The Financial Crisis of the Local Authorities in Israel: A Resource-Based Analysis

The financial crisis affecting many of the local authorities in Israel has a significant influence on their ability to supply municipal services of an appropriate amount and quality. So far, studies have been addressed to the financial crisis from a political approach by discussing aspects such as the problematic interrelation between central and local governments together with resource allocation. In this paper we investigate the financial crisis of many local authorities in Israel from a strategic point of view. However, this is by no means to argue that other approaches such as institutional and political ones are not important. Rather, the paper investigates whether the financial crisis affecting many Israeli local authorities is a result of their own strategies and practices.
Specifically, we have used the resource-based approach to explore the nature of their joint crises and the potential strategic responses that the local authorities should adopt in order to move into a more favourable state. In particular, we examine three resource-based systems: customer-oriented, organizational culture, and human resources, as the strategic roots of this crisis. We also examine the way they could produce a sustainable competitive advantage and could lead local authorities from the present position to a better one. The article recommends that the heads of local authorities should move to a resource-based strategy in order to perform both more efficiently and effectively.     

Performance Reporting: Assessing the Annual Reports of Malaysian Local Authorities

There have been calls for Malaysian local authorities to be more transparent and accountable in the discharge of their functional responsibilities. This study empirically evaluates the extent and quality of current performance reporting by local authorities. The disclosure of relevant information for discharging accountability obligations, as defined by a broad range of stakeholders, falls short of best practice. Therefore, the performance of Malaysian local authorities lacks transparency. The findings could assist in the development of more comprehensive guidelines for local authority reporting and raise awareness of information stakeholders expect to be reported in the context of accountability.     

Turnaround Management Strategies in Local Authorities: Not Only for Poor Performers

In the past four decades, UK government policymakers have sought to improve the performance of local government by trying to achieve organisational turnaround and bring laggards up to the standards achieved by the leaders. Both the Conservative Party and New Labour led new public management reforms aimed at modernizing and improving local government authorities by adopting standards from the private sector. Given the pressure to improve, failing local authorities have been pushed to adopt a unique set of strategies known as turnaround management strategies (TMS). However, this paper, based on qualitative data and a survey of 126 senior local leaders, shows that TMS have been implemented to a high extent among both poor and excellent performers. The paper concludes that regardless of their objective performance ranking, English local authorities are characterised by a self-perception of underachievement. As a result, high performers continuously implement radical changes.     

Digital Communication between Local Authorities and Citizens in Denmark

Today options for digital communication exist in all Danish municipalities. But are local councils aware of the democratic potentials of the new forms of political communication? This article focuses on the democratic dimensions of web design. To what extent do the websites improve access to information on public affairs and stimulate participation of citizens in local politics? To answer these questions, a screening of all 275 Danish municipal websites was carried out on two dimensions: information/transparency and contact/dialogue. The findings show great variation between best and worst practice in terms of democracy. Furthermore, the findings show that size and income per inhabitant explain some of the variation, whereas the political colour of the party in office has no significance.     

Local Authorities and Non–elected Agencies: Strategic Responses and Organizational Networks

This article deals with developing relationships between local authorities and local non–elected public service agencies in England and Wales. It classifies local authority responses to the growth of the non–elected state. Account is taken of varying agency characteristics and the constraints and dilemmas they face. From the local authority vantage point what is at stake is organizational (re)positioning in a changing institutional environment. Insights derived from strategic management are therefore utilized. But resource dependencies and exchanges also manifest themselves in these emerging relationships. Moreover, account must be taken of the scope for local authorities to be 'network managers' given the structural reconfiguration of the local state. The analysis therefore takes on board organizational networking theoretical frameworks. Although central government remains best placed to manipulate the 'rules of the [new and uncertain] game', interesting possibilities present themselves if local authorities can show more strategic skill than in the recent past.     

Knowledge Management and Open Innovation in United Kingdom Local Authorities

The article examines the performance of UK local authorities in relation to knowledge management and open innovation. Data were acquired using a mail survey of non-metropolitan local authorities in England and Wales. The results indicate that certain factors influence the effectiveness of the knowledge management process. Authorities engaged in open innovation have developed more effective knowledge management processes. Hence, of instead of implementing a strategy solely based upon cutting services and reducing staffing levels, local authorities seeking to survive in the face of government spending cuts might also consider the benefit from optimizing the effectiveness of their knowledge management processes and participation in open innovation.     

Democratic consolidation in Central America: A qualitative comparative approach

An end to KKN-the Indonesian acronym for corruption, collusion and nepotism-is currently one of the demands of Indonesia's growing reform movement. This is not the first time corruption has been on the political agenda in Indonesia; indeed, Suharto came to power promising to end corruption. Tackling corruption, however, was not one of the priorities of the Suharto regime and under Suharto KKN thrived while protesting voices were silenced. This article examines the political, economic and cultural conditions which have allowed corruption to flourish in Indonesia and concludes by considering whether the new poltical mood in the country since the fall of Suharto offers hope for a new, more corruption-free Indonesia.     

