Notes on Contributors

This article draws from a major research project examining the impact of various forms of municipal consolidation in Australia and New Zealand. Its wide-ranging research involved studies of 15 cases of different forms of consolidation, including amalgamation, together with a series of interviews with senior practitioners from the local government sector. Data revealed little evidence of consistent economies of scale from consolidation, however both case studies and interviews indicated that consolidation generated economies of scope and what may be termed ‘strategic capacity’. While it was not possible to disaggregate the data for particular sizes of local authority, enhancement of strategic capacity was more obvious through processes of consolidation in larger ones and less so in smaller, more remote ones.     

The Asian financial crisis and financial reforms in China

Abstract

Although China has avoided the direct attack of the Asian financial crisis, it has suffered secondary consequences leading to an economic slowdown. More importantly, the plight of its neighboring countries has driven home the urgency of financial reforms as China shares many of the problems at the root of the crisis in Thailand, Indonesia, Malaysia, and Korea. This article reviews the reform measures adopted by the Chinese government since the crisis. It analyzes the political dynamics of financial reforms in terms of state preferences and state capacities. In retrospect, the Asian financial crisis may well be seen as a turning point in reforming China's financial system.     

Multiple Trajectories and “Good Governance” in Asia: An Introduction

Conventional wisdom in the international aid community has been that governance systems and practices in developing countries require reform in order for aid catering to economic development or poverty alleviation to be successful. Despite criticisms, the good governance agenda has remained unscathed in international development policy until the recent economic crisis in the advanced economies. This feature section of this issue provides in-depth analysis of the nuances at the critical linkage between institutional reforms and development, based on empirical case studies of the logic of governance reforms in the Asian context. This introductory essay surveys the intellectual background of discussion over the concepts of governance, good governance and development, and the linkage between governance reforms as process and development as outcome. It highlights the significance of discussing Asian reform experiences for the ongoing reflection over the global institutional agenda. The message is not that we do not need governance reforms, or that international learning is impossible or counterproductive. Reform efforts in developing and advanced economies will benefit, however, from a better understanding of the linkage between reforms and the diverse historical conditions they are embedded in.     

Politics,Economic Crises and Corporate Governance Reforms: Regulatory Capture in Malaysia

Following the 1997 Asian financial crisis, the regulatory system involving governance of the corporate sector was subjected to major legislative and institutional reforms, primarily in response to exposures of serious cases of corruption and abuse in the financial sector by well-connected businesspeople. However, the 2008 global financial crisis indicated continued occurrence of irresponsible forms of corporate development and practices, underscoring structural weaknesses within the regulatory system in spite of these reforms. This article argues that the reforms that had been introduced ignored how state-business nexuses shape the way firms operate, a core reason for the persistence of unproductive and speculative forms of corporate development, grand corruption and cronyism. Utilising Malaysia as a case study, this article indicates that institutional reforms involving devolution of power to regulatory institutions are imperative to provide them with the autonomy to objectively institute prudential controls and indict errant firms that violate legislation overseeing corporate activities.     

Aspectos políticos de la dependencia financiera en los municipios mexicanos1

Specialized literature has analyzed the impact of changes to fiscal institutions such as The National System of Fiscal Coordination (1980) and the constitutional reforms of article 115 (1983 and 1999) on the degree of financial dependence of local (municipal) governments and the governmental functioning. Political environment as well, affects to an important extent such functioning. Indeed, previous studies in the field of political economy point to the effects of political environment and fiscal institutions -such as public spending and debt- on national and sub-national governments. Based on four variables -political affiliation of the mayor, political affiliation of the governor, composition of local congresses and celebration of local elections-, the authors build indicators of “political confluence” at the municipal level. They study the effect that the degree of political unification at the municipal level has on the financial dependence with respect to the State government, and also to the local Congress. In their analysis, the authors also consider the political affiliation of the mayor and the local electoral cycle. Through its analytical focus and main empirical findings, this article contributes to broadening the scope of empirical studies of municipal financial dependence. Simultaneously, it adds to existing literature in the field of political economy that accounts for public finances at the sub-national level     

