Partnering to beckon them home: public‐sector innovation for diaspora foreign investment promotion

This article examines a little‐studied component of public administration existing in most countries around the world and particularly important for developing countries: national investment promotion agencies (IPAs). Diasporas are an increasingly important and relatively untapped resource for development and many homeland governments view diaspora foreign investment as key to their economic development. In addition to being generally under‐resourced, many IPAs struggle to identify ways to effectively target, cultivate and facilitate diaspora homeland investment (DHI). To accomplish these goals, these public‐sector entities are beginning to identify and leverage key partnerships in the NGO sector. We describe the services IPAs offer and enumerate the challenges they face associated with DHI. Drawing on three illustrations of IPA–NGO partnerships, we develop preliminary tools for identifying and designing partnerships for the purpose of promoting DHI based on their scope, function and degree of formality. Copyright © 2007 John Wiley & Sons, Ltd.     

Conflict resolution: benchmarking water utility performance

The water sector has economic and symbolic importance for citizens in developing countries. Water utility benchmarking is no panacea for improving water sector performance. Nevertheless, it can contribute to addressing four sources of conflict in the design and implementation of policies: cognitive conflicts (based on technical disagreements regarding how data might be analysed and interpreted), interest conflicts (where suppliers and demanders obtain different benefits and costs under alternative policies), values conflicts (involving ideology or personal preferences regarding water sector outcomes) and authority conflicts (stemming from jurisdictional disagreements over who has the last word). These potential sources of conflict characterise most politically‐charged situations, including water supply management. This article examines the extent to which water utility benchmarking facilitates conflict resolution. Without information on historical trends, current baselines and realistic targets, conflicts over reforms to improve sector performance can weaken systems that are already fragile, particularly those in developing countries. This article attempts to improve our understanding of the links between sources of conflict, government approaches for dealing with conflict and the role of water utility benchmarking as a complementary strategy for addressing policy issues. Benchmarking is one way regulators and managers can promote conflict resolution that allows participants to focus on performance. The principles apply to all sectors with significant state oversight. Copyright © 2007 John Wiley & Sons, Ltd.     

Climate Change Policy Implementation: A Cross-Sectional Analysis

Why would countries invest resources to protect the global atmosphere, a global common‐pool resource? After all, this is an open‐access resource with no restrictions on appropriating its benefits. Furthermore, why would they do so under the aegis of a weak global regime (the United Nations Framework Convention on Climate Change, UNFCCC) that has virtually no provisions for sanctioning noncompliance and when the largest contributor to the problem is not participating in the regime? This article examines why a number of countries have implemented the UNFCCC. I hypothesize that countries implement UNFCCC because they corner domestic environmental benefits, namely reduction in local pollution. In my empirical analysis of 127 countries, employing an ordinal logistic regression model, I find that local air pollution is associated with higher levels of implementation of the UNFCCC. Thus, I conclude that the incentives to implement a relatively weak global regime can be found in the domestic political economy.     

The reputational basis of policy success in comparative perspective: Evidence from the education sector in Peru and Bolivia

This article, building on the emerging theoretical corpus of “reputation theory” provides an alternative explanation about how successful policies are obtained in contexts of bureaucratic weakness and volatile politics. The argument is that politicians choose to intervene in delivering successful policies based on how contributable such policies are to construct their political reputations. The findings suggest that in both countries, less tenured politicians face higher incentives to build their reputations, so they choose to deliver better policies to accumulate “successful experiences” as vitae for electoral purposes. Tenured politicians, in turn, opt for inaction or strategic delivery, to preserve their already won political reputations. The present article brings evidence from the education sector of Peru and Bolivia, a sector that has been at the core of these countries' priorities for decades. Through a mixed methods approach involving a panel regression and in-depth interviews, results obtained largely confirm this article's claims.     

The Power of Money: Global Capital and Policy Choices in Developing Countries

Extant studies of the impact that international phenomena have on policy choices, and those focused on the political economy of exchange-rate regimes in particular, are incomplete because they do not consider the effect that reliance on global capital has on the policy preferences of domestic groups. Consequently, they cannot explain why some newly emerging market countries pursue fixed exchange regimes under political and economic conditions—such as recently completed elections, uncompetitive export sectors, and poor national economic performance—in which others have altered their policies. I argue that reliance on different types of foreign capital generates distinct capital-specific policy preferences. Furthermore, rather than simply mimicking the preferences of foreign investors, domestic groups are likely to promote policies that reduce their capital-specific risks and vulnerabilities. Panel logit models of exchange-rate regimes in emerging market countries from 1973 through 2000 demonstrate that higher levels of democracy bolster these effects .     

