Pub Date : 2015-12-30DOI: 10.17979/EJGE.2015.4.2.4312
D. Lempert
The article offers an easy-to-use indicator for scholars and practitioners to measure whether NGOs, international organizations, and government policies and projects meet the criteria for design and implementation of “capacity building” projects that have been established by various international organizations and that are recognized by experts in the field. The indicator can be used directly to address failures that are routinely reported in this key and growing development intervention. Use of this indicator on more than a dozen standard interventions funded today by international development banks, UN organizations, country donors, and non-governmental organizations (NGOs) reveals that while many smaller organizations are working to change institutions and society in ways that effectively build long-term capacity, most of the major actors in the field of development have failed to follow their own guidelines. Many appear to be using “capacity building” as a cover for lobbying foreign governments to promote international agendas (“purchasing foreign officials”) and/or to increase the power of particular officials at the expense of democracy, with the public lacking simple accountability tools. The indicator points to specific areas for holding development actors accountable in order to promote development goals of sustainability and good governance. The breadth of the field of “capacity building” also allows this indicator to be used, with some modifications, for a large variety of development interventions. This article also offers several examples of where current capacity building projects fail, along with a sample test of the indicator using UNCDF as a case study.
{"title":"A quick indicator of effectiveness of “capacity building” initiatives of NGOs and international organizations","authors":"D. Lempert","doi":"10.17979/EJGE.2015.4.2.4312","DOIUrl":"https://doi.org/10.17979/EJGE.2015.4.2.4312","url":null,"abstract":"The article offers an easy-to-use indicator for scholars and practitioners to measure whether NGOs, international organizations, and government policies and projects meet the criteria for design and implementation of “capacity building” projects that have been established by various international organizations and that are recognized by experts in the field. The indicator can be used directly to address failures that are routinely reported in this key and growing development intervention. Use of this indicator on more than a dozen standard interventions funded today by international development banks, UN organizations, country donors, and non-governmental organizations (NGOs) reveals that while many smaller organizations are working to change institutions and society in ways that effectively build long-term capacity, most of the major actors in the field of development have failed to follow their own guidelines. Many appear to be using “capacity building” as a cover for lobbying foreign governments to promote international agendas (“purchasing foreign officials”) and/or to increase the power of particular officials at the expense of democracy, with the public lacking simple accountability tools. The indicator points to specific areas for holding development actors accountable in order to promote development goals of sustainability and good governance. The breadth of the field of “capacity building” also allows this indicator to be used, with some modifications, for a large variety of development interventions. This article also offers several examples of where current capacity building projects fail, along with a sample test of the indicator using UNCDF as a case study.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"4 1","pages":"155-196"},"PeriodicalIF":0.0,"publicationDate":"2015-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524523","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2015-12-30DOI: 10.17979/EJGE.2015.4.2.4311
G. D. Foggia, Ugo Arrigo
It is a well-known fact that reforms necessary to enhance competition and make the economy more attractive play a major role in the Government activity in Europe. Considering the Italian state of affairs, this paper focuses on the inefficiency of public producers in the light of certain market and legal impediments. This paper describes key barriers that undermine the healthy functioning of an important industrial and service sector of the Italian economy: specifically local public transport. This paper also sheds some light on this problem analysing the impact that a controversial regulation framework may have on an industry and suggests that the degree of liberalisation affects the return on investments.
{"title":"The Scope of Public Organisations with Productive Functions: Insights from the Inefficiency of Italian Local Public Transport","authors":"G. D. Foggia, Ugo Arrigo","doi":"10.17979/EJGE.2015.4.2.4311","DOIUrl":"https://doi.org/10.17979/EJGE.2015.4.2.4311","url":null,"abstract":"It is a well-known fact that reforms necessary to enhance competition and make the economy more attractive play a major role in the Government activity in Europe. Considering the Italian state of affairs, this paper focuses on the inefficiency of public producers in the light of certain market and legal impediments. This paper describes key barriers that undermine the healthy functioning of an important industrial and service sector of the Italian economy: specifically local public transport. This paper also sheds some light on this problem analysing the impact that a controversial regulation framework may have on an industry and suggests that the degree of liberalisation affects the return on investments.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"10 3 1","pages":"134-154"},"PeriodicalIF":0.0,"publicationDate":"2015-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524861","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2015-06-29DOI: 10.17979/EJGE.2015.4.1.4307
Javier Prado-Dominguez, Carlos Fernández-Herráiz
The Sharpe Ratio offers an excellent summary of the excess return required per unit of risk invested. This work presents an adaptation of the ex-ante Sharpe Ratio for currencies where we consider a random walk approach for the currency behavior and implied volatility as a proxy for market expectations of future realized volatility. The outcome of the proposed measure seems to gauge some information on the expected required return attached to the “peso problem”.
