Managing Public Finance and Procurement in Fragile and Conflicted Settings

ABSTRACT

Successful transition from conflict and fragility hinges on the quality and legitimacy of public financial management (PFM) systems. This article shows that such systems develop asymmetrically in these settings. Formal aspects of modern systems are adopted, but a layered series of informal arrangements govern resource management. Analysis of data from Public Expenditure and Financial Accountability assessments of 101 countries explores aspects of this asymmetry and different explanations are considered for why elites seem to choose not to invest trust, resources, and capacity in making mainstream PFM systems functional. These explanations focus on the incentives created by three “public” resources: illicit flows, domestic revenues, and strategic or aid flows. Mainstream PFM systems are applied to a small part of these flows. The illustrative case of Cambodia shows how a layered system has emerged to govern such flows, undermining the influence of formal public finance management systems. The article offers suggestions to address these issues.     

The Wheels of Misfortune: The Street and Cycles of Displacement in Surabaya,Indonesia

This focus of this paper is not Surabaya's increasingly free-flowing streets, but the people those streets displace. Based on research in a low-income neighbourhood, or kampung, of Indonesia's second largest city, this paper shows how the street facilitates displacement and exacerbates the marginalisation of underemployed kampung men. This argument is set against the struggles over the use of public space between Surabaya's kampung residents and the municipality since independence and is grounded through the biographical detail of seven kampung men over the ten years since the economic crisis of 1998.     

The Causes of Emigration from Singapore: How Much Is Still Political?

ABSTRACT:

Efforts to maintain a robust Singaporean economy have had to confront the serious challenge of substantial brain drain from the city-state. To address the negative effects of this problem, Singapore's ruling People's Action Party (PAP) has adopted a policy of increasing reliance on a foreign labor force. Meanwhile, the PAP appears to ignore the continued loss of human and intellectual capital. This study examines the main determinants of emigration from Singapore, specifically the political factors. The analysis is based on two primary data surveys that investigated what Singaporeans think about emigration: the 2006 Asian Barometer and the 2000–2002 Longitudinal Survey of Immigrants to Australia. Contrary to some previous empirical literature, data from these surveys indicate that anti–PAP and pro-democratic ideas strongly influence the decision of native Singaporeans to leave the island state. These findings likewise suggest that democratization and an expansion of business and technical education would be more effective in preserving economic growth than a policy of importing labor in the face of popular xenophobia.     

The Moral Superiority Effect: Self Versus Other Differences in Satisfaction with Being Overpaid

This paper focuses on how people think about their own and other's reactions to being overpaid. Two experiments investigate the discrepancy between people's own satisfaction and their perception of other's satisfaction with overpayment. The results of both experiments support our hypothesis that people think others are more satisfied with being overpaid than they are themselves. Our results are consistent with the idea that people think others are more influenced by egoism-based considerations whereas they themselves are more influenced by considerations of right and wrong. In other words, people show a moral superiority effect. In the general discussion, we argue why it is less likely to find moral superiority effects on people's reactions to being equally paid and underpaid, and we relate our findings to the literature of self-serving biases.     

Justifying the Lindahl solution as an outcome of fair cooperation

The motivation for the Lindahl equilibrium is mostly a rather artificial price mechanism. Even though the analogy to a competitive market was emphasised by Lindahl himself, his approach does not directly explain the normative ideas behind his concept. In the present paper we therefore show how the Lindahl equilibrium can be deduced from some simple equity axioms. These normative assumptions are the benefit principle on the one hand and the equal sacrifice principle (or, equivalently, a non-envy condition) as a postulate for distributional equity on the other. Fairness among agents with different preferences and incomes is taken into account by considering their marginal willingness to pay as shadow prices. In this way, the reason why the Lindahl solution can be perceived as an outcome of fair cooperation might become more understandable.     

Post-disaster emergency and reconstruction experiences in Asia and Latin America: an assessment

From United Nations emergency responses involving tent camps, to the reconstruction approach of FUNDASAL in El Salvador and the post-disaster provision of housing by Caritas in Asia, it is clear that a giant step has been taken in thinking about emergency shelter, as well as about how prevention and reconstruction are managed. This article evaluates some current good practices in Asia and Latin America in post-disaster emergency shelter that use local skills, materials, and tools, and participatory processes.