Foreign direct investment and corruption

In the last few decades, the world has witnessed an enormous growth in the volume of foreign direct investment (FDI). The global stock of FDI reached US$ 7.5 trillion in 2003 and accounted for 11% of world Gross Domestic Product, up from 7% in 1990. The sales of multinational enterprises at around US$ 19 trillion were more than double the level of world exports. Substantial FDI inflows went into transition countries. Inflows into one of the region's largest recipient, the Russian Federation, almost doubled, enabling Russia to become one of the five top FDI destinations in 2005-2006. FDI inflows in Russia have increased almost threefold from 13.6% in 2003 to 35% in 2007. In 2003, these flows were twice greater than those into China; whilst in 2007 they were six times larger. Russia's FDI inflows were also about 2.5 times greater than those of Brazil. Efficient government institutions are argued by many economists to foster FDI and growth as a result. However, the magnitude of this effect has yet to be measured. This thesis takes a Political Economy approach to explore, empirically, the potential impact of malfunctioning governmental institutions, proxied by three indices of perceived corruption, on FDI stocks accumulation/distribution within Russia over the period of 2002-2004. Using a regional data-set it concentrates on three areas relating to FDI. Firstly, it considers the significance, the size and the sign of the impact of perceived corruption on accumulation of FDI stocks within Russia. Secondly, it quantifies the impact of perceived corruption on the volume of FDI stocks simultaneously estimating the impact of the investment in public capital such as telecommunications and transportation networks on FDI in the presence of corruption. In particular, it addresses the question whether more corrupt regions in Russia are also those that could have accumulated more of FDI stocks, and investigates whether those 'more corrupt' regions would have had lower level of public capital investment. Finally, it examines whether decentralisation increases or decreases corruption and whether a larger extent of decentralisation has a positive or negative impact on FDI (stocks). The results of three studies are as follows. Firstly, along with market potential, corruption is found to be one of the key factors in explaining FDI distribution within Russia between 2002 and 2004. Secondly, corruption on average is found to be related to FDI positively suggesting that it may act as speed money: to save their time foreign direct investors might be willing to bribe the regional authorities so to move in front of the bureaucratic lines. Thirdly, although when corruption is controlled for, the impact of the latter on unobservable FDI is found to be on average positive, no association between FDI and public investment is observed with the only exception of transportation infrastructure (i.e., railway). The results might suggest therefore that it is possible that not only regions with high levels of perceived corruption attract more FDI but also that expansions in public capital investments are not accompanied by an increase of the volume of FDI (stocks) in regions with high levels of corruption. This casts some doubt on the productivity of the investment in public capital in these regions as it might be that bureaucrats may prefer to use these infrastructural projects for rent extraction. Finally, we find decentralisation to have a significant and positive impact on both FDI stock accumulation and corruption, suggesting that local governments may spend more on public goods to make the area more attractive to foreign investors but at the same time they may be interested into extracting rents from foreign investors. These results support the idea that the regulation of FDI is associated with and facilitated by a larger public sector, which distorts competition and introduces opportunities for rent-seeking by particular economic and political factors.

Community pharmacists' engagement with public health in Great Britain

Objective - The objective of the research was to examine to what extent community pharmacists in Great Britain believed that their job was concerned with local public health issues. Methods - The project (Pharmacy and Public Health)received ethical approval from the Research Ethics Committee of the School of Life and Health Sciences at Aston University. After piloting, in August 2006 a self-completion postal questionnaire was sent to practicing community pharmacists in Great Britain (n=1998), with a follow-up to non-responders 4 weeks later. A final response rate of 51% (n=1023/1998) was achieved. Results - Respondents were asked to indicate their answer to the question “to what extent is your present job concerned with local public health issues?” on a three-point scale – “highly”, “slightly” or “not at all” concerned with public health. They were also asked to indicate whether they were pharmacy owners, employee pharmacists or self-employed locum pharmacists. Less than half (43%,n=384/898) of respondents answering both questions believed that their job was highly concerned with public health. A relationship was observed between employment status and the level to which a respondent believed that their job was concerned with public health (chi-square test with P=0.001). Over half of pharmacy owners (51%, n=68/134) considered that their job was highly concerned with public health compared to44% (n=193/443) of employee pharmacists and38% (n=123/321) of locum pharmacists. Conclusion - This research suggests that community pharmacists in Great Britain are not ‘fully engaged’ with public health. Pharmacy owners may feel more enfranchised in the public health movement than their employees and locums. Indeed, one-in-ten locums reported that their job was not at all concerned with public health which, as locum pharmacists constitute over a third of actively employed community pharmacists, could be limiting factor in any drive to strengthen the public health function of community pharmacists.

