Municipal Amalgamations and Common Pool Problems: The Danish Local Government Reform in 2007

Amalgamating municipalities carries risks in terms of public expenditure control. The tax base of the new amalgamated municipality represents a common pool resource. The incentive is to exploit it – that is, to spend before closing time. This article investigates last-minute spending by Danish municipalities before the local government reform in 2007 in which 271 municipalities were reduced to 98. It shows that local councillors exploited this situation to finance local projects before closing time. The article thus demonstrates the occurrence of common pool problems in amalgamation situations. However, it also shows that it is the availability of a common pool that matters, not its size.     

Local Government and decentralization in the Sudan

The establishment of an effective local government system has been imperative in the Sudan both on account of the vast scale of the country and the decentralization policies of successive governments. District councils were initially established in 1951 following the Marshall Report, but were by stages superseded as budgetary authorities, and reduced to unimportance by the People's Local Government System in 1971, which vested responsibility in Councils at the Provincial level. The subsequent difficulties experienced by this system indicate the value of the District, now renamed Area, as a level for a multipurpose local authority in the Sudan, and explain the reemphasis of this level in the 1981 Local Government Act. This article summarizes the experience leading up to the 1981 Act, and examines the extent to which the new legislation offers an effective structure. The finance of local government, a recurrent problem in the Sudan, emerges as a critical issue, together with the future role of the Provincial Commissioner.     

The effect of school district and municipal government financial health information on local tax election outcomes: evidence from fiscal stress labels in Ohio

A key informational asymmetry in local public finance is the lack of information available to local residents regarding the financial status of the school districts and local governments in which they reside. Given that voters in many states must approve property and income tax increases for these local entities, the lack of full information on the financial status of these local entities may lead to sub-optimal voting decisions. State financial intervention systems have begun to make financial problems more salient to residents, potentially alleviating these informational asymmetries. This paper examines the effect of the Ohio fiscal stress labeling program on voting outcomes and the tax-setting behavior of local officials for school district and municipal government tax referendums. We use a difference-in-differences approach to examine data from over 3000 school district and 2300 municipality property tax elections from 2004 to 2012. While we find minimal evidence that the yes vote share changed for school district referendums following fiscal stress label receipt, we find very large increases (15 to 23 percentage points) in the likelihood of referendum passage for school districts following label receipt. We do not find much evidence of changes in the likelihood of passage or the yes vote share following label receipt for municipalities, but we do find that these voting outcomes rise following label removal. We also find that local officials do not appreciably change their tax-setting behavior in response to these labels, as the size and likelihood of property tax proposal are largely unchanged following label receipt or removal.     

Addressing Restrictive Zoning for Affordable Housing: Experiences in Four States

Affordable housing development in suburban locales is often constrained by zoning and other municipal land-use restrictions. This article explores experiences in four states that have been recognized for exemplary interventions that address “exclusionary zoning.” Using quantitative and qualitative methods, the article examines overall production levels resulting from the specific program, the extent to which such production is occurring in locales with more White residents and more higher-income residents, and the levels of compliance with state-specified goals, where such goals exist. When possible, cross-state comparisons are provided. Although there are clear signs of progress, with municipalities increasing their affordable housing stocks and with some of this production occurring in locales that probably would not have developed such housing without such state (or county) intervention, the pace has been slow. A number of recommendations are offered for these and other states contemplating strategies to address exclusionary land-use practices.     

Does Direct Democracy Hurt Immigrant Minorities? Evidence from Naturalization Decisions in Switzerland

Do minorities fare worse under direct democracy than under representative democracy? We provide new evidence by studying naturalization requests of immigrants in Switzerland that were typically decided with referendums in each municipality. Using panel data from about 1,400 municipalities for the 1991–2009 period, we exploit Federal Court rulings that forced municipalities to transfer the decisions to their elected municipality councils. We find that naturalization rates surged by about 60% once politicians rather than citizens began deciding on naturalization applications. Whereas voters in referendums face no cost of arbitrarily rejecting qualified applicants based on discriminatory preferences, politicians in the council are constrained to formally justify rejections and may be held accountable by judicial review. Consistent with this mechanism, the increase in naturalization rates caused by switching from direct to representative democracy is much stronger for more marginalized immigrant groups and in areas where voters are more xenophobic or where judicial review is more salient.     

