This paper postulates a life cycle model of university entrepreneurialism at the national level. Based on the analysis, this paper identifies two fundamental sources of such entrepreneurialism: 1) the institutional anchoring of the university of a public-private hybrid form in organization and finance; 2) decentralization of the system in such a way as to encourage a high level of competition and differentiation. We hypothesize that when national university systems grow and exhibit signs of demand overload, political pressures for system homogenization increase; system homogenization weakens both sources of entrepreneurialism and leads to decline. The sources of decline are thus unintended consequences of policy choices to cope with the side effects of demand overload within national university systems. Implications for the ascendant Chinese university system are derived.
Dike builders or disrupters of the peace? The counts of Flanders and water management in the coastal wetlands (from the fourteenth to the sixteenth centuries). During the late mediaeval period, water management in the coastal wetlands of the Low Countries was strongly decentralized. It remained untouched by the judicial and administrative policies pursued by Burgundian and Habsburg rulers which aimed to centralise control. In the case of Flanders, this had more to do with government indifference to the situation on the ground than with local resistance government policies. Many initiatives in the field of water management that have been traditionally attributed to the counts of Flanders, were in fact initiatives that were developed, financed and implemented locally, with only tacit support from central government. And yet in the extremely fragmented water management organisation of late medieval Flanders, a coordinating authority was vital to accommodate the divergent interests of local water boards or cities, and to overcome structural disparities in the funding of sea walls. In the absence of any obvious financial reward for themselves and constrained by the private strategies of their officials, the Flemish rulers did not dare disturb the local balances of power to overcome obvious deficiencies in coastal water management.
This thesis consists of a summary and four papers. The first two papers address political economy and indus-trial organization aspects of agricultural policy, and the last two international aspects of environmental policy. Paper [I] explains Common Agricultural Policy (CAP) subsidies to farmers by the influence of farmer interest-groups with an EU-wide membership. The analysis is based on panel-data for fifteen commodities over the period 1986-2003. Because the CAP is set as an overall EU policy, effective lobbying presents a collective ac-tion problem to the farmers in the EU as a whole. Indicators of lobbying, which are based on this perception, are found to explain part of the variation in agricultural support. In Paper [II], the Bresnahan-Lau framework is used to analyze whether policy reforms, i.e. the two-price sys-tem (an input quota, 1986-1991) and a general deregulation of dairy policy (1991-1994) had any market power effects on the Swedish butter market. The results show that the null hypothesis of no market power cannot be rejected, for any of the specific policy reforms, at any reasonable significance level. Paper [III] concerns the welfare consequences of environmental policy cooperation. It is assumed that coun-tries finance their public expenditures by using distortionary taxes, and that they differ with respect to compe-tition in the labor market. It is shown how the welfare effect of an increase in the expenditures on abatement depends on changes in the environmental damage, employment and work hours. The welfare effect is also related to the strategic interaction among the countries in the prereform equilibrium. In Paper [IV] environmental policy in an economic federation, where each national government faces a mixed tax problem, is addressed. It is assumed that the federal government sets emission targets, which are imple-mented at the national level. It is also assumed that the economic federation is decentralized. The results high-light a strategic role of income and commodity taxation, i.e. each country uses its policy instruments, at least in part, to influence the emission target.
This paper develops a two‐period overlapping generations model with heterogeneous agents aiming at analysing how decentralization in the provision of public education affects growth and personal inequality via human capital investment. Education is financed by a tax levied by either national or local authorities. The tax rate is chosen according to a median voter mechanism. During their working period of life, individuals look after their offspring by providing them with a high level of school education stemming from taxation. In addition parent's contributions to the social security system provide them with retirement income. Heterogeneity accounts for the differences in the optimal taxation mechanism, linking the income distribution to the tax rate, and hence to human capital accumulation, growth and income inequality. In this way we relate differences among agents to the tax rate. We show that decentralization induces growth rate disparities among local communities but it can be ruled out by a proper fiscal substitution between social security and locally provided education. Unlike in the literature, this type of fiscal design allows local economies to grow faster and more equally than the national design.