{"title":"A Sharpe-ratio-based measure for currencies","authors":"Javier Prado-Dominguez, Carlos Fernández-Herráiz","doi":"10.17979/EJGE.2015.4.1.4307","DOIUrl":"https://doi.org/10.17979/EJGE.2015.4.1.4307","url":null,"abstract":"The Sharpe Ratio offers an excellent summary of the excess return required per unit of risk invested. This work presents an adaptation of the ex-ante Sharpe Ratio for currencies where we consider a random walk approach for the currency behavior and implied volatility as a proxy for market expectations of future realized volatility. The outcome of the proposed measure seems to gauge some information on the expected required return attached to the “peso problem”.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"4 1","pages":"67-75"},"PeriodicalIF":0.0,"publicationDate":"2015-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2015-06-29DOI: 10.17979/EJGE.2015.4.1.4304
M. Alfano, A. L. Baraldi
This work provides an extension to an international context of the analysis made by Alfano, Baraldi and Cantabene (2013) on the role of political competition as a channel through which electoral systems affect corruption. Our result conflicts with that found by empirical literature on that topic that makes plurality rules the most virtuous in terms of corruption. Political scientists must be cautious in designing the degree of proportionality of electoral rules without take into account the variation in political competition that follows.
{"title":"The role of political competition in the link between electoral systems and corruption: an extension","authors":"M. Alfano, A. L. Baraldi","doi":"10.17979/EJGE.2015.4.1.4304","DOIUrl":"https://doi.org/10.17979/EJGE.2015.4.1.4304","url":null,"abstract":"This work provides an extension to an international context of the analysis made by Alfano, Baraldi and Cantabene (2013) on the role of political competition as a channel through which electoral systems affect corruption. Our result conflicts with that found by empirical literature on that topic that makes plurality rules the most virtuous in terms of corruption. Political scientists must be cautious in designing the degree of proportionality of electoral rules without take into account the variation in political competition that follows.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"4 1","pages":"5-24"},"PeriodicalIF":0.0,"publicationDate":"2015-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2015-06-29DOI: 10.17979/EJGE.2015.4.1.4305
Engjell Pere
After the socio-economic transformation and the establishment of the free market institutions, the development and improvement of living standards in post transition economies are deemed to depend more and more on the so called secondary “generating” reforms, at the core of which is the good governance. Drawing from this approach, this article seeks to address the role and the effect of the good governance in the economic development of the Western Balkans countries. More specifically, the article investigates the impact of good governance in the rates of economic growth of GDP. The article adopts a quantitative methodology approach, i.e. an econometric model based on the examination of a panel – data of good governance indicators for Western Balkans countries for the period 1996 – 2012. The analysis concentrates on the following Western Balkan Countries: Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia.
{"title":"Impact of good governance in the economic development of Western Balkan countries","authors":"Engjell Pere","doi":"10.17979/EJGE.2015.4.1.4305","DOIUrl":"https://doi.org/10.17979/EJGE.2015.4.1.4305","url":null,"abstract":"After the socio-economic transformation and the establishment of the free market institutions, the development and improvement of living standards in post transition economies are deemed to depend more and more on the so called secondary “generating” reforms, at the core of which is the good governance. Drawing from this approach, this article seeks to address the role and the effect of the good governance in the economic development of the Western Balkans countries. More specifically, the article investigates the impact of good governance in the rates of economic growth of GDP. The article adopts a quantitative methodology approach, i.e. an econometric model based on the examination of a panel – data of good governance indicators for Western Balkans countries for the period 1996 – 2012. The analysis concentrates on the following Western Balkan Countries: Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"1 1","pages":"25-45"},"PeriodicalIF":0.0,"publicationDate":"2015-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524436","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-12-30DOI: 10.17979/EJGE.2014.3.2.4299
Diego Varela, G. Benedetto, J. Sánchez-Santos
In this editorial statement we summarise some of the discussions we have had in the last months regarding the risks associated with the use of indicators for the measurement of research outputs, and how these risks should affect the management of the European Journal of Government and Economics. In particular, we focus on the consequences of the so-called Goodhart’s law, which states that when a measure becomes a target, it ceases to be a good measure. We also explain the latest developments in the journal in the light of our previous editorial statements, and present our strategy for the upcoming years.
