Public Administration: Perspectives, Management and Challenges 1536176346, 9781536176346

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POLITICAL SCIENCE AND HISTORY

PUBLIC ADMINISTRATION PERSPECTIVES, MANAGEMENT AND CHALLENGES

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POLITICAL SCIENCE AND HISTORY

PUBLIC ADMINISTRATION PERSPECTIVES, MANAGEMENT AND CHALLENGES

FREDERIK S. MØLLER EDITOR

Copyright © 2020 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. We have partnered with Copyright Clearance Center to make it easy for you to obtain permissions to reuse content from this publication. Simply navigate to this publication’s page on Nova’s website and locate the “Get Permission” button below the title description. This button is linked directly to the title’s permission page on copyright.com. Alternatively, you can visit copyright.com and search by title, ISBN, or ISSN. For further questions about using the service on copyright.com, please contact: Copyright Clearance Center Phone: +1-(978) 750-8400 Fax: +1-(978) 750-4470 E-mail: [email protected].

NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works. Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the Publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. Additional color graphics may be available in the e-book version of this book.

Library of Congress Cataloging-in-Publication Data ISBN:  Library of Congress Control Number: 2020933205

Published by Nova Science Publishers, Inc. † New York

CONTENTS Preface Chapter 1

Chapter 2

Chapter 3

Chapter 4

Index

vii Transparency of Public Policy in Russia: From Imitation to Innovation G. A. Menshikova, N. A. Pruel, M. V. Rubtcova and J. V.Varlamova Innovation in Norwegian Local Governments: Three Historical Roles Tor Helge Pedersen What Is the Social Impact of Results-Based Management? Limits of the Models Implemented in the Brazilian Subnational Units Lorena Madruga Monteiro The Flood Risk Information Used in Spatial Policy-Based Design for Socio-Economic Integration of the Most Vulnerable Persons from Rural Agglomerations. Study Case Romania Cristina Ghe. Lincaru, Speranța T. Pîrciog, Adriana St. Grigorescu and Cristina St. Stroe

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PREFACE The opening chapter of Public Administration: Perspectives, Management and Challenges is devoted addressing new challenges in public administration in Russia, including law requirements regarding the transparency of public policy and the difficulties surrounding their implementation. Following this, the authors assess historical and contemporary examples of innovation in Norwegian municipalities. The criticisms and limits of the results management model implemented in the Brazilian subnational units are analyzed based on specialized literature and three case studies. In closing, in the context of spatial integrated complex solutions regarding the poverty alleviation and social cohesion needs increasing in rural areas in Romania, the authors suggest a conceptual and analytical framework based on risk identification. Chapter 1 - This paper is devoted to new challenges in public administration in Russia which includes law requirements of transparency of public policy and difficulties of their implementation. The theoretical framework is based on both Good Governance theory and Democratic theory. Data comes from the case study based on real practices of Russian public administration. These cases can demonstrate possibilities and limitations of the current administrative reform. The results can help to

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create a “road map” of government bodies including the pioneers of transparent policy and the actors who try to reduce a transparent activity. Chapter 2 - Public sector innovation is increasingly on the policy agenda in Norway as well as in many other countries. This paper focuses on innovation at the local government level in Norway. With innovation defined as adopting something new to Norwegian municipalities, this paper surveys historical and contemporary examples of innovation in Norwegian municipalities. In this exercise, three municipal roles are identified in relation to innovation: The first role is that of the local government as an adopter, a role that covers such activities as adopting new political and administrative structures, services, and technologies, as well as implementing state programs or policies. The second role is the local government as a collaborator and cocreator, which involves collaborative entrepreneurial activities. The third role is the local government as a welfare pioneer that advocates for developing new services that can later spread to the state and other municipalities. From this role comes the term welfare municipality. Chapter 3 - This article analyzes the criticisms and limits of the results management model implemented in the Brazilian subnational units, based on the specialized literature and three case studies (Alagoas, Pernambuco and Sergipe). It should be noted that the limits of this management model, such as its normative design, the centralization of decision makers and the difficult measurement of results, means that each case has diverse results and experiences. Chapter 4 - In the context of looking for spatial integrated complex solutions (OECD 2006) regarding the poverty alleviation and social cohesion needs increasing in rural areas, the authors suggest a conceptual and analytical framework based on risk identification. The risk identification is in line with Domokos et al., (2015), concerning the research question: “Which are the factors that need to be present and appropriately applied for the process to be adequately managed?” The Sendai Framework for Disaster Risk Reduction (SFDRR) 2015-2030, was adopted by the Member States of the United Nations in 2015. Safaie et al., (2017) in support to SFDRR, states that using risk information in policy design is still a challenge. SFDRR put

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disaster risk on the priority for action: “understanding disaster risk in all its dimensions of vulnerability, capacity, exposure of persons and assets, hazard characteristics and the environment.” Bhatta (2008) describes the demanded “holistic framework for risk management in public policy” as a composite between empirical /factual and public context requirements. In our case study, the floods are the measurable parameters of the problem, and the public context is the focus toward large scale activation of the most vulnerable persons. The authors apply Spatial Analysis in Arc Gis Pro 2.3 to map the historic flood risk assessment and the rural agglomerations of the vulnerable persons. Floods are one of the highly relevant hazards for Romania. The authors use the historic flood risk assessment illustrated in the flood hazard map for Europe, 500-year return period, based on European Commission, Joint Research Centre (JRC), but not an official one. In Romania, some of the most vulnerable persons are minimum income beneficiaries from rural areas. The result of Exploratory Spatial Data Analysis (Anselin, 2005) is the map of the minimum income benefit beneficiaries at the locality level (LAU former NUTS 5). Agglomerations correspond to the clusters locations with High – High (HH) income beneficiaries densities applying Local Indicators of Spatial Association (LISA). The discussion concerns the rural areas social protection policies an additional dimension given by the Environment Security needs with “Adaptive Social Protection” (ASP) accordingly solutions (Devereux, 2016). Floods are next to climate change phenomenons and hazard disaster (Earthquakes, WildFire, Tsunami, Coastal Erosion, Landslide, Sea Level Rise, Natech, Biologica – according to Safaie et al., 2017), as a source of cumulative undesirable effects. The conclusions point to the new role of the Public Administration: Perspectives, Management and Challenges for new spatial policy-based designs.

In: Public Administration Editor: Frederik S. Møller

ISBN: 978-1-53617-634-6 © 2020 Nova Science Publishers, Inc.

Chapter 1

TRANSPARENCY OF PUBLIC POLICY IN RUSSIA: FROM IMITATION TO INNOVATION G. A. Menshikova1, N. A. Pruel1, M. V. Rubtcova1,* and J. V.Varlamova2 1

Department of Social Management and Planning, Faculty of Sociology, Saint Petersburg State University, Russian Federation 2 Department of Foreign Languages, National Research University Higher School of Economics, Russian Federation

ABSTRACT This paper is devoted to new challenges in public administration in Russia which includes law requirements of transparency of public policy and difficulties of their implementation. The theoretical framework is based on both Good Governance theory and Democratic theory. Data comes from the case study based on real practices of Russian public administration. These cases can demonstrate possibilities and limitations of the current administrative reform. The results can help to create a “road

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Corresponding Author’s E-mail: [email protected].

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al. map” of government bodies including the pioneers of transparent policy and the actors who try to reduce a transparent activity.

Keywords: transparency, public policy, public administration, Good Governance, Democratic theory, Russia

1. INTRODUCTION The significance of the principle of openness known as informational transparency of an administrative rule of modern society is obvious. Referring to the documents of international organizations (UN and OECD), this concept is considered, among the other eight concepts, to create the foundation of Good Governance (OECD, 2004). At the beginning of the 21st century the term “Transparency” was included into the list and became one in ten most used in the media. Webster’s new world college Dictionary, in its turn, called “Transparency” the word of 2003. The term was mentioned at least in 27,000 academic articles during the period from 2000 to 2009 (Bernstein, 2017). In this context, at least in Russia, the controversy that appeared as an attempt to comprehend and interpret the content of “Transparency” has been hardly revealed. Russian science as well as scientific practice is often detached from the information transparency issue. To be exact, it is standing on the sidelines apart from the discussion process that has been lasting for at least three decades between those who appeal for information transparency and those who advocate privacy, the right to national state and institutional secrecy. The participation of the internationally known scientists like A. Etzioni, J. Stiglits, R. Ackerman can undoubtedly confirm the relevance and applicability of the emerged discussion (Stiglits, 2002). It is worth adding that the heated argument has involved the representatives from the various research areas, as follows: Negotiation theory (Stasavage, 2004), International Security (Florini, 2008), Regime effectiveness (Mitchell, 1998), etc. What is more, the argument about the meaning of the definition,

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the main research trends, the constituents and the modern requirements to the level of transparency is far from completion.

