Holding Global Regulators Accountable: The Case of Credit Rating Agencies

Credit Rating Agencies (CRAs) are private nonmajoritarian regulators (NMRs) of international capital markets. Ratings of creditworthiness are ubiquitous in financial markets, and in this way they exercise considerable control over the flow of credit. CRAs entail a puzzle for the question of the legitimacy of global regulation. As profit seeking firms, they lack a formal element of coercion. Yet, CRAs are often criticized for wielding illegitimate power. Furthermore, the broad demand for accountability has not had a great effect on how CRAs operate. Thus, there is a persistent mismatch between demand and supply of accountability, an "accountability gap." By analyzing the accountability gap, this article seeks to enhance the understanding of the nature and the scope of the legitimacy problems of global NMRs. CRAs suggest that the legitimacy problems of global governance extend beyond formal NMRs to informal NMRs and that solutions sometimes are elusive.     

Why Immigrants Stay in Fashion: Insights from New York's Garment Industry

For many observers the influx of immigrants into New York's garment industry seemed to exemplify the deleterious impact of undocumented immigration: native displacement and a simultaneous deterioration of wages and working conditions. This article argues that this conventional view is incorrect. There is little evidence linking immigrant presence to the availability of undocumented workers. Rather, the immigrant presence is the consequence of the industry's basic labor strategy; immigrants have moved into garments as an older labor force deriving from earlier waves of migration has cyckd out.     

How Do Nonprofits Respond to Regulatory Thresholds: Evidence From New York's Audit Requirements

Nonprofits in the United States must comply with various state and federal regulations to maintain their tax‐exempt status. Despite persistent calls to increase accountability in the nonprofit sector, there is little research examining the burden imposed by existing regulatory requirements, especially at the state level. This paper uses a bunching design to estimate the avoidance behavior exhibited by tax‐exempt charities in response to New York State's audit requirements. There is clear evidence of bunching in response to the requirement that nonprofits above certain revenue thresholds file financial statements reviewed by or audited by an independent certified public accountant. Measuring the extent of bunching around the revenue notches yields estimates of the average revenue that nonprofits either forego or fail to report in avoidance of the requirements. Results from dynamic estimation show that charities near the threshold for a review engagement report approximately $1,300 less revenue than otherwise predicted by a counterfactual; charities near the threshold for a full audit report approximately $1,400 less. The results have implications for the optimal design of state‐level financial regulations.     

Spillovers of state policy innovations: New York's hazardous waste regulatory initiatives

States are often seen as policy laboratories where innovations are tried that may later be adopted by other states or the federal government. Engendering such experiments may, however, promote spillovers on other states. We analyze several of New York State's policy initiatives from the 1980s that were intended to influence the selection of waste management technologies by hazardous waste generators. Time series analysis of hazardous waste manifest data reveals that constraints on land disposal of certain wastes and a tax on hazardous waste generation and disposal were associated with shifts to lower-risk technologies for waste management. The policies also constrained imports to in-state land disposal facilities and may have led to increased exports for incineration and recycling, thus shifting some of the risks of hazardous waste to other jurisdictions with less stringent regulations or lower taxes on waste generation and management.     

The shaping of collective values through deliberative democracy: An empirical study from New York's North Country

Participatory planning and policy analysis has gained increasing attention in recent years because of its potential to improve the knowledge base for policy design (substantive benefits), increase the likelihood of stakeholder compliance and support (instrumental benefits), and strengthen the democratic legitimacy of public policies (normative benefits). Deliberation among stakeholders is considered essential for participatory policy analysis, representing a democratic process for clarifying the particular as well as the collective goals and values as well as the potential impacts of alternative policies. This study examines the effects of democratic deliberation on participants' viewpoints of the policy domain (the local food system), based on two-and-a-half day participatory planning events in each of six rural counties in northern New York. Participant viewpoints were assessed several weeks before and after these events, using Q methodology. The results reveal three major viewpoints, representing concerns for social justice, the viability of conventional agriculture, and the potential environmental and social externalities associated with conventional agriculture. The substance of these viewpoints remain unchanged before and after the deliberative events, but the salience of the conventional agriculture viewpoint increased and the salience of the social justice and alternative agriculture viewpoints decreased significantly, even among those participants who most clearly defined the latter two viewpoints. These findings, together with an analysis of the action agendas emerging from these planning events, suggest that local deliberative processes may produce outcomes that are neither fair nor efficient and that reflect the values and interests of certain stakeholders more than others, even in the absence of overt conflict. Moreover, it appears that such processes may cause some participants to alter their viewpoints in ways that appear contrary to their values and interests as expressed prior to the deliberative event. The implications for participatory policy analysis are explored.     

Making Government Accountable: Lessons from a Federal Job Training Program

This article describes the evolution of a performance measurement system in a government job training program. In this program, a federal agency establishes performance measures and standards for substate agencies. The performance measurement system's evolution is at least partly explained as a process of trial and error characterized by a feedback loop: The federal agency establishes performance measures, the local managers learn how to game them, the federal agency learns about gaming and reformulates the performance measures, possibly leading to new gaming, and so on. The dynamics suggest that implementing a performance measurement system in government is not a one-time challenge but benefits from careful monitoring and perhaps frequent revision.     

