Setting the rules: private power,political underpinnings,and legitimacy in global monetary and financial governance

The role of private market agents in global monetary and financial governance has increased as globalization has proceeded. This shift in both markets and patterns of governance has often been encouraged by states themselves in pursuit of liberalization policies. Much of the literature views these developments in a positive light, yet there are other aspects of these developments that also merit attention. This article supports its central propositions with two cases of emerging global financial governance processes: the Basel II capital adequacy standards for international banking supervision and the International Organization of Securities Commissions‐based transnational regulatory processes underpinning the functioning of cross‐border securities markets. Based on the case findings, the article argues first that private sector self‐regulation and/or public‐private partnership in governance processes can leave public authorities vulnerable to dependence on the information and expertise provided by private agents in a fast‐moving market environment. Policy in the vital domain of financial regulation has been increasingly aligned to private sector preferences to a degree that should raise fears of bureaucratic capture. Second, the article contends that the overall outcome in terms of global financial system efficiency and stability has been mixed, bringing a range of important benefits but also instability and crisis for many societies to a degree that has led to challenges to global governance itself. The case material indicates that the input, output and accountability phases of legitimacy in global monetary and financial governance are highly problematic, and much of the problem relates to the way in which private market agents are integrated into the decision‐making process. Third, the article posits that a better consideration of these three ‘phases’ of legitimacy and their interrelationships is likely to enhance the political underpinnings and legitimacy of global financial and monetary order.     

Punctuated Equilibrium, Bureaucratization, and Budgetary Changes in Schools

For half of a century, models of nonrational behavior have grown in popularity for explaining the behavior of administrative organizations. However, models of nonrational behavior are notoriously difficult to test because nonrational behavior is often difficult to separate from fully rational behavior. Recent research has suggested that particular types of nonrational processes should produce "punctuated" equilibria rather than "instantaneous" equilibria. In these nonrational processes, a decision maker underresponds to changes for a long period of time. Once pressure for change becomes overwhelming, the decision maker adopts a radical change. This is called "punctuation." The key to identifying this type of nonrationality of a process's rationality is the comparative success of fitting the observed behavior to "punctuated" rather than "instantaneous" equilibria.
True, Jones, and Baumgartner (1999 ) developed a method for comparing the distribution of decision outputs as a strategy for assessing the relative degree of "punctuation" in the decision processes. By assessing the kurtosis (or "peakedness") of the distribution of decision outputs, one can get a sense of the excess (compared with a standard, normal distribution) of low and high rates of change–a sign of punctuated equilibrium.
This article extends these recent developments by adapting the method to a comparative kurtosis framework. The results suggest that bureaucracy in K–12 schools serves to reduce (rather than amplify) the punctuations in budgeting processes. The article concludes with a discussion of the potential extension of the empirical results and modifications to the testing procedure.     

When Do We “Just Say No”? Policy Termination Decisions in Local Hospital Services

This paper develops a two‐stage decision‐making model of the public policy termination process, which integrates political and economic influences on local decision makers. We empirically explore the model using data on the provision of local public hospitals in California over 1981–95. The results provide support for the model as we find that triggering events as well as characteristics of the local decision‐making context affect the termination decision. For the case of public hospitals, we find that lower state and local revenue growth rates increase the likelihood of termination, while decision makers in communities with a larger local health budget, more unionized public employees, and a larger private hospital sector are less likely to terminate local public hospitals. The implications for public policy and for our understanding of the termination process are discussed.     

Voluntary Environmental Programs in the Public Sector: Evaluating an Urban Water Conservation Program in California

Solving conflictual environmental policy problems is increasingly falling under the purview of local governments and public agencies. Nonregulatory approaches, such as the development of voluntary environmental programs (VEPs), could offer a useful policy alternative as they often have greater political traction and flexibility. However, there has been little work examining the use of VEPs in the public sector. This article uses a new dataset from California to examine how political institutions affect decisions by local governments and public agencies to participate in a voluntary urban water conservation program and whether this program has improved the water conservation performance of its members. The results show that special district governments, private utilities, and water suppliers dependent on purchased water are more likely to participate in the program and to join early. However, urban water agencies that have joined the program have not reduced their per capita water use more than those that have not. These results underscore the influence of political institutions in public‐sector decision making and demonstrate that, as in the private sector, commitment to a VEP by local government and public agencies does not guarantee implementation or environmental improvements. While voluntary programs offer political and administrative advantages, in order for VEPs in the public sector to be effective they must be accompanied and supported by credible enforcement mechanisms, performance standards, and rigorous monitoring programs.     

