Outsourcing in the Australian health sector : the interplay of economics and politics

Purpose – The paper discusses the reasons and approaches used at three health organisations in introducing outsourcing. It specifically answers the question: why have managers of health organisations outsourced some functions in preference to others?

Design/methodology/approach – This research employs a case study method making use of qualitative analysis. The health organisations were chosen first as representatives of their type, and secondly due to the nature of the outsourcing decisions made. The first health organisation operates in the rural sector; the second is a metropolitan network; and the third is a large metropolitan hospital, which, in contrast to the other two case study organisations, had made only one decision to outsource, producing the largest outsourcing contract in health in Australia. Furthermore, this situation was distinctive as the contract was terminated and re-issued to another private sector organisation.

Findings – The reasons for outsourcing varied within and between health organisations. Although generally they were made on the bases of the characteristics of the labour market, employee skill levels and the nature of industrial relations, the perception of what was core, the level of internal management skills, the ability of internal teams to implement change and the relationship between management and staff. Even though cost savings and a downsized labour force resulted, generally these occurred even when services were not outsourced, through the use of other change processes, such as introducing new technology, changing structures and promoting workforce flexibility. The interplay of political reasons and economic effects was evident along with the political nature of the decision-making and processes used. The paper concludes that the power of managers was a moderating factor between the desire for outsourcing and whether outsourcing actually occurred.

Research limitations/implications – Although this research was conducted solely within the health sector it has implications for other public sector bodies and the private sector.

Practical implications – Managerial decision making can be enhanced with the exploration of the full complement of reasons for the outsourcing decision.

Originality/value – The paper has value to both academics researching in the public sector and public sector managers.

Earthquake fatalities : the interaction of nature and political economy

To say that the level of fatalities resulting from an earthquake is inversely related to a country's per capita level of income is hardly novel. What makes our approach novel is that we relate fatalities to both per capita income and the level of inequality that exists within a country through their joint impact on the likelihood of collective action being taken to mitigate the destructive potential of quakes. We first develop a theoretical model which offers an explanation as to why, in some environments, different segments of society prove incapable of arriving at what all parties perceive to be an agreeable distribution of the burden of the necessary collective action, causing the relatively wealthy simply to self-insure against the disaster while leaving the relatively poor to its mercy. Following this, we test our theoretical model by evaluating 269 large earthquakes occurring worldwide, between 1960 and 2002, taking into account other factors that influence a quake's destructiveness such as its magnitude, depth and proximity to population centers. Using a Negative Binomial estimation strategy with both random and fixed estimators, we find strong evidence of the theoretical model's predictions. That is, while earthquakes themselves are natural phenomena beyond the reach of humankind, our collective inaction with respect to items like the creation and enforcement of building codes, failure to retrofit structures and to enact quake-sensitive zoning clearly plays a part in determining the actual toll that a given quake takes. And, it is through these and other examples of collective inaction that limited per capita income and inequality couple together with a given quake's natural destructive power in determining the actual fatalities resulting from a quake.

Guardian: game of editions

In 2013 The Guardian launched its third online iteration as 'Guardian Australia' - complementing "Guardian US' and Guardian UK'. Via these three digital editions the Guardian has expanded its global readership, which is one of its strategies to strengthen its future viability in the digital and mobile news sphere. The Guardian's journalists, while gathering news from around the world, now report in to the different news hubs. In the three main newsrooms, the journalists also create particular stories for their niche audiences in Australia, the USA and the UK. This paper examines the editorial content the Guardian has created on the back of digital disruption. Two months' worth of 'Editor's Picks' from across the three platforms are analysed to reveal how much the Guardian is promoting new, distinctive, locally created content versus how much it draws on material written by journalists from the other editions. This content is compared to data derived from interviewing those in charge of the three editions (Editor in chief Kath Viner, Guardian Australia Editor Emily Wilson and Guardian US Editor Lee Glendinning) plus interviews with other senior managers of the news organisation. In mid-2015 a fourth online edition of the Guardian began rolling out - Guardian International. This edition is not geo-specific and will instead promote and aggregate international news gathered from the other editions on its digital 'front page'. In January 2016 the Guardian announced it planned to cut annual costs by £53.6m due to rising losses: a move that will almost certainly involve staff redundancies. Later in the same month, Guardian Australia's editor, Emily Wilson, said in a public forum that the operations in Sydney and New York would be 'completely insulated' from these cuts. This paper explores the Guardian's global digital strategy during this difficult era for media that straddle the legacy and digital worlds.

Guest editors' introduction : special issue of Journal of Banking and Finance on recent developments in financial econometrics and applications

Introduction to the special supplementary issue of Journal of Banking and Finance on recent developments in financial econometrics and applications.

Securing participation : experiments in a one-day introduction to economics

Classroom experiments and exercises served as a one-day introduction to economics for students who felt insecure about taking first-year business classes. The first experiment addresses demand in isolation, while the second addresses supply. Supply, demand and equilibrium are integrated in a pit market in which all students have equal expected profits. A monopoly pricing exercise addresses market failure. Exercises use many incremental questions to reveal principles of microeconomics. Evaluations show that at the end of the program, students were familiar with economic results and concepts, and were more comfortable with talking economics.

Purchase commitments : Big business bias or solution to the 'neglected diseases' dilemma?

Miniscule research resources are allocated to researching the diseases of developing countries such as malaria, tuberculosis (TB), dengue fever, river blindness, Chagas disease and leishmaniasis, and the strains of HIV prevalent in Africa. Plainly, the patent system and the commercial model of drug research fail to respond to the needs of the poor for the simple reason that the poor exercise little purchasing power. But pressures are mounting on governments and corporations to tackle the ‘neglected diseases’ calamity. An important argument in an intense global debate is that corporations would respond to the needs of developing countries if the diseases of the poor could be made profitable. This is the idea developed by Kremer and Glennerster in a crisply written book, Strong Medicine: Creating Incentives for Pharmaceutical Research on Neglected Diseases.

Social democracy in northern Europe : its relevance for Australia

Social democrats in English-speaking countries have frequently looked to Sweden and its neighbours as offering a policy model that combines economic prosperity with social equality. In recent decades this admiration has dissipated due to a sense that comprehensive welfare provision in the Nordic nations is in retreat and that policy options for small states have been reduced by ‘globalisation’. Yet there remains strong evidence of economic and social achievement in various northern European nations, maintained by policies which continue to be more recognisably social democratic than elsewhere. This article examines Australian policy interest in Scandinavia, especially the 1986 union mission that produced the report, Australia Reconstructed. The article situates that mission in the history of interest in the Swedish model in the wider English-speaking world, with the aim of exploring the extent to which social democracy in the north of Europe remains intact and relevant.