Organised for inward investment? Development agencies, local government, and firms in the inward investment process

Inward investment promotion and aftercare remain central aspects of local economic development for English Regional Development Agencies, Scottish and Welsh development bodies, and local authorities in Britain. In many cases, partnership and consultation mechanisms have become integral to attracting inward investment and providing aftercare. Inward investment is thus an important area in which to explore interinstitutional relations between agents operating along diverse spatial boundaries and with different responsibilities. In this paper we analyse the local and regional institutional structures and relations characterising the inward investment process in Britain using new survey data from local authorities, regional bodies, and inward investors. We find that promotional activities have clearly defined structures which are chiefly led by the regional level. Aftercare is characterised by more collaborative arrangements involving both regional bodies and local government. However, many bodies are little used, with competition and tension between partners remaining frequent within English regions, regardless of recent institutional changes designed to reduce such problems. In Scotland and Wales, however, their national institutions are not only widely used, but they create high levels of satisfaction from firms. Hence, England has yet to respond to the effective challenges of Scotland and Wales. The analysis also highlights the limited importance of all national, regional, and local public institutions in attracting inward investors and their subsequent aftercare. The critical inputs to business decisions appear to be driven chiefly by more general supply-side conditions (for example, general skills versus local public packages) and the general attractions of a particular location.

From bilateral to trilateral governance in local government contracting in France

In France, the tradition of contracting out local public services has been predominantly one of partnership and co-operation rather than competition and antagonism. However, in recent years the traditional approach has come under intense criticism, something which has far-reaching implications for public-private governance. Adopting the socio-legal approach to the study of contract governance set out by Peter Vincent-Jones, this paper explores the discrepancy between descriptions of a traditional French approach to local public services governance, in which the bilateral values of trust and co-operation are emphasized, and a new discourse of local public services governance, which argues for detailed contract planning and close contract monitoring. It is argued that this discrepancy reveals the beginning of a shift in the governance of public service exchange relationships from relatively noncontractual and bilateral to relatively contractual and trilateral. The French case highlights the importance of regulatory and accountability frameworks to the manner in which contracting parties perceive exchange governance. © Blackwell Publishing Ltd. 2005.

Local government revenue from oil and gas production

Oil and gas production generates substantial revenue for state and local governments. This report examines revenue from oil and gas production flowing to local governments through four mechanisms: (i) state taxes or fees on oil and gas production; (ii) local property taxes on oil and gas property; (iii) leasing of state-owned land; and (iv) leasing of federally owned land. We examine every major oil- and gas-producing state and find that the share of oil and gas production value allocated to and collected by local governments ranges widely, from 0.5 percent to more than 9 percent due to numerous policy differences among states. School districts and trust funds endowing future school operations tend to see the highest share of revenue, followed by counties. Municipalities and other local governments with more limited geographic boundaries tend to receive smaller shares of oil and gas driven revenue. Some states utilize grant programs to allocate revenue to where impacts from the industry are greatest. Others send most revenue to state operating or trust funds, with little revenue earmarked specifically for local governments.

Local fiscal effects of oil and gas development in eight states

Oil and gas production in the United States has increased dramatically in the past 10 years. This growth has important implications for local governments, which often see new revenues from a variety of sources: property taxes on oil and gas property, sales taxes driven by the oil and gas workforce, allocations of state revenues from severance taxes or state and federal leases, leases on local government land, and contributions from oil and gas companies to support local services. At the same time, local governments tend to experience a range of new costs such as road damage caused by heavy industry truck traffic, increased demand for emergency services and law enforcement, and challenges with workforce retention. This report examines county and municipal fiscal effects in 14 oil- and gas-producing regions of eight states: AK, CA, KS, OH, OK, NM, UT, and WV. We find that for most local governments, oil and gas development—whether new or longstanding—has a positive effect on local public finances. However, effects can vary substantially due to a variety of local factors and policy issues. For some local governments, particularly those in rural regions experiencing large increases in development, revenues have not kept pace with rapidly increased costs and demand for services, particularly on road repair.

Territorial administrative reorganization as a strategy for optimizing the structure of local government

Through the tough economic and social situation and the lack of values that has been experienced in recent years, local governments especially in Greece, Portugal, Italy and Spain have been forced to strongly consider the structure and size of their public sector. Despite some initiative to reduce the number of municipalities and provinces, little substantive progress has been made in improving the management of the local public Administration during this crisis. In this study a territorial administrative reorganization is proposed as a strategy to optimize the structure of local government, analyzing the Spanish situation in general, and an autonomous community in particular.

