Dichotomy of development aid’s ambition and neoliberal imperatives: A case‐study of private‐sector development in Bangladesh

Development in the twenty‐first century (“neo‐liberalism”) is a tool and its success and sustainability depend on how this tool is applied on a specific grounded reality. This article investigates how this modernization process continually co‐creates globalized Bangladesh through private sector development. While this field report highlights the challenges development aid donors can face in Bangladesh’s post‐colonial culture, it also unveils the dichotomous traction between globalization and inequality as well as the friction poverty reduction, through private sector development, can generate in impoverished countries. Finally, this report attempts to reconsider the ways in which the aid development ambitions of equality and liberty can find a workable balance with the neo‐liberal Imperative for private sector development. This article calls for improving quality control to generate greater impact of development aid resources in developing private sectors.     

REDUCING PUBLIC‐PRIVATE SECTOR PAY DIFFERENTIALS: THE SINGLE SPINE PAY POLICY AS A NATURAL EXPERIMENT IN GHANA

Empirical studies have documented the existence of the public‐private pay differentials in both developed and developing countries. The implementation of policies aiming to reduce this gap has however been mitigated or inconclusive. This paper exploits the Single Spine Pay Policy (SSPP) in Ghana as a natural experiment to examine the effectiveness of wage policies in developing countries. The SSPP was implemented in 2010 by the Government of Ghana to address the public‐private sector wage gap and improve productivity in the public sector. Using a quantile treatment effect approach based on a difference‐in‐difference estimation, we show that the SSPP has yet to reduce the wage gap between the public and private sectors across the entire distribution of earnings in Ghana. The improvement observed is only at the lower tail of the distribution of earnings. However, the SSPP has a larger effect on the earnings of female workers than that of males in the education and health services sectors while male workers have benefited more in the administration sector, suggesting that the policy was successful in reducing the gender wage gap in the education and health services sectors but has widened this gap in the administration sector. Moreover, the SSPP has decreased the productivity of workers across the distribution of earnings, mainly due to a decrease in the effort of female public sector workers in the education and health sectors and male workers in the administration sector. (JEL C31, G15, J24, J31, J45)     

The Political and Civic Lives of Public Sector Workers: Unions and “Public Service Motivation”*

Public sector employees are highly engaged in civic and political life, from voting to volunteering. Scholars have theorized that this political activity stems from “public service motivation,” or the selection of publicly oriented individuals into public work. We build on this work by analyzing the role of public sector unions in shaping participation. Unions are central mobilizing organizations in political life, and one in three public sector workers are unionized. Special supplements of the Current Population Survey provide data on various forms of participation, sector, union membership, and union coverage. Logistic regressions find that unionized public sector workers have much higher odds of engaging in a range of activities compared to non‐union public workers, including protest, electoral politics, and political communication. Union membership impacts service work to a lesser extent, suggesting that unions are more central to political lives. These findings have implications for the consequences of union decline, including the class, race, and gender composition of who participates in democratic life.     

‘Doing Something Meaningful’: Gender and Public Service during Municipal Government Restructuring

Research on the gendered dimensions of workplace restructuring often focuses on management strategies and their structural consequences. Less attention is paid to employees’ gendered practices. In this article, we analyse material from in‐depth interviews with front‐line public‐sector employees following a major reorganization of their jobs and workplaces. Our study makes three contributions to theory and research on gender and organizational change. Firstly, it highlights the micro‐level dynamics at the heart of restructuring by showing how workers engaged with an ideal that was central to their understanding of public‐sector work — the public‐service ethic — which they believed was threatened. Secondly, it highlights the importance of gendered meanings and identities in shaping how workers engaged with the public service ethic. Thirdly, the study shows that front‐line employees did not passively accept management plans for change but struggled to resist or transform them in gendered strategies for dealing with organizational change.     

Global Governance,neoliberalism and national responses: The case of Bangladesh’s ready‐made garment (RMG) sector

This article on the ready‐made garment (RMG) sector of Bangladesh shows how over‐reliance on foreign capital for development financing and deregulated investment—a hallmark of neoliberal economic arrangements—undermines the incorporation of SDGs’ and INGOs’ equity principles, contributing to biased policy responses yielding unequal outcomes. The article cautions that while countries prioritize economic growth over social and environmental nourishment and continue to adopt neoliberal economic policies to promote economic growth, inequity is unavoidable, if not inevitable. Thus, the way forward may be to shift the focus of ‘development’ from the economy to society, to building ‘good societies’ where institutions and strategies, including those that contribute to economic growth, are organized such that these complement not compromise the evolution of such societies.     