Changing public accountability mechanisms in the governance of Dutch urban regeneration*

Contemporary urban planning dynamics are based on negotiation and contractual relations, creating fragmented planning processes. On the one hand, they trigger technocratic forms of governance, which require the ‘legal instrumentalisation’ of planning in a piecemeal approach ensuring legal certainty. On the other hand, these processes require flexibility to enable easy, fast and efficient forms of implementation due to the increasing involvement of private sector actors in urban development. This article unravels the influence of these conflicting dynamics on the fundamentals of urban planning practices by focusing on changing public accountability mechanisms created through contractual relationships between public and private sector agencies. Dutch urban regeneration has demonstrated changing governance principles and dynamics in the last three decades. Representing instrumental and institutional measures, we connect accountability mechanisms to these changes and argue that they ‘co-exist’ in multiple forms across different contexts. This article embeds this evolution in wider theoretical discussions on the changing relationships between public and private sector actors in urban governance relative to the changing role of the state, and it addresses questions on who can be held accountable, and to what extent, when public sector actors are increasingly retreating from regulatory practices while private sector actors play increasingly prominent roles.     

Go East,Young Cadre: Experiments in Inter‐Provincial Training of Party and State Managers in China

This article situates China's local policy experimentation in the broader context of policy experiments in decentralized political systems, through a case study which represents a local state response to China's transition to a market economy. With growing regional and urban–rural inequalities evident after the initial reform period (1978–1994), local party leaders of inland provinces devised strategies for addressing these inequalities and encouraging public–private sector mobility among party officials. County and township‐level leaders pursued local policy experiments in which they selected and sent officials to find private‐sector work in China's booming coastal cities. Initiated in the 1990s and peaking in the 2000s, these policy experiments and inter‐provincial transfers demonstrate the discretion that local officials possess to conduct programmatic/policy experiments in a unitary political system and show how officials resort to extra‐institutional strategies in order to bridge perceived knowledge gaps. The ultimate demise of these programmes illuminates the challenges to extra‐institutional policy innovations in transitioning states.     

Conceptualising European Privatisation Processes After the Great Recession

A wave of privatisation is unfolding in Europe in the wake of the financial crisis, but it has yet to receive serious scholarly attention. This paper examines the case of Ireland, where an austerity strategy and European Union International Monetary Fund bailout conditionality have given impetus to the transfer of public assets to the private sector. Theoretically, the paper explains the roots of the phenomenon with reference to a reformulated concept of “accumulation by dispossession” whose usefulness lies in emphasising the politico‐economic drivers of privatisation, which have been neglected in the mainstream literature. A typology is presented that argues that accumulation by dispossession manifests itself, in practice, through four main processes: (1) private repossession of assets nationalised during the financial crisis; (2) restructuring of state‐owned enterprises; (3) commodification of assets and services hitherto located outside the market; and (4) privatised stimulus through public–private partnerships. The paper's framework should be useful to conceptualise ongoing privatisation processes in other European countries.     

Health Care Reforms in Developing Asia: Propositions and Realities

Market‐oriented reforms in the health sector continue to dominate health policy agendas in many developing countries despite growing evidence of their negative impacts. This article critically examines eight key arguments that are used to justify market‐oriented reforms and that continue to hold widespread appeal among policy makers and analysts. The authors conclude that although the axiom that health care is atypical due to pervasive market failures is widely acknowledged by reformers, the scope and depth of the negative consequences of market competition and private sector involvement are systematically underestimated in policy design and implementation, while the regulatory capacity to overcome them is overestimated. Their analysis suggests that while there is considerable scope for market‐oriented reforms, the success of such reforms depends on a tight set of conditions that are often absent in the health care sector, especially but not exclusively in developing countries.     

