Market-based Governance and the Challenge for Rural Governments: US Trends

Privatization and decentralization represent market‐based approaches to government. Designed to increase efficiency and responsiveness of government, these approaches also limit the potential for redistribution. A key question is: how will rural governments compete in such a market‐based system? Will they be favoured, as their reliance on market provision for public goods is higher due to the smaller number of services provided by government? Or will they be less able to compete due to the costs of sparsity, which may make them less attractive to market suppliers? Data from the United States covering the period 1992–2002, show that rural areas are not favoured by either of these trends – privatization or decentralization. Managerial weakness does not explain the shortfall. Rural areas are not as attractive to market suppliers and thus are disadvantaged under market‐based service delivery approaches. Although national policy continues to advance a privatization agenda, policy‐makers should be concerned about the uneven impacts of such market‐based approaches.     

Is Sweden Being Torn Apart? Privatization and Old and New Patterns of Welfare State Support

This article examines the potential impact of institutional change on popular welfare support. The encompassing welfare state of Sweden provides an interesting case where the privatization of social service delivery has been widespread over the last decades. We use survey data from five rounds of the Swedish Welfare State Survey (1992, 1997, 2002, 2006 and 2010) in order to study how public preferences for the financing and organization of welfare services have changed over time. Based on a theory describing an ideal‐typical pattern of public support for an encompassing welfare model, we derive three types of public preferences: support for a pure state model, a pure market model and a mixed model (welfare services are funded by taxes but provided by private firms). We begin by tracking the development of these ideal‐typical attitude patterns between 1992 and 2010. We then investigate how preference patterns vary across municipalities displaying different degrees of privatization of social service delivery. Our results show that welfare support among Swedes over the last decades is better characterized as dynamic rather than stable. Swedes seem to take an overall more ideologically based position on the role of the welfare state over time. The share of respondents expressing such ideologically based preferences has increased from 54 per cent in 1992 to 78 per cent in 2010. This change is principally manifested in increased support for the state and mixed models. This trend seems to be parallel to the increasing share of private welfare service providers over the last decade. We also find a link between the municipal degree of privatization and support for our three ideal‐typical welfare models. Public support for a mixed welfare model and, to some extent, a market model, is comparatively stronger in municipalities where welfare services to a large extent are carried out by private actors. Conversely, data shows that public support for the traditional Swedish state model is more widespread in municipalities having a low degree of welfare services privatization. Lastly, we discuss some theoretical implications of our findings.     

Revisiting History: The Creation of Provinces and the Politics of Social Policy in a Democratic South Africa

The pre‐democracy negotiations between the African National Congress (ANC) and the National Party (NP) established nine provincial forms of government to replace the four provinces of the apartheid era. The nine provinces contrasted with the historical goal of the ANC to create a ‘democratic, non‐racial and unitary South Africa’. The NP wanted nine new provinces to prevent centralized state power under an ANC government and saw possibilities for winning electoral power in the Western Cape. The ANC conceded following political pressure from the Inkatha Freedom Party, which threatened civil war, and a policy shift after examining the German federal governance system. The article analyzes the history, politics, process and outcomes of the establishment of the nine provinces for social policy delivery in South Africa. It explores the contention that the nine provinces re‐fragmented service delivery (although not on a statutory racial basis) and created a system of fiscal decentralization with serious implications for social policy: weakening bureaucratic capacity, institutional capability and political accountability. The provincial governance mechanisms and fiscal institutions created a particular ‘path dependency’ which, 18 years after democratic, rule still impacts negatively on service delivery and more equitable policy outcomes. This is in part due to the undermining of provincial governance mechanisms and fiscal institutions by a significant minority of corrupt and incompetent provincial civil servants. The corruption of these provincial governance mechanisms and fiscal institutions erodes the egalitarian values aimed at creating a non‐racial, non‐sexist, democratic and unitary South Africa which historically underpinned the policy agenda of the ANC. It also has weakened social citizenship on a geographical and ultimately racial basis given the continuing co‐incidence of race and place in a democratic South Africa.     

Crowding Out or Welfare Promotion? How Foreign Aid Affects Social Expenditures in Latin American Welfare Systems

Foreign assistance constitutes a significant share of government revenue in many low‐ and middle‐income economies and is targeted at poverty reduction and the promotion of social and economic well‐being. This study therefore examines fiscal responses by Latin American welfare states to the inflow of such aid. As a form of external non‐tax revenue, aid can function as a substitution for public welfare expenditure, with a crowding out effect being the likely outcome. This article investigates whether overall aid and aid that is particularly targeted at the social sector substitutes public welfare provision and, if so, whether it also substitutes its function. A time‐series cross‐section analysis of 19 Latin American countries for the period 1980–2008 provides limited support for the assumption that foreign aid payments influence the welfare budget. It is only the health care sector in middle‐income countries which experiences a small decrease in expenditures. Social security and education expenditures are not affected.     