An Evaluation Analysis of E-government Development by Local Authorities in Australia

Local governments play an important role in moving forward towards the vision of a connected and responsive e-government. This research develops a set of evaluation criteria for evaluating local council's websites. By examining the current status of the local government websites, this research provides an overview of the level of sophistication of the e-local government development in Australia. The local governments in Australia have not developed truly sophisticated e-government services. The majority of the local government websites are primarily informational and they provide one way communication of information from government to citizens.

To identify the factors affecting the level of sophistication of local council's websites, a single case study approach is employed in this research. Top leadership support and management capacity and organisational and technical challenges are considered important for e-government development. User-centric website design and bridging the digital divide also play a role in the successful implementation of e-government.     

Financial Discrepancies in Political Party Funding by Indonesian Local Government Authorities

Through different forms of decentralization variables, this study investigates Indonesian local government authorities' 2006 financial accountability reports in terms of local government authorities' contributing funds to political parties. Audit results by the Supreme Audit Body reveal that many articles were violated by these authorities in regard to the distributing, administrating, and reporting of assistance funds from them to political parties. Each rupiah committed by the 221 local government authorities involved in this study violated, on average, 1.8 articles, indicating a low level of compliance.

Critically, the study finds that administrative, fiscal, and political decentralization decreases discrepancies. The less administratively decentralized provincial authorities, where decision making is a level of government farther from the people, are more likely than non-provincial local government authorities to make discrepancies with political party legislation and regulations. Fiscally decentralized local government authorities, who earn a higher fraction of their revenue from local sources, also tend to have fewer discrepanciesFinally, politically decentralized authorities with a higher percentage of elected officials from the decentralized supporting ruling coalition, also have fewer discrepancies.     

Determinants of Online Reporting of Accounting Information by Spanish Local Government Authorities

This paper examines the features of Spanish local governments that influence the degree of their voluntary reporting of financial information on the Internet. Following an agency theory approach, we propose five hypotheses regarding the relationship between voluntary financial disclosure and the size, leverage, capital investment, political competition and press visibility of a local authority. The empirical application of these hypotheses shows that size, capital investment and political competition are positively associated with the degree of online reporting. We also found a negative and significant relationship between press visibility and voluntary financial disclosure.     

Local Government Finance: Assessing the Central Governmant's Contribution

It is widely believed that between 60 to 66 per cent. of local authority expenditure (or income) is met by grants from central government alone. This popularly held view is challenged in this paper through a consideration of the current system of funding. We begin with the rate support grant procedure and identify some common sources of misunderstanding; these concern the definition of the rate support grant itself and the true nature of relevant expenditure. This leads us to examine the question of local authority miscellaneous income from fees, sales, rents and other sources from which we conclude that its contribution is underestimated. However it is general knowledge that besides miscellaneous income local authorities derive their income from two other principal sources namely, government grants and local rates. Accordingly the remainder of the paper examines in turn the contribution of these three sources towards (i) local authority revenue expenditure in respect of rate fund services, (ii) local authority revenue income and (iii) local authority income including both revenue and capital receipts. In no instance does central government's share approach 60 per cent. Thus, it would appear that the contribution of government is being overestimated while that of miscellaneous income underestimated. The implications of this are discussed.     

Fiscal Distress in Local Authorities in Israel: the Convened Committee as a Method and a Solution

This study addresses fiscal distress in local authorities in Israel and around the world, and provides an in-depth analysis of the city of Bnei Brak from 1994 to 2003. When the city of Bnei Brak grappled unsuccessfully with fiscal distress, the Ministry of the Interior appointed a Convened Committee (CC; Va'adah Kruah) to handle the crisis. This study explores the methods and solution used by the government to extricate the authority from bankruptcy, while examining the sources and repercussions of this decision. The findings show that the CC solution was borne of necessity, due to the gravity of the financial crisis and the fact that the government had no other way of bailing out the city. However, the situation in Bnei Brak did not improve even after the CC was appointed, which challenges the very efficacy of the solution. This forms the basis for a discussion of the complexities of resolving the fiscal distress of localities in Israel.     

Local Politics,Central Power: The Future of Representative Local Government in England

When Labour took power in 1997, local government was battered and bruised, but it had survived, and indeed retained much of its vitality. What would happen next? Where the Conservatives had used the language of competition, New Labour promoted its policies around an ideology of modernisation, and rapidly introduced a new legal framework, new powers and strong incentives to improve performance. But by 2004, in the run-up to another general election, Labour increasingly emphasised the rights of consumers to choose providers of services, and the value of involving the private sector in public sector provision. There were proposals to take the finance for education and social services out of local authority control. A complex geography of partnerships and networks had developed, which required small executives of salaried councillors, far fewer than the large numbers needed by the committee system. But turnout in local elections remained low, and membership of both Labour and Conservative parties declined. The paper uses a simple stakeholder analysis to show how councillors and local activists were marginalised. It suggests that the government has a choice: it could either accept that the era of multi-skilled councillors responsible for the multi-purpose local authorities is ending, or it could radically rationalise the present quangos, partnerships and other governance structures to re-create it.