As Gandhi often pointed out, India lives in villages and unless village life can be revitalized the nation as a whole can hardly come alive. When India became independent in 1947, perhaps one-third of the villages of India had traditional Panchayats and many of them were far from flourishing conditions. The congress government has made a determined effort to promote the creation of Panchayats and to make them effective units of local self- government. Article 40 of the Constitution clearly declares ‘The state shall take necessary actions to organize village Panchayats and to endow them with such powers and authority as may be necessary to enable them to function as units of self-government’. The aim was to foster democratic participation, to involve villagers in the development of the community and to reduce the burden of higher level of administration. Though various steps were taken by successive governments to revitalize the system, Gramswaraj through village Panchayats remained as a distant dream till 1992. Bureaucratic apathy, indifference of the people, lack of political will, lack of uniformity etc were the main factors behind the failure of the system. Realizing the potential of the PR system, Rajeev Gandhi government initiated a process of Constitutional amendment to give sanctity and uniformity to Panchayati Raj system so that it can be immune from political interference and bureaucratic indifference. Rajeev Gandhi introduced 64th Constitutional amendment Bill in 1989. But the Bill did not materialize because of the fall of his Ministry. Finally the P.V.Narasimha Rao government introduced Panchayati Raj system in India through the 73rd Constitutional Amendment in 1992. \nThe article mainly focuses on the effectiveness of 73rd Constitutional amendment in securing empowerment of people. The article tries to capture the efforts of various states to implement panchayati Raj system and makes a comparative study of performance of states in terms of people’s participation, capacity building, de-bureaucratization and decentralization of powers. The salient features of 73rd Amendment Act including reservation of seats, provision for separate election commission and finance commission, gramsabha, taxes, periodic elections etc are discussed. More over it examines the initiatives of state governments towards democratic decentralization and highlights special programmes initiated by Kerala, Andhra Pradesh, Rajasthan, Karnataka, Madhya Pradesh etc to make the system effective. The article critically evaluates the effectiveness of PRIs as a system of governance for increased people’s participation empowerment and social change. Here attempt is made to incorporate the results of impact assessment studies conducted by World Bank. Concluding section highlights the need for revitalizing the system through integrating NREGP [National Rural Employment Guarantee Programme] and NRHM [National Rural Health Mission] etc
An important element in considering school finance policies is that households are not passive. Instead they respond to policies with a combination of modified residential choice and political choice of tax levels. The highly stylized decision models of most existing analyses, however, lead to concerns about the policy evaluations. In our general equilibrium model of residential location and community choice, households base optimizing decisions on commuting costs, school quality, and land rents. With both centralized and decentralized employment, the resulting equilibrium has heterogeneous communities in terms of income and tastes for schools. This model is used to analyze a series of conventional policy experiments, including school district consolidation, district power utilization, and different equalization devices. The important conclusion is that welfare falls for all families with the restrictions in choice that are implied by these approaches.
This article analyzes the impact of counter-terrorism policies, e.g., the Patriot Act and the war in Iraq, on the financial structure of European terror networks and argues that such policies, far from defeating Jihadist activities, ended up boosting them. In response to such measures, terror finances have been skillfully restructured, the main changes being the decentralization of funding activity in Europe and in the Middle East and the declining cost of terrorist attacks.
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Terrorism, Counterterrorism, and Political Violence
Bangladesh has made significant progress in health indicators in recent years in spite of her low level of income. This is mainly due to the commitment of the state supported by donors in providing preventive care with respect to child health and family planning. However, there are serious problems related to both access and quality of curative care that hurt the poor most. Infrastructures for service delivery exist at local level in rural areas but they function inefficiently. This paper deals with the systemic weaknesses of decentralized service provision of primary healthcare in Bangladesh and focuses on accountability links between different actors and functions of delegation, finance, performance, information and enforcement. The study is based on facility- and household-based data collected during 2005 in Khulna Division. The main findings of the study are: the health system in rural areas represents deconcentration rather than decentralization of central government functions where inter-sectoral discipline works poorly; local health providers are not accountable to local government, and poor citizens/clients are neither aware of their rights nor are capable of expressing their needs as effective channels do not exist.
Development of the European integration through the European Union (EU) considers not only strengthening integration from the economic aspect (internal market). It also considers the political aspect of the integration i.e. strengthening political integration of member states and their citizens. Political segment of integration considers strengthening of the internal policies of the EU in which fiscal system, i.e. public finances have extremely important role. The EU fiscal system presents reflection of the extremely strong and often confronted interests between the economic and the political integration. These issues are closely related to the second component of the European politic and economic integration, that are the fiscal relations between the EU “central” level and the national “lower” levels which bring the all important decisions in the EU. According to the theory of public finance (fiscal federalism) and the criteria of economic efficiency, fiscal functions (allocation, redistribution, stabilization) and activities are assigned to the different levels of government, as well as certain resources for their financing. On the basis of fiscal functions carried out by national levels in the EU, and the manner of their financing, the EU is a prominently fiscally decentralized complex community. The traditional approach to the fiscal federalism that fiscal authorities are transferred from central to lover levels means that this is a process of decentralization, while in the case of the EU this means centralization of fiscal authorities from the level on national states to the EU as a supra-national level. The main goal of this paper is to analyze fiscal relations in the EU according to basic fiscal functions: allocation, redistribution and stabilization. Methodology would include analysis and comparison of positive EU aspect with normative aspect of public finances in multi-level community. Induction of gained results will confirm thesis that, because of political restraints, development of common (central) system of the EU public finances is based on alternative approaches of harmonization and cooperation.