Partnership and Politicisation: New Relations for Senior Executives in the NT

Despite substantial evidence to the contrary, claims that the increasing emphasis on performance-based contracts and other changes in tenure arrangements for Chief Executive Officers (CEOs) and other senior executives will inevitably lead to 'politicisation' of the public sector persist. Those claims were particularly shrill during discussions of the new Commonwealth Public Services Bill in 1997 and have resurfaced in more recent commentaries. This paper argues that the claims have not been substantiated after more than a decade of experience in other jurisdictions; and that, in fact, the relationship between governments and their senior employees is more robust and honest, and therefore more appropriate to the times, than the critics would have us believe. While the argument is based on the Northern Territory experience, its application in other jurisdictions is also addressed.     

Children's Exposure to Domestic Violence: Holding Men to Account

The issue of domestic violence has gained greater recognition within public policy in the United Kingdom over the past decade. There is a recognition that up to one million children may have been exposed to violence between the adults with whom they live. This has consequences for the child in both the short and long term in terms of social and emotional adjustment. However, most male perpetrators of domestic violence are never held to account through the criminal justice system and therefore the child protection system is the safety net for these children. This though can result in a response that is premised on women's responsibility to protect their child from experiencing harm, typically by either leaving or forcing her partner to leave. Child welfare professionals do not engage with the men who are the source of the problem, rather women are held accountable for allowing their children and themselves to be in this situation. In this article this issue is discussed and proposals offered to improve this situation through empowering women, holding men to account for their behaviour whilst also recognising their position as fathers.     

Local Revolutions in Central Europe, 1990 to 1994: Memoirs of Mayors and Councilors from Poland, Slovakia, and The Czech Republic

The consequences of the introduction of municipal autonomy inPoland, the Czech Republic, and Slovakia are analyzed from thememoirs of 131 mayors and councilors concerning their firstelectoral term during the period 1990 to 1994. The analysisfocuses on the mechanisms of mobilization and selection of anew local elite. Subsequently, the most frequent motive of thememoirs is discussed, namely, the want of local integrationand tactics applied by local leaders to enhance integration.The recovery of local roots and traditions is the most frequentway to reach this objective, but it appears to have two-sidedconsequences. On the one hand, the fostering of local identityenhances communal integration and active citizenship. On theother hand, it initiates a drive toward municipal fragmentation.Also, the situation of local minorities may worsen in the process.Thus, the study demonstrates some more general phenomena comingfrom the assertion of local autonomy in Central Europe.     

Consultations with Interest Groups and the Empowerment of Executives: Evidence from the European Union

We examine how an executive's consultations with interest groups during the formative stage of the policy process affect its bargaining success during the decision‐making stage after it has proposed new policies to legislative actors. Our theory sets out how consultations with interest groups strengthen the executive by bolstering its formal and informal agenda‐setting power. The empirical testing ground for our theory is the European Union (EU), and in particular the consultations held by the European Commission. The analysis assesses the effects of these consultations on the congruence between the Commission's legislative proposals on controversial issues and EU laws. Our analysis incorporates detailed information on the type and scope of each consultation. In line with our theory, we find that the Commission had more success during the decision‐making stage after conducting open consultations with large numbers of interest groups during the policy formation stage.     

Fiscal Reaction to State Aid Uncertainties: Evidence from New York State

Late budgets have become increasingly present across the states and especially persistent in states such as New York and California. The combination of delayed states budgets and institutional constraints may trigger specific budgetary strategies. Uncertainty over state aid may lead school districts to over‐ or underestimate school budgets, which ultimately may have an effect on real property taxes and the amount of education consumed. Evidence from New York State school districts suggests that school districts react to uncertainty in the state budget through a combination of revenue, expenditure, and fund balance changes. The findings suggest that districts engage in “gaming” the institutional constraints, and tend to build up large fund balances as a response to perceived uncertainty.     

坚持从新的实际出发

江泽民同志的“七一”讲话通篇贯穿了解放思想，实事求是的精神。这篇讲话本身，就是坚持解放思想，实事求是思想路线的新成果。他明确指出，按照“三个代表”的要求全面推进党的建设，首先要坚持解放思想，实事求是的思想路线，大力发扬求真务实、勇于创新的精神。贯彻解放思想，实事求是的思想路线，关键是要破除各种思想禁锢，冲破思想牢笼，坚持一切从实际出发。所谓实际，包括历史实际和当前实际，但重点是当前的实际，因为我们实践的直接目的是解决当前的问题。“新的实际”这个提法的方法论意义邓小平同志使用了“变化着的实际”、“…     

More Queensland Exceptionalism: Public Sector Industrial Relations from New Labor to the Old Coalition

Public sector change across Western economies produces broadly similar results for the state and for public employment relations. Yet local variations can matter, as governments choose how vigorously to pursue downsizing, constructing and decentralisation. As an example of such regional differences, this paper examines the form of public sector change introduced in Queensland under Labor and Coalition governments, and the implications of union strategy.     

Strategic coalition voting: Evidence from New Zealand

Whereas the classic literature on strategic voting has focused on the dilemma faced by voters who prefer a candidate for whom they expect has little chance of winning a seat, we consider the dilemma faced by voters in PR systems who do not expect their preferred party to be in government. We develop hypotheses relating to strategic voting over multi-party governments that we test using the New Zealand Election Study (NZES) campaign study of 2002. We find evidence that expectations play a role in structuring vote choice. While there is clear evidence of wishful thinking there is also evidence that voters respond to expectations about government formation. These expectations may mobilize voters and lead them to defect from their first preference.