From public to mixed ownership in local public services provision: an empirical analysis

There is a long tradition of companies that provide local public services, such as energy distribution or solid waste collection, being strategically important for the promotion of the development of areas where they are present and having a great influence on citizens’ quality of life. This article examines the determinants of the choice of ownership structure for Italian companies that provide local public services, and the effects that this choice has on their performance. Economic and financial data at company level was merged with economic, political, financial and territorial data on the municipality with the majority of shares in it. A two-stage multinomial selection model was employed, in order to carry out the analysis with more than two alternative ownership structures and to control for endogeneity. The empirical evidence indicates that the municipality’s political and budgetary conditions matter in the choice of ownership structure. Although the computed Average Treatment Effects seem to indicate that mixed ownership increases operating efficiency, the profitability indicators provide evidence to the contrary.     

Forms of technological modernization and human resources management in privatized argentine companies

After the period of hyperinflation (1989, 1990) the Argentine economy stabilized and most of public companies were privatized. The return on investments was concentrated on promoting the technological change which adopts two basic forms: systemic modernization and revamping of existing teams.

The first variant -ilustrated by the national telephone network- makes obsolete the knowledge accumulated during the period when the company was public. To confront the structural deficiency of knowledge and experience which result, the private operators invest massively in transfering educational technologies and in the development of costly and sofisticated internal systems of training, while they negotiate numerous and various agreements of cooperation with educational system institutions, public as well as private.

In the second variant - illustrated by a steel and metallurgic company - the preexisting knowledge continues being necessary even though it may need a vis-a-vis updating facing the new demands which are stated referring to the productivity, quality, effectiveness and productive efficiency in markets which are open to competition.

Taking into account the significant achievements which are being obtained by this second alternative of modernization - most of the privatized companies fall into this pattern- the article invites to a reopening of the old debate on technological blending.     

Imperialism and Resistance: Canadian mining companies in Latin America

David Harvey's concept of accumulation by dispossession is a useful framework for understanding the predatory activities of Canadian mining companies in Latin America. Capitalist imperialism is rooted in the logic of a socioeconomic system that is driven by the competitive pursuit of profit based on the exploitation of labour, and which is prone to over-accumulation. Capital, backed by state power, pursues a spatial fix to resolve the systematic crisis of over-accumulation. The creation of new spaces of accumulation is not an innocuous process; it inevitably involves the forceful and violent reorganisation of peoples' lives as they are subordinated to the whims of capital. Strategies of accumulation by dispossession by capital therefore commonly spawn popular resistance from the affected communities. The Canadian mining industry is the largest in the world, and much of its outward investment targets Latin America. The Canadian company share of the larger company exploration market in Latin America (and the Caribbean) has grown steadily since the early 1990s, up to 35% by 2004, the largest by far among all its competitors, with seven Canadian companies among the top 20 mineral exploration investors in the region from 1989 to 2001. This paper charts these trends of Canadian mining expansion in Latin America and then focuses on the community, environmental and worker resistance it is generating in the cases of Chile and Colombia.     

The impact of governmental structure and expenditures on the quality of life in urban areas

Despite the obvious complementarity in their objectives, public policy and quality of life or social indicators research have been done in mutual isolation. The integration of these streams of research offers policy analysts an alternate method for measuring impacts. Using this approach, the current study focuses on two questions: 1) Are variations in municipal structure related to policy outputs, i.e., municipal expenditures? 2) Are variations in municipal structures and overall targeted municipal expenditures related to the general quality of life in municipalities and the quality of specific services?

The sample for this study includes the central cities of the sixty-five most populated SMSAs in the United States. Pearson Product Moment correlational and crosstabulational techniques were used to examine these relationships. The results indicate that council manager systems tend to spend less than mayor council systems, yet, in some ways, offer a better quality of life. Differences in size and regional location were investigated by factor analysis as possible influences in this regard.     