States, Markets and Governance for Emerging Market Economies: Private Interests, the Public Good and the Legitimacy of the Development Process

States, markets, and governance are among the pressing issues of our day. The global market exerts dynamic pressures on our societies, economic agents, and systems of government, especially in the developing world. Typically, most analysis begins with the idea that global markets have increasingly intruded upon the capacity of the institutions of government to manage the process of change. Our societies are seen as increasingly subject to the vagaries of market forces, to the delight of some and the regret of others.
This article argues that much thinking about states and markets is flawed, making it highly likely that policy-makers, among others, will commit mistakes in their responses to the undoubted pressures for change. If we alter the way we think about the state and the market, we will see opportunities to change what we do about them and how they evolve over time. The article argues that we should retreat from understandings of the market and governance that involve a clear distinction between states and markets, proposing a radical reformulation wherein states and markets are no longer seen as separate entities, but as a state-market 'ensemble of governance', or 'condominium'. Drawing on Adam Smith, this approach leads to a reinterpretation of the relationship between private interests in market processes and the wider public good. This model is used to interpret contemporary patters of global trade and finance, and the article concludes that this new way of thinking can help us to realise better our normative preferences about the sort of world in which we wish to live.     

Global Public Policy,Transnational Policy Communities,and Their Networks

Public policy has been a prisoner of the word “state.” Yet, the state is reconfigured by globalization. Through “global public–private partnerships” and “transnational executive networks,” new forms of authority are emerging through global and regional policy processes that coexist alongside nation‐state policy processes. Accordingly, this article asks what is “global public policy”? The first part of the article identifies new public spaces where global policies occur. These spaces are multiple in character and variety and will be collectively referred to as the “global agora.” The second section adapts the conventional policy cycle heuristic by conceptually stretching it to the global and regional levels to reveal the higher degree of pluralization of actors and multiple‐authority structures than is the case at national levels. The third section asks: who is involved in the delivery of global public policy? The focus is on transnational policy communities. The global agora is a public space of policymaking and administration, although it is one where authority is more diffuse, decision making is dispersed and sovereignty muddled. Trapped by methodological nationalism and an intellectual agoraphobia of globalization, public policy scholars have yet to examine fully global policy processes and new managerial modes of transnational public administration.     

Four Perspectives on Public Participation Process in Environmental Assessment and Decision Making: Combined Results from 10 Case Studies

Knowing how people think about public participation processes and knowing what people want from these processes is essential to crafting a legitimate and effective process and delivering a program that is widely viewed as meaningful and successful. This article reports on research to investigate the nature of diversity among participants' perceptions of what is the most appropriate public participation process for environmental assessment and decision making in 10 different cases. Results show that there are clearly distinct perspectives on what an appropriate public participation process should be. We identified four perspectives: Science‐Centered Stakeholder Consultation, Egalitarian Deliberation, Efficient Cooperation, and Informed Collaboration. The literature on public participation tends to presume that there are clear and universal criteria on how to “do” public participation correctly or that context is the critical factor. This study has revealed that even within a specific assessment or decision‐making effort, there may be different perspectives about what is viewed as appropriate, which poses a challenge for both theorists and practitioners. Among the active participants in these 10 case studies, we found limited agreement and strong differences of opinions for what is a good process. Points of consensus across these cases are that good processes reach out to all stakeholders, share information openly and readily, engage people in meaningful interaction, and attempt to satisfy multiple interest positions. Differences appeared about how strongly to emphasize science and information, how much leadership and direction the process needs, what is the proper behavior of participants, how to tackle issues of power and trust, and what are the outcome‐related goals of the process. These results challenge researchers and practitioners to consider the diversity of participant needs in addition to the broad context when conceptualizing or carrying out participatory processes.     

