Legitimacy and context: implications for public sector reform in developing countries

This article examines the interplay between legitimacy and context as key determinants of public sector reform outcomes. Despite the importance of variables such as legitimacy of public institutions, levels of civic morality and socio‐economic realities, reform strategies often fail to take such contextual factors into account. The article examines, first, relevant literature – both conceptual and empirical, including data from the World Values Survey project. It is argued that developing countries have distinctive characteristics which require particular reform strategies. The data analysed shows that in Latin American countries, there is no clear correlation between confidence in public institutions and civic morality. Other empirical studies show that unemployment has a negative impact on the level of civic morality, while inequality engenders corruption. This suggests that poorer and socio‐economically stratified countries face greater reform challenges owing to the lack of legitimacy of public institutions. The article concludes that reforms should focus on areas of governance that impact on poverty. This will in turn help produce more stable outcomes. Copyright © 2008 John Wiley & Sons, Ltd.     

Latin–American public financial reporting: recent and future development

In recent years, numerous Latin–American countries have carried out reforms in their public accounting systems, with technical cooperation provided by the U.S. Agency for International Development (USAID). Taking into account the lack of international accounting standards for the public sector, USAID has designed a model termed Integrated Financial Management System for Latin America and the Caribbean (IFMS or SIMAFAL). This model is intended to provide better financial information for governmental decision‐taking as regards the allocation of resources; a further goal is to achieve greater transparency and for a higher degree of responsibility to be accepted for the commitments made and the results of activities undertaken. Important changes are currently taking place on the international public accounting scene and the International Federation of Accountants (IFAC) is pressing for the adoption of a set of international public accounting standards by Latin–American countries. In this article, we compare the level of information included in the year‐end governmental public report in Latin–American countries which have carried out their reforms outside SIMAFAL with that of others which have followed this model. Second, we examine the extent to which the public financial reporting practices recommended by IFAC coincide with those adopted by the above countries. Copyright © 2007 John Wiley & Sons, Ltd.     

Personnel Reform in the States: A Look at Progress Fifteen Years after the Winter Commission

Trends in states’ civil service reforms since the Winter Commission’s report was published in 1993 are described and evaluated in the context of its recommendations. The authors argue that the commission’s reform agenda relies on a public service bargain that requires public employees, elected officials, and other stakeholders to respect, trust, and support each other’s efforts to serve the public interest. Its recommendations for modernizing state and local personnel systems are discussed and related to the “reinvention” and New Public Management initiatives of the past 20 years. Many of these ideas have been adopted by state governments, but there is no single reform model that has been followed across the states. Some states, such as Georgia and Florida, have engaged in radical reforms that include replacing traditional merit systems with at‐will employment models. The general pattern involves decentralization, deregulation, and limitation of employee protections. While many of the management‐oriented changes advocated by the Winter Commission are staples of states’ civil service reforms, its emphasis on a “trust and lead” strategy based on public service values, partnership, and leadership in the public interest has not received much attention. In general, objective evaluations of states’ reforms are needed to determine whether their purposes are being achieved.     

New Millennium,New Public Management and the New Zealand Model

Recently the much‐discussed ‘New Zealand model’ of new public management (NPM) has become significantly revised. It now lacks the theoretical coherence and the market‐led focus that it relied on between 1987 and 1996. Labour‐led governments since 1999 have undertaken gradual and pragmatic – yet significant – changes in public management structures and principles, refining and sometimes reversing the model implemented in the late 1980s and early 1990s. This article does a ‘stock‐take’ of public management developments in New Zealand from 1999 to 2008, and argues that New Zealand can no longer be viewed as a leading exponent of market‐led NPM. Some NPM principles have been refined, but others have been quietly abandoned. The new National‐led government appears unwilling to undertake radical reforms, and, while it may seek a greater role for the private sector, looks set to continue with the ‘gradual and pragmatic’ approach adopted since 1999.     

Evaluating Administrative Modernization in German Local Governments: Success or Failure of the “New Steering Model”?

This article evaluates the results and impacts of administrative modernization in Germany after more than 10 years of New Public Management experience, concentrating on the most advanced level of public sector reform: local authorities. Drawing on a broad empirical basis, the authors pursue the following questions: Do “Weber‐ ian” administrative structures and processes continue to characterize the German public sector, or have the reforms left behind lasting traces of a managerial administration? Are local authorities performing better today, and if so, can this be attributed to the New Public Management modernization? The presented results show that no paradigm shift from the “Weberian” bureaucracy to New Public Management has occurred so far. Performance improvements notwithstanding, the new mix of steering instruments causes numerous unintended consequences, causing “Weberian” administration to reemerge.     

