Slower growth boosts Indonesia's SOE reform agenda

Subject Outlook for restructuring state-owned enterprises in Indonesia. Significance Faced with slower economic growth, Indonesia is planning a major restructuring of state-owned enterprises (SOEs). President Joko ‘Jokowi’ Widodo’s government -- now in the third year of its five-year term -- plans by 2019 to increase the economic contribution of the public sector by improving the value, efficiency and debt leverage of SOEs. Impacts Even small improvements in SOE management are likely to deliver efficiency gains. Any reduction in public sector red tape would improve the overall business climate. Foreign investor interest in SOE reforms may be limited given that privatisation is not on the agenda.

Author(s):  
Olga Murova ◽  
Aman Khan

Purpose The purpose of this paper is to use stochastic frontier analysis (SFA) to estimate the efficiency of public investments and their impact on economic growth in the USA using panel data. Results of the study show highly significant and positive relationships between gross state product (GSP) and expenditures on education, transportation, health, welfare, and public safety (police and fire), and negative but significant relationships between output and employment in health care and public safety services. Inefficiencies in the study are measured using per capita tax revenue and time. Tax revenue has a very minimal positive and significant effect on efficiency, while time inversely relates to efficiency. Design/methodology/approach The present study uses SFA to investigate the efficiency of government expenditures in five service sectors – education, transportation, health, welfare, and public safety (police and fire), using recent data and economic trends. The study hypothesizes that changes in the current levels of expenditures in the public sector have a significant impact on the aggregate economy, as measured by GSP. The study uses GSP as the dependent (output) variable, and government expenditure on the five service sectors as the independent (input) variables. Findings Analysis of efficiency for individual states for all 21 years produced interesting results. Overall, the technical efficiency of the public sector was quite high. The average TE score across all years and all states was 0.878. This suggests that public sector operates at a relatively high efficiency level. Originality/value The current SFA model followed Battese and Coelli approach of estimating efficiency of public sectors in each state of the USA. It allowed estimation of policy impact on the overall efficiency. It was applied to macroeconomic panel data.


Author(s):  
Tarmo Kalvet

A multitude of writings have appeared since the 1970s describing how societies have undergone “information revolutions” (Bell, 1973; Castells, 1998; Masuda, 1981), “the third wave” (Toffler, 1980), etc. Indeed, ICT development has been explosive in both developed and developing countries since the 1990s. This, in turn, has given some countries an opportunity for bigger economic growth; attempts have been made in a majority of countries to rearrange the organization of the public sector, and individuals have experienced a rise in the quality of life due to the introduction of new technologies.


Significance The bill aims to expand the accruable revenue for the federal government, crucial for meeting the government’s 2022 fiscal targets. In particular it looks to close existing tax loopholes rather than raising consumption taxes which could inhibit economic growth. Impacts Increased taxes will only have a limited impact on consumer spending and inflation. The bill will not appreciably increase state-level revenues. Broader institutional reforms in the public sector are unlikely due to powerful patronage networks.


Subject The series of tax-related measures that the Fidesz government hopes will boost competitiveness and support GDP by reducing labour shortages. Significance Following disappointing economic growth of just 2.2% on an unadjusted basis in the third quarter, owing to a larger-than-expected drop in investment, Fidesz’s latest tax-related measures are well-timed, since the economy is expected to slow in the final quarter of 2016. The government insists no amendments will be needed in the state budget, and is now forecasting 3.1% GDP growth in 2017, after 2.5% this year. Impacts Value-added tax cuts and rises in public-sector minimum wages will cause inflation to rise faster in 2017, as deflationary trends disappear. The unemployment rate is expected to bottom out as workers return from neighbouring countries. The government will need to make complementary reforms in education and privatising the state-dominated energy and telecoms sectors. If it does not, competitiveness as measured by wage growth and productivity will remain subdued.


