Opening the Black Box of Administrative Reform: A Strategic-Relational Analysis of Agency Responses to Termination Threats

ABSTRACT

How do public agencies respond when reform proposals threaten downsizing, reduction in functions, or termination? Agency survival during administrative reform is conventionally explained by structural characteristics, informed by the hardwiring thesis derived from the politics of the U.S. federal government. Parliamentary systems provide greater opportunity for agency reform, but there is little evidence of how agencies respond to such proposals or how proposals are altered prior to decision. We consider agencies as active participants in the reform processes, using strategic-relational theory to analyse their strategizing. The article employs detailed empirical evidence on 12 agencies subject to reform by the UK government between 2010 and 2013. We identify three archetypical defence strategies—technical expert, network node, and marginal adaptor—and argue that coding agency strategies alongside structural analysis can help better explain reform outcomes.     

Budget reform—the Malaysian experience

Budget reform had been on the Malaysian government agenda for over two decades. The first major effort at budget reform was the introduction of the Malaysian version of Programme and Performance Budgeting System (MPPB) in 1969. Another major restructuring of the budget process took place in 1989 to modify MPPB. The package of modifications was titled the Modified Budgeting System (MBS). This article reviews the development of budget reform over the past decades. It documents the modest progress of MPPB and examines the rationale of the recent reform. The article then surveys the objectives and elements of the latest initiative in greater depth to assess the extent of its improvement over the previous effort. The article also illustrates, based on the lessons learnt from the implementation of MPPB, that an appropriate administrative structure, culture and implementation strategy are all-important for reform success.     

Budget Reform Proposals in the NPR Report1

A new round of budget process changes began on September 7, 1993, when Vice President Al Gore released the National Performance Review (NPR) report. The report recommended major revisions in the structure and processes of the federal government. A number of these proposals would alter a broad range of budgetary procedures followed by the president and Congress, borrowing in some cases from the states. This article analyzes seven areas of budget proposals contained in the NPR report, analyzes their benefits and drawbacks, and makes general observations about their likely impact on executive-legislative relations.     

Of Toothless Windbags,Blind Guardians and Blunt Swords: The Ongoing Controversy about the Reform of Intelligence Services Oversight in Germany

Due to the course of European history, German intelligence services are not exactly renowned abroad for epitomizing the rule of law. This article, however, tries to leave the chamber of horrors called memories behind and discusses the question of how intelligence services oversight functions in Germany today. This will mainly be discussed from the perspective of a legal scholar. The article will examine whether, and to what extent, the existing legal framework allows for efficient oversight of the intelligence services. Where oversight deficits can be identified, recent reform proposals related to them will be discussed critically. The article concludes, not all proposals for reform are suitable for solving the problems at hand.     

Thailand: The Politics of Reform of the Secretariat of the Prime Minister

This article discusses the politics of administrative reform. Though politicians and bureaucrats may agree on a reform blueprint, both tend to view administrative reform as means towards achieving different ends. To demonstrate the 'political tool' function of administrative reform, I will review the reform experience of the Thai Office of the Secretariat of the Prime Minister (OSPM) during the Chuan government (1992–95). Despite several proposals to reform the OSPM, at the end of its tenure the Chuan government had made only minor changes to the OSPM. This article argues that while failing to achieve significant reform, the process does demonstrate the politician-bureaucrat relationship.
The article is divided into two parts. The first outlines the conceptual framework which captures the politics of reform. The second presents four case studies representing efforts to introduce reform to the OSPM during the period of the Chuan government.
During the Chuan government, the author served as the Head of the Secretariat of the Administrative Reform Commission (ARC), ad hoc office in the OSPM established by the Prime Minister, charged with reviewing proposals to reform the OSPM. The author was also appointed to committees which were assigned to advise the PM about ways to reform the OSPM.     

Party Servants,Ideologues or Regional Representatives? The German Länder and the Reform of Federalism

This article considers recent attempts to reform German federalism, the failed 2004 reform, and the reforms agreed in 2006 and 2009. It compares partisan, ideological and territorial factors which contribute to an understanding of reform, finding that all three have a role in explaining actors’ views of reform proposals. Two other claims are developed: that in some aspects of the reforms, a division between ‘generalist’ and ‘subject specialist’ politicians became apparent; and that a decisive change between 2004 and 2006 was the formation of a grand coalition at a federal level, which paved the way for agreement upon reform proposals.     

Consolidated Omnibus Budget Reconciliation Act of 1985

This article briefly describes the legislative history of the old-age, survivors, and disability insurance (OASDI) and supplemental security income (SSI) provisions, as well as related Medicare and Medicaid provisions, of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272). It includes a chronology outlining the interaction of the budget reconciliation process with the development of the OASDI minor and technical changes bill (H.R. 2005) and the development of other social security related legislation resulting in proposals that ultimately combined in the overall Consolidated Omnibus Budget Reconciliation Act of 1985. The article also provides a detailed summary of the provisions of the legislation.     

