Fiscal institutions of Brazilian municipal borrowing

In an effort to understand subnational borrowing, this article explores how three Brazilian institutions—the 1988 Constitution which mandates revenue and expenditure assignments among the levels of the federation; the national Law of Fiscal Responsibility, which imposes expenditure and debt limitations on all levels and branches of government; and various borrowing arrangements—affect the municipal borrowing environment. These institutions are examined in light of de Mello's (2001) policy recommendations for strengthening efficiency and fiscal discipline in subnational borrowing. The institutions of Brazilian borrowing were found to have some of de Mello's recommendations, with the new Constitution and the Law of Fiscal Responsibility making progress towards increased fiscal responsibility, but the current borrowing arrangements serving to maintain a controlled system that is not conducive to responsible municipal borrowing. Several recommendations are made to improve the borrowing environment and foster fiscal discipline and efficiency Copyright © 2008 John Wiley & Sons, Ltd.     

Fiscal Decentralization,Flat Administrative Structure,and Local Government Size: Evidence and Lessons from China

This paper examines the effects of fiscal decentralization and flat administrative structure on local budget size and program outlays. We test three related theoretical hypotheses in China's adoption of province‐over‐county scheme of financial administration. We provide evidence that both decentralization of expenditure and decentralization of revenue increase the size of local budgets; that the impact of the former far outweighs that of the latter with local budgets on a rising trajectory; and that discretion grants localities more means to increase their budget. These results show that as China's reform deepens the proportion of local outlay on administration declines because of more local discretion from eliminating the prefecture bypass between the province and counties. But neither decentralization nor increased local discretion has allocated more local resources for education, and both contribute to increasing outlay on economic development. The paper formulates tentative policy recommendations that carry potential application for other countries. Copyright © 2016 John Wiley & Sons, Ltd.     

Pathways of democratisation to human development in post‐communist countries

The article investigates the consequences of post‐Cold War regime transitions on human development in the former Soviet bloc. Relying on a mixed‐methods research strategy that combines econometric and qualitative comparative analysis, it proceeds through three consecutive steps. First, there is a discussion of how democratic institutions may solicit governments’ attention toward social issues. Second, the relationship between democratisation and human development in 21 post‐communist countries is tested. Third, democracy in its core attributes is unpacked, and qualitative comparative analysis (QCA) is used to identify a few alternative institutional configurations favouring human development. The analysis reveals that not only full democracies, but also some hybrid regimes, have been successful in this task.     

Fifteen Years After Decentralization by Devolution: Political‐administrative Relations in Tanzanian Local Government

One of the professed goals of the 1998 Tanzanian Local Government Reform Program, entailing substantial decentralization, was to provide for a democratic administrative set up in local government. Elected local councils were invested with responsibilities for a wide range of policy sectors and services; the local administrative staff, formerly recruited and instructed by central government, would be appointed by and accountable to the local councils. A well‐functioning local politico‐administrative system was considered paramount to improve service delivery and ensure control of decision making by the local community. This article reports on research into the relations between councilors and administrators in two Tanzanian municipalities. Overall, these relations were found to be tense and full of discordance, caused by clashing role perceptions and mutual distrust. The research suggests that the main factor underlying the behavior and attitudes of councilors and administrators is the very system of public administration, which — despite the ambitions expressed in the Local Government Reform Program — remains very centralistic in character. Copyright © 2016 John Wiley & Sons, Ltd.     

Extractive industries and regional development: Lessons from Peru on the limitations of revenue devolution to producing regions

ABSTRACT

The transfer of oil and mining revenues to the subnational governments of resource-rich jurisdictions is a common policy aimed at promoting development and reducing local opposition to extraction. In the early 2000s, Peru implemented a radical version of that policy. Peruvian mining regions received fiscal transfers many times greater than the national average during the last commodity boom. The strategy had mixed effects on well-being indicators. These transfers had statistically significant positive effects on economic growth and the rate of school attendance at different ages. In contrast, they did not have a significant impact on poverty reduction or the coverage of other basic services, while being positively correlated with an increase in the income gap between women and men. Overall, the results are not as positive as the promoters had expected. The transfers generated political incentives for local authorities to pursue short-term, clientelistic spending that has reduced their potential benefits.     