The elephant in the room: offshore companies,liberalisation and extension of presidential power in DR Congo

In the Democratic Republic of Congo, donors promoted rapid liberalisation and presidential elections in the aftermath of the war, and after two terms, President Kabila has not left office. This article engages with the question of how liberalisation and elections are connected, and how they are related to the extension of presidential power. It finds that the international market for minerals has shaped the domestic political economy but its nature has effectively been ignored in the formulation of donor policy; efforts at regulating trade have been concentrated on due diligence of origin in Congo but have not addressed the secrecy of international trade. Liberalisation has removed control of economic resources from Congo, provided returns for elite politicians and funded violence to control the disenfranchised population. The offshore companies are the elephant in the room; without acknowledging them, analysis of the liberalisation and its interaction with presidential tenure lacks assessment of the opportunities, interests and power that shaped the processes.     

Global Capitalism and the Transformation of State Socialism

The article outlines the footprint of international economic interests under state socialism, and considers in more detail the economic integration of the postcommunist countries into the world system in the post-1989 period of the building of capitalism. The focus of the article is on the extent of economic globalization of countries and their economic corporations. It is contended that the globalization of capitalist companies and the direct role of global economic forces had little importance under state socialism. Since 1989, policy in the former state socialist countries has been geared to “joining” the world system, optimistically its core. Important differences have developed between the postsocialist states with respect to economic penetration and exposure to the world market. The outcomes have not fulfilled the expectations of early advocates of transformation and entry to the world economy. Although the new member states of the European Union have entered the world economy as formal members of the “core,” they are not economically equal to the dominant “old” members of the EU. In all the postcommunist countries, there is an absence of large scale global companies, of comparable levels of innovation, research and development. Russia is a resources rich country, a “hybrid” social formation containing elements of state economic control, national capitalism, and global capitalism. I conclude that the semi periphery is not a transient category in the world economy; it has potential for persistence and renewal.     

Managerial capacity in conflict environments: Management effects of private military and security companies in Iraq

An enduring challenge of public administration research is examining whether public management affects the delivery of public policy results. This study extends managerial influence to include public policy delivery in an active conflict environment. Individual manager training is critical in conflict environments because limited bureaucratic capacity and general environmental confusion are common. Organizations under stress use substitute managers. We argue that substitute managers' effectiveness is conditioned by two factors: managerial capability and networking capability. We examine substitute managers in a unique context, the US–Iraq War. Managers coordinated private military and security companies (PMSCs) to provide coalition forces and the civilian population with multiple services. We argue that managers with prior management experience and network capability are more effective substitute managers. The results suggest that managers with prior experience and networking capability are associated with decreases in civilian casualties. The results provide important policy insights into public management and defence policy.     

The Public Administration Reform in Post-War Bosnia and Herzegovina: A Reform Process Embedded in a Sovereignty Paradox

As the post-war Bosnia and Herzegovina has turned its interest towards a European Union membership, it has entered an accession process requiring it, among other things, to reform its public administration system. The European Union's involvement within the reform has been placed under critique, as it has been claimed to have placed Bosnia and Herzegovina's sovereignty at risk by presenting contradicting behaviors leading to a sovereignty paradox. By examining the European Union's role in Bosnia and Herzegovina, and its possible relations to a sovereignty paradox in the process, the article finds sovereignty paradox indicators to exist along its processes.     

A statistical approach to identifying poorly performing countries

This paper asks whether it is possible to identify, using purely statistical criteria on widely available quantitative data, a set of developing countries that can be classified as poor performers. We restrict attention to two performance indicators, economic growth and infant mortality, over two periods 1980–90 and 1990–2000, and use four different statistical criteria to identify poor performance. The main finding is that very few countries consistently appear as poor performers: those that perform poorly on one indicator, or in one period, typically do not perform poorly on/in the other. A similar result is obtained in the context of identifying, on statistical grounds, good performers. The research cautions against labelling countries as poor performers without careful qualification.     

Market responsiveness of peasant cultivators: Some evidence from prewar India

This study attempts to analyse the responsiveness of Indian farmers to changes in profitability with reference to non‐food crops, such as groundnuts, cotton, jute and sugarcane, over the period 1900–39. Various types of adjustment and expectations models have been used. The generalized distributed lag models have been formulated and some special forms have been applied to study the behaviour of farmers. Both ordinary least‐squares and two‐stage‐least‐squares estimates have been carried out. In the distributed‐lag analysis, short‐run and long‐run price coefficients and elasticities have been computed and compared with some of the other studies on the subject. The emerging conclusion from this study is that farmer s seem to respond to changes in profitability, expansion of irrigation facilities, varietal improvements and qualitative factors in the case of all the crops.     