Testing Structuralist and Interpretative Explanations of Policy Change: The Case of Italy's Budget Reform

This article compares the relative explanatory power of structuralist and interpretative approaches to the study of policy change. By assessing the fit of these approaches against the actual reform of the formulation, approval, and implementation stages of Italy's budget process in the 1990s, the article shows that structural factors (such as fiscal pressures and changes in the electoral rules) played a key role in the reform of the formulation stage but not in that of the approval and implementation stages, where the content of reform followed the managerialist paradigm endorsed by the Italian reform community. Italy in the 1990s was under considerable pressure to achieve fiscal retrenchment, and the managerialist paradigm advocated measures that were largely antithetical to those that can be deduced from the changes in institutional context. Thus, the Italian case provides an excellent opportunity to assess the relative causal impact of ideas and structure on reform.     

That obscure object of desire: A new electoral law for Italy

This article analyses the most important reasons that might make it necessary to revise the Italian electoral system. The type of proportional representation utilised in the Italian system (imperiali with the highest remainder) has allowed the fragmentation of the party system and produced a privileged situation for some parties, preventing alternation in power. The major reform proposals are reviewed and evaluated according to their partisan objectives and systemic consequences. Few proposals seem to pass this test. The issue of an electoral reform is on the political agenda, and although scepticism as to its feasibility is in order, the time for institutional and electoral reform seems to be approaching.     

Incremental Thinking: "Congressional Debate on the Budget and Accounting Act of 1921 (Excerpts)"

Editors' Note : The Congressional Budget Act of 1974 was designed to improve the budget-making process of the national legislature. Although this new process has been in use for less than a decade, proposals for a constitutional amendment to limit the budget powers of the federal government are advancing through Congress. In assessing the potential and problems of budget reform, it would be wise to recall the expectations that animated the introduction of presidential budgeting more than 60 years ago. The following excerpts from the October 1919 debate in the House of Representatives on the legislation that ultimately became the Budget and Accounting Act of 1921 have a contemporary ring. The problems are not new, and one wonders whether the solutions are as easy as some claim.     

Cooperation and competition in public welfare policies

Present public welfare policies and various proposals for reforming them do not often exploit the advantages of cooperation between otherwise competing altruists. The article examines this principle from a number of perspectives. It shows first how the advantages of the existing cooperative payments structure could be lost in some widely-publicized welfare reform proposals, and it makes a suggestion for retaining these advantages. The article next shows how the same principle could be used to improve existing incentives for private giving. Finally, it uses the same logic to rationalize newly evolving notions of sharing responsibility between governments and the recipients themselves.     

Searching for a Role for Citizens in the Budget Process

Citizen participation in the local budget process is not prevalent, despite encouragement from scholars and professional organizations. This case study of two Kansas cities that have used a variety of input mechanisms in the budget process analyzes the effectiveness of citizen budget participation. Limited effectiveness was found, which may largely be due to the timing of the input, unstated or unclear goals, implementation difficulties, and political and environmental constraints. Citizen input appears to have had little effect on budget decisions, and neither city has institutionalized participation in the process. However, the input mechanisms serve other purposes, such as education and support for specific proposals. Describing the benefits as well as the difficulty of involving citizens in a meaningful way is beneficial to other governments as they wrestle with the issue of defining the citizens' role in the budget process.     

President Clinton's Fiscal 1998 Budget: Political and Constitutional Paths to Balance

This article examines President Clinton's FY 98 budget proposals and the political and economic factors that led to the balanced budget agreement. Also explored are the constitutional approaches to fiscal discipline: the balanced budget amendment, the tax supermajority amendment, and the line item veto that was used 80 times by President Clinton to delete over a billion dollars. The analysis reveals that budget bargaining was continuous before and after the budget agreement was reached, moving downward from decisions on macro-budgetary totals to micro-budgetary choices on tax cuts and appropriations. The study concludes that President Clinton was relatively successful in achieving budgetary goals under divided government, that the agreement was significant despite the economic growth that made it easier, and that constitutional remedies will continue to be important in the coming years.     

China's Local Political Budget Cycles

This article examines the political budget cycles in Chinese counties. The shift to a more performance-based cadre evaluation and mobility system during the reform era has created an incentive structure for local leaders to increase government spending at strategically important time points during their tenure to enhance the prospect of official promotion. Such expenditures help local leaders to impress their superiors with economic and political achievements, especially those visible and quantifiable large-scale development projects. At the same time, economic and fiscal decentralization increased the capacity of local leaders to influence government budget expenditures as the need rises. The hypothesized curvilinear relationship between a leader's time in office and increased spending was tested using a comprehensive data set of all Chinese counties from 1997 through 2002. The panel data analysis shows that growth in local government spending per capita is the fastest during a leader's third and fourth years in office.     

