationalization to Marketization: Changing Governance in Taiwan's Higher-Education System

The shift from "government" to "governance" has been widely debated both in the West, where the debate originated, and in the Asia-Pacific, where it is a strong emergent theme. In the West, early work concentrated on problems of government failure in the realms of regulation, welfare and development. This developed into a focus on the increasingly complex challenges facing modern states. By the mid-1990s, bodies such as the Organization for Economic Cooperation and Development (OECD) were devoting considerable attention to issues affecting "governance in transition." At this time, the United Nations Development Program (UNDP) issued its first discussion paper on governance. This emphasized the importance of bringing together the realms of governance, namely civil society, the state, and the private sector. All these developments signify a fundamental administrative paradigm shift to the "sociopolitical governance" model. This paper discusses the theme "from nationalization to marketization" by examining the origins and driving forces for changing governance in Taiwan's higher-education system. More specifically, the paper examines the changes in the role of the state in terms of three major aspects: provision, financing, and regulation in higher education, reflecting on how a new governance model has evolved in Taiwan.     

Protecting Local Governments from Arbitrary State and Federal Interference: What Prospects for the 1990s?

The number of local governments in Nigeria has been fixed at453 by the 1989 Constitution. The key purpose of this provisionis to prevent state governments from creating local governmentsand altering local-government boundaries for political purposes.The provision is part of a larger program of localgovernmentreform undertaken by the federal military government to ensurethe integrity and autonomy of democratically elected local governmentsunder the Third Republic. States are limited in their abilityto intervene in local government affairs, and the federal governmenthas certain direct powers and responsibilities for local governments.Whether these reforms will achieve their intended objectives,however, is arguable.     

Local government grants and income tax revenue: Redistributive politics in Norway 1900–1990

An important aspect of the welfare state is public provision of private goods, primarily education and health care. In Norway the provision of these services has been organized through the local public sector. The development of the welfare state has to a large extent been the development of welfare communes. The important revenue sources of the local and county governments, grants and income tax revenue, have been controlled nationally, and the paper addresses the determinants of these revenues during 1900–1990. The approach combines a demand model of local public services emphasizing price and income-elasticities with a political economy model of central government ideology and strength. The decision making is understood as bargaining between the government and interest groups, and the political structure consequently is of importance for the policy outcome. The analysis shows how politics matter, and the results indicate that a minority coalition government implies 30% more grant and income tax revenue to local and county governments than one party majority in the long run.     

The politics of fiscal policy during economic downturns, 1981–2010

This article investigates fiscal policy responses to the Great Recession in historical perspective. It explores general trends in the frequency, size and composition of fiscal stimulus as well as the impact of government partisanship on fiscal policy outputs during the four international recessions of 1980–1981, 1990–1991, 2001–2002 and 2008–2009. Encompassing 17–23 Organisation for Economic Cooperation and Development (OECD) countries, the analysis calls into question the idea of a general retreat from fiscal policy activism since the early 1980s. The propensity of governments to respond to economic downturns by engaging in fiscal stimulus has increased over time and no secular trend in the size of stimulus measures is observed. At the same time, OECD governments have relied more on tax cuts to stimulate demand in the two recessions of the 2000s than they did in the early 1980s or early 1990s. Regarding government partisanship, no significant direct partisan effects on either the size or the composition of fiscal stimulus is found for any of the four recession episodes. However, the size of the welfare state conditioned the impact of government partisanship in the two recessions of the 2000s, with left‐leaning governments distinctly more prone to engaging in discretionary fiscal stimulus and/or spending increases in large welfare states, but not in small welfare states.     

Municipal Debt Issues in Foreign Markets: Managing Currency and Interest Rate Risk

Since the mid-1980s, there has been an acceleration of state and local government interest in the taxable bond market as a source of capital. This has resulted from, among other factors, restrictions imposed on economic and industrial development loan programs resulting from the passage of the Tax Reform Act of 1986. Increased state and local government involvement in the taxable bond markets has increased competition for such capital between the public and the private sectors. In turn, the developing capital competition has expanded into overseas securities markets. Private sector corporations have frequently accessed foreign capital markets to take advantage of lower interest rates and reduced financing costs. By contrast, state and local governments have accessed such markets only recently. This article discusses the policy issues considered by a state or local government entity when it decides to borrow funds in foreign markets and discusses the issues involved in managing currency and interest rate risk when issuing municipal bonds in foreign markets. It includes a review of the hedging techniques used by the Kentucky Development Finance Authority (KDFA) to protect against changes in the Yen/Dollar exchange relationship on a recent Samurai bond issue sold by KDFA as an example of such a transaction.     

Mandates As Both Hardship And Benefit: The Clean Water Program In Small Communities

No other intergovernmental policy has been so costly and difficultfor small local governments to implement as the 1972 versionof federal Clean Water legislation. This legislation has requiredthousands of localities to construct new or upgraded sewagetreatment systems. Rural governments have been hard pressedto cope with the demands of the anti-pollution standards, becauseof limited fiscal and managerial capacities and local valuesoften in conflict with national and state policy goals. Yet,as this study of eight rural California communities suggests,implementation can bring local benefits as well as hardship.As a result of their decade-long experiences with the CleanWater program, the small municipalities generally improved theirsewer system finances, acquired new organizational skills andresources, and increased their capacity to accommodate populationgrowth and stimulate economic development. These were long-runimpacts, occurring after initial problems and delays in theplanning, funding, and construction of the new plants.     

