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.     

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.     

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.     

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.     

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.     

Central Steering And Local Networks: Old-Age Care In Sweden

Recently, some European social scientists have claimed that the old legal-bureau-cratic model of administration has been replaced by a new paradigm in public administration, characterized by a strong emphasis on collaboration in local inter-organizational networks. The proponents of this policy network approach take a clearly voluntaristic view on policy implementation; network actors build consensus in negotiation processes, and the role of central government is restricted to that of goal-setter, facilitator and mediator. Thereby, phenomena like power and steering are overlooked. This paper gives an account of a major Swedish reform in the area of old-age care, whereby the boundaries between regional and local areas of responsibility for care of the elderly were displaced. By using a variety of control methods, central government was able to structure and steer the old-age implementation networks. The consequences of this central steering were different on different administrative levels: for the county councils, the reform has resulted in a specialization for the core areas of primary health care and hospital treatment, whereas the municipalities have had to diversify their areas of activity. Thus, to understand the effects of the reform, implementation networks must be viewed as both hierarchical and horizontal power structures, where national government, from a hierarchically superior position, can affect formally horizontal relations between actors by creating patterns of interdependence. Central government's steering has taken on less direct forms than the traditional ones, but indirect forms of steering can certainly be efficient, especially when several mutually reinforcing control methods are combined.     

Estimating the Performance of Local Authorities as a Measure to Overpass the Financial Crisis: The Greek Case Study

Nowadays, local authorities face a number of problems that are related to the global economic crisis. For every government, the idea of measuring authorities’ performances and transferring funds based on this estimation seems to be a solution for their sustainable development. In this article, we introduce a methodological framework for measuring the performance of local authorities based on the (a) quality of services offered, (b) complexity of operational procedures, and (c) cooperation with the central governance. Finally, we propose a model for improving local authorities’ effectiveness.     

Local Fiscal Stress in California: Out of Local Control and Driving Toward Growth

Abstract

Many regions of the United States have experienced rapid growth in recent decades with California being the best example of this growth. The dangers of such growth have been evident since the 1970s and yet, neither the state nor local governments have been very successful in implementing growth control policies. Why it is that government has been unable to rein in the growth has been the focus of much research in recent decades. There are essentially two schools of thought with regard to this question. One is that pro‐growth forces—essentially landowners, business elites, and elected officials—actively promote growth because it provides them personally with benefits. The other view, advocated most by Paul Peterson back in the early 1980s, is that elected officials do support and adopt pro‐growth policies, but not by choice. Cities, Peterson argued, are constrained by the economic situation around them and they must do what they can to raise revenues and reduce, or hold steady, expenditures. This research examines a region of southern California that has experienced tremendous growth despite the fact that surveys of resident attitudes within the region indicates that in general, residents favor growth control. This research contributes to an understanding of the driving forces behind the pro‐growth policies of local governments by considering how fiscal constraints placed on local governments by the state may limit the policy options of local elected officials, as Peterson predicted. This study finds that there is evidence to indicate that the revenue‐raising options available to cities may be contributing to pro‐growth policies. And this could help explain why elected officials continue to support growth within their cities despite the fact that residents express negative views toward growth.     

Testing The Limits of Incrementalism: An Empirical Analysis of Expenditure Decisions by English Local Authorities, 1981–1996

Studies of budgetary outputs in public organizations are dominated by the theory of incrementalism. This perspective suggests that expenditure decisions are based on simple rules of thumb. We evaluate the validity of incrementalism by examining the annual spending decisions of 403 English local authorities over 15 budgetary cycles. Two budgetary norms are tested empirically: protect the real level of service provision, and follow central expenditure guidelines. Each of these norms is translated into two decision rules: marginality, or the size of deviations from the norm, and regularity, which refers to the consistency of such deviations over time. Few of the statistical results support the hypothesis that local expenditure decisions are dominated by general budgetary norms or specific decision rules. Our evidence therefore casts doubt on the validity of incrementalism as a theory of local budgetary outputs, and as an explanation of spending decisions in the public sector as a whole.     

The Role of Organisational Culture in the Merger of English Local Authorities into a Single Unitary Authority

Cornwall Council is a new ‘unitary’ local authority which was created following the merger of six district councils and one county council on 1 April 2009. A questionnaire survey based on specific ‘dimensions’ of organisational culture was circulated to staff prior to the merger date. Overall, the results indicated a generally congruent culture characterised by a strong team spirit and commitment to the workplace. A number of differences were observed between the cultural orientations of the seven councils, but there was only weak evidence of differences between tiers of management or professional groupings. The study suggests that the new organisation will have to find ways of ‘unfreezing’ staff from their established ways of thinking and working before changes can be properly embedded. It is recommended that the organisational change process shifts from a top-down ‘planned’ approach to a more ‘emergent’ approach to facilitate learning and organisational development.     

Policy Transfer Over Time: A Case of Growing Complexity

The article indicates that policy transfer has played an important role in the development of policy and legislation in Australia. Indeed, much of what is regarded as Australian policy is borrowed, usually in small part, but sometimes in its entirety, from elsewhere. One of the implications of this view is that Australian policy making processes are often, at least in part, dynamic, policy processes that draw upon a number of sources, both domestic and international. The focus of this article is upon the sources of transfer in the Australian context, both domestic and international, and how the sources drawn upon by Australian state and federal governments have changed over time. The article also indicates that on the evidence available the Australian experience with transfer can be divided into a number of phases. The first, from European colonisation to approximately the middle of the nineteenth century, the second from roughly the middle of the nineteenth century to federation at the beginning of the twentieth century, the third from the establishment of the Australian federation in 1901, to the Second World War, and the fourth phase, from the Second World War to the present.