Administración pública local y construcción de la central hidroeléctrica en la Amazonia

Exponemos los resultados de una observación exploratoria en la que se analizan los impactos funcionales en el sistema administrativo como consecuencia de la construcción de la Central Hidroeléctrica de Belo Monte (CHB) en el municipio de Altamira (Amazonia oriental brasileña). En la perspectiva teórico-conceptual de la teoría de sistemas sociales de Niklas Luhmann, realizamos una observación del sistema administrativo local sobre sus operaciones y funciones, en base a cuatro códigos preestablecidos: toma de decisiones, contingencia, significación simbólica del proyecto y planificación. Las conclusiones permiten entrever en un aplano conceptual la utilidad de los conceptos sistémicos de Luhmann, y en el empírico, una planificación y administración pública municipal reactivas.

From brown envelopes to community benefits: the co-option of planning gain agreements under deepening neoliberalism

The provision of physical and social infrastructure in the form of roads, green spaces and community facilities has traditionally been provided for by the state through the general taxation system. However, as the state has been transformed along more neoliberal lines, the private sector is increasingly relied upon to deliver public goods and services. Planning gain agreements have flourished within this context by offering another vehicle through which local facilities are privately funded. Whilst these agreements reflect the broader dynamics of neoliberalism, they are commonly viewed as a tool which can be employed to challenge these very dynamics by empowering local communities to secure more just planning outcomes. This paper counters such claims. Based on evidence gathered from 80 interviews with planners, councillors, developers and community groups in Ireland, the paper demonstrates how planning gain agreements have been strategically redeployed by the holders of political and economic power to serve their own ends. In seeking to understand why and how this has occurred, specific consideration is given to the changing power dynamics between the state and private capital under neoliberalism. The paper highlights how institutional arrangements have enabled developers to infiltrate the political sphere in more subtle and implicit ways than ever before. We conclude by arguing that planning gain must be understood as a mechanism which has been manipulated in ways which essentially work to preserve and enhance, rather than redress, existing power imbalances in the planning system by facilitating large scale transfers of wealth upwards in society.

Healthy Food, Healthy Iowans, Healthy Communities Public Health Tools to Advance Healthy, Sustainable Food Systems, June 2014

The purposes of the Healthy Food, Healthy Iowans, Healthy communities Series are to demonstrate the interconnectedness of the food system to public health issues (Part 1) and to provide tools to local public health agencies for assessing, planning, implementing and evaluating food system initiatives (Part 2).

The governance of adaptation: choices, reasons, and effects. Introduction to the Special Feature

The governance of climate adaptation involves the collective efforts of multiple societal actors to address problems, or to reap the benefits, associated with impacts of climate change. Governing involves the creation of institutions, rules and organizations, and the selection of normative principles to guide problem solution and institution building. We argue that actors involved in governing climate change adaptation, as climate change governance regimes evolve, inevitably must engage in making choices, for instance on problem definitions, jurisdictional levels, on modes of governance and policy instruments, and on the timing of interventions. Yet little is known about how and why these choices are made in practice, and how such choices affect the outcomes of our efforts to govern adaptation. In this introduction we review the current state of evidence and the specific contribution of the articles published in this Special Feature, which are aimed at bringing greater clarity in these matters, and thereby informing both governance theory and practice. Collectively, the contributing papers suggest that the way issues are defined has important consequences for the support for governance interventions, and their effectiveness. The articles suggest that currently the emphasis in adaptation governance is on the local and regional levels, while underscoring the benefits of interventions and governance at higher jurisdictional levels in terms of visioning and scaling-up effective approaches. The articles suggest that there is a central role of government agencies in leading governance interventions to address spillover effects, to provide public goods, and to promote the long-term perspectives for planning. They highlight the issue of justice in the governance of adaptation showing how governance measures have wide distributional consequences, including the potential to amplify existing inequalities, access to resources, or generating new injustices through distribution of risks. For several of these findings, future research directions are suggested.

Health as a Public Good

The purpose of the article is to present different conceptualizations of health as a public good. Author considers whether analytical tools and conceptual framework developed in the studies on the issue of public goods might be useful in order to analyze health. It was noted that health belongs to the special group of exceptional goods, since it carries the characteristics of both private and public good. It was emphasized that the distribution of public goods is a complex issue that requires an appropriate system of incentives as well as instruments in charge of its proper functioning. In the article it is argued that the widespread social anxiety and growing fear of further integration and globalization to a large extend results from the wrong management and unequal provision of global public goods.

Agroindustria rural, acción colectiva y SIALES: ¿Desarrollo o lucha contra la pobreza?