Negotiating Neoliberal Empowerment: Aboriginal People,Educational Restructuring,and Academic Labour in the North of British Columbia,Canada

Aboriginal peoples in Canada are gaining influence in post‐secondary education through Aboriginal‐directed programs and policies in non‐Aboriginal institutions. However, these gains have occurred alongside, and in some cases through, neoliberal reforms to higher education. This article explores the political consequences of the neoliberal institutionalization of First Nations empowerment for public sector unions and workers. We examine a case where the indigenization of a community college in British Columbia was embedded in neoliberal reforms that ran counter to the interests of academic instructors. Although many union members supported indigenization, many also possessed a deep ambivalence about the change. Neoliberal indigenization increased work intensity, decreased worker autonomy and promoted an educational philosophy that prioritized labour market needs over liberal arts. This example demonstrates how the integration of Aboriginal aspirations into neoliberal processes of reform works to rationalize public sector restructuring, constricting labour agency and the possibilities for alliances between labour and Aboriginal peoples.     

Global Liquidity,the Private Sector and Debt Sustainability in Sub‐Saharan Africa

This article analyses the effect of changes in international financial markets on the debt dynamics in sub‐Saharan Africa in recent years. A key development is the rise of the private sector as both a lender and a borrower in African debt markets, a process that is associated with the growing integration of the region into global financial markets. The article argues that the Debt Sustainability Framework of the International Monetary Fund and World Bank has taken some steps to account for this growth of private sector, cross‐border debt, but such steps still fall short of what is needed. A full appreciation of the importance of private debt implies, first, that debt sustainability in sub‐Saharan Africa be understood in the context of countries’ integration in global financial markets and the global liquidity cycles that characterize those markets and, second, that the interplay between private and public debt be monitored in order to provide a fuller picture of the impact of private sector debt on fiscal sustainability.     

Philanthronationalism: Junctures at the Business–Charity Nexus in Post‐war Sri Lanka

Over the past few years, the role of private sector organizations as actors and investors in development processes has received increased attention. This article explores the rise of ‘philanthronationalism’ in Sri Lanka: the co‐development of business and philanthropy methods as a response to patronage, nationalization and militarization in the post‐war environment. Drawing on ethnographic research into indigenous forms of corporate social responsibility (CSR), the article identifies four kinds of philanthronationalist practice — passive, assimilative, reactive and collaborative — that provide a logic, mechanism and ethic for private sector development initiatives in the island whilst promoting a vision of the ‘Sinhala Buddhist’ nation state. Noting the emergence of similar philanthronationalist practices in Myanmar, the article concludes by arguing that the Sri Lankan case is unlikely to be unique and calls for further research into the partnerships that emerge between private philanthropy and nationalist movements in conflict/post‐conflict processes around the world.     

On wine,rent and regions: labour market change and housing market processes in non‐metropolitan South Australia

This article reports on research into the relationship between labour market change and the private rental market in non‐metropolitan South Australia for the period 1990–2000. Using Small Area Labour Market data, Census data and records from the Residential Tenancy Tribunal the study investigates the capacity of the private rental market to respond to labour market and population growth. The article finds that there is considerable ‘stickiness’ within the private rental market in regional South Australia and that there has been a limited supply response to changing levels of demand. This has contributed to housing and labour shortages in some regions and over supply in others. Each circumstance has generated considerable dilemmas for public policy. The reasons underlying the imperfect market response are considered and the implications for the future development of the regions are discussed.     

BEYOND THE FOOD DESERT: FINDING WAYS TO SPEAK ABOUT URBAN FOOD SECURITY IN SOUTH AFRICA

Urban food security is a significant development challenge in sub‐Saharan Africa. However, the field is currently under ‐researched and under‐theorized. Urban food insecurity, where it is considered, has been viewed through a development studies lens that views food insecurity as a household‐scale problem. There has been significant focus on food deserts in developed countries as one way of engaging with such insecurity. The food deserts research views food insecurity through a social exclusion and food justice lens. This article introduces the food desert concept to provide a conceptual tool to begin to understand the spatial determinants of urban food insecurity, which are not well captured by the existing framings of food security in the region. Using data from a 2008 household food security survey conducted in Cape Town, the paper highlights gaps in the food deserts approach, most significantly its neglect of non‐market sources of food and of household decision‐making processes. The paper therefore concludes by suggesting a new approach which takes the household's assets, abilities and decision‐making as the starting point and overlays this with the market and non‐market foodscapes accessed by these households.     

