ALBERT

Notes: The history of Danish political science is young, and public administration has from the beginning been part of the training of political scientists. This background reflects a double strategy: first, in order to ensure political scientists a position in the labour market, they were launched as a new kind of generalist, competing with lawyers and economists. Second, public administration has from the very beginning been seen as a subfield of political science. Even if the institutions engaging in PA research and training have varying profiles, the integration of the discipline in political science is still dominant. So far it has been a success, whether measured at the level of political science graduates in the civil service or the level of PA research. However, the paper argues that in a tougher labour market, generalists with a broad political science background face severe competition from lawyers and economists, and that this must have implications for the direction of research and training in public administration.

Notes: Political and administrative analysis is today said to be taking a narrative turn: to learning by telling and listening to the different stories that constitute political life. However, this new approach to studying the decentring of politics and policy as multiple discursive practices carries a new grand narrative too. A new connection between political authority and political community is taking shape outside the spheres of modern government and representative democracy. Political authority is becoming increasingly both communicative and interactive in order for it to be able to meet complexity with complexity. It is employed for reforming institutions by opening them towards the culture and by tying them to the political attributes and capacities of self-reflexive individuals and to the transformation and self-transformation of their conduct. I call this development culture governance. Culture governance is about how political authority must increasingly operate through capacities for self-and co-governance and therefore needs to act upon, reform, and utilize individual and collective conduct so that it might be amenable to its rule (Bang 2003; Dean 2003). Culture governance represents a new kind of top-down steering; it is neither hierarchical nor bureaucratic but empowering and self-disciplining. It manifests itself as various forms of joined-up government and network governance and proclaims itself to be genuinely democratic and dialogical. This I shall show by a study of local Danish politics and policy in Copenhagen. Culture governance, I shall argue, constitutes a formidable challenge and threat to democracy, in attempting to colonize the whole field of public reason, everyday political engagement, democratic deliberation, and so on, by its own systems logic of success, effectiveness or influence. It seeks to take charge of the working of the more spontaneous, less programmed and more lowly organized politics of the ordinary in political communities, thus undermining the very idea of a non-strategic public reasoning as founding the practices of freedoms.

Notes: How are government policy commitments converted into legislation and what happens in the conversion? The role of civil servants in preparing legislation is far more important than is generally assumed. By looking at the work of four recent bill  teams in Britain – teams of civil servants given the task of developing Acts of Parliament – their crucial roles in initiating policies, placing them on the political agenda (even helping secure their place in a party manifesto), developing them, making sure they pass through parliament and enacting them once they have reached the statute books are assessed. The article explores the composition and working methods of bill teams. These teams work with considerable autonomy in developing legislation, but it cannot be assumed that they operate outside ministerial control. Teams see themselves as reflecting the priorities of the government in general and their ministers in particular. Yet ministers typically know relatively little about the law they are bringing in until they receive the submissions and briefings from their officials. Perhaps the biggest danger for democracy is not a civil service putting forward proposals which a minister feels forced to accept, but rather that ministers do not notice or fully appreciate what is being proposed in their name despite having the political authority to change it and a civil service which bends over backwards to consult and accommodate them.

Notes: This article will explore the proposition that cabinet government is dead by examining the different ways in which cabinet government is conceptualized and by suggesting that the lack of precision in the debates has undermined much of the criticism. It will seek to draw the strands of research together in a way that can emphasize how cabinet government has evolved while remaining at the core of government. The article will draw evidence from three countries, Australia, Canada and Britain, in each of which, despite the common heritage, cabinet has evolved in different ways.

Notes: Since the 1990s there has been a long-standing concern in government towards public sector accountability, management, efficiency and service delivery. A number of studies have attempted to analyse the multitude of individual changes and their manifestations through analyses based on a variety of institutional, policy and governmental distinctions. This paper attempts to specify the changes with particular reference to planning, and to consider the evolution of the public service ethic in planning towards more openness, scrutiny, transparency and efficiency with particular reference to the changing ethos of the professional employee. We first explore the  main impacts upon local government, the public service ethic and professional planning as a consequence of the Modernization agenda and freedoms and flexibilities initiative. We then look at how such changes have impacted upon the ethos and values in public service and planning. We draw on some evidence of Ombudsman cases to highlight issues of professional values in planning practice over the past decade before finally drawing these strands together in some conclusions. Our principal findings indicate that the much-trumpeted decline of services and standards may not have been as apparent as is sometimes portrayed and that internal professional attitudes and values towards the external changes may not have significantly altered over the same period.

Notes: Inspired by New Public Management, many countries have changed their central public apparatus from an integrated to a more segregated structural model. A central element in this process is structural devolution and the establishment of new or reorganized state-owned companies with increased business autonomy and new formal control systems. This paper focuses on how this development, as exemplified by the case of Norway, is affecting the role of central executive political and administrative leaders. The study, based on elite interviews, shows that corporatization has made the role of central leaders more complex and ambiguous and undermined traditional political control. We interpret this development from a transformative perspective, underlining how structural devolution is filtered through the dynamic context of environmental pressure and internal structural and cultural factors; in addition, experiences from New Zealand are used to contrast the Norwegian case.

Notes: Public management reforms at the local (community) and regional (canton) level in Switzerland almost all embrace elements of the new public management. In addition, in Switzerland, the merging of small communities as well as new developments such as electronic government are becoming apparent. The new public management model has been adapted for Swiss needs according to the perception of decision makers on problems that require solution in a Swiss context. NPM has developed, therefore, into rather different models in practice, aimed at the solution of these diverse problems. Foreign examples, such as the Dutch Tilburg Model and the German Neues Steuerungsmodell, played a major role at the start of this process, but have continuously lost their influence as actual models to be emulated. The most outstanding peculiarities of the Swiss reforms are an early and subsequent outcome focus together with the strong influence of direct democracy.

Notes: This article, part of a sequence of comparative articles on local government reforms in The Netherlands, Switzerland and Germany, describes and analyses the recent public management reforms at the local level of Germany. After an overview about the constitutional framework of local self government and the reform waves of the last decades, the paper concentrates on the ‘new steering model’ as the German variant of NPM. The article shows the short history of this reform movement, describes the main elements of the reform concept and explains some of the causes, forces and actors of implementation. It goes on to discuss the present status of implementation, explains several shortcomings of the concept, and presents the – very limited – empirical evidence of achieved results. Finally, the paper draws some conclusions from a comparative view on the similarities and differences of local management reforms in Germany and the two other countries.