The Experience of Gender Change in Public Sector Organizations

The state has a twofold relationship to gender change in society, through its overall steering capacity and through the gendered character of its constituent agencies. It is therefore important to understand the experience of gender change in state organizations. The findings from a study of gender relations in ten public‐sector worksites in New South Wales, Australia are presented. There is a widespread consciousness of gender change linked with new labour processes, restructuring and new patterns of management. These changes are uneven and limits to change are visible. Gender is recognized as an organizational problem in specific circumstances, most visibly where men’s resistance to change appears. A number of mechanisms limit the consciousness of gender as a problem. Several trends, including the current strength of neo‐liberalism, converge to make the gender‐neutral workplace the principal goal of gender reform in the public‐sector workplace. This, however, limits the state’s steering capacity in regard to societal gender relations.     

Factors Attracting Individuals to Nonprofit Management over Public and Private Sector Management

Little research has sought to identify the distinct advantages that nonprofits offer employees, particularly managers. Drawing upon Weisbrod's theory of managerial sorting (1988), we test a series of hypotheses about the differences among nonprofit, public, and for‐profit organizations that may explain the preference of managers to work in one sector over the other. We use pooled cross‐sectional data from the General Social Survey to test managerial sorting. We find many similarities in the perceptions of managers in the nonprofit and public sectors as compared to the for‐profit sector. However, when we examine the sorting of managers into nonprofit versus public sector jobs, we find differences in work environment. Compared to those working in the public sector, managers in nonprofits report greater freedom in deciding how to carry out their job functions, more control over their work schedules, and greater opportunities for pay increases. We conclude with a discussion of the implications of these findings for the practice of nonprofit management.     

Human capital inflow in nonprofits: Entry‐level employees’ sector shift

Although recruitment and retention of qualified employees are some of the biggest challenges in the nonprofit sector, nonprofit organizations must maintain human capital inflow due to its significant impacts on organizational success. Through person‐organization value fit, this paper explores the factors that influence labor shifts from the public or for‐profit sector into the nonprofit sector in the South Korean context. Specifically, the effects on the likelihood of employees switching to the nonprofit sector from the perspective of eight job satisfaction measures and three education–job match measures are investigated. Two groups of employees (those whose career started in the for‐profit sector and those starting in the public sector) are compared. Results indicate that there is substantial variation between the two groups. In particular, intrinsic job satisfaction has completely different effects on those working in the for‐profit sector than on those working in the public sector regarding their likelihood of having experienced an intersectoral shift into nonprofits. The more public employees are satisfied with intrinsic job rewards, especially job reputation, the more likely they are to move to nonprofits. These results suggest that when employees in the public sector are satisfied with intrinsic rewards they tend to pursue greater intrinsic satisfaction in the nonprofit sector. This paper also reports that education–job match is only significant for those whose first job was in the for‐profit sector.     

Local cross‐sector partnerships

We focus in this article on the challenges local governmental (municipal) and third‐sector (nonprofit) organizations face when they seek to work collaboratively or in partnership. We build on the findings of an action research project to draw out the practical implications of cross‐sector working for the organizations involved. We describe jointly agreed suggestions for tackling the challenges that emerged when third‐sector organizations and local governmental agencies themselves worked collaboratively in a search for mutually acceptable solutions. Finally, we draw out learning points on cross‐sector working for practitioners, policymakers, and researchers.     