Applying rapid results approach to local service delivery: issues,lessons and challenges from Nairobi City Council

Over the years, the Kenyan Government has pursued wide‐ranging public sector reforms to improve local service delivery, but little has been achieved due to lack of a wide‐ranging decentralisation policy and institutional framework. To precipitate the reform process, the rapid results approach (RRA), commonly applied in private sector organisations, was recently introduced thorough out the public sector, including local authorities (LAs). This article assesses the efficacy of the rapid results approach (RRA) methodology in local service delivery using Nairobi City Council as a prototype; highlighting the success stories, pitfalls and challenges. The analyses are based on the findings obtained using current literature on the subject matter and the author's interactions with the council staff, councillors and other stakeholders. On the basis of the analysis, the article draws the main conclusions and policy advice on what could be considered critical for further debate, highlighting issues, lessons and challenges that could be raised to improve the practice of RRI. The key messages presented here will help policy makers, scholars and practitioners of reform to re‐think the envisaged countrywide replication of RRI to the rest of LAs. Copyright © 2008 John Wiley & Sons, Ltd.     

The policy response to COVID-19 pandemic and its impact on the equity market sentiment: The Indian experience

We examine the dynamics of the impact of the evolving policy response during the COVID-19 pandemic on the equity market sentiment in India. We operationalise our study by examining the India VIX, the fear gauge of the Indian equity market as an indicator for the market sentiment, and the country level Government Response Index of the Blavatnik School of Government, Oxford University as an indicator for the policy response. The relation is examined through the Markov-switching model using high-frequency daily data from January 30, 2020, to May 31, 2021. The evidence suggests that the policy response has a positive impact on the market sentiment when the market is fearful. Further, the evidence suggests that both the high-fear state and the low-fear state of the market sentiment given by the model are short-lived indicating heightened volatility and possible speculation during the ongoing pandemic in the Indian equity market.     

The role of public relations in non‐electoral participative democracy: a case study examining the effectiveness of district assemblies within Tameside Metropolitan Borough Council

This paper is concerned with how local councils might bring about the renewal of local democracy, and in particular, to the extent to which public relations might contribute to the process of renewal. To begin, the public policy literature is reviewed to investigate the concept of participatory democracy and its application in the UK. The role of local government public relations is then discussed and to the extent to which the concepts of public relations and local public participation are linked. The paper then goes on to describe and critically evaluate one particular case where a public relations strategy was used to effect participatory democracy through local forums or ‘district assemblies’. In the case of Tameside Metropolitan Borough Council, district assemblies were found to be successful examples of deliberative forums in achieving participatory democracy. They were well publicised and encouraged participation, and people thought that they made a difference to their community. However, the research raised questions surrounding the extent of community representation at district assemblies (including the publics targeted); and inclusivity in the structure and organisation of the meetings. The case raised the issue of power inequalities which public relations efforts alone cannot resolve in the democratic renewal project. Copyright © 2003 Henry Stewart Publications     

Sources of local government extractive capacity: The role of trust and pre‐colonial legacy in the case of Uganda

Local government extractive capacity, as measured by the amount of graduated personal tax (GPT) collected relative to district wealth and population and, more qualitatively, as reflected in the nature of enforcement, varies considerably in Uganda. This article explores the reasons for this variation, first by investigating aggregate data at the cross‐district level, using data on taxation as well as survey data from the Afrobarometer, second, by a focussed comparison of two districts, one with high‐ and one with low‐extractive capacity. I find that generalised trust can explains some of the variation in extractive capacity across districts. The case studies trace the differences in trust and extractive capacity back to pre‐colonial rule; the better performing district having had centralised rule, a tradition of tax‐payment and a higher degree of social cohesion, while the poorer performing district had a more fragmented and less cohesive history of governance. The article thus points to the importance of understanding institutional path dependencies when assessing the feasibility of reform. Copyright © 2009 John Wiley & Sons, Ltd.     

From parliamentary pay to party funding: The acceptability of informal institutions in advanced democracies

While direct state funding of political parties has been a prominent theme in cross‐national research over the last decade, we still know little about party strategies to access state resources that are not explicitly earmarked for partisan usage. This article looks at one widespread but often overlooked informal party practice: the ‘taxing’ of MP salaries – that is, the regular transfer of fixed salary shares to party coffers. Building on notions of informal institutions developed in work on new democracies, the theoretical approach specifies factors that shape the acceptability of this legally non‐enforceable intra‐organisational practice. It is tested through a selection model applied to a unique dataset covering 124 parties across 19 advanced democracies. Controlling for a range of party‐ and institutional‐level variables, it is found that the presence of a taxing rule and the collection of demanding tax shares are more common in leftist parties (high internal acceptability) and in systems in which the penetration of state institutions by political parties is intense (high external acceptability).