2. THEORETICAL FRAMEWORK An analysis of the research papers distinguishes three periods in the scientific studies devoted to the transparency phenomenon. The first period is focused on the institutional practices of information transparency. The research is reinforced through the core philosophical investigations that explain the role of institutional practices as manifestations of the development of democracy in a society. The second period supposes the knowledge accumulation about public administration theory; the development of skills required for collecting social information, which makes it possible to consider transparency as the theoretical model that, for its part, ensures the formation of the public administration system (Good Governance). The third period supposes to shift the focus from the social roles promotion to the practical mechanism for their implementation. The present paper makes an attempt to consider in detail each of the mentioned periods. It should be either claimed that there is not a more precise borderline between the mentioned periods. The absence of distinct boundaries is evident since in different countries the process of ensuring access to information as well as scientific understanding are conducted in more than one way. Researchers (Hood and Heald, 2006; Meijer, 2013; Meijer, 2015; Piotrovsky, 2007) have identified three flows of the process: openness of meetings, management of the decision-making process and information transparency. For example, Albert Mayer has shown that for a long time the development of information openness practices has been studied in sociological context but not as the subject matter of any special analysis. Hall and Tailor (1996) have highlighted the institutional nature of the process of accessing information. The scientists attributed this to the adoption of the relevant laws that could reinforce the obligation to provide relevant information to the population. Adopted laws were either aimed at

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protecting the rights of every citizen to participate in meetings, as a form of information exchange, and in governance. Nevertheless, the majority of the researchers have noted the complexity of the legitimization process, whenever steps towards the law adoption were accompanied by their abolition. It is known that the first law that could guarantee the people’s right to receive information (Swedish Freedom of Press Act) was adopted in Sweden in 1766. It took the governments of other states more than two centuries to implement the legislative measures in their own countries. For example, the Freedom of Information Acts in the USA dates back to 1966. The Table 1 presents some of the main laws which characterize the process of transparency. Table 1. Acts that guarantee the right of access to information Year, name of the act 1766 Freedom of Press act (Sweden) 1789 - Declaration of personal freedoms and civil rights (France)

Main content of the act The act has entrenched the right of the media to publish materials that dealt with the Government activities and services. Declaration provides the detailed description of the rights granted in Art. 14 of the Constitution. The rights of access to information on public administration, with special focus on the collection and distribution of taxes is presented. 1946 - UN General Resolution states that freedom of access to information is the Assembly Resolution fundamental right of the individual which is protected by the UN. It “Freedom of information” implies “the right to collect, transmit and publish any news anywhere and at any time.” 1966, Freedom of It states the right of access to information about the activities of the Information Acts (USA) US Government and its agencies provided to the residents of the country. 1978, France “On improving relations between the society and administration” 1978, Netherlands “The Act on Government Administration Transparency “ 1981, Council of Europe The responsibilities of CE member states to provide information on Recommendation the work of their bodies and organizations 2009 RF, “On providing access to information on the activities of state bodies and local authorities” (Federal Law No. 8) Source: Access Info Europe (2019) The official website. URL: https://www.access-info.org/ uncategorized/10819 (data 15.12.2019).

The popularity of openness implements an important norm of representative democracy. It means both access to information and participation in governance, as described by J. Schumpeter (1942). From a

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scientific perspective, the openness of information as a social norm was actively advocated by the classic renaissance philosophers, above all by J.J. Russo (1762), D. Locke (1690) and J. Bentan (1989). J.-J. Rousseau elaborated the outstanding theory of “Public contract” (Contract Social, 1762). Unlike his predecessors, such as Hobbes, who also justified the contractual arrangements between the people and the government, J.-J. Rousseau was the first who validated the initial authority as government of the people. As the result, the scientist qualitatively changed the role of a human being as a participant in the social management process. The founder of the civil society theory of - D. Locke (1690) developed the principles of the constitutional state, which included the accountability demand of the king or the head of ministers to the law. The third prominent educator Jeremiah Bentan is known as a founder of the early forms of “legal positivism”. Jeremiah Bentan claimed the need for law transparency; encouraged openness in the procedures for law development and approval. He introduced the term “publicity” as an instrument of public administration, comparing it with secrecy (1989). He wrote: “Without publicity no good is permanent, under the auspices of publicity no evil can continue”. The philosopher is famed for the deliberate development of the conduct and function procedure of the legislative authorities. One more example of innovation proposed in 1787 is the idea of a transparent prison Panopticon, where one guard is able to observe all the subordinates. Later, M. Foucault assimilated the idea in order to describe the model of the government. In Russia, the human rights problem was actualized only at the beginning of the 20th century. At that time, in 1905, the Emperor published the Manifesto “On the improvement of public order” (1905), which declared the basic human rights. Later in 1906 the Decree “On the Establishment of a State Duma” (1906) and the Code of Basic State Laws of the Russian Empire (1906), known as archetype of the first Constitution of the country, were issued. This experience can be regarded as the formation of a constitutional monarchy in the country. The Code was the primary document that claimed the freedom of assembly (Article 36), the right to free speech and liberty of the press (Article 36). “Everyone has right, within the limits

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established by law, express their thoughts verbally and in writing, as well as propagate them through the press or by other means”, unions, associations, (v. 38), and faith (v. 39). With regard to the USSR, the scientists have distinguished five main stages of human rights development: the first is dismantlement of the prerevolutionary legal system in 1917-1920s; the second is deformation of the protecting human rights system in the period of Stalinism, in 20-50s; the third is known as Khrushchev’s Thaw in mid-50s - 60s;the fourth stage is famous for the formal law adoption for human rights protection, however mechanisms that could support law extension were ignored; the last is connected with liberalization of the economy which lasted from the late 80s to the 90s. For example, under the reign of I. Stalin, an active anti-religious propaganda or violation of religious freedom was carried on; censorship was introduced which meant violation of the right concerning freedom of the media; protests and meetings that were not conducted under the slogans of the CPSU were prohibited. The recognition of the workers ‘and peasants’ militia as an organ of the dictatorship of the proletariat in 1931 strengthened the prohibition not only the exercise of political freedoms, but also the exercise of personal rights, for example, property. Moreover, the adoption of the country Constitution in 1936 only formally reflected the presence of the rights. Thus, Art.125 guaranteed the rights of liberty of speech, press, meetings and rallies, street processions and demonstrations. It stated that “the rights of citizens are ensured by providing workers and their organizations with printing offices, stocks of paper, public buildings, communications and other financial means required for their implementation.” The fact of the matter is that, an exception was made which eliminated to a greater extent the above named guarantees. The new approach appeared only at the end of the 80s alongside with the ratification of the International Covenant on Economic, Social and Political Human Rights by the Presidium of the Supreme Council of the USSR in 1973. The approach was complaint with the international humanitarian rules. In 1977 the new Constitution of “developed socialism” was adopted. It is assigned, in Article 48, the right to participate in the

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management of the state and public affairs. In addition, Article 56 secured the right to privacy of correspondence along with the social and economic rights. The Constitution guaranteed “freedom of scientific, technical and artistic creativity, which was ensured by the widespread conducted scientific research, inventive and rationalization activities, the development of literature and art (Article 47). In Article 50 freedom of speech, press, meetings and rallies, street processions and demonstrations were provided. The restriction existed in the Constitution dated 1936 on their relevance to the workers’ needs had been removed. Moreover, Article 52 dealt with freedom of conscience. As the evidence of personal rights development, Article 56 consolidated the right to privacy of correspondence, personal telephone conversations and telegraphic messages. It is of importance that those rights were not only proclaimed, but the mechanism for their functioning was thoroughly elaborated. The implemented reforms were influenced by the emerging human rights movement in the country. The first suchlike organization called “Action Group for Human Rights Protection in the USSR” was created in 1969. Communist Party met the challenge, accepted the need for reformation, and acknowledged that “the proclamation of democratic principles orally but authoritarian in deeds, tribune democracy assurance but voluntarism and subjectivity as a matter of actual practice, talks about democratic institutions along with the real violation of the socialist lifestyle norms, the lack of criticism and publicity were widespread and firmly established in a society.” In 1991, the Declaration of Human Rights and Freedoms was adopted at Congress of National Deputies of the USSR. It was in that document that reconstructed the principal in the Russian Federation that claimed the right to information. Thus, Article 6, documented the “right to freedom of speech, to liberal self-expression, to interchange views and commitments in oral and written form. It guaranteed freedoms to the media, proscription of censorship. Ideological, religious, cultural freedom is guaranteed. No one can be prosecuted for their beliefs.” Article 7 guaranteed freedom of speech and religion, Article 8 guaranteed possibilities of meetings. It is said: “Citizens have the right to assemble peacefully without weapons, to carry