The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry

In this study we use region-level panel data on rice production in Vietnam to investigate total factor productivity (TFP) growth in the period since reunification in 1975. Two significant reforms were introduced during this period, one in 1981 allowing farmers to keep part of their produce, and another in 1987 providing improved land tenure. We measure TFP growth using two modified forms of the standard Malmquist data envelopment analysis (DEA) method, which we have named the Three-year-window (TYW) and the Full Cumulative (FC) methods. We have developed these methods to deal with degrees of freedom limitations. Our empirical results indicate strong average TFP growth of between 3.3 and 3.5 per cent per annum, with the fastest growth observed in the period following the first reform. Our results support the assertion that incentive related issues have played a large role in the decline and subsequent resurgence of Vietnamese agriculture.     

A NOT SO HAPPY BIRTHDAY: THE FOSTER YOUTH TRANSITION FROM ADOLESCENCE INTO ADULTHOOD

Every year close to 25,000 youth age out of our foster care system; without the anchor of a family, former foster youth disproportionately join the ranks of the homeless, incarcerated, and unemployed. While the average age of financial independence in America is twenty‐six years of age, we presume that foster youth can somehow attain financial and emotional independence by age eighteen. Instead, these adolescents are woefully unprepared for independent adult life, and when they falter, too often no one is there to provide support or guidance. As a result, former foster youth are ten times more likely to be arrested than youth of the same age, race, and sex and one in four youth who age out of foster care will end up in jail within the first two years after leaving care. This article will discuss strategies for changing these disheartening outcomes for transitioning foster youth, including breaking down our silos and collectively taking charge of the lives of children in our care; keeping a watchful eye on data and outcomes and using that information to guide our actions; ensuring that the voices of youth are an ever‐present part of decisions and processes that will chart their future; and educating ourselves about best practices and new approaches. This article also discusses new opportunities that now exist to support foster youth as they move into adulthood, including new federal legislation that—for the first time—will allow states to support foster youth beyond age eighteen. Finally, this article provides a backdrop for this Special Issue and summarizes the insightful articles and innovative thinking contained herein.     

中国城市生活垃圾处理绩效的影响因素：基于VAR模型的实证研究

文章通过主成分分析的方法构建和评价中国2006-2015年9年间各省(区、市)及整体的城市生活垃圾处理绩效综合水平,在此基础上利用VAR模型检验了多种因素对中国城市生活垃圾处理绩效影响做以实证研究。研究发现：直接影响中国城市生活垃圾处理绩效的主要因素是劳动力因素和运营模式因素。同时,运营模式因素是一种外生嵌套因素,没有外生驱动紧靠自身调整是无法实现的;而劳动力因素则除了自身调整外,还受到经费因素以及政府监管因素的间接驱动,即经费因素和政府监管因素通过劳动力因素路径间接影响绩效水平。据此,文章根据研究结论提出较具建设性的建议,以期对提升中国城市生活垃圾处理绩效水平以及指导公共事业的政府监管工作做以绵薄之力。     

Quality Reform in Malaysian Higher Education Governance: “Identity Formation” or “Knowledge Shopping”?

In line with its Vision 2020, Malaysia has been implementing a series of ‘quality’ reforms in its higher education sector (Sirat, 2010). For critics, these reforms are driven by an ideological shift from the idea that knowledge is a “public good” (Dzulkifli, 2011, p. 28). This study explores whether the use of ‘standards’ as governance forms would lead Malaysia towards “identity formation”, i.e. the creation of a culture-based knowledge society, or direct it towards “knowledge shopping”, i.e. the commodification of higher education. This article concludes that Malaysian higher education governance is more oriented towards “knowledge shopping” than “identity formation.”     

Democratic Innovations to the Rescue? Political Trust and Attitudes Toward Democratic Innovations in Southwest Finland

It is difficult to govern when citizens are unsupportive of the political system. This problem is relevant for municipalities formed through municipal mergers since new political entities need to build political trust. Democratic innovations provide possible solutions to increase citizens’ confidence, but it is unclear whether distrusting citizens demand these opportunities for involvement. This study examines the link between political trust and support for democratic innovations in Southwest Finland with a survey of 2000 respondents in 14 municipalities. The results suggest that distrusting citizens are less supportive of democratic innovations; hence it is unlikely that they increase political trust.