‘Post-NPM’ by force or fiat? A comparison of administrative reform trajectories in Brazil and Mexico1

‘New Public Management’ (NPM) ideas gained widespread acceptance all over the world in the 1980s and 1990s. In developing countries, notable examples of its influence include the Brazilian ‘Master Plan for Reforming Public Administration’, launched in 1995 by president Cardoso, and the Mexican ‘Federal Public Administration Modernisation Programme’ created in the same year by president Zedillo. Both reflected NPM doctrine and advanced changes for the organisation of the Executive. This article explores the evolution of these two countries' managerial reforms and the extent to which they eventually continued converging (or not) around similar principles, such as those often referred to as ‘Post-New Public Management’ (Post-NPM). By applying quantitative textual analysis of official documents and an analysis of self-reported institutional changes, the article concludes that despite their governing parties' strong political differences Mexico and Brazil did converge during the 2000s, improving controls from the centre, and prioritising the adoption of transparency and participation tools. The comparison of the trajectories of the administrative reforms of these countries between 1995 and 2016 contributes to international debates on policy convergence and Post-NPM reforms.     

The effects of tougher enforcement on the job prospects of recent Latin American immigrants

Attempts to enforce immigration laws in the U.S. interior have proliferated in recent years, yet the effects of these laws on immigrants are largely unknown. This paper examines whether increases in immigration‐related law enforcement since 2001 have adversely affected the labor market outcomes of low‐education male immigrants from Latin America, a group that comprises the bulk of undocumented workers in the U.S. The crackdown on the use of fraudulent Social Security numbers, increased requirements for government‐issued identification, and other changes associated with greater focus on national security likely lowered the demand for undocumented foreign‐born workers in the years following the 9/11 terrorist attacks. Using Current Population Survey data and a difference‐in‐differences estimation technique, we find strong evidence of worse labor market outcomes among recent Latin American immigrants in the post‐9/11 period relative to natives and prior Latin American immigrants. The results indicate a decline in employment, hours worked, and earnings among recent male Latin American immigrants relative to similarly low‐skilled black and Hispanic natives and vis‐à‐vis Latin American immigrants who have been in the U.S. longer. Our findings are consistent with firms increasingly substituting legal workers for undocumented labor in the years following 9/11. © 2009 by the Association for Public Policy Analysis and Management.     

Public sector reform in the Latin American and Caribbean region—issues and contrasts

Public sector reform in both Latin American and Caribbean countries has become a high priority for governments in their search for a new role for the state. Common principles have included the objective to privatize, or contract out services or responsibilities where the private sector has a comparative advantage while at the same time improving government efficiency in areas that are considered core government functions at different levels of government. These include integrated government financial management, social security and social safety nets, tax administration, provision of basic services (education and health), legal/regulatory reform, and judicial enforcement. Guiding principles in all countries have been predictability, transparency and accountability. While the degree of reform has varied amongst countries, there are a number of distinguishing features of the Commonwealth Caribbean that set its public sector reform experience apart from that of Latin America. These include the legacy of a professional civil service, long-standing democratic institutions and an active civil society, the relatively small size of the countries, and the emphasis on rule of law that can help explain some of the differences in the reform paths taken. Nevertheless, government ownership and commitment to public sector reform has been shown to be the most important element in determining results within the Latin American and Caribbean region.     

Forgoing New Public Management and Adopting Post‐New Public Management Principles: The On‐Going Civil Service Reform in Israel

Since the 1980s, New Public Management (NPM) and post‐NPM reforms have dominated attempts to improve public administration. The literature suggests several reasons for the latter approach. However, these explanations seem to be less relevant to the ongoing civil service reforms in Israel. The Israeli experience is an example where NPM reforms did not occur, but post‐NPM reforms were adopted enthusiastically decades later. Our findings demonstrate how under the structural conditions of both non‐governability and bureaucratic centralization, post‐NPM reforms may provide an attractive layering strategy, offering the option of changing certain features of the system without requiring a drastic, comprehensive overhaul of it. Once Israeli decision makers decided that there was a real public demand for reform, and long‐term learning and diffusion processes convinced them that change was needed, the characteristics of the post‐NPM approach made it much easier politically for them to adopt. Copyright © 2016 John Wiley & Sons, Ltd.     

Review essay

Lauren Weiner has written on Latin American affairs for the American Spectator,the Washington Times,and many other publications.     