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out their public activity in the form of rallies, meetings, street processions and demonstrations in accordance with the legislation of the USSR and sovereign states”. Article 9 claimed the possibility of associations “to join political parties, trade unions and other public organizations, to participate in mass movements”. Article 11 highlighted the participation in governance “Every citizen has the right to elect freely and be elected to the bodies of authorities on the ground of universal, equal election law by secret ballot, directly participate in the regulation of state affairs, including a referendum”. Particularly in the view of the present research topic, Article 12 is highly significant: “Everyone has the right to receive complete and reliable information about the state affairs including the areas: public, economic, social and international spheres, as well as information about issues of rights, legitimate interests and obligations. Table 2. Constitution of the Russian Federation on Citizens’ Rights of Access to Information (1993) Articles of the Constitution of the Russian Federation Part 1. Art. 24

Content of Articles

A ban on the dissemination of information about a person’s private life without his/her consent. Part 1. Art. 44 On the freedom of creativity, including the creation of information. Part 2. Art. 29 On the prohibition of information inciting ethnic, racial and social hatred. Part 3. Art. 15 The obligation to publish information regarding the rights, freedoms and duties of the citizens. Part 3. Art. 55 Restrictions on the dissemination of information caused by the necessity to protect the Constitutional system of the Russian Federation, morality, health, rights and protection of the private interests of citizens. Part 4, Art. 29 The enshrined right “to have freedom to seek, receive, transmit, produce and disseminate information by any legal means” The ban on the dissemination of information containing national security information. Part 4. Art. 42 The right to receive environmental information. Part 5. Art. 29 Media Freedom Guarantees. Source: Russian legislation (2019) The official website. URL: http://pravo.gov.ru/ (data 15.12.2019).

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Table 3. The system of legislative acts of the Russian Federation which is directly or indirectly related to the dissemination of information Name of the Act On the media On State Secrets On the archive collection and archives in the Russian Federation On copyright and related rights (Valid until 2008, replaced by part 4. Civil Code of the Russian Federation) On additional guarantees of citizens’ rights to information On state support for the mass media and book publishing in the Russian Federation On economic support of district (city) newspapers On the arrangements for state mass media coverage of the activities of public authorities On the list of information that cannot be classified as a trade secret On participation in international information exchange On approval of the list of confidential information On ensuring public access to information on the activities of the Government of the Russian Federation and federal executive bodies On gatherings, rallies, marches and pickets On advertising

Number and date Federal Law of the Russian Federation No. 2124-I dated 12/27/1991. Federal Law of the Russian Federation No. 5485-I dated 07/21/1993. Federal Law of the Russian Federation No. 5341-I dated 07/07/1993. Federal Law of the Russian Federation No. 5351-1 dated 07/09/1993. Presidential Decree -2334 dated 12/31/1993 Federal Law of the Russian Federation No. 191 dated 12/01/1995. Federal Law of the Russian Federation No. 177 dated 12/01/1995. Federal Law of the Russian Federation No. 7 dated January 13, 1995. A Government Degree of the Russian Federation No. 35 dated 12/05/1995. Federal Law of the Russian Federation No. 85 dated 04/04/1996. Presidential Decree of the Russian Federation № 188 dated 03/06/1997. Government Decree No. 98 of 2003– canceled since 2009 (No. 953).

Federal Law-51 from 06/19/ 2004. Federal Law of the Russian Federation No. 38 dated 03/13/2006. On personal data Federal Law of the Russian Federation No. 152 dated 07/27/ 2006. On information, information technology and information Federal Law of the Russian Federation protection No. 149 dated 07/27/ 2006. On the compulsory copies of documents Federal Law of the Russian Federation No. 28 dated 03/26/2008. On providing access to information on the activities of Federal Law of the Russian Federation state bodies and local authorities No. 8 dated 02/09/2009. On a unified system of help desk support for citizens Government decree No. 478 dated and assistance on the issues of interaction with executive 06/15/2009. authorities and local authorities through the usage of the telecommunication network “Internet”

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Name of the Act On protecting children from information On electronic signature On the Office of the President of the Russian Federation in applying the information technologies and developing electronic democracy On the procedure of information disclosing by the federal executive authorities about the drafts of regulatory legal acts preparation and the results of their public discussion On the types of information about the activities of state bodies, local authorities posted on the Internet in the form of open data On the consideration of public initiatives directed by the citizens of the Russian Federation using the Russian Internet resource “Russian Legal Initiative” On official secrets

Number and date Federal Law of the Russian Federation No. 436 dated December 29. 2010. Federal Law of the Russian Federation No. 63 dated 04/06/ 2011. Presidential Decree, dated 06/30/2012.

Government Decree dated 08/25/2012, No. 851, see Compendium of legislation of the Russian Federation, Corpus of legislative acts of the Russian Federation, 2012, No. 36, art. 4902 The order of the Government of the Russian Federation 10.07.2013№ 1187-p Government decree, 2013 March 4, No. 183. see Corpus of legislative acts of the Russian Federation, No. 10, Art. 1019 Draft Federal Law of the Russian Federation No. 124871-4 dated 12/24/2004. Government decree No. 204 dated 05/07/2018.

On the national goals and strategic development objectives of the Russian Federation for the period until 2024 Modernization of civil legislation: state and Council of Federation No. 43 27/02/2019. development prospects Amendments to the Civil Code of the Russian Civil Code of the Russian Federation Federation that introduce the concept of “Digital Law”, 01/10/2019. “Law on Digital Rights” Source: Russian legislation (2019) The official website. URL: http://pravo.gov.ru/ (data 15.12.2019).

Publication of laws and other government regulations is a binding condition for their application.” Further development of natural rights, including the right to information occurred in the Constitution dated 1993. Table 2 presents the articles that describe the development of rights and information freedoms. Table 3 lists basic laws that further enshrine and develop the corresponding rights. Comparing the contents of the Constitutions validated in 1906, 1936, 1977, 1993, it becomes evident that there is an increase in the number of

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articles that describe natural rights (1906 - 10 Articles, 1936 – 12 Articles, 1977 – 21 Articles, 1993 – 47 Articles), as well as Articles elaborating the right to information. Table 3 provides the acts’ titles that are directly or indirectly related to dissemination of information. Table 4. The list of the government programs to monitor information transparency development in the Russian Federation Name of the government program Electronic Russia: 2002-2010 Information Society Development Strategy Strategy of the Information Society Development in the Russian Federation for the period 2017-2030 On the state program of the Russian Federation “Informational society: 2011-2020” On the main directions of improving the public administration The concept of openness of federal executive bodies On the main directions of the state civil service development for the period 2016-2018 Digital Economy of the Russian Federation

Document Source Identification Government Decree№65, 01/28/2002 Government Decree, 02/07/2008 No. 212. Government decree from 12/01/2016, No. 203

Government decree No. 601, 05/07/2012 №-93 dated 01/30/2014. Government decree No. 403 dated 08/ 11/2016. Order of the Government of the Russian Federation -1632 dated 07/ 28/2017. Government decree-208 dated 15/13/2017.

Economic Security Strategy of the Russian Federation for the period until 2030 On the approval of the concept of e-democracy mechanisms development until 2020 in the Russian Federation On the approval of the Development Concept of mechanisms Corpus of legislative acts of the for the provision of state and municipal services in electronic Russian Federation dated 01/ form in the Russian Federation 13/2014 No. 2, part 2, p. 155. Information and communication technologies and electronic production: action plan 2011-2015. Source: Russian legislation (2019) The official website. URL: http://pravo.gov.ru/ (data 15.12.2019).