The Impact of Microfinance on Decision‐Making Agency: Evidence from South India

Evaluations of the effects of microfinance programmes on women's empowerment generate mixed results. While some are supportive of microfinance's ability to induce a process of economic, social and political empowerment, others are more sceptical and even point to a deterioration of women's overall well‐being. Against this background, development scholars and practitioners have sought to distil some of the ingredients that might increase the likelihood of empowerment or at least reduce adverse effects. This article formally tests the impact of some of the suggested changes in programme features on one particular dimension of empowerment: decision‐making agency. Using household survey data from South India, the author explores the importance of the borrower's gender and the lending technology for intra‐household decision‐making processes. It is shown that direct bank–borrower credit delivery does not challenge the existing decision‐making patterns, regardless of whether men or women receive the credit. These findings change when credit is combined with financial and social group intermediation. Women's group membership seriously shifts overall decision‐making patterns from norm‐guided behaviour and male decision‐making to more joint and female decision‐making. Longer‐term group membership and more intensive training and group meetings strengthen these patterns.     

The Environmental Performance of Participatory and Collaborative Governance: A Framework of Causal Mechanisms

Many have advocated for collaborative governance and the participation of citizens and stakeholders on the basis that it can improve the environmental outcomes of public decision making, as compared to traditional, top‐down decision making. Others, however, point to the potential negative effects of participation and collaboration on environmental outcomes. This article draws on several literatures to identify five clusters of causal mechanisms describing the relationship between participation and environmental outcomes. We distinguish (i) mechanisms that describe how participation impacts on the environmental standard of outputs, from (ii) mechanisms relating to the implementation of outputs. Three mechanism clusters focus on the role of representation of environmental concerns, participants' environmental knowledge, and dialogical interaction in decision making. Two further clusters elaborate on the role of acceptance, conflict resolution, and collaborative networks for the implementation of decisions. In addition to the mechanisms, linking independent with dependent variables, we identify the conditions under which participation may lead to better (or worse) environmental outcomes. This helps to resolve apparent contradictions in the literature. We conclude by outlining avenues for research that builds on this framework for analysis.     

WHEN ARTS MET MARKETING

This article argues that arts marketing theory is embedded in the existing context of the nonprofit arts sector – that is, Romantic belief in the universal value of the arts and producer authority over the consumer. As “a set of techniques” and “a decision‐making process”, marketing was able to sit comfortably in the nonprofit arts context during the 1970s and 1980s. However, recent recognition of marketing as “a management philosophy” has brought out incompatibilities between the customer orientation of the marketing notion and the Romantic view of artistic production. This article demonstrates that arts marketing writings embrace Romanticism through the following: generic marketing concept; relationship marketing approach; extended definition of the customer; extended definition of the product; and reduction of marketing to function. Such findings suggest that persistence of the existing belief system and the embeddedness of the market be considered when marketisation in the arts sector is analysed.     

Shifting Environmental Governance in a Neoliberal World: US AID for Conservation

Abstract: By exploring the shifting and uneven power relations among state, market and civil society organizations in US environmental foreign aid policy‐making, this article forges new ground in conversations about conservation and neoliberalism. Since the 1970s, an evolving group of non‐governmental organizations (NGOs) has lobbied the US Congress to support environmental foreign assistance. However, the 1980s and 1990s rise of neoliberalism laid the conditions for the formation of a dynamic alliance among representatives of the US Congress, the US Agency for International Development, environmental NGOs and the private sector around biodiversity conservation. In this alliance, idealized visions of NGOs as civil society and a countering force to corporations have underpinned their influence, despite their contemporary corporate partnerships. Furthermore, by focusing on international biodiversity conservation, the group has attracted a broad spectrum of political and corporate support to shape public policy and in the process create new spaces for capital expansion.