Fiscal reform and governmental efficiency: Hanging tough

Many surveys of taxpayers in the wake of the fiscal reforms of the 1970's have indicated that frustration with the inefficiency and wastefulness of government is a major motive behind their votes for tax and expenditure limitations. There is a strongly held belief that government can do as much as it is currently doing with much less money. There is also a widespread belief that by reducing the dollar resources available to governments, they will be forced to become less wasteful and more efficient. This paper argues that increased efficiency in local government is an unlikely consequence of the fiscal reform movement. Indeed, lessened efficiency is a more probable outcome.We are indebted to Thomas Anton, Peter deLeon and an anonymous referee for comments on an earlier draft. The authors are, of course, solely responsible for all assertions and any remaining errors.     

The Rise and Fall of Christian Democracy in Europe

The role of Christian Democratic parties after World War II in helping to build stable parliamentary regimes in Western Europe deserves attention simply for their ability to survive. Such parties took root in Catholic countries and electorates and incorporated electoral organizations from the early twentieth century. After the war, Christian Democrats provided an alternative to the large Communist parties that were particularly strong in France and Italy. They also represented a link to the European past that was not implicated in the crimes of the Nazi era. Germany's Christian Democracy has proven the most successful of its kind. It moved beyond its original Catholic base to include a significant Protestant minority. And it has survived amidst the social and cultural changes and charges of corruption that have reduced their counterparts elsewhere to a secondary parliamentary force.     

Mexico, the PRI, and López Obrador: The Legacy of Corporatism

Although differences between the Mexican and U.S. political systems have narrowed of late, a huge gulf continues to separate the two systems. At the heart of this disparity lies the phenomenon of corporatism, a social concept that is virtually absent in U.S. political discourse and traditions. This article considers the intellectual origins of corporatism, why it meshes so well with Ibero-Hispanic society, and how Mexico City's former mayor, Andrés Manuel López Obrador, fashioned his own brand of corporatism to confront the administration of Felipe Calderón Hinojosa, who defeated him in the July 2006 presidential race.     

What Next for NATO?

Whether or not nato still matters depends on whether or not it is able to deliver security where needed, which in turn depends on whether a broader agreement on its overall mission can be developed and sustained. U.S. security policy goals and the Europeans’ ability to share American priorities and accept the attendant risks are the main variables as nato's problems with ongoing operations deepen, especially the increasingly uphill battle its troops face in Afghanistan. Operations in that country are becoming the key test for nato's viability.     

Europe's Identity Problem and the New Islamist War

Fundamental transformations of identity within Europe have historically resulted in great wars, which in turn resulted in fundamental transformations of identity. This essay discusses, first, four great periods of war in Europe and the succession of identities they produced, and then the new war that Islamist terrorists, and Islamism more generally, have brought to Europe and the West. It considers the inherent weaknesses and failures of the now-dominant Western ideology and identity, liberalism, in dealing with this new war, and concludes with a consideration of the once-dominant Christian identity in Europe. That identity, much more than liberalism, would have strengthened Europe in its current war with Islamism.     

A Fine Balance: India Walks a Tightrope between Iran and the United States

India confronts the conflicting imperatives of Indian domestic politics and its strategic interests when dealing with Iran. As India's global profile has risen in recent years and its ties with the United States have strengthened, this conflict has come into sharper relief. India's traditionally close ties with Iran have become a major factor influencing how certain sections of U.S. policymakers evaluate a U.S.-India partnership. India has tried to balance carefully its relations with Iran and the United States; however, due to intense American pressure, especially after the signing of the U.S.-India civilian nuclear energy cooperation pact, India has moved closer to the United States concerning the Iranian nuclear program. But strong domestic constraints remain that will prevent India from completely abandoning its ties with Iran, even as a re-evaluation of India-Iran bilateral ties is long overdue.     

Bias in the formulation of local government budget problems

Government budgets are premised on forecasts of revenues and expenditures. These forecasts are subject to both stochastic error and strategic manipulation. Circumstantial evidence in the budgeting literature and in the popular media suggest that government officials routinely bias the forecasts underlying budgets. The research reported here asked three primary questions: To what extent are budget forecasts systematically biased? Why? (Are fiscal and electoral variables systematically related to the magnitude and direction of the biases?) What political and ethical difference do the biases make? From the literature and an analysis of the incentives facing politicians and bureaucrats, we developed hypotheses about budget biases. These hypotheses were tested using time series data for the City of Pittsburgh, Pennsylvania (1941–1983); the City of San Diego, California (1950–1982); and the Pittsburgh (Pennsylvania) School District (1946–1983). In these locales over the periods examined, budgets were systematically pessimistic; revenues were underestimated and expenditures were overestimated. The fiscal and electoral factors hypothesized to account for this pessimism are, however, very mixed in their ability to explain the biases.