An analysis of budget compliance measurement in South African local government best‐practice financial management technical assistance programs, 2001—2003

South Africa's local government financial management best‐practice technical assistance program (known as MFMTAP) was to reform municipal financial management; achieve credible, realistic budgets and prevent financial failure. We consider whether a budget compliance procedure, developed by National Treasury (NT) to measure funding requirements compliance with the Municipal Finance Management Act (MFMA) focusing on ‘realistic’ revenue budgeting, improves our understanding of technical assistance effectiveness. We assess a metropolitan municipality's compliance before, during and after advisory assistance. The compliance procedure was robust. Potential exists for wider application to assess best‐practice technical assistance (BPTA) program financial reform effectiveness. The findings from this single, important sample suggest that MFMA funding requirements are not being sustained 4 years after MFMTAP commencement, attributable to either BPTA performance or termination effects. We conclude that MFMA financial performance can be assessed by the procedure, from analysis of the metropolitan municipality performance assisted by a BPTA advisor for approximately 3 years. The analysis raises questions about BPTA program reform sustainability, but we add the caveat that conclusions cannot be drawn from a single sample metropolitan municipality, but a larger sample need be used for further methodology development to confirm its efficacy. Copyright © 2009 John Wiley & Sons, Ltd.     

‘Making democracy a reality’? The politics of decentralisation and the limits to local democracy in Ghana

Through a case study of Ghana, this article focuses on the relationship between decentralisation and local democracy. The Ghanaian constitution emphasises decentralisation as the key means to ‘making democracy a reality’, reflecting the view common amongst international development agencies that decentralisation enhances local democracy and leads to more responsive government. This article questions such views and investigates whether decentralisation in Ghana has led to increased political participation at the local level and to downwardly accountable local government. Empirical findings are two-fold. On the one hand, relatively high levels of participation in local democratic processes are indicated. On the other, accountability mechanisms have not been strengthened, with a number of limitations and shortcomings identified at local level that undermine citizens’ attempts to hold local government and their elected representatives to account. Yet, in seeking to explain this delinkage between participation and accountability, such local issues do not provide a full explanation. Attention is thus refocused on the national context, where structural obstacles to devolved government are identified in the form of legal, political, administrative and fiscal constraints. Such obstacles are not easily overcome, however, due to the politics of decentralisation, notably central government's reluctance to relinquish control over its powers. Recent proposals for reform in Ghana's decentralisation system are considered, but political change is unlikely given the built-in advantages to the ruling party, whichever is in power. Without such reforms, though, local democracy is likely to remain more appearance than reality.     

Unlocking from Community Stakeholders,Corporate Social Responsibility (CSR) projects for effective Company–Community relationship

Abstract

Conflicts in mining fields that revolve around the type and perceived impact of CSR projects seem to be daunting to solve. Such conflicts emerge from misconceptions among community stakeholders’ that lead to a failed company–community relationship. This inimical situation threatens peace, security, lives, and properties at the community level. To resolve the company–community conflicts, it is important to minimize the misconception among community stakeholders’ by identifying their preferences of CSR projects. However, the challenge of identifying these projects in mining fields is yet to be fully explored and understood. The aim of this paper is to identify community stakeholders’ topmost preferences of CSR projects for an effective company–community relationship and propose a path for community engagement. A sample of 604 respondents comprising community leaders’ and local residents’ from three regions which host Gold Mining Firms with level ‘A’ membership from the Ghana Chamber of Mines were drawn for this study. Using a questionnaire made up of close and open ended questions, a survey was conducted. With SPSS 16.0, the data on the close ended questions were analyzed with ranking and factor analyses while the open ended were drawn into teams to support the former. The results of the ranking analysis show that different group of stakeholders’ had a different preference for CSR projects. The factor analysis revealed that for effective company–community relationship both stakeholders’ preferred a Streamline Social Intervention and Improve Stakeholder Economic related CSR projects. Base on these findings, the study recommends that Mining firms’ should give maximum consideration to projects that seek the welfare of both stakeholders’ and have equal engagement with all stakeholders’. Also, managing expectations before, during and after mining should be a shared responsibility of all the stakeholders’.     

Accounting Reform in Italy and Perceptions on the Local Government Consolidated Report

The article aims to explore the perception of local government (LG) financial officers on the users, the uses, and the utility of the consolidated financial report in Italy, since it was one of the first countries to expressly provide for compulsory adoption. A questionnaire was sent to a statistical stratified sample of LG, collecting 133 responses (response rate 17%). The results, tested through the structural equation model we observe that social legitimization pressure rather than accountability patterns or performance analysis drive more the adoption process. The evidence indicates that the report is perceived as a potential tool for pursuing performance assessment strategies in a group context. However, this potentiality depends on the coordination effort made by the LG. The article finds out the rise of the topic of the public governance and the role of coordinating the local public group.     