Tax structure and state economic growth during the Great Recession

Concern about the effect of taxes on economic growth and development in the United States is longstanding. While most studies are concerned with the growth impacts of tax burden, marginal rates, or the impact of a particular tax, there are few works that examine the impact of tax structure in the way it is defined in this work. Here, tax structure is defined as the shares of revenue collected by various taxes. Using a pool of data on the 50 states between 2004 and 2010, this paper explores the relationship between state and local tax structure and growth of real per-capita GDP through the Great Recession centered in 2008. The results are used to generate estimates of the growth impacts of revenue neutral changes in tax shares.     

农村老年人生活状况的调查与思考——以胶南市Z村为个案

随着我国人口老龄化的加速,数量庞大的农村老年人的生活状况日益引起世人关注。通过对胶南市Z村老年人的经济收支、健康及医疗、住房及养老、精神文化生活等基本状况的调查,发现他们基本实现“老有所养”,但“老有所乐”的目标尚未达到。适度转变农村养老模式、建立健全农村养老保障制度、加强精神文明建设等,成为当前提高农村老年人生活质量的较为可行的对策。     

Impacts of privatization: Use of multimodal survey

Given current local government fiscal stress, the privatization of public services has been considered as a way to balance local government budgets and improve community service efficiencies. However, along with economic efficiency, the social efficiency of the privatization should be considered. Social efficiency not only incorporates economic efficiency but also includes accountability and equity. In this study, the economic and social impact of the potential privatization of a local utility (Churchill County Communications) is estimated. A web-based questionnaire was employed to collect data quickly and efficiently from CC Communication's employees and employ the questionnaire results in the analysis. Using and augmented input–output model of Churchill County, the analysis showed that privatization would reduce Churchill County employment by 279 jobs and reduce county household income by $36.171 million. In addition, the county could lose up to 14,735 hr of volunteer time and $85,233 in charitable donations if CC Communications were privatized.     

A marketization process in dispute: An analysis of serviced housing for the elderly in Finland, 2000–14

Marketization can be viewed as a potential response to the economic challenges of the public sector. The present study is focused on the development of marketization in serviced housing for the elderly in municipalities within Finland. Marketization is approached by asking the question: What kind of municipality‐level factors are associated with marketization and its development? The data consist of 290 municipalities and cover the years 2000–14. According to the study, the size of the municipality, the political distribution of the municipality council, and the economic situation of the municipality are found to be associated with marketization. More preciesly, the municipality size was found to be a kind of prism, which creates two different realities when it is linked with political distribution and transfers. In the case of big municipalities, the big share of Green‐Left council members on municipality councils has been associated with a low level of marketization. However, in the case of small‐ and medium‐sized municipalities, the low level of marketization has been associated with the government statutory transfers between the state and municipalities, which has helped smaller municipalities to avoid fiscal stress. In a policy context, the present study suggests that the marketization process can be slowed down by supporting the economically weakest municipalities to avoid fiscal stress. On the other hand, the marketization process can be supported by creating bigger municipalities which are then attractive enough to create an effective market mechanism.     

Big Business in a Thin Market: Understanding the Privatization of Residential Care for Children and Youth in Sweden

This article analyzes the transformation of Swedish residential care for children from a regionally coordinated, public social service system into a thin, but highly profitable, national spot market in which large corporations have a growing presence. Marketization and privatization are theorized as complex processes, through which the institutional structure and logics of this small, but significant, social policy field changed profoundly. Using official documents, register data, media reports and existing research, three consecutive phases in the development of the children's home market are identified since the early 1980s. Change was driven on one hand by policies inspired by New Public Management, which shifted public authority horizontally to the private sector, and vertically to local authorities (funding) and to the state (regulation). On the other hand were the responses of local authorities and private actors to the changing incentives that policy shifts entailed. During the first two phases, both the proportion and size of for‐profit providers increased, and the model of family‐like care was replaced by a professional model. Cutting across the trend of privatization in the third phase was establishment of a parallel system of homes for unaccompanied refugee children – mostly in public ownership. Similarities with privatization in the English system of children's care homes are noted. By showing how the Swedish market for residential care has been created by policy and by actors’ responses to those reforms, the article provides a foundation for thinking through how the predictable, significant and well‐documented problems of such care markets might be addressed.     