Notes: Books reviewed in this article:B. Guy Peters and Jon Pierre (eds.), Politicians, bureaucrats and administrative reformHugh Atkinson and Stuart Wilks-Heeg, Local government from Thatcher to Blair: the politics of creative autonomyAlex Wright (ed.), Scotland: the challenge of devolutionChristopher Hood, Henry Rothstein and Robert Baldwin, The government of risk: understanding risk regulation regimesAlison Young, The politics of regulation: privatized utilities in Britain

Notes: The United States is commonly referred to as the last global superpower, exercising unrivalled political, economic, military and social influence. Yet, paradoxically, unlike any other nation, Americans were – and remain – radically antistatist. Until roughly the twentieth century the United States did not want, need, nor create a powerful administrative state to govern itself, let alone others abroad. This essay explores that peculiar paradox, namely how Americans govern as the last global superpower today, yet retain an inherently fierce hostility to government. The thesis that is developed argues that it is a deep–rooted reformist faith which ultimately shapes US statecraft as a unique style of reformcraft, with both benign and not–sobenign consequences.

Notes: To understand governance, we ask who is telling the story from within which tradition. We argue there is no essentialist notion of governance but at least four conceptions each rooted in a distinctive tradition. The first section of the paper describes the relevant traditions: Tory, Liberal, Whig and Socialist. The second section describes the different notions of governance associated with each tradition; intermediate institutions, marketizing public services, reinventing the constitution and trust and negotiation. We explain these distinct conceptions of governance as responses to the dilemmas of inflation and state overload. In the conclusion, we summarize how and why traditions change, concluding, there is no such thing as governance, but only the differing constructions of the several traditions.

Notes: The article explores the evolution of competing views on state, administration and governance in Germany from an historical perspective, with an emphasis on the last five decades. To understand the governance discourse in Germany one has to start from different notions of the state. The first part therefore offers a brief, somewhat polemic, overview about different state traditions in Germany in the twentieth and twenty–first centuries. The second part looks at how discourses about the proper role, the appropriate structures and processes of the public sector and its interactions with its environment have changed during the history of the Federal Republic. The analytic focus is on the different narratives about administrative policies, understood as the various scenarios, assumptions and arguments on which competing policy–suggestions for the public sector have been based. The article argues that it is not sufficient to interpret the ups and downs of different discourses and Leitbilder as more or less erratic, post–modern fashions and fads. Instead, the line up of the central catch–phrases, from democratic via active and lean to the activating state, reflect learning processes, driven above all by the political competition creating a continuous demand for ‘better’, more appropriate narratives to guide and explain current policies.

Notes: This article explores the basic traditions of governance in contemporary France and the narratives of public sector reform associated with them. It should be stressed right from the outset that this article does not aim to describe the set of public sector reforms that have been implemented in France in the last ten years or so. Instead, the aim is to demonstrate the similarities and differences between the narratives of the left and the right with regard to these reforms and to show how these narratives help to explain the types of reform that have been enacted. The basic argument is that there is a certain commonality to both the left and the right with regard to their narratives of public sector reform. At the same time, though, there are differences of emphasis both within each tradition and between the two main traditions themselves. Except where indicated, all translations are the author's own.

Notes: This article revisits the country case studies and seeks to answer two questions. What are the strengths and weaknesses of an interpretive approach? What lessons can we draw from our analysis of public sector reform? To assess an interpretive approach, we discuss: the issues raised in identifying beliefs; the meaning of explanation; how to select traditions; the shift from prediction to informed conjecture and policy advice as storytelling. To assess the lessons, we outline our preferred story of public sector reform. We seek to show that an interpretive approach produces insights for students of public administration. We argue it remains feasible to give policy advice to public sector managers by telling them stories and providing rules of thumb (proverbs) to guide managerial practices.

Notes: Compared to other continental European countries, especially Germany and Switzerland, which have experimented with New Public Management (NPM) in local government, The Netherlands has been relatively quick in following trends stemming from Anglo-Saxon management thinking, but also relatively quick in redressing its course. The rise of the New Public Management in Dutch local government has been relatively swift and strong but also relatively superficial and non-committal. The dominant picture that emerges is one of an administrative system that, while responsive to the latest trends, is also surprisingly stable. Management reforms, forcefully advocated in the 1980s, were decisively revised and redressed in the 1990s, with the city of Tilburg, celebrated for its ‘Tilburg Model’, a case in point. The Werdegang of NPM (that is, how things developed) in Dutch local government, detailed in this article, can be understood only partially as a result of changing economic and budgetary constraints. The article shows that endogenous features of the Dutch politico-administrative system – more specifically: the compact, dense and decentralized pattern of the intergovernmental network, the administrative tradition of pragmatism, dynamic conservatism and the comparatively technocratic character of local government – have also strongly influenced the reception, effect and correction of NPM in Dutch local government.

Notes: The current UK government emphasizes the importance of mechanisms of accountability that involve the planning and public reporting of performance. One example of this is the Best Value performance plan. However, there has been little evaluation of the quality of the information provided in this type of document. This paper draws on literature on stakeholding and user needs to identify the data required for accountability. It then assesses whether the plans produced by Best Value pilot authorities in Wales provide appropriate information. The analysis shows that very few of the plans contained the relevant material. Interviews in the pilot authorities highlighted two key reasons for the poor level of data: a lack of performance indicators prior to Best Value and limited staff expertise in performance measurement. The evidence suggests that documents such as performance plans currently make little contribution to the accountability of public organizations.

Notes: The computerization of the medical record has important implications for the governance of health care, and the importance of health care means that changes wrought there are indicative of changes in government as a whole. This paper draws on work in public policy, medical sociology and studies of science and technology, as well as on cross–national empirical research in Britain and France. It describes the recent development of information policy in health care as an exercise in state–building, realized specifically in the governance of the health professions. The paper concludes with a discussion of what is both new and not so new in the form and extent of state power which emerges.