PPP Financing in the Road Sector: A Disequilibrium Analysis Based on the Monetary Circuit

This paper discusses public and private financing of infrastructure against the background of monetary equilibria, where money is not neutral and financing has an impact on allocation through distribution. These correspond to “disequilibrium positions” in the neoclassical barter equilibrium, as they violate some of its optimality conditions. In these contexts, evaluating welfare before and after the realisation of a project implies a comparison between two suboptimal positions. Such a comparison reveals that, contrary to a widely held view, there are not many rational arguments that may lead to prefer private financing to public financing of road infrastructure, particularly where local incomes are low. Post Keynesian analysis in general and its monetary variant of the circuit, are useful tools for the analysis of public investment policies in such a disequilibrium context. In particular, some features of the monetary circuit approach are well suited to address the economic problems raised by the analysis of public private partnerships (PPP), notably: (a) the integration of the banking sector and the recognition of its role in monetary creation by the private sector; (b) the monetary creation by the State within a macroeconomic framework fully integrating public finance; and, (c) the necessary link between uncertainty and disequilibrium. Combined with a partial equilibrium analysis based on realistic microeconomic configurations of costs and transport demand parameters, the analysis of the circuit highlights that PPP in the road sector do not add anything to the level of effective demand, being in fact the other flip of the coin of restrictive budgetary policies. PPP play a role in mobilizing part of the accumulated savings that the State is forbidden to attract directly because of debt ceilings. They have a softening effect on the Government budgetary constraints similar to those that could be reached if the Government was allowed to accrue investment like the private sector, but are a less transparent solution, because the relevant debt is not necessarily recognized in the balance sheet that services it.     

Neoliberal resource governance and counter-hegemonic social movement in Bangladesh

Bangladesh’s energy sector institutionalized neoliberal policies in the early 1990s after a decade long implementation of structural adjustment policies suggested by the World Bank. These policies strengthened the role of foreign private capital and reduced the role of public enterprises. In spite of the country’s success in exploring and developing petroleum resources, the World Bank pushed for policy reforms to reduce the role of state-owned companies. Bangladesh signed several production sharing contracts with multinational energy corporations during 1993–1998. This resulted in the development of a counter-hegemonic social movement, the National Committee. Its activists made the energy sector the most contested national policy domain. Its direct action programs and other mobilization tactics transformed Bangladesh’s public sphere vis-à-vis energy politics. The National Committee caused the government to reverse its decision in some cases, but is far from achieving its main goal: increasing the capability of national institutions to maintain full ownership in natural resource management. Notwithstanding this limitation, the National Committee is a fascinating case of a counter-movement in the Global South contesting neoliberal resource appropriation.     

Mediation outcomes and sources of impasse: An empirical investigation

This study examines two of the four determinants of mediation effectiveness identified in Kochan and Jick’s (1978) model of the public sector mediation process: source of impact and situational factors. Questionnaire data were directly obtained from 240 Bangladesh management and union officials. Discriminant analysis identified several sources of impasse for both union and management groups, but no situational factors were found to accurately predict case settlement. Results are discussed in terms of U.S. public sector mediation research.     

Unintended? The effects of adoption of the Sarbanes‐Oxley Act on nonprofit organizations

This article investigates the benefits and costs to nonprofit organizations emanating from the adoption of the Sarbanes‐Oxley Act (2002). The act was intended to stem financial malfeasance in the for‐profit sector; nevertheless the article finds that about half the surveyed nonprofits adopted provisions of the act and experienced effects in proportion to the level of adoption. About one in four of the nonprofits attributed benefits of better financial controls and reduced risk of accounting fraud to the adoption of the Sarbanes‐Oxley Act. More than one‐third of the nonprofit organizations reported increased fees for external audit, and about 15 percent cited “reallocation of resources from program to administrative expenses.” This article discusses the unintended positive and negative effects of public policy on nonprofit organizations.     

Big Food,Nutritionism, and Corporate Power

Big Food corporations have capitalized on nutritionism—the reduction of food’s nutritional value to its individual nutrients—as a means by which to enhance their power and position in global processed and packaged food markets. Drawing on the literatures on nutrition and corporate power, we show that Big Food companies have used nutritional positioning to bolster their power and influence in the sector. Through lobbying and participation in nutritionally focused public–private partnerships, they have directly sought to influence policy and governance. Through market dominance in the nutritionally enhanced foods sector, and participation in nutrition-focused rule-setting activities in agrifood supply chains, they have gained power to influence policy agendas. And they have used public outreach and the media to present their views on the nutritional aspects of their products, which shapes public perceptions and the broader regulatory environment. Together, these strategies have enhanced the power of Big Food firms to influence policies in the food sector.     