Comparing blunders in government

Much attention has been paid to government ‘blunders’ and ‘policy disasters’. National political and administrative systems have been frequently blamed for being disproportionately prone to generating mishaps. However, little systematic evidence exists on the record of failures of policies and major public projects in other political systems. Based on a comparative perspective on blunders in government, this article suggests that constitutional features do not play a prominent role. In order to establish this finding, this article (a) develops theory‐driven expectations as to the factors that are said to encourage blunders, (b) devises a systematic framework for the assessment of policy processes and outcomes, and (c) uses fuzzy‐set qualitative comparative analysis to identify sets of causal conditions associated with particular outcomes (i.e., blunders). The article applies this novel approach to a set of particular policy domains, finding that constitutional features are not a contributory factor to blunders in contrast to instrument choice, administrative capacity and hyper‐excited politics.     

Autonomous Local Climate Change Policy: An Analysis of the Effect of Intergovernmental Relations Among Subnational Governments

Local governments have emerged as important players in climate change governance, both at home and on the international stage. Likewise, action by states and provinces has been increasingly highlighted, particularly as national actors have moved slowly to reduce greenhouse gas emissions. But to what extent do local governments act independently from state and provincial governments in the area of climate change mitigation? Using an explicit process tracing approach, the article tests two hypotheses regarding the influence of upper level subnational governments on local policy. In Vancouver, British Columbia, Canada, a city that is a climate change leader, provincial government intervention cannot explain the results of climate change mitigation policy making. This suggests that local governments can exercise an important degree of autonomy over climate change policy, but also implies that where municipalities are less independently committed to climate action, active upper level government intervention will likely be needed.     

Negotiating Municipal Merger

This article contributes to organizational research by describing the format and space of negotiation arenas – temporary arenas with diverse social order characteristics. The article also contributes to our understanding of the dynamics of different logics of negotiation. We compare two cases from the Norwegian Local Government Reform. The empirical phenomena of a negotiation arena, where municipalities negotiate potential mergers, provides relevant knowledge. Results from the study show that, despite similar conditional factors, we find significant differences in how the municipalities approach and organize the process, how it evolves and how it ends. We argue that the motivation and design of the negotiation arena not only affect the dominating logic of negotiation through the processes, but also the foundation for any potential mergers. Logics of negotiation are related to the initial characteristics of the negotiation arena, but also become an important variable in the development of this negotiation arena. In this way, the article illustrates a two-way interaction between social order and logics of negotiation, and shows why negotiation arenas differ and change over time.     

Common pool effects and local public debt in amalgamated municipalities

This paper investigates whether the large scale municipal amalgamations in the German state of Baden-Wuerttemberg in the early 1970s led to considerable common pool exploitation. Through amalgamation the resources of several municipalities are pooled together disclosing the former independent municipalities a larger source of funds. Additionally, the pooling also decreases the cost of local public goods, as those have to be borne by the whole of the amalgamated municipality. By exploiting the huge variance in the amalgamation process in terms of number of participating municipalities, but also in municipality size or amalgamation strategy, we identify considerable common pool effects. Amalgamated municipalities show considerably stronger acceleration in debt accumulation compared to non-amalgamating municipalities. This common pool exploitation is stronger if more municipalities participate and when municipalities amalgamate by annexation.

     

An assessment of reasons behind service delivery protests: A case of Greater Tzaneen Municipality

This article aimed at assessing the underlying factors behind municipal service delivery protests at Greater Tzaneen Local Municipality. South African municipalities also form part of concerned public entities in terms of service delivery backlogs and protests behind service delivery. Over the past few years, South Africa has experienced a large number of protests against poor and insufficient service delivery across most municipalities in various provinces. An increase in service delivery protests in South African municipalities, as regularly seen in various media platforms such as newspapers, television, and social media, makes it necessary for policymakers, government practitioners, and scholars to understand the underlying factors behind service delivery protests. This paper is also intended to assess if whether community members protest due to poor or sufficient service delivery. It is quite evident that some people take advantage of the protests to their best interests rather than protesting for better service delivery. To accomplish the aim of this paper, a desktop research approach was applied to validate the argument and to uncover the underlying factors of service delivery protests. From the literature perspective, it is learnt that poverty, political instability, corruption, nepotism, and lack of public participatory are underlying factors behind service delivery protests. Despite some of the success of the post‐apartheid South African government, the country still faces serious challenges of high unemployment, poverty, inequality, and political instability. These are some of the key factors that culminate in citizens on streets protesting or expressing their dissatisfaction over the problem of poor service delivery.     