Notes: This article analyses the ‘partnership principle’– which is of particular importance for multilevel governance interpretations of European integration – as it evolved in EU regional policy–making. After sketching in the crucial analytical lines of the current debate on ‘partnership’ on the example of the implementation of the EU structural policy in Germany, I examine how it functions. A closer look at two important sub–fields of ‘partnership’–‘societal participation’ and ‘policy evaluation’– reveals that theoretical expectations regarding its transforming potential, in terms of pitting supranational and subnational actors against central state authority and thereby circumventing the latter, have not materialized. On the contrary, recently rising resentment and out–and–out conflict between the European Commission and regional authorities so far point to theoretically unexpected limitations of ‘partnership’, calling into question whether it is an appropriate and sustainable inter–administrative co–ordination device – at least when viewed from the perspective of the EU multilevel governance thesis. In the light of the reported insights into the practice of ‘partnership’, this ‘new mode of EU governance’ thus needs to be reassessed.

Notes: The report describes the flow of manuscripts and the contents of the journal before briefly surveying each section of the journal. It ends with a résumé of changes during the year and a thank you to the many people who have helped.

Notes: Drawing on insights from grid–group cultural theory the article argues that New Labour’s approach to government units beyond Westminster and Whitehall rests on a fatalistic reading of its environment that specifies its key features in terms of low–trust relationships and a lack of predictability about the success of a range of potential reforms. New Labour’s response in these circumstances resembles that of strategy based on the principles of a lottery. The strategy has allowed a plethora of decentralization units and reform initiatives to find favour but none to dominate. The article explores the nature of this strategy, how it was established and the prospects for its maintenance. The key point is not that New Labour’s polices have been ad hoc or even that they have been confused. Rather, its policies are a chosen course of action aimed at searching for the right reform formula and creating a dynamic for change by encouraging instability but also space for innovation among the institutions of devolved governance. The strategy is aimed at an overarching goal of developing an enabling state form. The adoption of the strategy, in addition, reflects political contingencies. Moreover, the lottery strategy has helped New Labour sustain its coalition of supporters and manage tensions between different reform approaches.

Notes: Analyses and policy statements about publicly funded services frequently distinguish ‘demands’ from ‘needs’. The distinction has been challenged, calling into question the coherence of formulating welfare policy and evaluating public services in terms of needs. This paper explicates the conceptual distinction between demands and needs in terms of derived demand and information asymmetry. ‘Needs’ can be defined as ‘rational demands’, where ‘rational’ means ‘consistent and evidence–based’, and ‘demands’ as ‘desires’ rather than ‘effective (i.e. economic) demand’. On that basis, practical demand management in needs–based public services would require:1. Knowledge of users’ demands for services;2. Content analyses of users’ demands to identify any misinformed demands;3. Conversion of any misinformed demands into evidence–based specifications of needs;4. Formulating coherent, evidence–based demands on behalf of users who cannot to do so themselves.A study of English NHS Primary Care Groups explores the problems which authorities responsible for publicly funded services face in undertaking these activities. Demand management receives low priority in terms of the incentives and intellectual resources applied to it. Needs assessment has higher priority but is regarded as a branch of evidence–based professional practice, controlled by professionals rather than responsive to users. This separation tends to defeat the purposes of needs–based public services.

Notes: As one means of dealing with an increasingly interdependent or shared power ‘noone in charge’ world (Bryson and Crosby 1992) and adapting the public sector to the demands of the global economy, successive administrations in the UK have aimed to develop a more strategic approach to public procurement by emphasizing inter–departmental co–ordination and establishing long–term partnership relations with suppliers. This has proved to be a difficult task, however, as the operating framework and culture of the public sector have hindered the development of interorganizational relationships and trust. By focusing on the co–operative processes and interaction within central government departments and between departments and the private sector, this paper aims to analyse and identify the obstacles to, and opportunities for, implementing long–term supply relations and facilitating departmental co–ordination. While the paper argues that partnership relations can build social capital, it also shows that these resources can have both positive and negative effects for public procurement. To conclude, lessons for developing collaborative arrangements in public procurement are identified.

Notes: This paper examines the Beacon Council Scheme as a distinct policy element within the UK government’s wide–ranging local government modernization agenda. The aim of the Beacon scheme is two–fold. First, reward for high performing councils and second, the achievement of substantial change by sharing ‘best practice’ from identified centres of excellence. The scheme presupposes an implicit theory of organizational change through learning. The Beacon Council Scheme is based on the assumption that the organizational preconditions exist which will facilitate learning, and through its application to practice, improve service delivery. The paper analyses the presumed and possible conditions which facilitate or impede interorganizational learning and service improvement through the scheme. The paper then examines empirical data from 59 local authority elected members and officers about their attitudes towards and motivation to take part in the Beacon scheme during the first year of its existence. The data indicate that there are differing motivations for participation in the scheme and that these reflect different learning needs. The experiences of local authority participants suggest that the formulators of the dissemination strategy at the heart of the scheme have not yet given sufficient consideration to the processes of interorganizational learning, the conditions that support such learning between authorities and the embedding of new understandings, practices and organizational cultures in the receiving authority. This suggests that the underlying theories of organizational learning and cultural change may be insufficiently developed to create and sustain the kind of transformational change that is intended by central government.

Notes: This paper seeks to examine some aspects of the early operation of the Northern Ireland Assembly and in particular the role of the Statutory Committees. The particular issue that is used to explore these matters is the review of student finances which the Higher and Further Education, Training and Employment Committee (HFETEC) undertook as its first major investigation. It should be noted here that the Department of Higher and Further Education, Training and Employment changed its name to the Department of Employment and Learning during 2000. The Committee also changed its name to the Employment and Learning Committee. Since the issues discussed took place prior to these changes the original name has been used here. Specifically, the paper examines the Review of Student Finances launched by the Department of Higher and Further Education, Training and Employment (DHFETE), how the Committee tackled the issue, tensions within the Committee, the relationship between the Committee and the Minister, between the Minister and the Department, the public debate, how the Committee Report was subsequently dealt with in the Assembly and the Minister’s response. It is suggested that this example provides some insights into the operation of the distinctive devolved institutions in Northern Ireland and some early evidence of how such Statutory Committees may develop.

Notes: In 1991 eight polytechnics offered a BA in public administration while five universities provided the degree with either public or social policy. Currently, no higher education institution in Britain offers a BA degree solely entitled ‘public administration’. The subject area is, however, offered in 16 higher education institutions under a variety of names that include, in any order, the words ‘public’, ‘management’, ‘policy’ and ‘administration’. This paper analyses the reasons for the transformation during the 1990s in undergraduate courses for the public sector. It is argued that these changes do not so much derive from academics, employers or students taking on board an enthusiasm for new public management but are as much the consequences of deregulation of student choice and an expansion in student numbers that has not been matched in financial terms. The consequence has been to increasingly move this sector towards business and management teaching geared to private sector interests and away from its more political and social science roots.

