Subnational Government Capital Financing

2021 ◽  
pp. 162-180
Author(s):  
Christine R. Martell ◽  
Tima T. Moldogaziev ◽  
Salvador Espinosa

This book argues that capital markets can be an important source of financing for subnational governments across the globe as they face decentralization of governance systems and increased demand for infrastructure at the local level. The central argument is that information resolution at both the national-level and the city-level is critical for the success of subnational capital markets. Furthermore, the chapter argues that subnational governments can and must become competent actors with regards to both top-down (national to local governments) and outside-in (financial sector firms to local governments) transactions and pressures. This chapter presents city policymakers with options for capital market access when both system credit contractibility and underlying credit quality vary by offering a typology of alternatives for capital financing. The chapter recommends policies that establish contractibility and credit quality assessment mechanisms and concludes with recommendations for future research.

Author(s):  
Christine R. Martell ◽  
Tima T. Moldogaziev ◽  
Salvador Espinosa

This book theorizes that information is a critical factor for subnational government (SNG) capital market formation and development. It empirically tests the stated relationship between information resolution institutions and mechanisms of information resolution on SNG borrowing. Based on empirical results, analyses of underlying fundamentals of city credit quality, and the study of contexts of information resolution reforms, the book recommends policy measures for central governments, regional and local governments, and financial sector firms to build capital markets for subnational borrowing. As subnational governments across the globe, especially cities, bear increasing pressures to provide critical capital infrastructure, responsibilities for the provision of local infrastructure resulting from decentralization efforts and population demands, the need for a wider array of internal and external resources, including bond market alternatives, become a priority. With information resolution, access to capital market financing becomes a feasible option of regional and local government finance. The evidence reported in this book demonstrates that SNG access to capital market financing depends on credit contractibility, which is the nation’s capacity of information resolution. The bases of credit contractibility are transparency of credit information, depth of credit information, dissemination, and regulatory quality. Evidence also shows that the informational content of underlying credit quality is a significant covariate of city-level borrowing and debt composition. Based on empirical findings and focusing on cities, the book argues that SNGs can and should strengthen their agency vis-à-vis the public and financial sector actors, in an environment where global capital is increasingly intertwined with the provision of critical infrastructure finance. Agency is necessary for city policymakers not only to achieve their key governance tasks efficiently, but do so effectively and equitably, consistent with the demands of the citizenry.


2019 ◽  
Vol 34 (4) ◽  
pp. 665-689 ◽  
Author(s):  
James M. Crick ◽  
Dave Crick

Purpose Coopetition, namely, the interplay between cooperation and competition, has received a good deal of interest in the business-to-business marketing literature. Academics have operationalised the coopetition construct and have used these measures to test the antecedents and consequences of firms collaborating with their competitors. However, business-to-business marketing scholars have not developed and validated an agreed operationalisation that reflects the dimensionality of the coopetition construct. Thus, the purpose of this study is to develop and validate a multi-dimensional measure of coopetition for marketing scholars to use in future research. Design/methodology/approach To use a highly cooperative and highly competitive empirical context, sporting organisations in New Zealand were sampled, as the key informants within these entities engaged in different forms of coopetition. Checks were made to ensure that the sampled entities produced generalisable results. That is, it is anticipated that the results apply to other industries with firms engaging in similar business-to-business behaviours. Various sources of qualitative and quantitative data were acquired to develop and validate a multi-dimensional measure of coopetition (the COOP scale), which passed all major assessments of reliability and validity (including common method variance). Findings The results indicated that coopetition is a multi-dimensional construct, comprising three distinct dimensions. First, local-level coopetition is collaboration among competing entities within a close geographic proximity. Second, national-level coopetition is cooperation with rivals within the same country but across different geographic regions. Third, organisation-level coopetition is cooperation with competitors across different firms (including with indirect rivals), regardless of their geographic location and product markets served. Indeed, organisation-level coopetition extends to how companies engage in coopetition in domestic and international capacities, depending on the extent to which they compete in similar product markets in comparison to industry rivals. Also, multiple indicators were used to measure each facet of the coopetition construct after the scale purification stage. Originality/value Prior coopetition-based investigations have predominately been conceptual or qualitative in nature. The scarce number of existing scales have significant problems, such as not appreciating that coopetition is a multi-dimensional variable, as well as using single indicators. In spite of a recent call for research on the multiple levels of coopetition, there has not been an agreed measure of the construct that accounts for its multi-dimensionality. Hence, this investigation responds to such a call for research by developing and validating the COOP scale. Local-, national- and organisation-level coopetition are anticipated to be the main facets of the coopetition construct, which offer several avenues for future research.


