Funding Local Government: Use (and Abuse) of Peru's Canon System

While decentralisation, properly understood, implies that sub‐national government involves devolution of authority over revenues, recent experience from Peru suggests that the canon system tends to create perverse incentives in encouraging open and democratic government at the local level. This is particularly the case in regions such as Cusco, which benefit disproportionately from this system. Examination of experiences in four provinces of Cusco shows how – in the absence of a robust civil society – excessive funding tends to encourage clientelism and corruption rather than accountable and transparent administration.     

BRINGING THE POLITICS BACK IN: PUBLIC VALUE IN WESTMINSTER PARLIAMENTARY GOVERNMENT

We challenge the usefulness of the 'public value' approach in Westminster systems with their dominant hierarchies of control, strong roles for ministers, and tight authorizing regimes underpinned by disciplined two-party systems. We identify two key confusions: about public value as theory, and in defining who are 'public managers'. We identify five linked core assumptions in public value: the benign view of large-scale organizations; the primacy of management; the relevance of private sector experience; the downgrading of party politics; and public servants as platonic guardians. We identify two key dilemmas around the 'primacy of party politics' and the notion that public managers should play the role of platonic guardians deciding the public interest. We illustrate our argument with short case studies of: the David Kelly story from the UK; the 'children overboard' scandal in Australia; the 'mad cow disease' outbreak in the UK; the Yorkshire health authority's 'tea-parties', and the Cave Creek disaster in New Zealand.     

China＇s New Industrial Revolution

FOR the first time in over a century, following the international financial crisis, the U.S. has been displaced as the world＇s largest industrial producer - this position now being taken by China. This period also witnessed the greatest shift in the balance of global industrial production in such a short period in world economic history.     

Lessons on Railway Reorganization

CHINA has announced reorganization of its railways. For most people from the U.K. this news might evoke apprehensive shudders. Reorganization of Britain’s railways led to successive disasters.First the system was privatized, and a catastrophic series of fatal rail crashes followed.The railway track and other infrastructure were     

Devolved Functions in Government: Some Realities

Devolvement of functions to quangos and Departmental Agencies has been a marked feature of reform in government since 1970, accelerated by the ‘Next Steps’ initiative (1987–90). Its effects in terms of performance, costs and disengagement from related government activity are discussed by reference to experiences in the management of two large quangos created after 1970, the Manpower Services and Health and Safety Commissions and their Executives. Some general lessons are drawn for present application, and the discussion seeks also to expose realities and difficulties in the management of public bodies that are often overlooked in theoretical argument. It acknowledges the advantages of devolvement, but points to serious limitations in the ‘owner–agency’ model when applied to public business, arising from powerful centralising forces, rapid changes in political aims, the cardinal requirement for economy, and shifting needs for lateral co‐operation across the government sector.     

Cuba's Medical Internationalism: Development and Rationale

Since 1960, Cuba has been involved in providing medical support to the developing world, and at present has some 40,000 personnel in 74 countries – more than all of the G-8 countries combined. This article traces the evolution from its first (1960) mission to the current stage. The article also analyses various explanations for this extraordinary mixture of diplomacy and humanitarianism.     

Capitalism,Markets and Politics

The term ‘capitalism’ is no longer a relevant way in which to describe or to understand a modern economy. Ownership of capital is not the source of economic power that it once was. Business leaders of today do not own the factories and the machines, nor do they need to. Let us consider instead, markets. Not the markets for financial products that we see depicted on rows of flickering screens in Canary Wharf, but real markets. Market economies have proved to be chaotic, and imperfect and yet they are the most successful way we know to allocate goods and services. Through a process of experimentation, much failure and some success they evolve. Their development is necessarily uncertain, but that is also their greatest strength.