Notes: This paper presents the detailed results of an empirical survey on tele–democracy in 31 European cities covering 14 states. It shows that progressive city–administrations in Europe are early adopters of tele–democracy with a diffusion rate of 72 per cent. Analysis of the survey results illustrates that cities are using tele–democracy to improve service access and the quality of services. This research shows that electronic or Internet voting is a priority for only a minority of cities. The paper suggests a typology of tele–democracy and makes wide–ranging policy suggestions. In the debate over whether information and communications technologies will have a beneficial or detrimental effect on the quality and legitimacy of local government, this paper takes an optimistic stance based on the evidence of the survey.

Notes: Books Reviewed:Stephen P. Osborne (ed.), Public–private partnerships. Theory and practice in international perspectiveNeill Nugent, The European CommissionAnne Stevens with Handley Stevens, Brussels bureaucrats? The administration of the European UnionMichelle Egan, Constructing a European market – standards, regulation and governanceR.A.W. Rhodes, Control and power in central–local government relationsSteve Ludlam and Martin J. Smith (eds), New Labour in governmentHuw T.O. Davies, Sandra M. Nutley and Peter C. Smith (eds), What works? Evidence–based policy and practice in public services

Notes: Emphasis on ‘globalization’ within academic literature is reflected in the contention within public administration that the prescriptions of the New Public Management are an inescapable fact of life from which states have little scope for resisting. However, variation persists both between and within countries. Since 1997, devolution within the UK and novel intergovernmental structures occasioned by the Belfast Agreement for Northern Ireland have transformed the territorial governance of the UK and the wider British Isles, providing further evidence of the differential impact of NPM. In seeking a better understanding of these differences, examination of the administrative arrangements of small communities or micro states can offer fascinating comparative insights into the workings of larger states, especially those with whom they enjoy a direct relationship. Frequently, however, small communities are overlooked in favour of studies of countries with more political weight. The micro states of the British Isles (namely, the Isle of Man and the Channel Islands) illustrate the point. However, with a few notable exceptions, relatively little is published. To correct this deficiency, this article seeks to explore developments in the Isle of Man, specifically its civil service. In so doing, the article aims to broaden our understanding of the changing governance not only of the Isle of Man, but also of the UK and beyond.

Notes: This article summarizes a study of the political, bureaucratic and economic elites in Spain, from the Franco regime through the democratic transition to the socialist governments of the 1990s. Data on the people holding posts in one or more of these elite groups were used to test and extend the theory of elite circulation first formulated by Vilfredo Pareto. The data confirms that Spanish elites became more open to others in the democratic period. Up to the present time, they continue to be integrated through multi-positionality – many bureaucrats also hold political or economic posts – though to a lesser extent than in the past. Our empirical findings enable finer distinctions to be made about the different modes of elite circulation. These results show the changing nature of the networks that form when posts in different sectors become associated through multiple post-holding. These networks are an important component of the social fabric in Spain and elsewhere and deserve further investigation.

Notes: This article reviews ‘corporatization’ and ‘marketization’, shorthands for privatization, in the Chinese economy. In particular it concentrates upon the most recent round of state-owned enterprise reforms, the Modern Enterprise System and Group Company System, aimed at transforming China’s largest state-owned enterprises into internationally competitive corporations. This represents a partial privatization, given that the state will retain majority ownership, while acquiring domestic and foreign capital via sharelistings and foreign and domestic joint ventures.Drawing upon interview material from a five-year study of state-owned enterprises, the authors will indicate that such part privatization has been pragmatic and relatively slow. It has been constrained and circumscribed by broader economic and social reform programmes and accompanied by political decentralization and reforms. Ultimately, the reform and pace of reform is shaped by the desire to avoid political and social unrest which could, potentially, threaten the harmony of the Chinese central state apparatus.

Notes: David McKay, Designing Europe – comparative lessons from the federal experienceHellmut Wollmann and Eckhard Schröter (eds), Comparing public sector reform in Britain and Germany: key traditions and trends in modernisationChristopher Pollitt and Geert Bouckaert, Public management reform – a comparative analysisMichael Moran, Governing the healthcare state: a comparative study of the United Kingdom, the United States and GermanyRobert Hazell (ed.), The state and the nations: the first year of devolution in the United KingdomLuc Rouban (ed.), Citizens and the new governance: beyond new public managementNeal D. Finkelstein (ed.), Transparency in public policy: Great Britain and the United StatesGraeme A. Hodge, Privatization: an international review of performanceJohn Stewart, The nature of British local governmentRichard A. Chapman (ed.), Ethics in the public service for the new millenniumClive Gray, The politics of the arts in BritainKenneth Dyson, The politics of the Euro-Zone: stability or breakdown?Roger Levy, Implementing European Union public policy

Notes: Governance theory raises conceptual and theoretical questions about the coordination of complex social systems and the evolving role of the state within that process. A central aspect of the governance debate focuses on the ability of national governments to address salient social issues. This article examines the British Labour governments’ attempts to facilitate cross-departmental inter-organizational collaboration within Whitehall in an attempt to develop innovative responses to seemingly intractable social problems. The government’s desire and strategy to increase its capacity to orchestrate ‘joined-up’ government can be interpreted as both an acceptance and a response to the challenges of modern governance. The article locates the structural, procedural and cultural responses to this challenge within the theoretical and analytical framework of governance theory. It concludes by suggesting that meaningful change in the way public policy is designed and implemented may well demand a more deep seated reappraisal of the structure of Whitehall and the dominant values of the British political elite than is currently anticipated.

Notes: Given that the contingent worker is likely to be a familiar presence in the public service workplace of the future, this paper explores the consequences of contingent work arrangements on the attitudes and behaviour of employees using the psychological contract as a framework for analysis. Drawing upon survey evidence from a sample of permanent, fixed term and temporary staff employed in a British local authority, our results suggest that contract status plays an important role in how individuals view the exchange relationship with their employer and how they respond to the inducements received from that relationship. Specifically, contingent employees are less committed to the organization and engage in organizational citizenship behaviour (OCB) to a lesser degree than their permanent counterparts. However, contrary to our hypothesis, the relationship between the inducements provided by the employer and OCB is stronger for contingent employees. Such findings have implications for the treatment of contingent and non-contingent employees in the public services.