{"title":"Editorial statement: Lessons from Goodhart’s law for the management of the journal","authors":"Diego Varela, G. Benedetto, J. Sánchez-Santos","doi":"10.17979/EJGE.2014.3.2.4299","DOIUrl":"https://doi.org/10.17979/EJGE.2014.3.2.4299","url":null,"abstract":"In this editorial statement we summarise some of the discussions we have had in the last months regarding the risks associated with the use of indicators for the measurement of research outputs, and how these risks should affect the management of the European Journal of Government and Economics. In particular, we focus on the consequences of the so-called Goodhart’s law, which states that when a measure becomes a target, it ceases to be a good measure. We also explain the latest developments in the journal in the light of our previous editorial statements, and present our strategy for the upcoming years.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"3 1","pages":"100-103"},"PeriodicalIF":0.0,"publicationDate":"2014-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-12-30DOI: 10.17979/EJGE.2014.3.2.4301
C. Söderberg
What are the sub-national implications, in policy and practice, of environmental policy integration (EPI) in EU and Swedish bioenergy policy? Focusing on the exceptional bioenergy expansion within the Biofuel Region in north Sweden, this paper discusses cross-level implications of supranational and national policy decisions on bioenergy; whether environmental perspectives are observable also in sub-national bioenergy discussions; and explores the drivers of sub-national bioenergy development in a multi-level governance setting. The study finds that higher-level EPI plays an important role for sub-national bioenergy development. The degree of sub-national EPI in bioenergy and the type of renewables invested in is to a large extent set by top-down influence from the EU and national level through agenda setting, policy goals and economic mechanisms. Local policy entrepreneurs play an important role for finding ‘win-win’-solutions that can help initiating local energy projects and ensure sub-national EPI, but environmental-economic – rather than merely economic – motives for getting involved are important to ensure long-term local commitment to renewable energy projects.
{"title":"What drives sub-national bioenergy development? Exploring cross-level implications of environmental policy integration in EU and Swedish bioenergy policy","authors":"C. Söderberg","doi":"10.17979/EJGE.2014.3.2.4301","DOIUrl":"https://doi.org/10.17979/EJGE.2014.3.2.4301","url":null,"abstract":"What are the sub-national implications, in policy and practice, of environmental policy integration (EPI) in EU and Swedish bioenergy policy? Focusing on the exceptional bioenergy expansion within the Biofuel Region in north Sweden, this paper discusses cross-level implications of supranational and national policy decisions on bioenergy; whether environmental perspectives are observable also in sub-national bioenergy discussions; and explores the drivers of sub-national bioenergy development in a multi-level governance setting. The study finds that higher-level EPI plays an important role for sub-national bioenergy development. The degree of sub-national EPI in bioenergy and the type of renewables invested in is to a large extent set by top-down influence from the EU and national level through agenda setting, policy goals and economic mechanisms. Local policy entrepreneurs play an important role for finding ‘win-win’-solutions that can help initiating local energy projects and ensure sub-national EPI, but environmental-economic – rather than merely economic – motives for getting involved are important to ensure long-term local commitment to renewable energy projects.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"3 1","pages":"119-137"},"PeriodicalIF":0.0,"publicationDate":"2014-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-12-30DOI: 10.17979/EJGE.2014.3.2.4303
Pablo Castellanos García, Indalecio Pérez Díaz del Río, J. Sánchez-Santos
The aim of this paper is to verify the existence and to determine the nature of long-term relationships between economic agents’ confidence, measured by the Economic Sentiment Index (ESI), with some of the "fundamentals" of the Spanish economy. In particular, by modeling this type of relations, we try to determine whether confidence is a dependent (explained) or independent (explanatory) variable. Along with confidence, in our model we incorporate variables such as risk premium of sovereign debt, financial market volatility, unemployment, inflation, public and private debt and the net lending/net borrowing of the economy. For the purpose of obtaining some empirical evidence on the exogenous or endogenous character of the above mentioned variables an ARDL (Autoregressive-Distributed Lag) model is formulated. The model is estimated with quarterly data of the Spanish economy for the period 1990-2012. Our findings suggest that: (a) unemployment is the dependent variable, (b) there is an inverse relationship between ESI in Spain and unemployment; and (c) the Granger causality goes from confidence to unemployment.