The comparison of the laws guaranteed the right on the openness of The Russian Federation has developed a system of sanctions for violation the law of citizens’ rights of access to information. They are enshrined in details in the Code of Administrative Offenses, the Criminal and Civil Codes (Russian legislation, 2019). The first stage supposes the formation of the scientific category of transparency. The stage is known as gaining practical experience

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in understanding the role of openness of meetings and decision-making procedures as a part of political human rights. The period created the ethical foundations of the approach to informational openness as the most important manifestation of citizen freedom information, allows to establish three groups: those that actually protect information, for example, the US Freedom of Information Acts; those that protect the individual’s right to privacy; those that reinforce the obligation of governments and officials to provide information, they see it as Good Governance practice. In diverse countries, the first stage occurred at different time periods: earlier like in Sweden and France or later like in Russia. Accordingly, in Russia, along with other countries, there used to be fluctuations in the level of human rights to information presented at different time periods. Those fluctuations reflected political identity and social conditions in the country’s system of government. There were time intervals when rights were completely missing in the country. They are periods of serfdom and Stalinism. Currently, the country is approaching the world level, which does not mean their full and mandatory compliance in practice. The development of the practices in regulating the citizens’ right of access to information, including the possibility of participation in the governance, trigged the formation of a special scientific discourse, including both theoretical aspects and the initiation of openness practices or institutions. In the literature, there are several scientific areas that can be considered as pre-requisites for creating the theory of informational openness (transparency): 





cameralism (Austrian-German theory of the 17-18th century, which described the activities of certain areas of government and government departments in general: the police, the municipal bureaucracy, the financial system, etc.) activities of public observation as a monitoring method of social processes, including managerial, publicly documenting the problems and possibilities for their resolution; practice and theory of accountability (accounting), that implemented the possibility of obtaining information, usually

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economic, about the management results in the framework of agent relations. The present work considers each of the mentioned areas, taking into account the situation that only their active development could contribute to the accumulation of knowledge and skills required to information gathering and public presentation of management information. Cameralism is as a mass scientific field which came into existence in Austria and Germany in the XVII century, where universities began to teach a course of “desk” studies. Kameralien in German means “the science of public administration”, and the word itself is originated from the Latin “camera”, which designated the board or advisory body that limited the supreme (Chancellor) government. This paper has mentioned only a few authors and their investigations, in order to illustrate the scientific interests of that time: “A treatise on the police” (in 4 volumes) by Nicholas de la Mare, royal commissioner in the Chatelet (1639-1723); Jean Henri Dieudonne von Justi, who published a series of papers on public finance (1700-1771); Lorenz von Stein (18151890) “Die Verwaltungslohre” (Theory of Public Administration in 8 volumes), Jacques Pesche “On the Police and Municipalities” (1789); Charles-Jean Bonnen (The Principles of Public Administration “(1812); Gilbert Imbert “Administrative customs” (1825) (see Drago, 1982). It is easy to agree with the point, that the comprehensiveness and volume of data works showed the researchers rate of the time. Provided that the authors were university professors, it became clear that the attractiveness of the description and investigation of individual areas and the public administration system as a whole was laid and identified by them. The second area, which can be considered as a prerequisite of the openness theories, is known as the theory of Observing. The theory justified the need for the collection and comparison, among countries in the face of dynamic development, of quantitative and qualitative data on management practices: institutions and methods inherent in systems at different levels; and proposed a method of implementation (Bernstein, 2017).

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Relating to enterprises, Observing was embodied in the creation of a classical school of management, where both the workplace and the enterprise became its subjects. A common area in the study was social psychology, which analyzed and explained the behavior of the employee. Observing as a theoretical background and method of analysis was mentioned in the works of such authors as Allen & Cohen, 1969, Altman, 1975, Boje. A., Dalton M., 1959. Their works differently analyzed the mechanism of managing enterprises by the employees, however with application of Observing method. In the case of the State, as a complex system, both national systems of government and technology had become the subjects of the analysis, and even later, factors that ensure the success/failure of administrative reforms were included into analysis. One of the first researchers-practitioners in 1964 was M. Crozier, although works describing the activities of individual institutions of the public administration, as already mentioned, took place in the works of representatives of the Cameralist direction. The role of observation as the basis for the interaction between population and authorities was described by M. Foucault in 1977 in the work “Eye of Power”. The ideal organization of social reality, including society, and the institutions of power (government), in his opinion, should be transparent, and the government itself should be invisible. Under this system, the activities of institutions: hospitals, prisons, educational institutions can be controlled. Management of the company, as he stated, contributed to the establishment of mandatory prohibitions and control over their implementation. Since the mid-1920s, according to Bernstein E.S, there was an era of observations when, the visual control, being popular in the 1950s, on specific product samples and employee behavior turned into mass managerial technology. A number of digital cameras were installed to observe citizens in the streets and at work, to monitor faces matching procedures during credit cards application, etc. Big-data is the next evolutionary stage when information flows become the object of observation and analysis.

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In the managing process, the phenomenon of transparency is embodied in the following attitudes (Bernstein, 2017):    

as monitoring since any unhierarchized observations aimed at collecting information about a given subject or form of activity; as visibility process that provides visual information focused on concrete activity; as surveillance - close, constant and comprehensive supervision by managers; as disclosure - the act making new or previously secret information open. Bernstein E.S. provides the names and works of the researchers who described the functions.

This list allows us to confirm observation as the most important element of social action that provides a comprehensive understanding of the issues in general and during the process of the interaction between the subject and the object/subject of observation, in particular. Transparency of information, in turn, is considered as a condition that assists interaction. Observation as a popular type of social action has affirmed the need to implement the principle of transparency. However, the development of accounting methods has demonstrated the possibility of practical implementation of transparency. It is to be recalled that accounting and reporting have existed for centuries, embodying the rules for reporting a user’s property to his owner or reflecting the requirement of taxation (agent theory). Serious approach to accounting practices has contributed to creating a special historical discourse called “History of accounting”, which can identify two stages (approaches): the old and the new. The first focuses on tax (financial) reporting, the second suggests a broader understanding of the tax system and extends its effect to the social sphere. One of the founders of the second approach is Michel Foucault, who recommended to evaluate not only economic data, but also discourses (Foucault, 1977). The boundary between the stages is drawn in the 80s.

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al.

Theory and practice of social and environmental accounting (social reporting) have provided data platform and an information basis for the implementation of the mandatory reporting requirements. In North America, 17 specialized journals were created, including The Accounting review, Journal of Accountancy, in its turn the first of them was Accounting, Organization and Society. The bibliographic review appeared, applied research were carried out to meet specialized international conferences (Kaya U., Yayla, 2007). At the same time, scientists note that the institution of social responsibility (referring to enterprises) was already manifested in ancient Greece. If the basis of the previous Accounting theory is called agent theory, then the basis of the new scientific direction is known as communicative. Its supporters initially indicated the difficulties the society would encounter in implementing the transparency principle, see (Shannon and Weaver 1949). They identified two challenges: lexical, or semantic, which deals with the problem how to convey information in adequate terms, and behavioral. This classic approach set up in the mid 20th century was based on the recognition of media freedom as objective, but most importantly neutral, information evaluators (1), on the belief that the future will belong to democratic states but not autocratic regimes (2). These external conditions were not translated into practice, what is more, modern researchers have revealed ever new complexities in the practical implementation of the principle. A variety, or so called further development, of Accounting can be considered statistics - a branch of knowledge or science that deals with the data collection, measurement, monitoring and analysis of mass statistical (quantitative or qualitative) data. It is known that the first attempts to register the population of Ancient China and Egypt dated back to the 20th century B.C. On the other hand, its formation as a scientific discipline dated to the second half of the XVII century. The British scientists U. Petty and J. Graunt, called it “political arithmetic”, they tried to digitally represent the country’s national income, the level of well-being of the population, and other facts and processes. All in all, the phenomenon of social transparency would not appear on unprepared basis. It meant the demand of knowledge about the public

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administration system, the information gathering skills, and the habit of recognizing the report necessities (on the regular basis and in accordance with the given format). These skills and needs were laid down at the development of the second stage.