The “baby steps” in mainstreaming sustainable public procurement in Ghana: A “double‐agency” perspective

The emerging literature on public procurement policy suggests that public procurement may be leveraged to advance several public policy agenda. Hence, many countries have reformed their public procurement process towards social and environmental outcomes termed sustainable public procurement. These reforms have often been launched in response to international initiatives such as the global 10‐year framework for action on sustainable consumption and production by the Johannesburg implementation plan in 2002 and the Sustainable Development Goals. Yet, empirical evidence on the drivers and benefits of SPP in developing countries is still scarce. This gap is addressed with a qualitative case study of six public sector institutions in Ghana. On the basis of elite interviews, this paper highlights barriers to mainstreaming SPP in Ghana's public sector. We further advance the scanty principal–agency literature by establishing a double‐agency relationship in the context of SPP, which depicts limited agency cases where principals lack the capacity to defend their own interests.     

The Third Sector and Residential Care for the Elderly in China's Transitional Welfare Economy

This article examines third‐sector welfare homes for Chinese elderly and argues that four factors affect their survival and development prospects: the extent care establishments meet the needs of their users; how successfully they manage their human resources; whether they ensure their financial sustainability; and whether they satisfy the expectations of their investors. The data reveal that while care homes generally serve their customers well and maintain staff satisfaction, they encounter difficulties in financing and service operation that pose grave challenges to their investors. The resulting problems cast a shadow over the future prospects of old‐age care homes and raise questions concerning the state's non‐profit policy.     

Federalism and suitable housing for the frail elderly: A comparison of policies in Canada and the United States

Abstract

The frail elderly have special multidimensional housing needs beyond affordability, including shelter that is more adaptive to reduced function and offers supportive services. Suitable housing for this population comprises three policy areas—housing, health care, and social services. In a federal system, development and implementation of policies in these areas involves participation of several levels of government and the nongovernmental sector. This paper uses federalism as a conceptual framework to examine and compare these policy areas in Canada and the United States.

In both countries, general national housing policies—relying heavily on the nongovernmental sector and characterized by joint federal‐provincial programs in Canada and by important local government roles and age‐specific programs in the United States‐have benefited the elderly. The effects of such policies on the frail elderly, however, have been less positive because of the general lack of essential human services and, to a lesser degree, health care that enables them to live outside institutions. This is especially true in the United States, where health care policy is fragmented and is dominated by a private insurance system, partial federal financing of health insurance for the elderly, and tense federal‐state relations in financing health care for the poor. Although Canadian policies and programs operate autonomously and more uniformly within a national health plan, neither country has a universal, comprehensive long‐term care system. Geographically diverse patterns of social services, funded by grants to states and provinces and the nonprofit sector, are common to both countries. However, the United States has inadequately funded age‐specific programs and has relied on a growing commercial service provision. Housing outcomes for frail elders are moving in the right direction in both countries; however, Canada seems to be better positioned, largely because of its health care system. As increased decentralization continues to characterize the three policy areas that affect suitable housing for frail elders, the United States can learn from Canada's negotiated federalism approach to more uniform solutions to merging housing and long‐term care.     

Policy coherence versus regulatory governance. Electricity reforms in Algeria and Morocco

The diffusion of independent regulatory agencies (IRAs) in utilities sectors in developing countries is underpinned by the idea that IRAs are highly effective institutional devices to signal policy credibility to private investors. But is it really so? Institutional economists tend to confirm the effectiveness of IRAs, while also highlighting the many factors that condition its positive impact on investments. Acknowledging the importance of interaction effects, this paper proposes to shift the level of analysis, moving away from IRAs to look at the overall complementarity between policy objectives, instruments, and the wider political context. In sum, it argues that IRAs are, as such, irrelevant. What matters instead is policy coherence. A comparison between two case studies on electricity policy reforms in Algeria and Morocco lends credit to the policy coherence approach. It shows that policy incoherence may deprive IRAs from any impact on sectoral evolution and that there are effective alternatives to IRA to signal policy credibility and attract investors. The paper concludes by suggesting practitioners to relax the focus on preconceived policy solutions, to be open to alternative policy approaches and to focus on helping developing countries designing coherent policies.     

Net loss: A cost‐benefit analysis of the Canadian Pacific salmon fishery

This article applies cost‐benefit analysis to the Canadian Pacific commercial salmon fishery. It demonstrates that government policies to preserve the fishery have resulted in higher net social costs than would have resulted from a "do nothing" policy, notwithstanding the rent dissipation associated with unconstrained resource exploitation. The value of landings and the private costs of the harvest over a cycle (1988‐1994) are calculated. On average, fishers extracted rents of C$34.7 million (in constant 1995 Canadian dollars) annually. The public costs of enhancing the resource and organizing and policing the harvest are estimated. When these costs are included in the calculation, net benefits drop to an average of negative C$55.6 million annually. This translates into a net present value (NPV) of the salmon fishery of negative C$784. The effects on NPV of both modest policy changes implemented in 1996‐1997 and of a more dramatic but credible fleet rationalization program are provided. The results indicate that further policy change is called for. More generally, the study shows that policy reform that would significantly benefit both the private sector (through reduced rent dissipation) and the public sector (through reduced government expenditures) can be surprisingly difficult. © 2000 by the Association for Public Policy Analysis and Management.     