2013 ◽  
Vol 32 (3) ◽  
pp. 115-142 ◽  
Author(s):  
Sri Lestari Wahyuningroem

The article examines both civil society initiatives that seek to address the mass violence of 1965 and 1966 and the state's responses to them. Unlike other political-transition contexts in the world, a transitional justice approach is apparently a formula that state authorities have found difficult to implement nationally for this particular case. The central government has, through its institutions, sporadically responded to some of the calls from civil society groups and has even initiated policy reforms to support such initiatives. Nevertheless, these responses were not sustained and any suggested programmes have always failed to be completed or implemented. Simultaneously, however, NGOs and victims are also voicing their demands at the local level. Many of their initiatives involve not only communities but also local authorities, including in some cases the local governments. In some aspects, these “bottom-up” approaches are more successful than attempts to create change at the national level. Such approaches challenge what Kieran McEvoy refers to as an innate “seductive” quality of transitional justice, but at the same time these approaches do, in fact, aim to “seduce” the state to adopt measures for truth and justice.


Author(s):  
Mukaramah Harun ◽  
Ting Ding Hooi ◽  
Hussin Abdullah

In developed countries, urban growth has multiplied the demand for investment in basic infrastructure services such as water supply, waste removal, roads and mass transportation. At the same time, decentralization strategies have shifted the responsibility for much of these investments to the local governments. This decentralized investment requires the development of decentralized capital financing. No longer can a central government pay for local investment by raising national taxes or borrowings on international markets and using the funds simply to construct projects at the local level. The introduction of municipal bonds is one of the alternative source of funds to finance the escalating costs of financing local governments. This paper discusses the conditions underlying the development of municipal credit markets, which Malaysia can use to provide a vehicle to narrow the local government’s resource gap through debt funding.  


Author(s):  
Samuel Lucas McMillan

Subnational governments are increasingly involved in foreign policy and foreign relations in activities usually labeled as paradiplomacy or constituent diplomacy. This phenomenon is due to the rising capacity of substate territories to act in world politics and has been aided by advances in transportation and telecommunications. National governments’ control of foreign policy has been permeated in many ways, particularly with globalization and “glocalization.” Since 1945, subnational governments such as Australian states, Canadian provinces, and U.S. states have sought to influence foreign policy and foreign relations. Subnational leaders began traveling outside their national borders to recruit foreign investment and promote trade, even opening offices to represent their interests around the world. Subnational governments in Belgium, Germany, and Spain were active in world politics by the 1980s, and these activities expanded in Latin America in the 1990s. Today, there are new levels of activity within federal systems such as India and Nigeria. Subnational leaders now receive ambassadors and heads of government and can be treated like heads of state when they travel abroad to promote their interests. Not only has paradiplomacy spread to subnational governments across the world, but the breath of issues addressed by legislatures and leaders is far beyond economic policy, connecting to intermestic issues such as border security, energy, environmental protection, human rights, and immigration. Shared national borders led to transborder associations being formed decades ago, and these have increased in number and specialization. New levels of awareness of global interdependencies means that subnational leaders today are likely to see both the opportunities and threats from globalization and then seek to represent their citizens’ interests. Foreign policy in the 21st century is not only affected by transnational actors outside of government, such as multinational corporations and environmental groups, but also governmental actors from the local level to the national level. The extent to which subnational governments participate in foreign policy depends on variables related to autonomy and opportunity. Autonomy variables include constitutional framework, division of power, and rules as determined by legislative action or court decisions. Opportunity variables include geography, economic interdependence, kinship (ethnic and religious ties), as well as partisanship and the political ambitions of subnational leaders. Political culture is a variable that can affect autonomy and opportunity. Paradiplomacy has influenced the expectations and roles of subnational leaders and has created varying degrees of institutionalization. Degrees of autonomy allowed for Flanders are not available for U.S. states. Whereas most subnational governments do not have formal roles in international organizations or a ministry devoted to international relations, this does occur in Quebec. Thus, federalism dynamics and intergovernmental relations are evolving and remain important to study. In future research, scholars should more fully examine how subnational leaders’ roles evolve and the political impacts of paradiplomacy; the effects of democratization and how paradiplomacy is diffused; how national and subnational identity shapes paradiplomacy, and the effects paradiplomacy has on domestic and international law as well as political economy. The autonomy and power of subnational governments should be better conceptualized, particularly because less deference is given to national-level policy makers in foreign policy.


2020 ◽  
Vol 5 ◽  
pp. 161-169
Author(s):  
Anif Fatma Chawa

This article aims to illustrate the role of government in the implementation of CSR in the extractive industries. The extractive industries need support from the government to resolve various problems which have emerged in conducting their CSR. These problems have arisen because of the contradiction and tension in the role or framework of business communities of the extractive industries, as an economic and social agent. To address those problems, based on a structural functional perspective, the extractive industries need other institution primarily government to establish policies or regulations in conducting their CSR. This study employs systemic review method reviewing 70 journal articles of research studies which focus on the implementation of CSR in the extractive industries in Indonesia. This study found that government has an important role to stipulate several regulations mostly at a national level. The regulations require the extractive industries to implement CSR to specifically address various negative impacts, socially, culturally and environmentally, on the affected communities. This study, however, also found that there is insufficient guideline at a local level in relation to CSR. Consequently, the extractive industries have no guidelines in how to establish their CSR activities, to what extend they should involve the local communities as well as the local governments in these activities and to address various problems which have emerged in the implementation of CSR. The lack of guidelines has also given rise to the different perception of the local governments on how they should be involved in the implementation of CSR.