3. TRANSPARENCY AS A PHENOMENON AND SCIENTIFIC DISCOURSE This paper presents the etymology of the word “transparency”: “trans” means through, “parere” or appear means appearance. It is understandable that initially scientists researched the term as a physical property of individual substances to transmit light. It turned into the subject of scientific discoveries from the XVII century and later was studied by physicists and chemists. The Oxford Dictionary defines transparency (in physical understanding) as the permeability of light (Oxford English dictionary, 2015). Roe and Slutsky (1963) indicated that by the middle of the 20th century the term was actively utilized no longer literally but in a metaphorical sense in the literature. Linguistic meaning of the term determined reliability, correspondence to truthfulness, consistency with reality. At the same time, the term “transparency” was borrowed and employed by architecture. The glass transparent walls of the buildings ensured the achievement of various goals: to be closer to nature (glass partitions in the garden), to lure buyers (transparent showcases), to emphasize the openness of the institution (glass government buildings). Later, office partitions became transparent. Since 2017 up to the present day, all-glass residential buildings are being built (Borneo-Sporinburg district in Amsterdam), which is believed to help overcome the feeling of loneliness, in particular on the part of those residents who work from home. Management has become the fourth area that uses the transparency as physical properties. In management the meaning of transparency denotes openness of information about the activities of the institution and their

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al.

leaders. In this relation, it is defined as “an opportunity for outsiders to receive reliable and timely information about the activities of government organizations or private firms”. The new field of the term application, according to Bernstein E.S, has created “friendly environment for public dialogue in society that is stronger than any other forms.” At the same time, the fields of observation and implementation of the principle of transparency remained sociology, social psychology, economic and political research, anthropology, architecture. Assessing the phenomenon of social transparency, it should be kept in mind that the constant development of its content, which reflects both changes in society and the technical capabilities of accessing information which means openness. It seems to be true to talk about three basic methodological approaches to the definition. The first considers the mythologization or dogmatization of the role of transparency as one of the necessary conditions for the formation of democracy. The second known as the current approach observes the actualization of attention to the mechanism of its provision and implementation as a condition of an open government (Public Administration, Good Governance). The third approach has not been advanced yet, it is just being formed. It demonstrates the distinguishing features such as the public’s willingness to manage transparency, the development of transparency algorithms, i.e., rules, formats and practices, where and to what extent it is needed, who provides and controls it. Its grounding is provided in the works written by Anagni, Crawford, etc. (Mol, 2010). Bernstein has identified two levels of transparency: by seeing and through understanding. “Visibility carries risks for the goal of accountability, if there is no system ready and “capable of processing, digesting and using the information “to create change” (Bernstein, 2017). In our opinion, these two levels are not really so essential for evaluating the actors of the communication, but for communication system in general. It is believed that transparency of the future will imply a developed and implemented mechanism that combines the maximum possible visual information with the designation of experts responsible for its public explanation, i.e., understanding.

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Table 5. Definitions of transparency that reflect the essence of the second stage of the concept processing 1. Communication approach Transparency means that the decision taken and the enforcement are done in a manner that follows the rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It either signifies that enough information is provided in easily understandable forms and through media networks. 2. Informational approach “Transparency is the release of information which is relevant to evaluating institutions” (see Bauhr, Nasiritousi, 2006). Increased flow of timely and reliable economic, social and politic information, which is accessible to all relevant stakeholders” (Vishwanath, 1998) 3. Relationship with governance (politics and corruption) “Visibility carries risks for the goal of accountability, if there is no system ready and “capable of processing, digesting and using the information” to create change (Philips, 2011) 4. Instrumental approach Transparency is not simple “a precise end state where everything is clear, and apparent but a system of observation and awareness that promises a form of control. It includes en effective dimensions, tired up with a fear of secrets. The feeling that seeing something may lead to control over it, and liberal democracy’s promises that openness ultimately create security” (Heald, 2006)

The new approach has led to the formation of the new definitions. There are several classifications of definitions that have been formed. Some researchers identified four main groups of definitions at this stage: communication approach (1), informational approach (2) that is tightly connected with the management process. The only difference is that the role of transparency in politics, in particular in the fight against corruption, is indicated (3). The fourth stage is based on the description of the toolkit (4). Some of the definitions are presented in Table 5. Other researchers, such as Ball S. (2009), have distinguished three other approaches to the definition: as a value it ensures, inter alia, the fight against corruption; as a condition for openness in making public management decisions; and as a complex mechanism of Good Governance technologies implemented, for example, in program management. It seems that it makes no sense to contrast various approaches: each author develops a definition based on his personal understanding, as well as the field of knowledge that he represents. Scientists have pointed out not only the variability of the essence understanding, but also the diversity in the transparency

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manifestation. In this respect, Annany and Crawford (2018) have revealed the following dichotomy of its possible forms:   

 

fuzzy and clear according to the degree of adequacy of the reflection of the real situation; soft means just providing information and hard refers to responsibility allows sanctions; upwards explains the relation within the framework of principalagent theory and downwards or outwards which is related to third parties; as event or process with rules and regulations; as retrospect or real-time.

Pascquale (2015) has supplemented the list of a dichotomous simple (linear) and algorithmic form. The latter means the creation and actively used mechanism for implementing the principle of transparency in public administration1. Summarizing the provided definitions identified at the second stage, we give a quote of Ida Koivesto (2016): “In my way, the multiplicity of connotations of Transparency stem from its quasi-symbolic nature; it promises visibility and at the same time it escapes a gaze itself. Transparency is, at least seems to be, a pure medium, an instrument, a messenger….”. It should be noted that this toolkit is located at the stage of formation: the society is not ready to meet the possibilities of big-data analysis. The fulfillment of the possibility is at the initial stage of implementation in management practice. What are the new dimensions of the transparency phenomenon that could be revealed is not clear yet. Analysis of the concept has showed that the following trends are noted in research fields of Transparency:

1

Pascquale F., 2015 The Black Box Society, The Secret Algorithms that Control Money and Information, Cambridge MA; Harward Univ. Press.

Transparency of Public Policy in Russia   



21

a shift of object from organizational outcomes to detailed individual activities within them; a shift from people observing technologies to technologies observing the people; a split from philosophical debates to private interest. The displacement of the object from organizational results to detailed individual actions in them; a shift from philosophical debate to private, specific interest. One more thing needs to be added to these trends: A shift from the description of information flows to managing them.

4. DATA AND METHODOLOGY The present study claimed two goals: the first is to assess the quantitative results of the government’s work for the period of 2018, based on the report of the Head of Government and the results of the implementation of the country’s development programs. The second aim is to assess the degree of compliance of the report with the Performance Management format, taking as a basis the composition of planned and reporting indicators introduced in the documents on the country’s development for the period 2018. Taking into account the scope of publication, only one part of the report of the head of the Government was evaluated: social indicators. The same is applicable to the Federal Targeted Programs (FTP).

5. RESULTS OF THE STUDY In order to simplify the comparison procedure, the authors of the present paper have presented quantitative indicators in a tabular format, grouping the report data by targeted areas with a social focus (see Tables 6-10). The sequence of tables is consistent with the text of the speech of the head of the government of the Russian Federation.

22

G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al. Table 6. General indicators announced in the report preface

Quantitative indicators presented in the Report General indicators: - plan for financing social goals, trillion rubles - share of expenses on social and cultural events in% of GDP - passed bills - poverty conservation, million people -the growth of the minimum wage - population income growth - the growth of pensions - reduction in the number of poor, thousand people - saving social policy expenditures in the amount of

Report

Planned Documents

2,6

-

-

14,5-16,4

312 19

-

44% per 1.3% per 0,9% per 400

per 13%

-

12,6% from GDP

% fulfillment plan

Table 7. Indicators related to the development of health and healthcare Quantitative indicators presented in the Report

Report

Planned Documents

2.1. the regions have purchased FAPs (feldshermidwife points); 2.2. the federal target program has opened FAPs (feldsher-midwife points) across regions, planned; 2.3. mobile medical complexes have been established and deployed; 2.4. perinatal centers have been established;

350 pcs

-

% fulfillment of the plan -

246 pcs

24/78

300%

11 pcs. (out of 56) 70 billion rubles -

-

-

-

-

-

-

5 units

-

-

36 pcs. (out of 735)

-

-

2.5. patients have been placed under observation chemotherapy; 2.6. the program “7 nosologies”, expensive drugs, has been extended; 2.7. the list of essential medicines with tightly controlled prices for beneficiaries has been restocked;

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Quantitative indicators presented in the Report

Report

Planned Documents

% fulfillment of the plan About 50%

2.8. medical examination of the population has been organized, mln. people;

22

2.9. sports facilities have been reconstructed, thousands 2.10. salary growth in health care sphere (% of 2010); 2.11. health financing in% of GDP (growth by 2010,%); 2.12. creation of sports facilities, per year according to the federal target program across regions; 2.13. financing preferential acquisition of medicines, billion rubles per year 2.14. to increase the share of professionals with professional accreditation, in % 2.15. to increase the share of specialists who received additional professional education in 2018 to the level, in% 2.16. to increase the share of the population committed to a healthy lifestyle, in% 2.17. to introduce a new economical model of healthcare organization (number of federation entities) 2.17. the level of satisfaction with the quality of service (% of residents) 2.18. to implement the public monitoring of the movement of drugs from producer to consumer (in% of the volume of drugs sold) 2.19. the total financing health care, billion rubles

7

for 4 years 2016-2020 – 43 -

-

70-80

-

-

per 1%

-

-

100 psc.