Notes: There is no doubt about the political necessity of the Eastern enlargement of the European Union and corresponding reforms of its political institutions. By contrast, the shape and content of these reforms is a subject that is highly contested between the member states. In this context, when the German Foreign Minister, Joschka Fischer, presented his vision of future development for Europe his ideas were refreshingly welcome. However, Fischer’s ideas imply, in many respects, a turning away from hitherto accepted paths to European integration. The main claim we want to make in this paper is that, against the backdrop of this breach with the present European-level institutional system, the chance that the Fischer initiatives could come to political fruition must be viewed with scepticism. On the basis of this finding, which rests essentially upon a historical-institutionalist analysis, we develop an alternative concept for a European constitution.

Notes: Administrative policies and practices may evolve and change slowly and incrementally or they may be transformed intentionally. Intentional efforts to change administrative policy by transforming the structure, processes, or personnel of public sector organizations define an active administrative policy. Ideally, an active administrative policy takes as given that the organizational form to be used is open to choice, that administrative goals are clear, that a tight coupling exists between ends and means, that different organizational forms have different effects, and that there are criteria that may be used to assess those effects. This article focuses on the fulfilment of these preconditions in the three national contexts – Norway, Sweden and the United States of America – in order to determine the relevance of a transformative perspective for understanding the process of administrative change. We examine what impact constraints like polity features, historical-institutional traditions and external pressure, particularly through popular international administrative doctrines like New Public Management ideas and financial crises, have on the possibilities to enhance an active national administrative policy.

Notes: Governments have been encouraging public service organizations to innovate. However, little is known about the extent of innovation in public service organizations. A private sector approach to the measurement of innovation - the literature-based innovation output indicator (LBIOI) - is applied to public service organizations to address this significant information gap. The method is described and then explored in one public service sector, English housing associations. A sample of 257 innovations is constructed and then subject to analysis. This initial testing of the LBIOI indicates that the approach can be applied across public services to create longitudinal data sets, which will enhance the communication of good practice and the use of evidence in public policy, management and research. This methodology is demonstrated to offer initial insights to public service innovation and would allow relationships to be explored notably innovation and performance, a relationship central to government’s promotion of innovation.

Notes: Organizational culture is the pattern of values and beliefs held by members of an organization and the management of culture is now one of the most frequently discussed of all organizational concepts. The excitement associated with culture is attributable to two factors. First, it is argued that culture is the key to organizational performance; simply stated, a strong organizational culture can be a source of competitive advantage. Second, culture is perceived as an alternative method of control to traditional and technocratic forms of management and can be manipulated to ensure that employees are enthusiastic and committed to organizational objectives.Despite the extensive interest in this topic, culture remains an elusive concept. This paper investigates the nature of culture and considers strategies for introducing cultural change. Specifically, the aims of the paper are threefold. First, to locate and explain the interests and significance of culture change for the public sector. Second, using a case study of a newly created agency, to investigate the problems and issues affecting cultural change in the civil service. Third, to reassess and critically evaluate the claims for culture management made in the literature. Finally, this paper questions some of the assumptions in the literature, which with few exceptions are biased toward top management and the unitary conception of organization, an ideological frame of reference which is particularly problematic in the public sector.

Notes: Policy makers are increasingly recognizing the importance of helping ex-offenders into employment. This article outlines the disadvantages faced by those with a criminal record in the labour market and evaluates several approaches to meeting the needs of ex-offenders seeking work. It finds that, despite recent policy developments, the changing nature of British public administration is undermining the ability of practitioners to respond appropriately to the needs of ex-offenders. The article concludes that the real concern of policy makers is to show that they are doing something about the social context of criminal behaviour while at the same time drawing attention away from the increasingly centralized and authoritarian nature of our public agencies.

Notes: The financial crisis affecting many of the local authorities in Israel has a significant influence on their ability to supply municipal services of an appropriate amount and quality. So far, studies have been addressed to the financial crisis from a political approach by discussing aspects such as the problematic interrelation between central and local governments together with resource allocation. In this paper we investigate the financial crisis of many local authorities in Israel from a strategic point of view. However, this is by no means to argue that other approaches such as institutional and political ones are not important. Rather, the paper investigates whether the financial crisis affecting many Israeli local authorities is a result of their own strategies and practices.Specifically, we have used the resource-based approach to explore the nature of their joint crises and the potential strategic responses that the local authorities should adopt in order to move into a more favourable state. In particular, we examine three resource-based systems: customer-oriented, organizational culture, and human resources, as the strategic roots of this crisis. We also examine the way they could produce a sustainable competitive advantage and could lead local authorities from the present position to a better one. The article recommends that the heads of local authorities should move to a resource-based strategy in order to perform both more efficiently and effectively.

Notes: Recent research has suggested that there is movement towards a ‘regulatory state’ in the UK with regulation an expanding area of government. This article identifies key Scottish differences from UK practice and suggests the growth and scale of regulation inside Scottish government is more modest than suggested by UK-wide research. It also reviews existing oversight arrangements within Scottish government for public service delivery bodies and questions whether many of these activities warrant the label ‘regulation’, arguing that a more accurate description is performance management.

Notes: How a government secures the implementation of its policies is one of the most interesting processes in public administration. The tendency of scholars is to ignore implementation and how it impacts on the form of policy, something which invariably changes once resources have been allocated to implementing agencies and the policy detail is addressed. Traditional ‘top-down’ (Pressman and Wildavsky 1984, Mazmanian and Sabatier 1981) and ‘bottom-up’ (Elmore 1979, Hjern and Porter 1981, Hull and Hjern 1983) analytical frameworks give only a partial explanation of outcomes. In making the case for a netwrok approach, a typology of implementation networks is presented. The utility of this typology is evaluated in the context of one of the most complex privatization programmes attempted by any government: the privatization of British Rail (BR) between 1992 and 1997. In the case of the sale of one BR subsidiary train operating company, ScotRail, a variety of agencies with competing interests and acting in a politically-charged climate exchanged essential resources to deliver the policy, though not without generating unintended outcomes in the form of significant change to the policy and the agencies charged with implementing it.