The Right Mix? Gender Diversity in Top Management Teams and Financial Performance

Recent research has illustrated that demographic diversity influences the outcomes of public sector organizations. Most studies have focused on workforce diversity; by comparison, little is known about how managerial diversity affects organizational outcomes. This article focuses on gender diversity in the top management teams of public organizations and its relationship to financial performance. Theory suggests that management diversity can be a positive asset for organizations, allowing for the use of more diverse knowledge and human skill sets. Results of this study, however, suggest that organizations may only be able to leverage these advantages if they have a supporting management structure. In a longitudinal study of top management teams in Danish municipalities, the authors find that gender diversity in top management teams is associated with higher financial performance, but only in municipalities with a management structure that supports cross‐functional team work. These results are interpreted in light of existing theory, and implications are suggested.     

DIFFERENCES IN LEARNING PRACTICES AND VALUES IN NORTH–SOUTH CITY PARTNERSHIPS: TOWARDS A BROADER UNDERSTANDING OF MUTUALITY

This article addresses twinning between local governments in North and South, contributing to the past decade's discourse on institutional twinning in this journal. Local governments have increasingly become recognised as relevant actors in international development cooperation through city‐to‐city cooperation structures, which have been praised as an effective mechanism for local government capacity building. This article discusses the learning practices and the extent to which new knowledge is valued and adopted by twinning participants in both North and South and moreover whether learning benefits are mutual. In a study of three partnerships between Dutch municipalities and partner cities in Peru, South Africa and Nicaragua, 36 participants were interviewed. The findings reveal that learning in city‐to‐city partnerships is not mutual between North and South and that the benefits of ‘shared learning’—a rhetoric commonly used in the twinning discourse—are limited. Instead, other opportunities for mutuality arise for Northern municipalities from political and strategic benefits, such as staff loyalty and motivation. Mutuality in twinning hence deserves a broader interpretation than learning alone so that twinning benefits can be identified and maximised for both North and South, keeping cities interested and motivated. Copyright © 2012 John Wiley & Sons, Ltd.     

Split-ticket Voting in Times of Sub-national Government Reorganisation: Evidence from Denmark

Local government amalgamations may have unintended consequences on electoral behaviour. Using the most recent local elections in Denmark as its case, this article demonstrates that inter-level split-ticket voting between three levels (national, regional and local) decreased slightly from 2001 to 2005 – that is, simultaneously with the implementation of a major reform, where many municipalities and all the counties were amalgamated. These amalgamations affect the level of split voting through a process where the local party system operates as an intervening variable: the larger municipalities have a more nationalised local party system, which leads to fewer voters being vote splitters by necessity. The analyses combine general electoral statistics with large voter surveys and benefit from the quasi-experimental setting offered by the fact that not all municipalities were amalgamated.     

Trust in a Time of Increasing Diversity: On the Relationship between Ethnic Heterogeneity and Social Trust in Denmark from 1979 until Today

This article examines the impact of ethnic diversity in Danish municipalities on citizens' social trust over the last three decades. During this period, Danish society has grown increasingly ethnically diverse, and this begs the question whether this has influenced trust in others negatively. Existing evidence from the Anglo‐Saxon countries would suggest that this is the case, whereas evidence from the European continent mainly suggests that no link exists between ethnic diversity and social trust. The empirical analysis uses individual‐level data on social trust from several surveys in Denmark in the period from 1979 to 2009 coupled with diversity at the municipality level. Individual‐level measures of trust over time enable estimation of the impact of changes in ethnic diversity within municipalities on social trust and, it is argued, thereby a more precise estimate of the effect of ethnic diversity on trust. The results suggest that social trust is negatively affected by ethnic diversity. The article concludes by discussing this result and suggest avenues for further research.     