People as partners: Facilitating people's participation in public–private partnerships for solid waste management

Cities in developing countries are facing a double dilemma. On one hand, the urban population is growing rapidly, causing a huge increase in demand for waste management services. On the other hand, the traditional public sector is failing to respond to the increased demand for service. The public sector is constrained by resource and institutional limitations. It is often proposed that the solution lies in private sector participation. It is expected that the private sector, with its dynamism and flexibility, may fill in the service delivery gaps by forming partnership with the public sector. However, a third tier—the people—is often overlooked in the service delivery framework. Citizens can contribute significantly to service delivery. They can support the private sector with payment of service charges. But more importantly, they can play an active role in improving accountability and service quality of both public and private sector. This radical shift in people's role, from passive service receivers to active service partners, however, may not occur endogenously. External help from facilitating agencies may enable the public and private sector to form partnership with people for better service delivery. This article examines the role of facilitating agencies in developing tripartite partnership for solid waste management service in Bangladesh. The key lessons learned are: a number of obstacles prevented spontaneous partnership among the public sector, private sector and people; facilitating agencies were able to overcome the obstacles to form partnership of the three; and, the tripartite arrangement resulted in higher accountability and better service delivery.     

Myths and realities about input subsidies in sub‐Saharan Africa

Using a recent public expenditure dataset, this article proposes a ‘reality check’ of the level and composition of input subsidies in nine African countries between 2006 and 2013. Results show that input subsidies (1) received close to 35% of agricultural‐specific expenditure on average and (2) cover a variety of interventions, including investments in capital, such as on‐farm irrigation, and in on‐farm services, such as inspection or training. Further, the figures show that input subsidies tended to become entrenched in agricultural budgets over time, leading to sub‐optimal execution rates, and were primarily funded by the national taxpayer, while donors invested more in public goods. Findings confirm that input subsidies crowded out other spending categories likely to be more supportive of long‐term agricultural development objectives. The article concludes that the political economy of input subsidies should be directed to making more concrete efforts to attain a better balance of public expenditure on agriculture. Furthermore, policy‐makers should aim to increase the efficiency and policy coherence of input subsidies, since merely abolishing them is likely to be unfeasible in the short term.     

Quo vadis public procurement of innovation?

Governments are actively looking for ways to use public procurement so that it would become more effective in facilitating innovation across public and private sectors. However, a shift towards public procurement of innovation (PPI) has proven to be difficult. Whereas the contemporary debate has mostly focused on how to reduce the barriers of PPI through re-conceptualizing the procurement process, there is a need to take into account also wider strategic factors through which governments create capacity to undertake PPI. By revisiting historic and contemporary policy initiatives, four strategies for the future can be envisioned: PPI as experimental innovation policy, from fiscal policy under austerity to PPI, mission-oriented PPI and shifts in administrative culture towards PPI. Each of the strategies demands different capacities from the entrepreneurial sector, as well as state, policy and administrative capacities from the public sector. These issues should be an inherent part of future policy-making and offer new avenues for PPI-related policy analysis and academic research.     

Rethinking Trade Preferences for Sub‐Saharan Africa: How Can Trade in Tasks Be the Potential Lifeline?

Policy‐related discussion on assisting countries to make use of trade preferences tends to focus on the provision of hard infrastructure to facilitate external economies from modern‐sector exports. This is as opposed to harnessing potential knowledge spillovers. This omission is emblematic of tensions within new trade/new growth theory. Using two country case studies in Asia – Bangladesh and Cambodia – this article shows how different approaches towards making use of trade preferences have resulted in divergent industrial structures and firm‐level technological capability indicators. Less stringent rules of origin requirements may offer new opportunities for late industrialisers in sub‐Saharan Africa to tap into the modern export sector, but a more interventionist approach towards harnessing knowledge spillovers may also be necessary.     

The ‘New Approach’ to Public Sector Reforms in Ghana: A Case of Politics as Usual or a Genuine Attempt at Reform?

Public sector reforms continue to preoccupy governments all over the world, compelled by the need to ‘get the state right’ through better policy development and implementation. Developing countries see this as the path to a developmental state. This article examines Ghana's quest to build such a state through its new public sector reforms, originally hailed in hyperbolic terms. We argue that the rejection of a top‐down and bottom‐up synergy in favour of an exclusively top‐down approach dooms this effort to failure.