-

-

118

-

-

12

-

-

40

-

-

40

-

-

30

-

-

40

-

-

100%

-

13,2

19,6

The plan is not implemented 30%

-

The comparison of the planned documents with the Reports has revealed the specific focus of the report on the list of concise directions than those stated in the plans. The second difference is the priority of social tasks over economic ones. The head of the government has recognized the persistence of poverty in the country, which characterizes the life of 13% of the country’s population. As one of the forms of assistance, he has designated the compilation of a register of low-income families.

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al. Table 8. Indicators that demonstrate the protection level of people belonging to the oldest age group

Quantitative indicators presented in the Report 3.1. Pilot implementation of a project for longterm care for the elderly people 3.2. A unified methodology for calculating the cost of living has been developed. This should become the lower limit of compulsory pension level

Report

Plan

% Fulfillment of the plan

in 17 regions -

-

Table 9. Indicators related to demographic processes Quantitative indicators presented in the Report

Report

Planned Documents

4.1. Country population

146.8 million people 73 years/72.9 7.3

49 billion

4.2. Life expectancy 4.3. Infant mortality % up to the target year has been reduced 4.4. Mortality from road accidents in percentage up to the previous year, has been reduced 4.5. Support for families with children: ˗ payment provided to all families (already upon the birth of the first child) whose income is 1.5 below the subsistence minimum ˗ preferential mortgage loans have been set up for citizens with two children at an annual interest rate of 6 per cent ˗ creation of additional nursery groups for children aged from 1 to 3

% Fulfillment of the plan 99 -

by 5

-

one hundred%

-

one hundred%

-

85 billion rubles

173

The main directions of healthcare development in 2018 in accordance with the plan were recognized as the continuation of the complementation of 4 projects “Technology and comfort for mothers and children”, “Ehealth”, “Development of air ambulance”, and “Medicines. Quality and safety”, the indicators for the last three are reflected in the report of the Head

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of Government, which differs from the first report. In 2018, it was planned to start three new programs - “Providing healthcare with qualified specialists”, “Formation of a healthy lifestyle”, “Creating a new model of a medical organization that provides primary health care”. Table 10. Indicators related to education Quantitative indicators presented in the Report

5.1. The number of schools/thousand vacant places have been opened during the reporting year 5.2. Grant subsidies for the school construction billion rubles/ regions 5.3. School buses have been purchased in 2018, billion rubles 5.4. Psychological counseling school centers have been created in regions 5.5. Funding for the creation of 89 technology parks – quantoriums has been set up in billion rubles 5.6. The “Ticket to the Future” program has been developed and is being implemented. The program assists career guidance through the information on the occupation 5.7. The1st place in the soft skills competition 5.8. The universities enter the world rankings 5.9. growth in education spending in percentage of GDP 5.10 salary growth in institutions of professional education, compared with the average for the economy (in per cent) 5.11. increasing the university teachers salary level with regard to the national average (in per cent) 5.12. the introduction of the time standards for DPO Further Vocational Training (in hours of weekly load) 5.13 the formation of models of individualized school education 5.14. the establishment of the training programs for migrants in the regions

Report

Planned documents

30/22

-

25/78 5

-

5

-

1,8

Mentioned

-

Mentioned -

-

3,44

-

for 50%

-

195%

-

Mentioned

-

Mentioned

-

30

% Fulfillment of the plan

Out of the new programs, only the second has been mentioned by the Head of Government, although the number of people who underwent medical examination was called an indicator of its implementation. The

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measures proposed for the implementation of the “medicine” programs in the plan and in the reports are fundamentally different. It is planned to monitor the movement of drugs, however, the report of the Head of Government mentions the provision of expensive drugs to privileged groups of the population. Simultaneously with the 2018 reporting data, the head of the government stated the plans for the next year, in particular, he suggested that up to 2019-2020 the entire population should undergo cancer screening as part of the medical examination, therefore it were agreed to introduce another day off, but a paid day. Table 11. Indicators related to the housing and environmental policies of the state Quantitative indicators presented in the Report

Report

Strategy

6.1. improvement of living conditions annually, million people 6.2 million of apartments put into operation, million square meters 6.3. individual houses built, thousand/million sq. m. 6.4. mortgages issued, in the amount of trillion. rub 6.5. issue of mortgage documents in the amount of billion rubles 6.6. an increase in the number of resettled houses, thousand people. 6.7. transferred for housing construction by the region, ha 6.8. extension of country amnesty Ecology 7.1. elimination of landfills, including Bykovo, Elektrostal, Kashirsky 7.2. total environmental spending, in percentage of GDP

5 1/75 230/32 3 150 700

5 -

575 Mentioned

-

28

-

-

0,942,86

% Fulfillment of the plan 100%

Comparison of indicators shows a complete disagreement of the reported and planned indicators in the sphere. There is no specific data in this area in the country’s development plans. The report does not include comments on the pension reform.

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The head of the government has recognized the acuteness of demographic problems, referring to the term “Russian cross”, which can be interpreted as the excess of mortality over fertility. However, the date has not been provided, but population decline in the country continues, amounting to 209.7 thousand people according to the Accounts Chamber. In the text of the report there are planned indicators, promised target, for 2019. The reported indicators further dominated the reporting indicators for 2018. Once again, a complete discrepancy of indicators is evident. Reporting and planned indicators are not correspondent; figures are much higher and more significant in planning documents: the increase in wages and the introduction of an additional education system for employees are extremely meaningful. The same is true for the indicators for financing costs in cost terms and share in the budget. In the “Housing” section, the reverse situation is observed: indicators are named in the report, but are not sufficiently represented in the plans. It seems that there are several reasons for this - they are included in the federal target program and are planned there, while the text of the “Strategy” focuses on the decentralization of housing construction financing in favor of municipalities and the development of mortgage lending. Monitoring the plans implementation for the federal target program takes fundamentally and methodologically a new level on the content and quality of reporting. The monitoring to track the FTP reports appeared in 2013, along with the Council establishment which was aimed at project management methods introduction. The Council was created at the Ministry of Economic Development to organize and conduct work to monitor the implementation of state programs and projects. In 2018, an interdepartmental working group was formed to monitor the effectiveness of the federal target program. Based on the approved documents, starting from 2017, on the Ministry of Economic Development website no later than the 2nd day of the year, data on the execution and financing of the federal target programs are sent to the Government of the Russian Federation.

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al. Table 12. Indicators related to other social processes

Quantitative indicators presented in the Report Culture: 8.1. Virtual concert hall has been launched 8.2. Virtual museum guide has included 8.3. Museums visited, mln. 8.4. The program “big tour” in which participated 8.5. Theaters visited, mln. 8.6. Financing the cultural centers in rural areas, billion rubles Public administration 9.1. thousand settlements/residents have been connected to the Internet 9.2. Internet contribution to GDP amounted to,% 9.3. fiber optic lines have been stretched, thousand km 9.4. the entrance to the 10 countries with the most active population (for communication with the government via the Internet) 9.5. the number of people has been registered on the portal of government services 9.6. increasing the number of site users to, in% of the total number of computers users 9.7. the number of transactions, billion per year 9.8. implementation of reporting on official statistics for ministries 9.9. implementation of the regulation of annual reporting of state bodies. authorities and regions 9.10. introduction of a technology for decrypting social expenses of a citizen and personal income tax

Report

Planned Documents

Mentioned 350 museums 150 260 theaters 40 1,5

-

8/250-500

-

5 60

-

Mentioned

-

80 million

-

33 60

-

Mentioned

-

Mentioned

-

Mentioned

-

Program

98%

Not only the publicity of the reports on the implementation and financing of the federal target program, but also the usage of institution of accountability as a financial management mechanism, deserves approval. For two years, a number of programs were closed, those that did not meet the requirements of accountability. Some of the programs were transferred to the “pilot financing” mode (see Table 8).