‘Land grabbing’ or harnessing of development potential in agriculture? East Asia's land-based investments in Africa

Abstract

Large-scale foreign investment in Africa's abundant but largely underutilized arable land has been criticised by international NGOs and social movements as ‘land grabbing’, which limits access of smallholder farmers to land, deprives local people of their livelihoods and threatens local and national food security across the continent. By way of contrast, many host governments and some leading international development agencies regard land-based investments as beneficial for development in terms of providing the necessary capital and technological know-how for modernising the region's neglected agriculture including take-off in agribusiness and agro-industrialisation, which is vital to much needed economic diversification in many African countries. East Asia's participation in the global land rush on Africa is examined from the standpoint of these two different perspectives: while China's growing presence and involvement in trade and investment in mining, energy and infrastructure in Africa is well known, less recognised is its involvement and those of other East Asian countries such as South Korea, Malaysia, Singapore and Vietnam in agriculture through large-scale land acquisitions. The development consequences and policy implications of these foreign land-based investments are analysed from a political economy perspective, which identifies motives, interests and benefits of the different actors and addresses the question of governance in terms of transparency and appropriate institutional arrangements to safeguard land rights and food security. In the bigger picture, the paper argues that the negative consequences of land grab has to be seen alongside the benefits flowing to Africa from growing economic relations with China and other dynamic East Asian economies and learning from the development experiences of those countries. African countries however need to re-assess the current approach and relationship with foreign land-based investors and decide how best this trend can be used to forward their economic and social agendas.     

Contracting for Indigenous Health Care: Towards Mutual Accountability

In Australia and other industrialised countries, governments contract with the non‐government sector for the provision of primary health care to indigenous peoples. Australian governments have developed policies and funding programs to support this health sector, but the current arrangements are unduly complex and fragmented. The results of our study show that the complex contractual environment for Aboriginal Community‐Controlled Health Services (ACCHSs) and their funders is an unintended but inevitable result of a quasi‐classical approach to contracts applied by multiple funders. The analysis in this article highlights potential policy and program changes that could improve the effectiveness of funding and accountability arrangements, based on the use of an alliance contracting model, better performance indicators and greater clarity in the relative roles of national and jurisdictional governments.     

Joint sector reviews—M&E experiments in an era of changing aid modalities: Experiences from JSRs in the education sectors of Burkina Faso,Mali and Niger

Aid policy and practice have been thoroughly shaken up over the past few years. One of the reform areas relates to monitoring and evaluation (M&E). In short, aid recipients are asked to elaborate result‐oriented frameworks while donors are expected to harmonise and align their policies and frameworks. This article examines the extent to which joint sector reviews (JSRs) could take the M&E reform agenda forward. JSRs are M&E exercises at the sector level which have the potential to satisfy the M&E needs of various stakeholders while, at the same time, also contributing to the M&E reform agenda. They are increasingly utilised on the ground, yet, so far, there do not exist any systematic stocktakings and/or analyses of them. Our own analysis of a sample of JSRs from the education sectors of Burkina Faso, Mali and Niger indicate that JSRs score highly on harmonisation, coordination, leadership and broad‐based participation, but poorly on alignment. They generally prioritise accountability over learning needs and largely neglect accountability and learning at the level of the sector institutional apparatus. In this article, findings from the field are contrasted with insights from evaluation theory and practice so as to provide suggestions for on the ground JSR improvements. Copyright © 2009 John Wiley & Sons, Ltd.     

Right target; wrong tactics: the trump administration upends East Asian order

President Donald Trump initiated a tariff war claiming that the ultimate target was mercantile Chinese economic practices. Numerous countries share such concerns about China. Yet the Trump administration’s approach is wrong for at least three big reasons. First, tariffs avoid addressing the most fundamental complaints about China while they undermine the longstanding and beneficial global liberal trade order. Second, the U.S. approach has been unilateral rather than multilateral, weakening America’s bargaining position while alienating close allies. Third, the Trump administration escalates what is an economic challenge into an existential threat, ignoring numerous benefits from Chinese policies as well as ignoring multiple areas where China has been a powerful global partner. Middle powers in Asia have acted collectively and individually to bolster the global trading system and avoid the worst consequences of the Trump actions while seeking to avoid making permanent binary choices between the United States and China. Beyond the immediate problems, the Trump tariff wars are creating, they also generate damaging second order effects that are undermining domestic and regional policies conducive to enhanced American strengths and an economically less mercantilist China.     