Jean-Philippe Fontenelle, François Molle, Hugh Turral
The political changes which induced the technical and institutional evolution of the Red River Delta's (Vietnam) water control systems are described. The management framework and financial organization of the delta's water control systems are also described. The financing of the different operators, the amount and use of the water fees paid by farmers, and the process of water management decentralization and privatization in the delta, are analysed.
In this paper, we analyze a class of models in which there are interjurisdictional spillovers among heterogeneous jurisdictions, as illustrated for instance by CO2 emissions that affect the global environment. Each jurisdiction's emissions depend upon the local stock of private capital. Capital is interjurisdictionally - mobile and may be taxed to help finance local public expenditures. We show that decentralized policymaking leads to efficient resource allocations in important cases, even in the complete absence of corrective interventions by higher - level governments or coordination of policy through Coasian bargaining. In particular, even when the preferences and production technologies differ among the agents, the decentralized system can still result in globally efficient allocation.
Administrative Decentralization seeks to redistribute authority, responsibility and financial resources for providing public services among different levels of government. Administrative Decentralization is the transfer of responsibility for the planning, financing and managing of certain public functions from the central government and its agencies to field units of government agencies. This paper will search for a common theoretical framework of decentralization, then analyzes and assesses the initiatives for decentralization of administration that have been constructed after the emergence of Bangladesh. The major issues and problems of implementation of the decentralization policies in Bangladesh are also discussed suggesting policy measures. This paper is analytical in nature.
The aim of this work is to evaluate the results of the housing policy that was introduced as from the mid-1990s, during the government of President Fernando Henrique Cardoso.The main directives of this policy were the decentralization of actions, the flexibilization of service relating to demand, the formation of partnerships with civilian society, the creation of new sources of financing and the integration of the housing policy with urban policy.As from 1995 laws were changed and programs and sources of financing were created that were a response to the paralysis in which the Brazilian housing sector had found itself since the disbanding of the National Housing Bank (BNH), in 1986.However, old problems persisted: for example, the setting up of funds for financing housing units for low income classes was never put into practice.The use of non-onerous resources was minimal and as a consequence, the distribution of the constructions, both in terms of where and which income band, did not meet the real needs, a fact that has been clearly pointed out in studies on the Brazilian housing déficit.
Compared with most countries the Norwegian system of financing local governments is highly centralized. Grants make up a substantial part of revenues and local taxes are highly regulated by the center. The development of the system was motivated by a desire to equalize service provision throughout the country. The purpose of this paper is to analyze possible consequences of more decentralized financing with local tax discretion. Contrary to the conventional wisdom the analysis indicates that decentralized financing is likely to give more equal provision of local public services. In addition, substantial efficiency gains can be obtained.
<abstract language="eng">The constitution of Brazil directs that the country’s health system, the Unified Health System (Sistema Único de Saúde), be politically and administratively decentralized. Nevertheless, handing over competencies, responsibilities, and resources to subnational levels, especially to municipal governments, has been a slow process, lasting almost two decades. Advances have been brought about by the Unified Health System, which, from a analytical perspective, is a public and universal system. Despite that, the decentralization process needs to overcome norms that keep all levels of management dependent on Brazil’s federal Government. The subnational levels have consistently faced difficulties in performing their macromanagement functions with autonomy, especially when it comes to financing and to the establishment or organization of health care networks. Boldness and responsibility will be needed to prevent Brazil’s health decentralization process from leading to fragmentation. New political agreements between different levels of government, with a reassignment of responsibilities and the enhancement of a culture of technical cooperation, are fundamental requisites to making the Unified Health System have a health policy that is truly public and universal.
The constitution of Brazil directs that the country's health system, the Unified Health System (Sistema Unico de Saúde), be politically and administratively decentralized. Nevertheless, handing over competencies, responsibilities, and resources to subnational levels, especially to municipal governments, has been a slow process, lasting almost two decades. Advances have been brought about by the Unified Health System, which, from a analytical perspective, is a public and universal system. Despite that, the decentralization process needs to overcome norms that keep all levels of management dependent on Brazil's federal Government. The subnational levels have consistently faced difficulties in performing their macromanagement functions with autonomy, especially when it comes to financing and to the establishment or organization of health care networks. Boldness and responsibility will be needed to prevent Brazil's health decentralization process from leading to fragmentation. New political agreements between different levels of government, with a reassignment of responsibilities and the enhancement of a culture of technical cooperation, are fundamental requisites to making the Unified Health System have a health policy that is truly public and universal.