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Table 13. The list and the results of the implementation of the federal target programs focused on the socio-economic development of the Russian Federation The name of the program (validity period) “Culture of Russia from 2012 until 2018”

The development of physical education and sports in the Russian Federation for the period from 2016 until 2020 “Development of broadcasting in the Russian Federation from 2009 until 2018”

Financing volume, billion, rubles in 2018 Allocated -24.52, implemented 42.5%

Plan 6.7, implemented 5.9 or 88%

8.52, implemented 100%

“Development of domestic and inbound tourism in the Russian Federation from 2011 until 2018

3.5 billion rubles, 89.9% implemented

“Improving road safety from 2013 until 2020”

1.4 billion rubles, which is 158.1% more than planned, but 82.8% implemented

The total result of the implementation of the activities in 2018 (see Appendix 1) According to the results of 2018, out of 16 target indicators and indicators, the planned values were achieved in seven positions. For the remaining positions: attendance of cultural institutions, the level of staffing of funds, etc. information has not been provided (Appendix 1, 166-197 pp.). Out of 12 target indicators and indicators, planned values were achieved in seven positions. Information has not been provided for the other positions: the structure of the coaching staff, the number of trainers received training, the share of citizens involved in sports, etc. (p. 240-249)

11 target indicators and planned values indicators were achieved for all, 11 positions, including the development of digital broadcasting network of the first and second multiplex, ensuring continuous operation, including the Republic of Crimea, etc. (pp. 279-286) Information on the actual achievement of the planned target indicators has not been provided due to the fact that according to the state customer they coincide with the information of the State Statistics Committee, which will be provided in June. However, for the main 4 groups, the plan has been almost completely implemented. (p.197-223) The indicators for all four reporting indicators have been met, by all subcontractors.

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G. A. Menshikova, N. A. Pruel, M. V. Rubtcova et al. Table 14. Evaluation of the implementation of the programs revised as the pilot projects

The name of the program (validity period)

The amount of financing, billion, rubles for 2018

“Education for the period 2016-2020”

15.18 billion rubles allocated, implemented - 85.4 percent

“Housing” 2015-2020

46.6 billion rubles were allocated, i.e., 25.7% of the planned, implemented 98.4%

Russian language (20162020)

66,8 %) Allocated 0.93 billion rubles, fulfillment - 66.8%)

Sustainable development of the rural territories from 2014 until 2017 and for the period until 2020”

17.8 (allocated 7.1%), assimilated investment 92.5%

The total result of the program implementation in 2018 (see Appendix 1 and 4 to the report) in the perspective of four criteria (growth of capital investments, Research, Development and Engineering, implementation of programs, timely reporting Out of 18 target indicators and indicators, the planned values were achieved in all areas, including the construction of new facilities, the implementation of GTO (ready for labor and defense) standards, the organization of monitoring the health of schoolchildren, the holding of allUnion skill competition, clarification of the methodology for their implementation (p.376-394) Out of 15 target indicators and indicators, the planned values were achieved in 12 positions. The plans for accommodation for the dismissed soldiers met 70% of the requirements; accommodation for the Investigative Committee employees met 80% of the requirements, due to the price increase; accommodation for families of young scientists met 80% of the requirements (p. 408-419) Out of 20 target indicators and indicators, the planned values have been achieved in all areas, including monitoring research in the CIS countries, holding a conference, organizing a teacher training system, writing essays in the Russian language, and creating the conditions for teaching Russian in the countries around the world. (p. 395-408) Out of 22 target indicators and indicators, planned values were achieved in 20 positions. The plan for the construction of facilities (by 40%), to increase the number of students in schools by 5% was not implemented fully. The plan for gasification and water supply was twice as much as the demand. (p. 544-549)

Table 13 presents the results of the implementation of the plan for the federal target program related to the social situation in the country. It is clarified that this paper has considered only FTPs, but not subprograms or

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regional programs. The breakdown of the material into full-fledged and pilot programs allows us to present two groups and two methods of program management. The authors of this paper have not considered 3 social programs for social sphere by region development (Crimea, Kuril Islands) due to the limited publication, although the programs are mentioned in the texts of the MED reports. The transport program is not included in the number of pilot programs, as it stays at the edge of the social sphere; also it is built by mode of transport and too extensional, more than 100 pages. Table 14 shows the full compliance of reports on the implementation of the programs based on the quarterly monitoring of MED. Reporting is organized according to a strict plan, which names both customers and program executors. It fully contains both financial indicators for the groups: capital construction, Research, Development and Engineering, other expenses, borrowed funds, and the measures taken. Over again, the report is distinguished by bringing a small number of specific indicators. As part of the planning documents, there are many reporting indicators dated 2018. In general, they positively characterize the government activities, although vary throughout the documents. Thus, the major attention to indicators on public administration is drawn in the “Strategy”, since in this document it is considered as the basis for the growth and development of the country. The “Strategy” names such areas as the continuance of administrative reforms, including the improvement of Internet technologies and communications implementation, including mail and electronic means. All planning documents indicate the need for measures to optimize the number of managerial personnel; to improve the quality and competence of employees; to establish monitoring of the effectiveness of the public administration system; to develop an “Electronic Parliament and Justice”. A lot of reporting data characterizing the development of the social sphere in 2018 is given in the FTP reports; however they were not involved in the report of V. Medvedev. Our analysis of the reports on the programs also did not reveal the possibility of their interpretation as a planned basis for the report of the Prime Minister.

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6. DISCUSSION AND CONCLUSION The work of the Ministry of Economic Development aimed at organizing public monitoring of the report on the federal target program shows the willingness of specialists to work in a mode adequate to the demands of time. These activities have significantly increased the financial discipline of budget financing customers, saved some of the budget, and constantly adjusted funding to the programs that do not fully utilize the provided resources, or do not achieve planned indicators. 80% of the federal target programs for 2019 had adjustments to financial security. In particular, the monitoring has revealed the following negative trends. The first is a decrease in the level of the usage of funds allocated. In 2018 it amounted to 81.5% of annual appointments, which is lower than in 2017 by 9.4 percentage points and accounts for 90.9% of annual appointments; The second is the slowdown in the timely completion of FAIP facilities by construction. In 2018, 221 facilities out of 398 were completed within the time limits. The facilities that were expected to be commissioned figured 55.5%. The third - the adjustment of the federal target program to pilot status has not significantly affected the results. Fourth, the situation has been worsened with the attraction of funds from the budgets of the constituent entities of the Russian Federation and local budgets, which was assumed as a condition for the allocation of funding. A lot of reporting data characterizing the development of the social sphere in 2018 was provided in the reports on the FTP, but they were not included in the V. Medvedev’s report. Our analysis of the reports on the programs has not revealed the possibility of their linkage to the scheduled basis for the report of the Prime Minister. In general, a balanced representation of the social problems of the Russian Federation has been demonstrated. Starting the report with a deterioration signs in social indicators, the Prime Minister automatically recognized the negative trend in the country’s development. Further, the complete discrepancy between the indicators, both in various planning

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documents and in their comparison with the reporting data should not be ignored. Moreover, it is not true to talk about methodological unpreparedness of Russian specialists for reports in Performance Management format. This is confirmed by the adoption of the UE according to the reports format for the heads of the regions, as well as the quality of accountability for the implementation of the federal target program of the Ministry of Economic Development.

FUNDING The reported research was funded by the Russian Foundation for Basic Research and the Government of the Republic of Sakha (Yakutia), grant № 18-411-140001.

REFERENCES Access Info Europe (2019). The official website. URL: https://www. access-info.org/uncategorized/10819 (available 15.12. 2019). Altman I. (1975). The environment and social behavior: Privacy, Social space, territory, crowding, Monterey C.A., Brooks/Cole. Annany M., Crawford C. (2018). Seeing without Knowing. Limitations of the Transparency Ideal and its applications to algorithmic Accountability, р.4. Ball C. (2009). What is Transparency? Public Integrity, vol.11, issue 4. Bauhr M., Nasiritousi N. (2006). Towards better Government? A theoretical Framework for the influence of International Organizations, Gothenburg, The QOG institute, Quality of Government. Benthan J. (1989). First principles preparatory to Constitutional Code, ed. P. Schofield, Oxford, Clarendon Press. Bernstein E.S. (2017). Harvard business School, Academy of Management Annals, 11(1), 217-266.