Utilizing FDI to Stay Ahead: The Case of Singapore

A country of 5 million people in 710?km², Singapore has built itself into an integral part of global markets with living standards that are among the highest in the world. The purpose of this article is to apply a capabilities-based approach to understand how a small, resource-scarce country dependent on global markets has done so well. The core of Singapore??s success has been the continuous updating and expanding of domestic social capabilities to meet the needs of foreign companies. Government policies were hypersensitive to providing conditions for foreign firms to be successful. Foreign firms investing in Singapore by now have helped close the income gap with advanced economies and are on the way to closing the innovation gap. Singapore demonstrates that with deliberate attention to building skills, institutions and infrastructure, it is possible for a small country to upgrade skills and to move up the production-value chain with primary reliance on foreign direct investment (FDI). Cultivation of private Singaporean firms has been secondary but may be the next step needed to sustain progress, both to respond to increased competition from China and others, and to build a knowledge-based economy.     

BEWARE OF MANAGERS NOT BEARING GIFTS: HOW MANAGEMENT CAPACITY AUGMENTS THE IMPACT OF MANAGERIAL NETWORKING

Networks and managing in the network have been central concerns of public management scholars for years ( Provan and Milward 1991 ; O’Toole 1997 ; Agranoff and McGuire 2003 ; Herranz 2008 ). The literature has investigated the extent of networks ( Hall and O’Toole 2004 ), the appropriate way to measure networks and networking behaviour ( McGuire 2002 ; Meier and O’Toole 2005 ), and the role that networking plays in improving organizational performance ( O’Toole and Meier 2003 ). Although there are qualifications in the literature to the rosy scenario that managing in the network is always a good thing ( O’Toole and Meier 2004 ), and although the benefits of managerial networking show diminishing returns ( Hicklin et al. 2008 ), there has not been much investigation of the factors that enhance or detract from networking's impact on performance. This study examines the interactive relationship between management capacity and managerial networking using a panel of several hundred public organizations over an 8‐year period. The empirical results show that managerial capacity does interact with networking and enhances the positive impact of networking over an array of performance indicators. At the same time, building managerial capacity is a central management choice, and that decision has ramifications for organizations that are not always positive. The paper concludes with the managerial implications of the strategic choice to build management capacity.     

If territorial fragmentation is a problem,is amalgamation a solution? – Ten years later

ABSTRACT

Over the last decade, municipal territorial amalgamation has occurred in 15 European countries. The same period has seen spectacular progress in research on the relationship between municipal size and the functioning of local governments, as well as the impacts of territorial reforms on economic performance and local democracy. Quasi-experimental designs treating territorial reforms as specific “research laboratories” have constituted an important part of that trend. However, there are still important gaps in the knowledge and the study results are often inconclusive. These observations call for a research agenda for the future.     

The lessons of privatization

Privatization policies have swept the world and helped restructure economic activity. Although there are clear benefits to privatization initiatives, many attempts have been rejected. Unfortunately, most policy research has ignored this fact. Research on privatization has mostly focused on programs that have been accepted, and not those that have been rejected. This study, however, breaks new ground by examining the microeconomic, macroeconomic, and political factors that shaped both types of privatization outcomes. This work, based on the book, The Logic of Privatization: The Case of Telecommunications in the Southern Cone of Latin America, suggests that the implementation of privatization policies hinges on the ability and capacity of the political leadership to control the bargaining process during the divestiture of state-owned companies. Failure to control the process may expand the conflict beyond the scope of the original participants and result in its rejection. This study statistically examines the economic and political data of sixteen attempts to privatize telephone companies around the world between 1981 and 1993. The findings suggested that microeconomic factors were not very significant in determining the privatization outcomes: however, macroeconomic factors were found to be slightly more important. The political factors, nonetheless, proved to be the most important variables in explaining the different outcomes. These findings were supported by the statistical results.     

The Effects of Democracy on Economic Growth and Inequality: A review

What effects does political democracy have on such development outcomes as economic growth and socioeconomic equality? Competing theoretical models have been proposed that represent each of the possibilities: democracy as facilitating development, democracy as a hindrance to development, and democracy as bearing no independent relationship to development outcomes. Each of these theoretical models is explicated and, then, the evidence from quantitative, cross-national tests of the effects is reviewed. Overall, the evidence provided by the approximately dozen studies for each outcome yields few robust conclusions with respect to the theoretical models. To guide in the evaluation of the evidence, the studies are in turn distinguished by such design characteristics as sample, period observed, measures used, and form of relationship specified. This procedure, while it does not produce definitive support for any of the models, does assist in interpreting the results of past research as well as generating fertile guidelines for future research.     