{"title":"The role of confidence in the evolution of the Spanish economy: empirical evidence from an ARDL model","authors":"Pablo Castellanos García, Indalecio Pérez Díaz del Río, J. Sánchez-Santos","doi":"10.17979/EJGE.2014.3.2.4303","DOIUrl":"https://doi.org/10.17979/EJGE.2014.3.2.4303","url":null,"abstract":"The aim of this paper is to verify the existence and to determine the nature of long-term relationships between economic agents’ confidence, measured by the Economic Sentiment Index (ESI), with some of the \"fundamentals\" of the Spanish economy. In particular, by modeling this type of relations, we try to determine whether confidence is a dependent (explained) or independent (explanatory) variable. Along with confidence, in our model we incorporate variables such as risk premium of sovereign debt, financial market volatility, unemployment, inflation, public and private debt and the net lending/net borrowing of the economy. For the purpose of obtaining some empirical evidence on the exogenous or endogenous character of the above mentioned variables an ARDL (Autoregressive-Distributed Lag) model is formulated. The model is estimated with quarterly data of the Spanish economy for the period 1990-2012. Our findings suggest that: (a) unemployment is the dependent variable, (b) there is an inverse relationship between ESI in Spain and unemployment; and (c) the Granger causality goes from confidence to unemployment.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"3 1","pages":"148-161"},"PeriodicalIF":0.0,"publicationDate":"2014-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-12-30DOI: 10.17979/EJGE.2014.3.2.4302
G. Lagadec
The action of active interest groups (lobbies) has been traditionally considered to be a source of harmful waste for the economy which reduces social well-being. Can this analysis be adapted to the case of large unorganised groups which do not ask for anything directly? Or, on the contrary, does the setting up of policies which improve the situation of these large groups permit an improvement in social welfare? We start from classical (public choice) analyses of lobbying and rent-seeking developed since the 1970s, closely linked with the hypothesis of re-election-seeking politicians, before extending our analysis also to consider non-sector-specific policies and passive interest groups (notably those too large to meet the Olsonian condition of efficient collective action). Then the research question to be answered becomes whether promoting the interest of large groups can deliver social welfare as defined by the incumbent’s social welfare function. We refer to the political cycles’ evidence to consider that no social welfare objective can motivate the favouring of large groups.
{"title":"Are political support-driven policies always bad? The case of large interest groups","authors":"G. Lagadec","doi":"10.17979/EJGE.2014.3.2.4302","DOIUrl":"https://doi.org/10.17979/EJGE.2014.3.2.4302","url":null,"abstract":"The action of active interest groups (lobbies) has been traditionally considered to be a source of harmful waste for the economy which reduces social well-being. Can this analysis be adapted to the case of large unorganised groups which do not ask for anything directly? Or, on the contrary, does the setting up of policies which improve the situation of these large groups permit an improvement in social welfare? We start from classical (public choice) analyses of lobbying and rent-seeking developed since the 1970s, closely linked with the hypothesis of re-election-seeking politicians, before extending our analysis also to consider non-sector-specific policies and passive interest groups (notably those too large to meet the Olsonian condition of efficient collective action). Then the research question to be answered becomes whether promoting the interest of large groups can deliver social welfare as defined by the incumbent’s social welfare function. We refer to the political cycles’ evidence to consider that no social welfare objective can motivate the favouring of large groups.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"3 1","pages":"138-147"},"PeriodicalIF":0.0,"publicationDate":"2014-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2014-12-30DOI: 10.17979/EJGE.2014.3.2.4300
Rahel M. Schomaker
Through several conduits, sound institutional quality is pivotal for economic development, as there is evidence that stable democratic institutions, rule of law and sound governance structures in the administration are highly conducive to promote growth. Therefore, a high institutional quality is not only the end point, but also the starting point of a more sustainable development. In this paper we provide some theoretical considerations as well as empirical evidence, based on several regression analyses, that the quality of institutions in a wider sense, and governance, which includes not only the level of “politics” itself, but also the administrative level, is relevant not only for the macro-level of development (i.e. the increase of the national welfare and foreign investment), but also on a micro-level: A stronger participation of private enterprises in public service provision and the introduction of public-private part¬nerships depends to a high degree on the institutional quality. This is even more relevant as the improvement of public services and of core infrastructures can be seen as crucial multipliers for future growth.
{"title":"Institutional quality and private sector participation: theory and empirical findings","authors":"Rahel M. Schomaker","doi":"10.17979/EJGE.2014.3.2.4300","DOIUrl":"https://doi.org/10.17979/EJGE.2014.3.2.4300","url":null,"abstract":"Through several conduits, sound institutional quality is pivotal for economic development, as there is evidence that stable democratic institutions, rule of law and sound governance structures in the administration are highly conducive to promote growth. Therefore, a high institutional quality is not only the end point, but also the starting point of a more sustainable development. In this paper we provide some theoretical considerations as well as empirical evidence, based on several regression analyses, that the quality of institutions in a wider sense, and governance, which includes not only the level of “politics” itself, but also the administrative level, is relevant not only for the macro-level of development (i.e. the increase of the national welfare and foreign investment), but also on a micro-level: A stronger participation of private enterprises in public service provision and the introduction of public-private part¬nerships depends to a high degree on the institutional quality. This is even more relevant as the improvement of public services and of core infrastructures can be seen as crucial multipliers for future growth.","PeriodicalId":37945,"journal":{"name":"European Journal of Government and Economics","volume":"3 1","pages":"104-118"},"PeriodicalIF":0.0,"publicationDate":"2014-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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