Notes: Many academics have questioned the thesis (most prominently associated with Osborne and Gaebler’s Re-inventing government) that there is an inevitable and global convergence towards a particular, new style of public management. Yet, despite the ongoing production of scholarly evidence of global diversity, pronouncements of convergence continue to be made by politicians, civil servants and some academics.In this paper it is suggested that, better to understand this apparent controversy, a more subtle conceptualization of convergence is needed. First, convergence can take place at different stages or levels — for example, there can be convergence in debate, convergence in reform decisions, convergence in actual practices, or, ultimately, convergence in results. There is no automatic succession from one stage to the next: the momentum of convergence can (and frequently does) stall or dwindle at any point. Furthermore, it should be recognized that convergence claims may have a value of their own, whether or not they lead to actual convergence of practice or improvements in outcomes. Convergence, in short, may be a useful myth.

Notes: Books reviewed:C. Hood, C. Scott, O. Jones, G. Jones and T. Travers, Regulationinside governmentJ. Pierre (ed.), Debating governanceR. Pyper, and L. Robins (eds), United Kingdom governanceG. Stoker (ed.), The new management of British local governanceG. Stoker (ed.), The new politics of British local governancePrue Chamberlayne, Andrew Cooper, Richard Freeman and Michael Rustin (eds.), Welfare And Culture In Europe: Towards A New Paradigm In Social PolicyOECD Report, Trust In Government. Ethics Measures In OECD CountriesAnthony R. Zito, Creating Environmental Policy In The European Union

Notes: Boards of directors of large American corporations are marked by a surprising degree of overlap in their memberships. The median Fortune 500 firm interlocked (shared directors) with seven other large firms during the mid-1980s, although this prevalence dropped slightly by the mid-1990s. In contrast to Japan, interlocks among American firms are rarely linked to banking relationships or vertical (buyer-supplier) relationships; rather, they reflect the embeddedness of corporate governance in social structures (e.g., friendship or other ties). Recent empirical research has linked interlocks to almost every important aspect of corporate governance, from executive compensation to strategies for takeovers and defending against takeovers. These findings suggest that proposals for reforming boards of directors through changing incentive structures (e.g., paying directors in equity rather than cash) are likely to have little effect because they misconstrue the role of the board as a social institution.

Notes: This study examines the associations between the characteristics of initial public offering (IPO) firms and the voluntary use of outside directors. Five firm characteristics are examined: inside share ownership, variance of aftermarket returns, operating history, leverage, and firm size. Based on a sample of 110 New Zealand firms which made initial public offerings of equity securities over the period 1983 to 1987, the study finds that greater variance of after-market returns and a lower inside share ownership are associated with a greater proportion of outside directors. In addition, firms without operating histories are likely to use relatively more outside directors. However, leverage and firm size are not significantly related to the proportion of outside directors. Overall, the findings from the study are generally consistent with arguments that firms with greater agency problems are likely to use relatively more outside directors because these directors are perceived to be more effective in mitigating agency problems.

Notes: This paper seeks to identify the determinants of corporate ownership and control that emerge in regulatory environments which do not inhibit the issue of shares with differential voting rights and/or the establishment of pyramid holding companies (which serve exactly the same purpose). [Methodologically, the paper follows the seminal study of the US corporate structure by Demsetz & Lehn (1985).] Such settings tend to produce very concentrated control structures, which contrast sharply with those of the USA, the UK and Australia, where the distribution of shareholder votes in the large public corporations is relatively diffuse. Relatively lenient listing regulations have produced in South Africa a corporate landscape dominated by pyramid holding companies and multilayered diversified corporate groupings. These structures have effectively concentrated the control of most of the large public companies in the hands of a few entrepreneurial families (as well as the two large life insurance mutuals). This setting has enabled us to advance and test hypotheses about control and ownership which would be more difficult to test in a US, UK or Australian setting. Almost all the companies in our sample were found to be under the absolute control of a single identifiable shareholder coalition (usually one or two families) but the underlying percentage shareholding of the controlling group in each company was found to vary dramatically and systematically. We sought to explain that variation and to identify the role of the market as a constraint on the ability of controlling shareholders who wish to dilute their equity stake without surrendering control for the purpose of expanding their companies (without incurring additional debt) and/or diversifying their personal wealth. Demsetz & Lehn had already identified the factors that determine the demand by shareholders for equity dilution but not those constraining their ability to do so. This paper, therefore, attempts to shed light on the way in which principal/agent problems affecting shareholders and managers are resolved when one-share-one-vote is neither enforced nor encouraged by the regulatory environment.

Notes: Executive compensation has recently become the subject of extensive scrutiny by the popular press. However, compensation for corporate directors is one area which has only received little attention or research. The present study combined resource dependence and agency theories with previous research on executive salaries to develop an explanatory model of director compensation. Data were collected from US firms at two points in time to assess the stability of these predictors. Four variables were found to have a significant relationship with director compensation: firm size, firm profitability, equity ownership by directors, and resource richness of the board. However, the explanatory power of these variables appear to decline over time. Practical implications of these results are discussed.

Notes: This article is reproduced from NRI Quarterly Volume 1 No. 3 Winter 1992 and is reprinted by special permission of Nomura Research Institute, Ltd.

Notes: Book Reviwes in The Article:Hilmer, Frederick G.; Strictly Boardroom – the report of an Independent Working Party into Cornorate Governance; Information Australia, Melbourne and The Sydney Institute, Sydney, AustraliaHumphrey, Christopher, Peter Moizer and Stuart Turley; The Audit Expectations Gap in the United Kingdom; The Auditing Research Foundation of the Institute of Chartered Accountants in England and Wales; LondonBosch, Henry; Bosch on Business, Information Australia, Melbourne, Australia, 1992.

Notes: This article examines the structure of boards and its effects on the performance of significant board functions. Composition of boards is measured by size, outside director representation and cognitive, as well as demographic diversity. A firm's environment, strategy, structure and culture, and factors attributed to personal characteristics of board members were viewed as important determinants affecting effectiveness of boards. Most important, decisions on board size and composition involve a trade-off between benefits of diversity and enhanced costs of group development and group decision processes.

Notes: The communication process between publicly-listed companies and their constituents continues to change, often stimulated by the concern of regulators to make markets more efficient. The paper examines six areas where development is occurring within the North American reporting environment: summary reporting, management discussion and analysis, risk and uncertainty, interim reporting, continuous information disclosure, and financial statement reporting. The paper also identifies areas where significant reporting frustrations remain. These areas may signal the direction of financial reporting research and change that will be experienced outside of the North American environment during the next decade.