Local Government Finance Office Orientation Revisited: Actually,It’s All About Control

In states with heavy oversight of local government finances, alternate levels of control orientation exist based on county government budget formulation and financing practices. However, previous research indicates a possible trend toward policy orientation. Using survey data from North Carolina counties, initial findings indicate high levels of finance officer budget formulation discretion as well as county manager agreement with budget decisions. Additional logit models suggest that while stakeholder influence is still present along with remnants of policy orientation, the state financial oversight mechanism along with the background, knowledge of departmental financial needs, and frequent departmental appropriation dissemination by the finance officer, continue to sustain control orientation.     

Auckland,New Zealand – fair game for central party politics

This paper explores the influence of central party politics in Auckland local government, in New Zealand’s largest city, following the 2010 amalgamation. Political parties have been an accepted and dominant presence in European representative democratic local government, throughout the 20^th century. Not so, however, in New Zealand and Australia, where citizens have ‘flocked to the banner “Keep Politics out of Local Government”. Our analysis of the self-declared party accreditation status of candidates and elected members demonstrates that political affiliation, at least in the main centre Auckland, is on the rise, counter to assumptions that New Zealand local government is largely removed from central politics.     

Evaluating local government performance in times of crisis

In recent years, Spanish local governments have come under increasing pressure to accommodate severe economic restrictions while maintaining their provision of local public services. We analyse overall cost efficiency in Spanish local governments during the period of the economic crisis (2008–2013), under four different non-parametric methodologies. Moreover, given how problematic it is to precisely define what municipalities do, we compare three different output models with various measures of quantity as well as quality. Results suggest that Spanish local government efficiency improved over the period 2008–2013 since budget expenditures (inputs) fell while local public services and facilities (outputs) were maintained. We also find evidence of the possible implications of service quality when measuring municipalities’ efficiency, and of structural differences in the average efficiency between municipalities located in different Spanish regions. Finally, our results confirm that the level and variation of efficiency scores are affected by the approach taken.     

Territorial reforms in Europe: effects on administrative performance and democratic participation

Territorial reform is the most radical and contested reorganisation of local government. A sound evaluation of the outcome of such reforms is hence an important step to ensure the legitimation of any decision on the subject. However, in our view the discourse on the subject appears to be one sided, focusing primarily on overall fiscal effects scrutinised by economists. The contribution of this paper is hence threefold: Firstly, we provide an overview off territorial reforms in Europe, with a special focus on Eastern Germany as a promising case for cross-country comparisons. Secondly, we provide an overview of the analytical classifications of these reforms and context factors to be considered in their evaluation. And thirdly, we analyse the literature on qualitative performance effects of these reforms. The results show that territorial reforms have a significant positive impact on functional performance, while the effects on participation and integration are indeed ambivalent. In doing so, we provide substantial arguments for a broader, more inclusive discussion on the success of territorial reforms.     

Agricultural commercialisation models,agrarian dynamics and local development in Ghana

The renewed commitment of African states to modernising agriculture has reignited longstanding debates about different models of agricultural commercialisation. Which forms of commercialisation models will reduce land dispossession and the impoverishment of smallholders, and transform smallholder agriculture and the wider economy? Of the three broad models of agriculture commercialisation in this debate – plantation, contract farming and medium-scale commercial farming – contract farming has been identified as central to the future of Africa’s commercial agriculture. This paper provides empirical evidence from Ghana on the impacts of these three models on land, labour/employment, livelihoods and local economic linkages. Our findings show that the plantation and the commercial farming areas have highly commercialised land relations, land scarcity and high land prices, compared to the outgrower area where traditional systems of accessing land still dominate, enabling families to produce their own food crops while also diversifying into wage labour and other activities. Food insecurity was highest in the plantation area followed by the commercial area, but lowest in the outgrower area. Here, semi-proletarianised seasonal workers combine self-provisioning from their own farms with wages, and this results in better livelihood outcomes than for permanent workers in plantations and commercial farms. Due to the processing units in the plantation and the outgrower models, they provided more employment. However, the casualisation of labour and gender discrimination in employment and access to land occur in all three cases. All three models generated strong economic linkages mainly because they combined attributes such as processing, provided markets for nearby farmers, induced state infrastructural development and diffused technology in competitive ways. The effects of the models on household and local development are coproduced by their interaction with pre-existing conditions and wider national economic structures.     

Does Gender Equality Affect Municipal Transparency: The Case of Spain

The influence of women in organizational transparency is an understudied vein of representative bureaucracy. Literature claims that the increase of women in formal political representation opened the opportunity to bring to public organizations gender diversity, experiences, and values different from those of men. It highlights the beneficial leadership styles and the legitimacy of public bureaucracies. Since gender equality in Spanish local government has increased in recent years, it was the trigger and the aim for this study: to understand the influence of women’s political representation on the level of Spanish municipalities’ transparency. The analysis draws on panel data econometric techniques. The results reinforce the discussion that the representation of women in local political life will increase information transparency and reduce information asymmetry in municipalities.