E‐government and public service quality in Ghana

This article contributes to the growing discourse on the potential of e‐government to transform the operations of public sector institutions, thereby improving public services. It does so by conceptualizing public service quality into efficiency, economy (cost reduction), customer satisfaction, and service accessibility and draws on qualitative data from the Ghanaian narrative for illustration. As previous studies have demonstrated, this study also affirms the potential of e‐government in improving public services delivery by increasing efficiency, reducing the cost of operations, expanding access to services, and achieving customer satisfaction. Yet, there remains a repertoire of challenges such as weak ICT infrastructure especially in towns and villages, incessant power outages and illiteracy, which are drawbacks to fully harnessing the benefits of e‐government in Ghana. The study recommends that these challenges should feature prominently in e‐government policies to increase the chances of solving them.     

The Impact of Public Branding: An Experimental Study on the Effects of Branding Policy on Citizen Trust

Branding has become common in the public sector as brands are increasingly used to influence citizens’ associations with public organizations and public services. Using experimental research replicated in three European countries, this article investigates the effect of using the European Union (EU) brand on trust in policies. Experiments were conducted among economics students in Belgium, Poland, and The Netherlands to test the hypothesis that adding EU brand elements to policies positively affects trust in those policies. The results show a consistent positive and significant effect of applying the EU brand to trust in the policies in all countries and for both policies included in the experiment—even in The Netherlands, a country characterized by a negative overall EU sentiment. These findings provide some of the first empirical evidence of the effectiveness of branding for public policy.     

Public Enterprises and the Budget in Developing Countries

Public enterprises have a substantial fiscal impact in developing countries. This has led to the enterprises impinging on the budgetary process of the government while public enterprises are burdened by budget policies and macroeconomic policies. Such difficulties may necessitate the restructuring of public enterprises, either through privatization or reform to make them more competitive with the private sector.     

Institutions,distributional concerns,and public sector reform

Abstract. As in otherWestern countries, a wave of reform has swept the Danish public sector. The record of these reforms is mixed and paradoxical; an ambiguous delegation of executive authority and radical privatization have been successfully implemented, while other measures, especially contracting out and user democracy or the introduction of greater choice, turn out to have failed. The paper argues that this experience offers two general lessons. First, shortterm costs and benefits are decisive to those who enact and implement public sector reform. Second, institutional factors specific to each type of reorganization have a major impact on the political distribution of costs and benefits.     

Donors’ Responses to Profit Incentives in the Social Sector: The Entrepreneurial Orientation Reward and the Profit Penalty

This study uses an online survey experiment to test whether the pairing of profit-seeking with mission-related programs in the social sector attracts or deters donations from individual donors. We test individuals’ response to three types of profit incentives allowed under current U.S. public policy: (1) non-distributed profit to an organization, which is allowed for nonprofit entities; (2) profit to the organization's equity investors and owners, which is allowed under for-profit social enterprise governance charters; and (3) profit to lending investors, which is introduced by social impact bonds, a pay-for-success policy tool. We test trust theory, under which profit incentives deter donors against entrepreneurial orientation (EO) theory, which suggests that donors are attracted to organizations that use innovative, market-driven programs. Findings indicate support for both theories, but the support depends on how the specific profit incentive is structured. Donors support organizations that use profit-generating social enterprise programs—but only when the profits are non-distributable; donors’ support is significantly lower for social enterprises in which owners and equity investors may profit. Importantly however, this negative effect is not found for pay-for-success policy tools where lending investors, rather than equity investors and owners, receive profits.     

Determinants of Pro‐Fracking Measure Adoption by New York Southern Tier Municipalities

New York municipalities passed more than 60 measures promoting high‐volume hydraulic fracturing (HVHF), 2008–12. These policies and resolutions signaled to state officials that municipalities desired HVHF's promised economic benefits and were anxious for an end to the state's HVHF moratorium. They also may be evidence of municipalities proactively preparing for a drilling boom. Why did some jurisdictions adopt these measures while others did not? While scholarship suggests that policy adoption is facilitated when jurisdictions and citizens possess more resources, capacity appears to have a negative or negligible impact on pro‐HVHF action. Such action appears more likely when local actors anticipate HVHF's potential gains but have not previously experienced substantial drilling, perceive that the industry could be viable locally, and can access relevant policy examples. Some lessons from conventional adoption scholarship may not apply when policies are symbolic, advocacy may be elite‐driven, and mimicry is an important diffusion mechanism.