Management problems of the proliferation of local government in Nigeria

Local government throughout Nigeria was reconstituted on a uniform basis in 1976. The 1979 Constitution then empowered state governments to create new local governments. This article describes how the state governments have used their authority to proliferate the number of local governments; it explains the reasons for doing this both on the part of state governments and on that of local communities. The drive to create additional local governments has derived in part from a desire to promote local level development, yet enquiries into the managerial capacity of existing local governments suggest that this expectation will be frustrated.     

Federal Reimbursement for Mandates on State and Local Governments

One of the remedies sought by state and local officials for the growing burden of federal mandates is a mandate reimbursement law. A major purpose of mandate reimbursement is to deter Congress from imposing excessive costs on state and local governments by making it fully accountable for its actions. The paper begins by extending the economic theory of grants to mandates and reimbursed mandates. It goes on to assess the benefits and costs of mandate reimbursement, and to distinguish mandates that should be reimbursed, should a reimbursement program prove desirable, from those that should not. Then, using the economic theory of grants and mandates, the paper compares reimbursed mandates with two alternatives for accomplishing the same objective, compensating grants and procedural rules. It concludes that the latter are more promising than mandate reimbursement.     

The Fly Ball Effect: A Theoretical Framework for Understanding the Impacts of Short‐Term Seed Grants

The federal government has long used grants‐in‐aid to encourage state and local governments to carry out federal policies. Little research has been done that examines how short‐term seed grants affect program continuation. We propose the “fly ball effect” as a theoretical framework for understanding how seed money should impact program maintenance. Our theory suggests that short‐term seed grants by themselves should result in considerable funding uncertainty and program eliminations or stagnation once the initial grant money expires. We use data from drug court start‐ups in four states to provide empirical support for our theory. We argue that understanding the logic of the fly ball effect can help granting governments to improve the effectiveness of their grant funding systems, at least as measured by strong program continuation and expansion.     

The need for centres of health research excellence in the developing world

Pervasive ill health and overpopulation impede progress in most developing countries but in recent years, programs providing aid to these regions have de-emphasized health as a priority. Furthermore, support for building the health research capacity, so essential to the success of efforts to promote improved health, has been lacking. This paper examines these policies as they relate to one developing country, one global h ealth program and a major Canadian development agency. Much has been achieved in the past decade in one of the world's poorest countries, Bangladesh, but major health problems persist, particularly in maternal and child health. With the will to build effective health programs, Bangladesh lacks the resources and the research base needed for their development. The World Health Organization, (WHO) Diarrhoeal Disease Control (CDD) program, which addresses a major cause of child mortality in Bangladesh, promotes effective treatment but it contributes little to a permanent research establishment in that country. The Canadian International Development Agency (CIDA) which directs only a small portion of its $2.2 billion annual budget to health, lacks an influential level of technical expertise in health. This agency has no mandate to support health research in the developing world; research is the responsibility of the International Development Research Centre (IDRC), the Health Sciences Division of which closed in July, 1995. To upgrade the place of health and health research in development, the attitudes and policies of major donors must change and models of success are needed. Of the existing institutions or programs involved in health and health research in the developing world, the internationally funded health research centre, strategically sited in the developing world could provide the excellence around which relevant programs should flourish. An existing example of this rare species, the International Centre for Diarrhoeal Disease Research, Bangladesh, merits particular consideration in this regard.     

Business Models and the Transfer of Businesslike CentralGovernment Agencies

At the same time as many researchers in public administration are suggesting the emergence of similar New Public Management (NPM) forms in Organization for Economic Co-operation and Development (OECD) countries, a substantial number of those working in comparative political economy are rediscovering differences between countries. This paper explores a key component of NPM—business-like central government agencies—in four countries: the UK, the U.S., Germany, and Japan. So far, the private sector side of the NPM story has largely been neglected. However, the business-like agency model as developed in the UK was influenced by the Anglo-American system of corporate governance. In comparative political economy, the Anglo-American system is seen as different from that in Germany or Japan. These differences are important for understanding transfer through emulation of the UK agency model by policy-makers in other countries. An apparent inconsistency may be developing, with governments using an NPM form based on an Anglo-American model of business that is far from universal in business itself.     

In search of a governance institution model for Jakarta Metropolitan Area (JMA) under Indonesia's new decentralisation policy: old problems,new challenges

This study explores a possible governance model for Jakarta Metropolitan Area (JMA) under Indonesia's new Decentralisation Policy. At present the management of JMA development is coordinated by Badan Koordinasi Pembangunan Jabodetabekjur (BKSP) —Coordinating Board for JMA Development, but this agency is ineffective and powerless to perform its tasks because of lack of authority and power. The establishment of JMA governance model should take into account the existence of the BKSP which has been politically accepted by all provincial and local governments in the region. Involvement of central government in JMA governance is very important. A mixed model of urban governance is most suitable for the JMA. Thereunder the central government should have authority to plan and develop major physical infrastructure for the whole JMA, while the provincial and local governments retain their respective general administrative functions. Copyright © 2008 John Wiley & Sons, Ltd.     

Tax decentralization and local government size

This paper investigates the relationship between fiscal federalism and the sizes of local governments. While many empirical studies emphasized that grants encourage the growth of local public spending and local taxes constrain it, they are more silent regarding the effects of different types of tax autonomy. The paper addresses this issue by arguing that tax decentralization as organized on tax bases used only by local governments (tax-separation), rather than on tax-base sharing, would restrain local public expenditures. Using an unbalanced panel of OECD countries, the key finding is that only property taxes—mostly based on a “tax-separation” scheme—seem to favor smaller local governments. Thus, while tax decentralization is a necessary condition for limiting the growth of local governments, it does not appear sufficient, as tax-separation schemes among government levels would in fact be required.