The Effectiveness of Administrative Reform in New Democracies

Practitioners and scholars of postcommunist politics disagree on the accomplishments of administrative reforms in new Eastern European democracies. The transformation of the public sector after 1989 has aimed to consolidate the democratic process and enhance economic development. Skeptics, however, argue that administrative reforms face serious challenges in the context of economic liberalization, insufficient capacity for modernization, and cultural legacies of the past. The authors judge reform effectiveness by testing the impact of civil service reform on government transparency and foreign direct investment. The results of the empirical analysis confirm that once reform is adopted, administrations become more effective at reducing corruption and attracting investment. Despite the delays and difficulties of implementation, the adoption of reform is important in and of itself, and countries can expect positive results sooner than skeptics predict.     

International Comparison of Public and Private Employees’ Work Motives,Attitudes, and Perceived Rewards

This article presents a conceptual perspective on the distinctive characteristics of public organizations and their personnel. This perspective leads to hypotheses that public organizations deliver distinctive goods and services that influence the motives and rewards for their employees. These hypotheses are tested with evidence from the International Social Survey Programme in order to compare public and private employees in 30 nations. Public employees in 28 of the 30 nations expressed higher levels of public‐service‐oriented motives. In all of the countries, public employees were more likely to say they receive rewards in the form of perceived social impact. In most of the countries, public employees placed less importance on high income as a reward and expressed higher levels of organizational commitment.

Practitioner Points

• The findings presented here add to previous evidence that public employees seek and attain more altruistic and public‐service‐oriented rewards than private sector employees. In particular, we add evidence that these differences hold in many different nations and cultural contexts.
• Compensation and incentive system reforms in many governments have often concentrated on financial incentives and streamlining procedures for discipline and removal. Such matters are important but should not drive out concerns with showing public employees the impact of their work on the well‐being of others and on the community and society. Leaders and managers should invest in incentive systems that emphasize such motives and rewards.
• Leaders and managers should invest in the use of altruistic and socially beneficial motives and rewards in recruiting systems.

     

Accounting and accountability: recent developments in government financial information systems

In developed countries, governmental accounting is considered as an integral part and a successful aspect of public sector reforms. In developing countries, besides being a tool for government financial management modernisation, accounting is regarded as a weapon against fraud and waste in government. The aim of this article is to compare, taking the IPSAS No.1 as a benchmark, the information content of the financial statements submitted by the central governments of Anglo‐Saxon, Nordic, European Continental and Mercosur zone countries. The results give us a point of reference as to where the central governmental accounting of each country studied lies in the ‘spectrum’ from cash to full accrual accounting and to what extent the IPSASs are able to fit into diverse public administration styles in order to improve the transparency, accountability and reliability of the financial information disclosed. Copyright © 2004 John Wiley & Sons, Ltd.     

Book Reviews

Books reviewed: Timothy Conlan, From New Federalism to Devolution: Twenty‐Five Years of Intergovernmental Reform Martin PainterCollaborative Federalism: Economic Reform in Australia in the 1990s Douglas C. Foyle, Counting the Public In: Presidents, Public Opinion andForeign Policy Gerda Falkner, EU Social Policy in the 1990s: Towards a Corporatist Policy Community Maria Amparo, Cruz‐Saco, and Carmelo Mesa‐Lago, (eds.) Do Options Exist? The Reform of Pension and Health Care Systems in Latin America Janine R. Wedel, Collision and Collusion: The Strange Case of Western Aid to Eastern Europe 1989–1998     

The Obama Administration and PBB: Building on the Legacy of Federal Performance‐Informed Budgeting?

The administration of President Barack Obama, like those of his immediate predecessors, is focused on trying to improve the quality of, and use of, performance data. The federal government has been pursuing performance‐informed budget reforms for more than 50 years. Most recently, the Bush administration reforms included the President’s Management Agenda and the Program Assessment Rating Tool (PART). The Obama administration reforms include: measuring the effects of the American Recovery and Reinvestment Act; reducing or eliminating poorly‐performing programs; setting a limited number of short‐term, high‐priority performance goals; and funding detailed program evaluations. The administration is taking a more agency‐driven approach than the Bush administration, but continues to find it challenging to move beyond production of performance data to its use. There should be opportunities to show how performance information can be used for decision making, given the change in the political climate and the needs to reduce spending and the deficit. Historically, there has been little appetite in the Congress for evidence‐based decision making. The administration, however, can continue to demonstrate how federal agencies can use performance information to more effectively manage programs.     