Este trabajo analiza la estructura de los servicios de salud pública en Estados Unidos. Pretende aportar la perspectiva de una organización federal de la salud pública con más de 200 años de historia, que puede ser de utilidad en el actual contexto español. La información se ha obtenido a partir de la realización de entrevistas con personas clave de los tres niveles de la administración pública (federal, estatal y local), así como con académicos (muchos de los cuales han sido directives del sistema de salud pública). Se presta especial atención a la organización, financiación y actividades de los departamentos de salud pública locales y de los estados, así como a los esquemas de relación entre ambos. Se comentan las implicaciones para un país como España, que ha pasado en poco tiempo de una estructura muy centralizada a una estructura descentralizada en 17 comunidades autónomas. The present article analyzes the structure of public health services in the USA. It aims to describe the perspective of 200 years of a federal organization of public health services, which could be useful in the current context in Spain. Information was obtained by interviews with key informants from the three levels of government (federal, state, and local) and with academics (many of whom had previous experience as public health officers). Special attention is paid to the organization, financing and activities of local and state health departments, as well as to the relationships between these departments. The implications for a country like Spain, which has evolved in a short period from a highly centralized system to a decentralized system based on 17 Autonomous Communities, is discussed.
Since South Africa held its first democratic elections in 1994, it has given significant attention to building an effective system of decentralization including provincial and local government. While provincial governments are responsible mainly for the implementation of social services such as health and education, the provision of much of the urban infrastructure is the responsibility of local government. Although many challenges remain, the country has made significant progress over the past decade in addressing urban service backlogs in poor areas. At the same time, it has greatly improved macroeconomic fundamentals. The system of financing local government seeks to place accountability firmly at the local level, with most revenues in the larger urban centers raised locally through a combination of local taxes and fees for services, while poorer regions are predominantly grant funded. The objective has been to encourage the financing of capital infrastructure through local borrowing based on sustainable, transparent local finances rather than national repayment guarantees, which are outlawed. There is some indirect subsidization of loans through the state-owned Development Bank of Southern Africa. But the emphasis is on achieving redistribution through transparent, formula-based grants paid directly from national to local governments. While further bedding down of the system is needed, the approach is proving largely successful. The paper concludes by recommending that the existing division between provinces as providers of social services and local governments as the key locus of responsibility for services related to the built environment should be strengthened, particularly through the devolution of more urban transport related functions. A number of key risks are also highlighted, including issues related to the reform of local business taxes.
Contracting is one of the tools increasingly being used to enhance the performance of health systems in both developed and developing countries; it takes different forms and cannot be limited to the mere purchase of services. Actors adopt contracting to formalize all kinds of relations established between them. A typology for this approach will demonstrate its diversity and provide a better understanding of the various issues raised by contracting. In recent years the way health systems are organized has changed significantly. To remedy the under-performance of their health systems, most countries have undertaken reforms that have resulted in major institutional overhaul, including decentralization of health and administrative services, autonomy for public service providers, separation of funding bodies and service providers, expansion of health financing options and the development of the profit or nonprofit private sector. These institutional reshuffles lead not only to multiplication and diversification of the actors involved, but also to greater separation of the service provision and administrative functions. Health systems are becoming more complex and can no longer operate in isolation. Actors are gradually realizing that they need to forge relations. The simplest way to do that is through dialogue, although some prefer a more formal commitment. Interaction between actors may take various forms and be on different scales. There are several types of contractual relations: some are based on the nature of the contract (public or private), others on the parties involved and yet others on the scope of the contract. Here they are classified into three categories according to the object of the contract: delegation of responsibility, act of purchase of services, or cooperation.
China has experienced more than 25 years of extraordinary economic growth. Underlying this growth has been a decentralized fiscal system, in which provinces and large cities are given the freedom to make infrastructure investments to stimulate local development, and are allowed to retain a large part of the fiscal revenues that are generated from economic activity. Although successful as a growth strategy, this policy created two problems for national fiscal management. First, it significantly reduced the central government's share of fiscal revenues, which fell from 34.8 percent in 1980 to 22 percent in 1992. Second, it widened economic and fiscal disparities between the rapidly growing urban coastal region and the rest of the country. Rapid growth in subnational debt (which rose 23-fold in a decade) and subnational nonperforming loans (estimated by the authors to range between US$100 billion and US$150 billion) has placed pressure on China's financial system. Traditionally, China has favored bank lending as a source of finance because the banking system has provided a vehicle for central political control over local debt. But as China's financial system matures, creditworthiness standards must become more important. The authors recommend greater use of the revenue streams from infrastructure assets as a financing source, and gradual relaxation of central political control over subnational debt. One step in this direction would permit leading cities to issue municipal bonds based on objective financial standards.