2021 ◽  
pp. 187936652110685
Author(s):  
David Siegel

During the 1990s, a conventional wisdom emerged, based on literature going back decades, that political decentralization might be among the most effective forces for democratization. If ordinary people could participate in autonomous local governments, democracy would be built from the ground up, ultimately shaping the entire political system. Once decentralization reforms were implemented across the world, however, the results were disappointing. Authoritarianism not only thrived at the local level, it could also undermine democratization at the national level. Thus, local-national transference still held, but sometimes as a poison. In this context, the case of post-Soviet Kyrgyzstan is an anomaly. Here, the relative success of political decentralization—rather than its failure—nevertheless failed to spur democratization at the national level. I argue that this is because decentralization allowed national authorities to appease international donors while they consolidated their own power. Moreover, while decentralization empowered local communities, it did so in ways that personalized local authority and pitted local and national authorities against one another, resulting in intense localism and antagonistic center-local relations that undermined any democratic transference. The case study findings are based on ten months of field research, which includes interviews with local and national officials, ordinary villagers, and representatives of NGOs and international organizations.


2018 ◽  
Vol 2 (4) ◽  
pp. 86-97
Author(s):  
A. Larichev

The subject of the article is models of local self-government in Commonwealth countries.The purpose of this article is to substantiate or refute the hypothesis post-corporate model of local self-government is evolved.Methods of theoretical analysis are used, as well as legal methods, including the formal legal method and the method of comparative law.The main results and scope of their application. The corporate model of local government can be characterized by the following features: the lack of full constitutional recognition of local government as an independent form of public authority; formal institutional autonomy of municipal units as public (private-public) corporations of a special type that are not included into the system of state power; limited functional autonomy; lack of constitutional recognition of citizens’ or local communities’ right(s) to local self-government; limited accountability of local governments to the population, including the lack of sufficient legislative guarantees for the election of local authorities. These characteristics, grounded also in the historical specificity of local government development in Great Britain and its colonies, as well as in peculiarities of development of municipal units’ status in English law, are determined by the corporate character of municipal government, which does not arise from the power of communities, but is formed by the state "from above". The author also analyzes the differences in approaches to regulation and organization of local government in the Commonwealth countries.Overcoming the historical heritage, laid by the genesis of municipal corporations, in a number of Commonwealth states, indicates the formation of a new, post-corporate model of local government, which can be characterized by some features: the establishment of constitutional autonomy of local government as a special form of public power, its development as a form of democracy with greater control over the forms of self-government and governance at the local level by the population, as well as the establishment of a link between self-government and the local community. The proposed analysis may become a crucial point for future research in the field of post-corporate model of local self-government.Conclusions. Such countries as Australia and Ireland can presently be considered in a state of transition to the post-corporate model of local self-government.


2021 ◽  
pp. 1-14
Author(s):  
Osiris S. González-Galván

Local Governments around the world have taken advantage of social media during the past ten years to improve transparency and to provide public services. Challenges related to information management and citizen participation have emerged, namely at the local level where the diffusion of social media has been slower compared to initiatives launched at the national level. This paper analyzes how the use of social media can reflect a change in the discursive exchanges established between local governments in Canada and Mexico and citizens. To achieve this goal, the use of YouTube by the municipalities of Quebec and Morelia was examined by using digital methods and content analysis. The author proposes the emergence of new conditions between government and users, which are changing the discourse, identity, and communication purposes of the municipalities. However, the development of more dialogic communication processes supported by social media is still a promise, at least on YouTube.


Author(s):  
José Rodrigues Filho ◽  
João Rodrigues dos Santos Junior

E-government has the potential to enhance democracy and transparency, increasing opportunities for citizen interaction. Literature has given many examples of successes and failures in its implementation, especially at the national level. Now, there are claims that the greatest opportunities for e-government are at the local level, because local governments have more contact with citizens. However, little attention has been paid to the highly bureaucratic and paternalistic government structures at local levels, and to how information and communication technologies (ICTs) may affect interaction and participation. Most of the literature fails to cover this relationship, and most of the time tries to emphasize just the technical obstacles instead of obstacles of a non-technical nature, such as political and bureaucratic barriers. In this study, an attempt is made to show that ICTs in municipal government in Brazil are designed in such a way that they resemble the traditional political structures, maintaining politics as usual and avoiding new forms of interaction and participation.


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