Notes: A survey ‘Women on the Board of Britain's Top 200 Companies’ published by Ashridge Management Research Group, 1993.

Notes: The debate on whether the roles of CEO and the chairman of the board should be separate continues in both the United States and Britain. The answer must depend largely on what a board does. Here Sir Richard Greenbury, Chairman of the board of Marks and Spencer Plc in the UK provides a personal perspective.

Notes: Book reviewed in this article:Foy, Nancy (1994) Empowering People at Work, Gower, Aldershot.Moms, Charles (1990) The Coming Global Boom.Sorbel, Robert (1993) Dangerous Dreamers – The financial innovators from Charles Merrill to Michael Milken.Piper, T. R., Gentile, M. C. and Daloz Parks, S. (1993) Can Ethics be Taught?Mintzberg, Henry (1994) The Rise and Fall of Strategic Planning.

Notes: The paper discusses the issue of power relations and sharing as the basis for instituting a corporate governance procedure. It argues that the peculiar and unstructured nature of the developing economies makes the running of many existing limited liability companies remarkably different from the governance processes of modern Plc and multinational corporations which are controlled (at least in principle) by the owners through shareholder democracy enshrined in the Annual General Meetings. The need for an understanding of the concepts, processes and problems of corporate governance both from the perspective of those who direct, those concerned with returns and accountability, and those concerned with corporate regulation encouraged the author to provide a menu of hypotheses of corporate governance and its relevance to Nigerian corporate bodies. The paper then zeroes in to discuss corporate governance in the banking industry as well as the problems and consequences of the quality of such a governance. In section four of the paper, a crystal eye-ball and prognostic view was taken of corporate governance in the Nigerian banks in the twenty first century. The paper concludes by providing the recipes that would ensure good corporate governance in the private sector, particularly in Nigerian banks, in the short and long-run.

Notes: Judging the quality of top management is a pivotal aspect of good corporate governance. Such an evaluation requires standards which can be applied to the work of top management. In the German stock corporation this is particularly important for the Supervisory Board (Aufsichtsrat), because its main task is to control the quality of the Management Board (Vorstand). The development of generally accepted management principles seems to be a promising attempt to facilitate a fair management evaluation. These management principles are supposed to put in concrete form the top management’s duties of care. They thus can help to assure a certain management quality as well as to protect managers against exaggerated demands. After elaborating on these basic thoughts, a system of standards is outlined and the results from a first survey investigating the acceptance of the proposed standards among German top managers are reported.

Notes: All directors are faced with real, or imagined, conflicts of interest or competing demands for time and resources, between shareholders and stakeholders. This has always been the case, but the contemporary emphasis on stakeholders has brought this to a head. Although astute organisations and directors maintain a suitable balance between the various demands placed upon them, and there are systematic ways to do this, there are a few voices opposed to stakeholding in any shape or form. In order to suggest that stakeholding is the viable and sustainable way for companies to proceed, the article considers and criticises one anti-stakeholder, together with other antagonists, before bringing in endorsements from different quarters, and introducing three categories of stakeholding of which the normative holds most promise. Practical approaches to discriminating among the claims of various stakeholders are indicated.

Notes: The paper examines the economics of the mutual organisation and the stakeholder models of corporate governance with its emphasis on informal contracts, trust and co-operation. These concepts are important in informal governance systems such as mutuals because they economise on transaction costs and promote efficient exchange. In this respect, the paper argues that mutuals have a comparative advantage compared with joint stock banks in ameliorating problems associated with adverse selection and moral hazard. These comparative advantages, however, are enhanced in small mutuals such as credit unions which focus on relatively small memberships with a common bond. The paper concludes by suggesting that although the credit union movement will not necessarily develop along similar lines to the building societies, it does have a future in providing banking facilities to the relatively poor and disenfranchised sectors of society.

Notes: Book reviewed:Charkham, Jonathan and Simpson, Anne, Fair Shares — the Future of Shareholder Power and Responsibility

Notes: There is increasing interest by top management in matters connected to integrated Business Risk Management (BRM). At the same time, BRM frameworks aimed at facilitating compliance with corporate governance requirements are being developed (e.g. Lipworth, 1997). This paper explores ways in which top managers in six UK companies covering the service to manufacturing sectors and ranging in size from large to small took practical steps towards understanding and implementing BRM. Approaches by managers ranged from the naive to the sophisticated. In the study one of the particular perspectives considered was the possible influence of legal considerations. In this context, one of the principal drivers to introducing BRM in the present climate of corporate accountability was found to be fear of exposure in the media for mis-handling risks rather than concerns about the enforcement of any law.

Notes: Book reviewed:Richard Branson, Losing My Virginity – how I survived, had fun and made a fortune doing business my way

Notes: Faced with major shifts in public opinion and societal change on an international scale, together with the strategic requirements of newly emergent forms of business structure, new technologies, globalisation and new forms of competition, modern companies are facing a crisis in their boardrooms. Traditional forms of governance architecture are being challenged and boards are under pressure to develop a broader mindset and new skills to deal with the uncertainty of higher-level issues such as direction-giving and implementation of strategy.The paper proposes a framework developed from research which examines the selection, evaluation and performance of boards of directors in New Zealand. From this research a need for strategic vision and leadership has clearly emerged as a key requirement in director capability, but in practice there is an acknowledged variation among individual directors in terms of their competence in this regard. Implications for further research suggest the need to explore the strategic role of the modern board in value creation, the extent to which directors perceive a link between strategy and corporate governance and their level of participation in this process.

Notes: This paper presents findings from an in-depth empirical study of the role of boards and their relations with senior managers in four organisations from the public and non-profit sectors. The findings are interpreted using a conceptual framework which sees the outputs of boards as shaped by board inputs, processes and contextual factors, in particular wider institutional pressures. The results indicate that the strategic contribution of boards varies widely and depends on a complex interplay of factors: the system of regulation, sectoral traditions and norms of governance, the way board members are chosen, board members skill and experience, organisational size and status, and the way boards are organised and run. The wider institutional pressures that shape these factors can result in boards facing tensions and trade-offs that can result in their contribution to stragegy being squeezed by other board roles.