Fiscal Policy and Urban and Rural Residents＇ Marginal Propensity to Consume

基于代表性家庭最优消费决策及其与财政政策的关系,估计中国财政政策对城乡居民边际消费倾向的影响,结果表明,自1998年至今,城乡居民边际消费倾向的下降幅度超过20％。城乡居民边际消费倾向下降,．除源于收入分配、经济发展程度、预期、消费结构等因素的影响外,与财政政策运用也有很大关系。其中,未预期到的财政政策冲击对居民边际消费倾向产生的综合效应显著为负。以未预期到的税收增加为融资工具的策略选择,大大抑制了结构调整的正面效应。因此,扩大居民消费,不仅要通过财政增收,提高居民消费能力,而且要通过调整财政收支策略,稳定居民消费预期,提升居民边际消费倾向。     

The privatization of social services in Israel and its effects on Israeli society

The privatization of social services is gaining popularity worldwide, and it is occurring in places as diverse as the United States and central and eastern Europe. It is also a concept that is now being widely adopted in Israel, where it is having a dramatic effect on the structure and function of Israeli social services. This article critically examines the issues involved in privatizing social welfare service in Israel. First, we explore the relationship between Israel's mixed welfare economy and privatization and examine the driving forces behind it. Second, this article investigates the moral and social dimensions of privatizing social in Israel and the implications of injecting the United States model of privatization directly into the Israeli welfare state. Finally, we explore whether privatization will lead to a better and more efficient method of funding and delivering social services in Israel.     

Social Inclusion and Place‐Focused Initiatives in Western Sydney: A Review of Current Practice

This paper presents a review of the range of policies and programs that currently direct resources to disadvantaged communities in New South Wales, with a specific focus on the western Sydney region. These ‘place‐focused initiatives’ are the main sources of funding for community renewal from a range of government agencies at federal, state and local government levels. The research on which this paper is based identified thirty‐six programs administered or managed through thirteen government agencies or departments with a combined budget in excess of $163m in 2000/2001. It is argued that this diverse range of programs, while important, is highly fragmented, lacks a coherent spatial targeting framework, is poorly related to either local social or physical planning processes, and is poorly integrated in terms of its local outcomes. Moreover, beyond the public housing estates, existing policies lack the capacity to address the poor housing market conditions that generate local concentrations of disadvantage. A number of alternative policy ideas are presented that, if developed, might offer a better framework for the delivery of integrated policies to address the problems of social disadvantage and exclusion at the local level.     

Privatizing Social Services in the U.S.A.

Governmental and private sector social services organizations have traditionally shared important roles for provision and delivery of social services in the United States. Over the past fifty years, however, a predominant position has developed for the public sector, especially through federal funding for social service programmes. Recent challenges to the prevailing role of public sector dominance have been expressed by the proponents for privatization at a time when decreasing federal funds are made available for social service programmes. The analysis presented here examines the potential and problems associated with the privatization strategies offered through load shedding, limited-government arrangements, fee charging and competition. As a macro level approach for a comprehensive system of social service provision and delivery, these privatization strategies raise more questions than immediate solutions. A more optimistic view is taken if privatization leads to a more meaningful balance with increased co-operation between public and private social welfare auspices.     

Welfare service privatization and opinions about service quality: The role of political ideology among local politicians and the public

In this article, we join the discussion about the potential consequences of welfare service privatization by examining the relationship between the privatization of welfare service delivery and public opinion about service quality in Sweden. Due to the politically polarized debate about welfare service privatization in Sweden, we also examine the extent to which individualsapos; ideological orientations influence this relationship in both local politicians and ordinary citizens. For local politicians, the results show that a higher municipal degree of privatization is generally associated with slightly lower levels of satisfaction overall with welfare services, although no such relationship exists for the public. Most importantly, however, the results indicate that political ideology constitutes an important moderator in the relationship between privatization and opinions about service quality. Local politicians and, to some extent, ordinary citizens who place themselves to the left on the ideological left–right scale tend to be less satisfied with services as the municipal degree of welfare service privatization increases. For local politicians who position themselves far to the right on the scale, the relationship between welfare service privatization and satisfaction is positive. These findings suggest that there is no clear-cut relationship between privatization and individualsapos; opinions about services; rather, this relationship depends on the ideological predispositions of local politicians and ordinary citizens.     

The SESS multisite collaborative research initiative: establishing common ground

Multidisciplinary intervention approaches are needed for meeting service needs for families in which substance abuse and mental health disorders may be interfering with child‐rearing. Experiences from the Starting Early Starting Smart (SESS) initiative, a 12‐site national collaborative investigation of integrating behavioural health services in early childhood and primary health care service settings for children aged 0–5 years and their families and caregivers, are described. This 4‐year applied research initiative was co‐funded by the Substance Abuse and Mental Health Services Administration of the US Department of Health and Human Services and Casey Family Programs, a private operating foundation. SESS, which was developed and implemented in 12 geographically and culturally diverse cities in the USA during 1997–2001, encouraged federal, state, and local public/private partnerships. Opportunities and challenges in using an inclusive, consensus‐based, stakeholder model to maximize study relevance and utility for researchers, practitioners, and fiscal sponsors are discussed, and lessons for multidisciplinary, multisite research collaborations are identified.     