State rules: Oil companies and armed conflict in Sudan

The strategic behaviour of international oil companies in war-torn Sudan was overwhelmingly driven by political pressure from governments. After almost 20 years of operating in Sudan, the US giant Chevron was pushed to withdraw as a result of deteriorating relations between Washington and Khartoum. The Canadian flagship oil company, Talisman, which helped kick-start oil development after Chevron's exit also fell victim to Washington's ire. On the other hand, the European junior oil companies, Lundin and omv, protected by the European Union's political standpoint of ‘constructive engagement’ in Sudan, were free to profit. Finally, the eastern parastatals, led by a surging China, eager to capture international energy resources to fuel their budding economies and supported by the plural relationships fostered between their respective governments and the ruling, riverine elite in Khartoum, tactfully established a dominating presence. While fervent international human rights advocacy alone seemingly drove susceptible Western firms out of Sudan, the real power behind corporate movements came from the rules dictated by states.     

Comprehensive Performance Assessment and Public Services Improvement in England? A Case Study of the Benefits Administration Service in Local Government

The purpose of this paper is to independently evaluate the impact of the Comprehensive Performance Assessment regime on one particular public service, namely the provision of council tax and housing benefits distributed by local authorities throughout the course of the regime. This service was assessed in every iteration of the CPA methodologies and it included one of the few key performance indicators (KPIs) where the definition of the performance indicator, the means of collection and the public reporting of its results, remained the same throughout the CPA period between 2002 and 2008.

The findings show that there were considerable and consistent improvements in benefits administration nationally within England and across all of its regions. The paper then investigates a series of propositions. Whether there was any significant variations in the performance of larger as opposed to smaller authorities, or between predominantly rural authority areas and urban authorities or between authorities with different party political control. Finding no significant differences the research suggests implementation of the CPA regime itself appears to have had a catalytic effect upon the performance of the benefit administration services within local authorities throughout this period. The paper therefore concludes with a brief discussion as to whether the findings support the theoretical position of proponents of neo-institutionalism isomorphism or more traditional rational actor theories of public choice.     

The Long-run Relationship between Outward Foreign Direct Investment and Total Factor Productivity: Evidence for Developing Countries

Outward foreign direct investment (FDI) from developing countries has been growing significantly in both absolute and relative importance in recent years. Nevertheless, there is surprisingly little research on the home-country effects of outward FDI for these countries. This paper examines the long-run relationship between outward FDI and total factor productivity for a sample of 33 developing countries over the period from 1980 to 2005. Using panel co-integration techniques, we find that outward FDI has, on average, a robust positive long-run effect on total factor productivity in developing countries and that increased factor productivity is both a consequence and a cause of increased outward FDI.     

The determinants of value of incoming cross-border mergers & acquisitions in European transition countries

This research aims to determine variables that affect the aggregate value of incoming cross-border M&As in European transitional countries. Dynamic panel models have been estimated using Arellano and Bond GMM estimator for period between year 1994 and 2008. The ratio of the total value of cross-border M&A to GDP of the country is the dependent variable. Independent variables include following indicators: lagged value of cross-border M&A to GDP, lagged GDP per capita, lagged GDP growth, inflation, interest rate spread, lagged private credit to GDP ratio, market capitalization to GDP ratio, lagged rule of law and lagged control of corruption.     

‘We are Scared to Say No’: Facing Foreign Timber Companies in Sierra Leone's Community Woodlands

In recent years, ‘decentralisation’ has become an increasingly prominent theme in Sub-Saharan African development theory and practice, particularly around woodland management. Although much research has illuminated challenges arising in project design and implementation, ‘external’ threats to decentralised resource management initiatives have received little attention. At the same time, however, there has been a massive increase in foreign, particularly Chinese, corporate investment in the extraction of African resources. This paper examines the importance of the interaction between these two trends to local livelihoods and resource management through a case study of illegal logging by Chinese companies in Sierra Leone.