Notes: Despite the tremendous importance of transnational firms in the world economy, relatively little is known about the structure of their boards and how they are governed. Four hypotheses, suggested by intuition and the general literature, are examined: that the composition of boards of large transnationals is likely to be substantially different from that of national boards; that boards of transnationals will take a leadership role in dealing with social and economic issues that transcend national boundaries; that boards of subsidiaries of transnationals are playing an increasing role in the general operations of transnationals; and that boards of transnationals will show a larger concern for stakeholders than boards of national firms. On the basis of very limited data it is concluded that all hypotheses are false. Moreover, based on Canadian experience, it is suggested that the strategy of many large transnationals of eliminating the boards of subsidiaries may be a major mistake. Finally, a request is made for anyone wishing to participate in a large research project on the governance of transnational corporations to contact the authors.

Notes: In this paper, we assess the impact of recent reforms in UK corporate governance, focusing specifically on aspects of the reforms which apply to unit trust managers, a major group of institutional investors, and their investee companies. We canvass the views of UK unit trust managers to shed light on three issues: the extent of shareholder activism by UK unit trusts; the extent to which longer and stronger decision and communication links are being forged between investment institutions and their investee companies, and; the emerging controversy over whether or not these recent reforms represent a help or a hindrance for unit trust managers. The empirical findings indicate that unit trusts: are active shareholders, developing and using written voting policy documents; are encouraging the development of longer and stronger links with their investee companies, and; have welcomed corporate governance reforms.

Notes: If the word “stakeholder” were a person, it would just be coming into its prime. Born in 1963, it has accumulated experience in influential positions, and ought to be prepared for some serious responsibility. But what exactly does it offer, and is it ready?This paper tries to show that the stakeholder concept is ready. In the first half, it explains three principles that form the heart of the idea: co-operation, commitment and rich information. Rich information, in particular, is given a new role in interpreting stakeholder theory. The second half of the paper focuses on a practical issue: methods for encouraging co-operation. For fifty years, organizational psychologists at the (UK) Tavistock Institute and the (US) National Training Laboratories have developed methods for changing relations in the workplace. The principles underlying their work are shown to be very close to the principles underlying the stakeholder approach. This means that the stakeholder approach has foundations in an important body of practical scientific experimentation.Lastly, by explaining the principles underlying the idea of stakeholding, this paper fills a gap which has previously prevented the identification of a convincing causal connection between stakeholder policies and business performance.

Notes: The Corporate Governance Committee of the Corporate Governance Forum of Japan, chaired by Mr. Tadao Suzuki, President of the Mercian Corporation, published their final report in May 1998. Their innovative work followed a long period of discussion and stemmed from the original foundation of the Corporate Governance Forum in 1994 by Mr. Kaneo Nakamura of the Industrial Bank of Japan, who invited top business leaders to discuss governance issues.The following extracts from the first two chapters of the report provide some valuable insights into corporate governance perspectives and practices in Japan. The report offers a set of principles which provide a two-step formula for realizing effective corporate governance in Japan –“principles which should be adopted immediately (or as soon as possible after legal reform) are shown as step ‘A’ principles: step ‘B’ principles should be aimed for early in the 21st. century “to illuminate the path toward the global market, but require legal reform on a grand scale.”

Notes: Shareholders can gain effective control over their firm’s management by voting to choose an outside agency to nominate director candidates. This would give the board and management a greater incentive to serve the owners’ interests, resulting in higher productivity of capital, more realistic levels of executive pay, less short-termism, and a moderation of the corporate bloat that tends to necessitate drastic cuts. Such a system would further improve corporate governance in western countries, and provide a much needed “quick fix” for governance problems in Asia.

Notes: The paper takes both an historical and an international perspective on the issue of mutuality and identifies a number of important themes in the current debate on mutuality versus “plc” conversion. The paper accordingly argues that in the short term the problem of excess capacity and the need to reduce capital is an important motive behind the recent spate of conversions. In the long term, however, the greater flexibility and the opportunities to raise additional capital which are associated with public company status are an important impetus behind this debate. In this respect, a number of alternatives to outright conversion which have not been sufficiently debated in the literature are identified and examined. Emphasis is placed on the European and US experience where savings and loans institutions have introduced a number of alternatives to outright flotation. In particular, the various merits and de-merits of mutual holding companies are examined as an alternative to outright conversion.

Notes: Major extracts from the London Stock Exchange report

Notes: Although legally auditors are answerable to shareholders, considerable doubt has been cast on their independence from the directors of the company which is audited. Recently, increasing competition amongst auditors and the growing importance to fee income of non-audit work has been identified as factors which may further erode this assumed independence. Another factor which has been implicit in many studies of auditor independence is the close nature of the relationship between the auditor and the directors of the company. This has been termed the ‘Familiarity Threat’.This article, based on a questionnaire survey of UK finance directors, investigates three aspects of the auditor/director relationship where the ‘Familiarity Threat’ may be present. First is the appointment method and the characteristics which directors consider to be preferable in selecting an auditing firm. Secondly is the duration of the auditors’ appointment and the frequency of contact between the lead partner and the finance director. Finally, is the finance directors’ perception of the nature of the relationship they enjoy with the auditors. For each of these aspects the responses from finance directors from independent public limited companies are compared to those of private companies to ascertain whether the ‘Familiarity Threat’ is more prevalent where certain public responsibilities are not imposed. Where appropriate, the responses are also analysed by the finance directors’ opinions on the probity of non-audit work to ascertain whether this is an important variable as claimed in the literature.The analysis demonstrates that, although present directors are influential in the appointment process and the personal chemistry between the directors and auditors is the most important desirable characteristic, the finance directors of independent public limited companies would appear to be more aware of their responsibilities to shareholders. However, many relationships are long established with over 40% of both private and independent public limited companies in the survey retaining their auditors for over 10 years. As far as frequency of contact is concerned, public limited companies were visited more frequently by their auditors and this was unaffected by finance directors’ opinions on the probity of non-audit work. Finally, approximately 75% of finance directors claimed to enjoy a professional and amicable relationship with their auditors and these responses are unaffected by the type of company or opinions on non-audit work.The article concludes that there is the potential for the ‘Familiarity Threat’ to be present in both private and independent public limited companies, but its influence may be exaggerated particularly in respect of non-audit work. It recommends that if controls are to be introduced to ensure the threat is kept to a minimum it would be best to concentrate on the selection and appointment process and the duration of auditors’ term of office.

Notes: This paper outlines the formal structure of Dutch two-tier boards and compares the formal structure with the reality of board practices of the largest Dutch companies listed at the Amsterdam Stock Exchanges. This comparison questions the supposed independence of two-tier boards.