2008 ◽  
pp. 1423-1430
Author(s):  
Tarmo Kalvet

A multitude of writings have appeared since the 1970s describing how societies have undergone “information revolutions” (Bell, 1973; Castells, 1998; Masuda, 1981), “the third wave” (Toffler, 1980), etc. Indeed, ICT development has been explosive in both developed and developing countries since the 1990s. This, in turn, has given some countries an opportunity for bigger economic growth; attempts have been made in a majority of countries to rearrange the organization of the public sector, and individuals have experienced a rise in the quality of life due to the introduction of new technologies.


Significance As they were 50 years ago, several universities and parts of the transport system will be on strike. Impacts The opposition parties are unable to unite and too weak to fight Macron in isolation, giving him a strong hand until 2022. If the government puts the reform agenda on hold for a few months, it will use the time to prepare the next round of reforms. If Macron is victorious, the ‘radical’ non-reformist trade unions will lose influence in the public sector. Macron might end up earning the French public’s trust and even esteem with his persistence and determination.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrizia Garengo ◽  
Alberto Sardi

PurposeSince the 1980s, performance measurement and management (PMM) has been described as an essential element of new public management (NPM) reforms. The purpose of this paper is to provide an overview of the current state of the art and future research opportunities for PMM in public sector management.Design/methodology/approachThe paper carried out a bibliometric literature review using two main techniques named (1) performance analysis and (2) science mapping techniques. It investigated the academic research area describing the main publications' trend, the conceptual structure and its evolution from 1996 to 2019.FindingsThe results highlighted the growing relevance of PMM research in public organisations and confirmed a great interest of the business, management and accounting literature on PMM in public sector management. Furthermore, the results also described a conceptual structure of the public PMM literature analysed and its evolution being too generic to answer public organisations' needs. The results identified five main research gaps and research opportunities.Originality/valueAlthough the adoption of rigorous bibliometric techniques was recognised as being useful for assessing the academic research study, the paper describes the business, management and accounting literature contributing to new theoretical and practical future opportunities.


2019 ◽  
Vol 16 (1) ◽  
pp. 88-108 ◽  
Author(s):  
Fahad Shakeel ◽  
Peter Mathieu Kruyen ◽  
Sandra Van Thiel

Purpose The purpose of this paper is to offer a review of the selected literature in ethical leadership synthesizing findings from 45 articles selected from journals on leadership, public administration, organizational behavior, psychology and ethics. Design/methodology/approach Four themes are addressed: the conceptualization of ethical leadership theories, the existence of popular measurement instruments for ethical leadership, findings on ethical leadership in the public sector and outcomes of ethical leadership in terms of benefits and negative consequences. Findings The definition by Brown et al. (2005) is the most frequently used definition, even though recent criticism states that this definition may be too narrow. Ethical leadership is usually measured by means of a survey; however, there are at least three different questionnaires in use. In the public sector, ethical leadership has been linked to both positive outcomes and negative consequences. Research limitations/implications This paper only includes selected academic articles and does not include published books. Originality/value Based on our findings, the authors present recommendations for future research, among others into a broader conceptualization of ethical leadership and the use of mixed methods.


1995 ◽  
Vol 37 (2) ◽  
pp. 203-217 ◽  
Author(s):  
Michael O'Donnell

Decentralizing industrial relations within New South Wales is a central recom mendation of the Niland Green Paper (1989). Decentralism also represents the cornerstone of the New South Wales government's industrial relations reform agenda enshrined in the New South Wales Industrial Relations Act 1991. To date there has been little analysis of the impact o f this legislative change on industrial relations in the New South Wales public sector. This paper provides a case study that examines the degree to which responsibility for bargaining has been devolved within the Parks and Gardens of the New South Wales Ministry for the Environ ment. It argues that, in contrast to the rhetoric of the New South Wales Act, the central agency presiding over the introduction of enterprise bargaining in the public sector, the Public Employment and Industrial Relations Authority; has been reluctant to delegate responsibility to parties in the workplace.


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