RISING WITH THE TIDE WITHOUT FLIPPING THE BOAT — ANALYZING THE SUCCESSES AND CHALLENGES OF FISCAL CAPACITY BUILDING IN CHINA

While many developing countries experience a short period of economic boom and then spiral quickly into periods of deficit, currency fluctuation, and indebtedness, China has been able to sustain rapid economic growth and maintain solid fiscal capacity for the past 30 years, even during the Asian financial crisis in the late 1990s and the global recession in the beginning of the 21st century. This article examines three key strategies behind China's fiscal success — its flexibility in adapting tax policies to the changing economic and social conditions, its success in realigning the intergovernmental fiscal relationship in 1994 and forcing subnational governments to become more entrepreneurial in revenue generation, and its pursuit of institutional reforms since the mid‐1990s to improve the government's capacity in budgeting and financial management. The article evaluates the implications of the Chinese experience for other developing countries and discusses the future challenges of fiscal reforms in China. Copyright © 2012 John Wiley & Sons, Ltd.     

Vote Buying and Social Desirability Bias: Experimental Evidence from Nicaragua

Qualitative studies of vote buying find the practice to be common in many Latin American countries, but quantitative studies using surveys find little evidence of vote buying. Social desirability bias can account for this discrepancy. We employ a survey‐based list experiment to minimize the problem. After the 2008 Nicaraguan municipal elections, we asked about vote‐buying behavior by campaigns using a list experiment and the questions traditionally used by studies of vote buying on a nationally representative survey. Our list experiment estimated that 24% of registered voters in Nicaragua were offered a gift or service in exchange for votes, whereas only 2% reported the behavior when asked directly. This detected social desirability bias is nonrandom and analysis based on traditional obtrusive measures of vote buying is unreliable. We also provide systematic evidence that shows the importance of monitoring strategies by parties in determining who is targeted for vote buying.     

The application of new public management doctrines in the developing world: An exploratory study of the autonomy and control of executive agencies in Tanzania

This article examines the agencification of public service in Tanzania. This is discussed with reference to the New Public Management (NPM)‐inspired reforms of which the creation of executive agencies is one of its core features. The article attempts to understand the extent to which executive agencies in Tanzania display characteristic features of an ideal‐agency model as propagated by the NPM reform doctrines. Key features of the ideal‐agency model have been described as structural disaggregation, autonomy and contractualisation. It questions views held by many NPM‐minded reformers, such as the EU and World Bank that this model is universally applicable and can be emulated in different parts of the world. The article's assumption is that the NPM‐agency model is based on a weak empirical foundation and its universal applicability is questionable. To illustrate our arguments we confront the NPM‐agency model with the empirical data drawn from the agencification of public services in Tanzania. Findings indicate that agencies in Tanzania display hybrid characteristics in terms of their autonomy and control. Our conclusion is that the universality of NPM‐agency model is illusive. Copyright © 2010 John Wiley & Sons, Ltd.     

The Political Economy of Public Reform Adoption: Patterns in Twenty Indonesian Districts

ABSTRACT

New Public Management (NPM) reforms are often perceived as technical, with little attention to political and institutional factors. Comparing choices in 20 Indonesian districts, we explore which of four political economic factors influence uptake of NPM-based service delivery reforms. We find that democratic political competition laid the groundwork for political alliances, patterns of patronage, and party provision of benefits that condition reform choices. State-led policy entrepreneurship was evident from education agency technocrats. Public sector modernization may have increased orientation towards performance, with education reforms adopted by districts already achieving relatively good sectoral results. Health reforms were more common in districts providing greater opportunities for citizen participation. The complex interactions among the factors argue for working within these realities, rather than seeing them as impediments to be avoided in a drive for reforms. Education technocrats’ dominance, bolstered by central policy priorities, argues for more nuanced mechanisms for meeting national goals to avoid crowding out responsiveness to local citizens.     

Employee Engagement as Administrative Reform: Testing the Efficacy of the OPM's Employee Engagement Initiative

Researchers have long recognized administrative reform as a constant feature of American public administration. The employee engagement initiative of the U.S. Office of Personnel Management (OPM) has become one of the most prominent administrative reforms underway in the federal government. Like many reforms, the veracity of claims about this reform have gone untested. This article addresses this gap by testing the relationship between the OPM's employee engagement initiative and agency performance. After establishing the psychometric validity of the OPM's Employment Engagement Index, the authors use a five‐year panel data set of federal agencies and two‐way fixed‐effects regression to test the efficacy of this prominent reform. The analysis shows that efforts to encourage employee engagement generally have the expected relationship with performance, but the relationship varies according to the components that make up the index and the organizational level at which these efforts are expended.