Government Budget Reforms: Agenda for the 1980s

A previous article (Vol. 1, No. 2, Spring 1980) examined the progress and problems of budgetary innovation in the postwar era. Through a succession of reforms, budgeting maintained its coherence and continuity, It is likely, however, that future innovations will take a different path, one less certain of its success and more a product of fiscal stress than of government affluence. This article considers the reform issues likely to emerge in the coming years.     

Tort Reform and Regulation of the Insurance Industry: Medical Malpractice Liability Proposals in 1986

Tort reform was a key issue for state legislatures in 1986.It pitted powerful interests against other powerful interests;it raised basic questions about common law; and it threatenedto alter the federal system by having the federal governmentclaim greater control over tort law and insurance regulation.In this article we set the background that led to this flurryof attention, review the major proposals for reform, and outlinethe actions of both the federal government and state governments.The federal government did little in 1986; it still faces thequestion of whether to preempt traditional state authority inthese areas. At the same time, virtually every state acted in1986. Early in the year, the insurance industry (and physicians)set the debate—its topic, tone, and terms. By the timeother interested parties got organized, many states had actedgenerally following the recommendations of the insurance industry.Later in the year, the debate became more heated, and the insuranceindustry had much more difficulty securing desired state action.As a result, many issues were carried forward to 1987.     

Performance and Accountability: Budget Reform in New Zealand

Since 1984, New Zealand has made major changes in public sector management. This article describes the perceived problems with the previous New Zealand system and discusses the reforms designed to address these problems. The changes attempt to increase efficiency by: (1) separating commercial functions from other government operations; (2) strengthening lines of ministerial and executive accountability; and (3) designing budget and financial management systems to improve measurement of public sector performance. This last reform includes shifting from an input to an output-based system, changing from cash to accrual accounting, and creating different forms of appropriations for different types of government activities. While it is too early to assess whether the reforms are successful, we note potential problems.     

Explaining the unpopularity of public funding for congressional elections

This article uses data from the 2008 Cooperative Congressional Election Study to explain weak support for public financing of congressional campaigns. Previous studies lack theory to explain variation in support and use a flawed measure of the dependent variable. We argue that low support reflects a failure resulting from a collective action dilemma. Citizens desire a campaign finance system that weans politicians from private donors, but are unwilling to pay a small amount in taxes to support public financing. In contrast to conventional wisdom, we show that support for public financing is highest among those perceived to benefit the most from the current system. Our results suggest that most Americans would rather not pay for politics, and that reform proposals must avoid incurring transparent costs on individual citizens to pay for reform.     

A comparative modeling of tax reform before and after the legislative process

This research modeled the extent to which the normative goals of equity and efficiency are embodied in three seminal tax reform proposals (Bradley-Gephardt, Kemp-Kasten, and the Treasury Department proposals) relative to the extant regime. The Tax Reform Act of 1986 (TRA86) is also modeled in the same manner. The objective of this study is to compare the equity and efficiency of the initial proposals with that of the final tax reform law. This before and after analysis is designed to ascertain the degree to which the legislative process undermined the normative goals of the tax reform movement. The National Tax Model was applied to model each regime and to measure the distributional and redistributional effects on tax burdens and wage efficiency costs associated with each system across ten income classes. The reform models, including TRA86, are shown as superior to the pre-reform system with respect to the normative criteria. The legislative process did not substantially compromise the goals as reflected in the seminal reform proposals in the development of a more politically acceptable tax reform law. This exercise demonstrates that it is possible for sound legislation to survive a political process that frequently permits the sacrificing of normative goals in favor of special interests.Financial support provided by the Arthur Young Foundation Tax Research Grant Program and The Ralph E. Kent Fund. The helpful suggestions of Jim Curtis were sincerely appreciated.     

Dealing with Uncertain Budget Forecasts

The article reviews the history of past budget projections by the Congressional Budget Office (CBO). The projections have been extremely inaccurate because of errors in the choice of economic and technical assumptions. The errors grow rapidly as the projection's period is lengthened. The projections are unlikely to get better soon. Therefore, the question becomes how CBO, the Congress, and the media should react to the extraordinary uncertainty that must be attached to the budget outlook. Among other things, the author suggests de-emphasizing projections made for periods longer than five years, because such projections are only a little better than random noise. He also points out the futility of aiming for rigorously enforced numerical targets for the budget balance, as was done in Gramm-Rudman and as has been proposed in various types of "lock box" legislation. The targets move around too rapidly to ever be hit.