Economic Efficiency Versus Local Democracy? An Evaluation of Structural Change and Local Democracy in Australian Local Government

2010 ◽  
Vol 23 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Brian Dollery ◽  
Bligh Grant
Author(s):  
A. Aliyu ◽  
A. B Shelleng

The study investigated the technical, Allocative and economics efficiencies of yam producers in Ganye Local government Area, Adamawa State, Nigeria. Combinations of purposive and random sampling techniques were employed using 100 famers from five different wards of the local government. In the first place, five wards were selected and used for this study and twenty farmers were selected from each ward, making a total of 100 famers, twenty. The analytical tool used to achieve the objectives of this study was Data Envelopment Analysis. The results of the study revealed that 57% of the farmers had technical efficiency of 0.81 and above while 43% of the farmers operate at less than 0.81 efficiency level. The mean technical efficiency for the 100 sampled farmers in the study area was 0.78. The farmer with the best practice has a technical efficiency of 1.00 while 0.37 is for the least efficient farmers. This implies that on the average, output fall by 0% from the maximum possible level of 1.00 due to technical inefficiency. The mean allocative efficiency was 0.98. The result indicates that average yam farmer in the state would enjoy cost saving of about 5% while allocative inefficient farmer will have an efficiency gain of 95% to attain the level of most efficient farmer among the respondents. The mean economic efficiency was 0.77. The farmer with the best practice has an economic efficiency of 1.0 while 0.08 was for the least efficient farmers. This implies that on the average, output fall by 52% from the maximum possible level due to inefficiency. Finally, among the constraints identified in the study area, the majority of the respondent attested to the fact that high cost of inputs, transportation problem, lack of credit facilities and storage/preservation problem were the major constraints they faced in yam production in the area. The study concludes that yam farmers in the study area have achieved absolute efficiency in the use of variable inputs. It was found that yam production in the study area is profitable.


Author(s):  
Walter Kickert

This chapter analyses the fiscal problems of Dutch local government in the 1980s and the way that municipalities handled the fiscal squeeze of that time. It first explores the causes of the 1980s fiscal squeeze, that is, the decrease in municipal revenues (particularly in block-grant funding from central government through the ‘Municipal Fund’) and increase in expenditures, partly as a result of recession. It then describes the local government responses to the fiscal squeeze, that is, what cutback measures were taken and what strategies were employed, and explores the linked reform of the financial management system and adoption of ‘divisionalised business model’ structures. Thirdly, empirical evidence about the causes and effects of Dutch local public management reform is considered. Finally, the chapter discusses the longer-term effects that went beyond management reform, that is, developments in local democracy in the 1990s.


Author(s):  
Hanna Vakkala ◽  
Jaana Leinonen

This chapter discusses local governance renewals and the recent development of local democracy in Finland. Due to profound structural reforms, the role of municipalities is changing, which is challenging current local government processes, from management to citizen participation. Nordic local self-government is considered strong, despite of tightening state steering. Ruling reform politics and the increasing amount of service tasks do not fit the idea of active local governance with sufficient latitude for decision-making. To increase process efficiency, electronic services and governance have been developed nationally and locally, and solutions of eDemocracy have been launched to support participation. Developing participative, deliberative democracy during deep renewals creates opportunities but also requires investments, which create and increase variation between municipalities. From the point of view of local democracy, it becomes interesting how strong municipal self-governance and local governance renewals meet and how the role and status of municipalities are changing.


Author(s):  
Nico Steytler

This chapter argues that democratic local government embeds the culture of democracy at grassroots: as the government closest to the people, it establishes a culture of responsiveness, transparency, and accountability more readily and effectively than by holding national leaders to account. Local democracy can also be used strategically when a country seeks to move from an authoritarian or military regime to democracy. Furthermore, it provides space for political inclusivity—an argument with particular relevance in ethnically diverse societies, where a winner-takes-all paradigm of competition at the national level typically results in the marginalization of geographically concentrated losers. Finally, local government allows for experimentation in different forms of inclusive politics, be they representative or participatory. However, although most African countries have adopted decentralization policies, the dividends are meagre. Local government is but feebly equipped to play a democracy-constituting role: operating in a constrained constitutional environment, central governments have generally not allowed local governments the opportunity to hold regular free and fair elections and thereby play a role in democratization. Despite these findings, there is also some evidence that on occasion local democracy has indeed played such a role and thus enhanced democratic participation.


10.1068/c0063 ◽  
2002 ◽  
Vol 20 (2) ◽  
pp. 251-262 ◽  
Author(s):  
Michael Chisholm

When the structure of local government in Great Britain was reorganised during the 1990s, considerable emphasis was placed by the government on the financial savings which would accrue to offset the costs incurred in making the changes. Previous work examined these expectations and found clear evidence that the ex ante estimates of transition costs given to the Westminster parliament were serious underestimates, and that the expected savings had not, at that time, materialised. This work was done at a time when it was known that some of the official data on transition costs would not be complete until after the close of the 2000/01 financial year. The author's primary purpose is to place on record what may be regarded as the final estimates of the transition costs in England, Scotland, and Wales. In addition, comparisons between the ex ante estimates of the costs of structural change and the ex post evidence concerning actual costs are updated. The discrepancy between these is such as to confirm the need for some form of independent scrutiny of new legislation at the time when it is being considered in parliament, to ensure that decisions are taken in the light of realistic assessments of the costs and benefits of proposed enactments.


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