The Choice Revolution: Privatization of Swedish Welfare Services in the 1990s

During the 1990s, the Swedish welfare state was declared by some to be in a “crisis”, due to both financial strain and loss of political support. Others have argued that the spending cuts and reforms undertaken during this period did slow down the previous increase in social spending, but left the system basically intact. The main argument put forward in this article is that the Swedish welfare state has been and is still undergoing a transforming process whereby it risks losing one of its main characteristics, namely the belief in and institutional support for social egalitarianism. During the 1990s, the public welfare service sector opened up to competing private actors. As a result, the share of private provision grew, both within the health‐care and primary education systems as well as within social service provision. This resulted in a socially segregating dynamic, prompted by the introduction of “consumer choice”. As will be shown in the article, the gradual privatization and market‐orientation of the welfare services undermine previous Swedish notions of a “people's home”, where uniform, high‐quality services are provided by the state to all citizens, regardless of income, social background or cultural orientation.     

What is the (Net) Cost to Government of Homelessness Programs?

Homelessness programs may improve the health, well‐being, financial security, labour market and housing outcomes of clients. This, in turn, may result in decreased utilisation of health and justice services, reduced child residential care costs, lower housing management costs, lower income support payments and higher revenue from increased income tax payments. When costed, such impacts represent whole‐of‐government savings or cost offsets to the provision of homelessness programs. This paper provides indicative estimates of the value of potential savings or cost offsets in two areas, namely, the health and justice fields from homelessness program interventions. Our key finding is that homelessness programs have the potential to save over twice the value of the capital and recurrent funding of homelessness programs on the basis of health and justice cost offsets alone.     

Social Housing Policy Challenges in Tasmania

This paper considers the social policy discourses that senior public housing and Non‐Government Organisation (NGO) housing managers employ to articulate and explain changes in social housing provision in Tasmania. We suggest that the Tasmanian social housing reform agenda is reflective of reforms in other Australian states. The period 2003–10 marked a time of policy change affecting social housing supply and policy discourse, which were influenced by neo‐liberal practices favouring multi‐actor governance models and financing. Interviews reveal that contradictory values and discourses were commonplace. Divergent views centred on the social goals and the efficiency elements of the new social policy focus, the Affordable Housing Strategy (AHS) and its eventual key delivery organisation, Tasmanian Affordable Housing Limited (TAHL). Despite constrained application, neo‐liberal processes remained strong within accounts of new social housing governance practices. We suggest that neo‐liberal practices have extended economic considerations into areas of social housing provision that were previously sheltered from market concerns.     

Black Homeownership: The Role of Temporal Changes and Residential Segregation at the End of the 20th Century*

Objective. This study examines how the odds of a black renter becoming a homeowner changed during the 1990s, considering significant policy changes aimed at dismantling discriminatory barriers to nonwhite homeownership during that time period and various housing‐market characteristics, including the level of residential segregation. Methods. This study uses geocoded data from the Panel Study of Income Dynamics and from the 1990 and 2000 Censuses to estimate an event‐history model of transition into homeownership for black Americans. Results. The results of this study suggest that blacks benefited from the changing home‐lending environment and were more likely to become homeowners during the 1990s. These improvements appear to be both absolute and relative to whites. This implies that the policy changes had some success. Nevertheless, blacks were significantly less likely to become homeowners during the study period—even after controlling for a variety of factors known to be associated with homeownership—suggesting that further reforms may be necessary to eradicate disparities in access to homeownership between whites and blacks. The analysis also shows that blacks residing in metro areas with the highest levels of racial isolation were significantly more likely to become homeowners than blacks residing in metro areas with the lowest levels of isolation. Conclusion. The study results show that the policy reforms of the 1990s likely had a salutary effect on black homeownership. The results also suggest that residential segregation matters to black homeownership in complex ways.     

广西政策性农房保险现状及对策研究——以广西柳州市融水苗族自治县为例

政策性农村住房保险是一种由政府推动,农户自愿参保,财政资金补助,保险公司经营,以农民居住用房为保险对象,按照保险合同约定对倒塌房屋损失予以赔偿的新型保险制度。广西壮族自治区从2011年起,在全区范围内推广政策性农房保险,对灾后农户重建家园、恢复基本生产生活起到了积极的保障作用,取得了应有的成效,但由于推广时间短,还存在一些不足和缺陷,要采取相应的政策和措施,及时的调整和完善。