El desarrollo y reforzamiento de los sistemas agroalimentarios localizados, conjuntos de pequeñas unidades de agroindustria rural, pueden considerarse como un medio importante de reducción de la pobreza en las regiones rurales de América Latina.   Sin embargo, la validez de tal propuesta tiene que ser valorada, teniendo en cuenta los siguientes elementos: La dinámica de los SIALES radica en procesos de activación de recursos específicos, que son productos de la acción colectiva. Forman parte de cadenas con una gobernabilidad caracterizada por el dominio de actores de debajo de la cadena, tal como las grandes distribuidoras. La pobreza no se define únicamente por la falta de recursos monetarios, sino también por la falta de capacidades.   La eficacia de la acción colectiva de activación de los recursos específicos yace en la capacidad de control de estos recursos por parte de los actores involucrados, hasta con el diseño de dispositivos de exclusión acerca de ellos, lo que puede con llevar la marginalización de otros actores. Es una necesidad tanto más apremiante cuanto más ubica el SIAL en un contexto de mercado globalizado. El caso de las señales de calidad basadas en el origen territorial de los productos lo ilustra. Por otra parte, la dinámica de los SIALES puede conllevar a profundizar las capacidades, especialmente a través de procesos de aprendizaje. Las políticas públicas pueden reforzar el proceso, proporcionando bienes públicos y fomentando procesos participativos a nivel local.   Al final el desarrollo de los SIALES no constituye de por sí una garantía de reducción de las desigualdades, pero refuerza las capacidades y además es un tipo de cambio estructural, de los que se suelen asociar con la noción de desarrollo.   ABSTRACT The development of Local agri-food systems (LAS), as clusters of small rural food-processing units, can be seen as a powerful means of poverty alleviation in rural areas of Latin America.   The relevance of such a statement must, nevertheless, be assessed in the light of the following elements: LAS dynamics rest on activation processes of specific resources, as a result of collective action. LAS are part of commodity chains whose governance is characterized by the domination of downstream actors such as large retailers. Poverty does not only refer to the shortage of monetary income, but also to the absence of capacities.   The efficiency of collective action involved in the activation process of specific resources depends on the capacity of relevant actors to control the access. As a result, other actors can be cast aside in the process. It is true that these resources must be valorized in a globalized market. The case of quality signals based on geographical origin can be an example of that. On the other side, LAS dynamics can boost the development of capacities, particularly by promoting learning by doing. Public policies can channel tis process by delivering public goods and promoting participation at a local level.   All in all, the development of LAS is not per se a guarantee against the deepening of inequality. But it is a capacity-building factor and entails structural changes which are yhe essence of development processes.

Bullish creative industries and the bear market

The creative industries idea is better than even its original perpetrators might have imagined, judging from the original mapping documents. By throwing the heavy duty copyright industries into the same basket as public service broadcasting, the arts and a lot of not-for-profit activity (public goods) and commercial but non-copyright-based sectors (architecture, design, increasingly software), it really messed with the minds of economic and cultural traditionalists. And, perhaps unwittingly, it prepared the way for understanding the dynamics of contemporary cultural ‘prosumption’ or ‘playbour’ in an increasingly networked social and economic space.

Postpartum issues for expectant mothers and fathers.

OBJECTIVE: To investigate the postpartum psychosocial and infant care topics that women and men who attend preparation for parenthood classes have been thinking or worrying about during the pregnancy. Furthermore, to compare the rates of endorsement of such issues for women and men so that clinicians can use this information to help plan which topics to include in preparation for parenthood classes. DESIGN: A survey of expectant parents attending preparation for parenthood classes at a local public hospital. Participants completed a 17- to 19-item postpartum issues checklist devised for the study. SETTING: Preparation for parenthood classes conducted in a public hospital in South Western Sydney, Australia. PARTICIPANTS: People attending the session were in their 2nd to 3rd trimester, of low to middle socioeconomic status, and 95% were expecting their first child. Eighty-five percent of women were accompanied by their male partner at the session. Data are reported from 201 women and 182 men. MEASURE: A 17-item issues checklist was devised initially and later expanded to 19 items. The initial checklist covered three psychosocial issues: interpersonal, intrapersonal, and parental competency. The expanded checklist also included items on infant care issues. Participants rated each item as to the extent to which they had been thinking or worrying about it over the past few weeks. RESULTS: More than half of the men and women had been thinking or worrying about their ability to cope as new parents; just less than half of both men and women endorsed the item regarding the effect having a baby would have on their relationship with their partner; approximately 40% of women had thought that they might get bored or lonely when at home with the baby, and an equal rate of men reported that their partner experiencing this sense of boredom-or loneliness was an issue for them. There were few differences between the genders in the rate of endorsement on the issues checklist. CONCLUSION: That many of the issues on the checklist are prevalent in both women and men at this time in the pregnancy would suggest that these are topics that would be pertinent for inclusion at preparation for parenthood classes. Although the checklist is not exhaustive, the data reported give empirical justification for inclusion of these topics in such classes.