The Burger Court's View of the Relationship Between the States and Their Municipalities

This article examines selected Burger Court cases concerningmunicipal antitrust immunity in order to determine whether theU.S. Supreme Court has a theoretical perspective on the relationshipbetween the states and their municipalities. After delineatingthe constitutional position of municipalities through an examinationof key Court cases and Dillon's rule, the study explores thederivative status of state-action immunity to municipalitiesin antitrust suits. In two significant cases, including oneinvolving a home rule city, the Burger Court has refused togrant municipalities the state-action exemption granted statesunder the Sherman Act. But, in reinforcing the unitary relationshipbetween the states and their municipalities, the Court has notaddressed Dillon's rule or the ambiguities inherent in denyingmunicipalities the residual powers of local self-government.     

Costs, Output, and Institutional Differentiation in Danish Childcare Policy

Investigating differences in costs due to institutional differentiation is of central importance, since most public sectors struggle with limited resources combined with high demands. Similar public services produced in different institutional set-ups constitute excellent units of observation, since the production costs can be directly compared. An example of such services is found in Denmark, where the municipalities provide two types of public childcare arrangements. All Danish municipalities, to varying degrees, offer the cheaper type, namely day-care homes. It is, however, remarkable that day-care centers and day care in private homes coexist in the same municipality with a cost difference of about 40 percent. Using the framework of rational institutionalism, this article claims that the institutional set-ups in the two kinds of childcare result in different employee strategies, which, together with varying sector strength, lead to widely different costs. The case is established by an analysis of interviews with employees, politicians and users of childcare services, combined with statistical evidence from the Danish municipalities.     

Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence

Local governments' allocation decisions are modeled in the context of a slack maximizing bureaucrat who produces public goods according to a production function that includes both provision and the constituents' socio-economic characteristics. To gain a better understanding of the determinants of slack, comparative statics and an empirical study of Illinois municipalities are conducted. The indirect output distance function provides efficiency scores upon which we regress several variables, representing socio-economic characteristics, costs and competition measures. We find that slack or inefficient behavior is associated with richer communities, lower education levels and a lack of competition for residents among municipalities.     

Cost‐Effectiveness of Early Childhood Interventions to Enhance Preschool: Evidence from a Randomized Experiment in Head Start Centers Enrolling Historically Underserved Populations

We evaluate the cost‐effectiveness of two early childhood interventions that use instructional coaching and parent coaching as levers for improvement. The study design allows us to compare the individual effects of each intervention as well as their combined effect on student outcomes. We find that teachers receiving instructional coaching improve their use of evidence‐based instructional practices, while families receiving parent coaching show increases in numerous responsive parenting behaviors associated with positive child outcomes. Both interventions demonstrate positive impacts on students, but only parent coaching shows statistically significant effects across a range of student outcomes. Instructional coaching alone is substantially less costly and may therefore be the most cost‐effective of the three treatment conditions; however, small sample sizes limit our ability to reach definitive conclusions. Policy simulations suggest that implementing these interventions could raise the overall cost‐effectiveness of Head Start by at least 16 percent.     

Co-creation of Linking Social Capital in ‘Municipality 3.0’

There is great interest in co-creation of welfare production between municipalities and the civil society in the Nordic countries. Using linking social capital as a theoretical point of departure and examining a qualitative case study in Norway, I critically assess the concepts of co-creation and ‘Municipality 3.0’. It is suggested that even in countries with high trust in the authorities, building linking social capital in the shape of interorganizational networks is a complex process fraught with potential barriers related to trust, network building, municipal resources, and statutory laws and regulations. And while outcomes are promising, they are far from certain.     

Restructuring non‐metropolitan local government in South Africa

South Africa's first local government elections held in November 1995 and June 1996 cemented the transition from apartheid to democratic local government. The focus at that time was on the deracialization and democratization of local governance, which was successfully achieved. Local government since then, however, has failed to fulfil its mandate as the delivery arm of government, nor has the hoped‐for rapid transformation of the local sphere of government materialized. In seeking an explanation for this perceived inadequacy, attention has tended to focus on the limited financial and administrative capacity of newly elected councillors and council staff. Although the lack of capacity does present a barrier to the achievement of effective local government, the constraints municipalities encounter in their geographic composition and administrative formation provide the structural dimension of municipal constraint. The White Paper on Local Government published in March 1998 seeks to address these structural constraints and, through an ambitious legislative process, chart a path to ‘developmental’ local government. This article identifies the constraints experienced by non‐metropolitan municipalities and analyses the likely impact of the government's restructuring programme for the achievement of viable and sustainable local government in South Africa. Copyright © 1999 John Wiley & Sons, Ltd.