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Boje A. (1971). Open-plan office, London, Business Books. Code of Basic State Laws of the Russian Empire (1906), Complete collection of laws of the Russian Empire. Sobr. III. T. XHV. Otd-nie 1e. SPb., 1908. St. 26656. S. 759-763. Constitution of the Russian Federation (1993). Russian legislation. The official website. URL: http://pravo.gov.ru/ (data 15.12.2019). Dalton M. (1959). Men who manage, fusion of feeling and theory in administration, Valley, NY. Declaration of Human Rights and Freedoms (UN, 1948). URL https:// www.un.org/en/universal-declaration-human-rights/ (Available at 10.11.2019). Drago Z. (1982). Administrativnaja nauka, Moscow. [Administrative science] Florini A. (2008). “Making Transparency Work,” Global Environmental Politics, MIT Press, vol. 8(2), pages 14-16, May. Foucault M. (1977). “The Eye of Power,” in Power/Knowledge, Selected Interviews and Other Writings 1972–1977, ed. Colin Gordon. Foucault M. (1977). Discipline and punish: the birth of prison, L-n, Allen Lane. Hall P.A. Tailor R.S. (1996). Political Science and the three new institutionalisms, Political Studies, 44, 945-967. Heald D. (2006). Varieties of Transparency, Proceedings of British Academy, 135, 23-43. Hood C. and Heald D. (2006). Transparency: the key to better Governance, NY, OUP. Pp 25-41. Koivisto I. (2016). The anatomy of Transparency. The Concept and its Multifarious implications. Ida Koivisto working paper, 09, р.2. Kaya U., Yayla H.E. (2007). Remembering 35 years of social accounting, a review of literature and the practice. llen T.J., Cohen S.I. (1969). Information flow in Research and development laboratories, Administrative Science Quarterly, 14(1), 12-19. Lock D. (1690). The second Treatise of Civil Government.

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Meijer A.I. (2015). Governmental Transparency. In historical perspective, From Ancient regime to open data in Netherlands, Intern. J. of PA, 2015, 38(3), 189-199. Meijer A.I. (2013). Understanding complex dynamics of Transparency, Public Adm. Review, 78(3), 429-439. Mitchell, R. B. (1998). “Sources of Transparency: Information Systems in International Regimes.” International Studies Quarterly 42, no. 1:109– 130. Mol A.P.J. (2010). The future of Transparency, Power, Pitfalls and promises, 2010, Global environmental politics, 10(3), 132-143. OECD (2004). OECD principles of corporate governance. Paris. OECD. On the Establishment of a State Duma (1906). Complete collection of laws of the Russian Empire. Sobr. III. T. XHV. Otd-nie 1-e. SPb., 1908. St. 26656. S. 637-638. On the improvement of public order (1905). Complete collection of laws of the Russian Empire, 3rd series, vol. XXV/I, no. 26803. Oxford English dictionary. (2015). “Perviousness to light, diaphaneity, pellucidity”. Pascquale F. (2015). The black Box Society, The Secret Algorithms that Control Money and Information, Cambridge MA; Harvard Univ. Press. Pecaric M. (2018). Transparency as Transparency –new meaning for new context, J.of Public Affairs, 19(1). Philips J.W.R. (2011). Secrecy and Transparency, an interview with Samuel Weber, Theory, Culture and Society, 28(7-8), 158-172. Piotrovsky S.J. (2007). Governmental Transparency. In the Path of administrative reform, Albany, NY, State Univ. Press. Ramanathan K.V. (1976). Towards a theory of corporate accounting, The accounting review, 51(3), 516-528. Rousseau J. (1762). Contract Social. Amsterdam, Chez Marc Michel Rey. Rowe C., Slutsky R. (1963). Transparency: Literal and Phenomenal, Perspecta, 8, 45-54. Russian legislation (2019). The official website. URL: http://pravo.gov.ru/ (data 15.12.2019). Schumpeter J. (1942). Capitalism, Socialism and democracy, NY, Harper.

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Shannon C.E. and Weaver W. (1949). The mathematical theory of communication, Urbana, Univ. of Illinous press, p.31. Stasavage, D. (2004). Open-Door or Closed-Door? Transparency in Domestic and International Bargaining. International Organization, 58(4), 667-703. doi:10.1017/S0020818304040214. Stiglits J. (2002). Transparency in Government: the right to tell. World Bank, Washington, DC. Vishwanath T. and Kaufmann D. (1998). Towards Transparency in finance and Governance, SSSN electronic Jourmal, (World Bank, working Papers).

In: Public Administration Editor: Frederik S. Møller

ISBN: 978-1-53617-634-6 © 2020 Nova Science Publishers, Inc.

Chapter 2

INNOVATION IN NORWEGIAN LOCAL GOVERNMENTS: THREE HISTORICAL ROLES Tor Helge Pedersen* Inland School of Business, Inland Norway University of Applied Sciences, Lillehammer, Norway

ABSTRACT Public sector innovation is increasingly on the policy agenda in Norway as well as in many other countries. This paper focuses on innovation at the local government level in Norway. With innovation defined as adopting something new to Norwegian municipalities, this paper surveys historical and contemporary examples of innovation in Norwegian municipalities. In this exercise, three municipal roles are identified in relation to innovation: The first role is that of the local government as an adopter, a role that covers such activities as adopting new political and administrative structures, services, and technologies, as well as implementing state programs or policies. The second role is the local *

Corresponding Author’s E-mail: [email protected].

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Tor Helge Pedersen government as a collaborator and cocreator, which involves collaborative entrepreneurial activities. The third role is the local government as a welfare pioneer that advocates for developing new services that can later spread to the state and other municipalities. From this role comes the term welfare municipality.

Keywords: local government, innovation, public sector innovation, healthcare

INTRODUCTION Public sector innovation is increasingly on the policy and research agendas in Norway and many other countries (Ministry of Trade, Industry and Fisheries, 2008–2009; NOU 2011, 11). Since 2002, this has resulted in multiple research programs, official reports, white paper, and policy documents on innovation. One part of the public sector that is especially involved in innovation activities are local governments. For example, recent surveys show that many larger municipalities have already adopted their own innovation strategies (KS 2018), thanks in part because municipalities are the most important service providers in Norway. With a focus on innovation, local governments, states, counties, and different countries can be seen as democratic or policy laboratories (Karch 2007), where new solutions or state-supported innovations are tried out and spread. Local governments in Norway have historically been pioneers for reforms and innovations that have later been codified, regulated, and spread by the state (Grønlie 1991). They are to this day considered to have a leading role in formulating initiatives of importance for the development of the welfare state. This was the basis for both the free commune experiment in the late 1980s (Clark 1994) and the pathfinder status that seven municipalities and one city district of Oslo were given in 2003 (Grønlie 2004). The free commune experiment in Norway, 1986–1992, was about “loosening the tight national regulation and encouraging local innovation” (Clark 1994, 16). Here, selected local governments were granted waivers from legislation to experiment with new practice, political, and

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administrative structures. One could even argue that an implicit innovation objective in the Coordination Reform of 2012 in Norwegian healthcare, which will be discussed later, was for the municipalities to help brainstorm cheaper, more innovative service delivery. In other words, policymakers seem to recognize that local initiatives are needed to find new ways for the welfare state. This paper illuminates the part Norwegian municipalities play in public sector innovation. Although public innovation is a new research field in Norway, this does not mean that there is not a long history of it, nonetheless. Public sector innovation has often been defined as introducing something new to the individual organization (De Vries et al. 2016, 152). The purpose of this paper is to survey and describe examples of municipal innovation in order to identify municipal roles in relation to innovation. Since the legal creation of Norwegian municipalities in 1837, there are several examples of how municipalities have engaged in innovative activities, either as adopters, collaborators, or pioneers. In a British context, Hartley (2005) has shown how different periods with different dominant (and today competing) conceptions of governance and public administration (e.g., traditional public administration) are reflected in the examples of public innovation. This paper is partly inspired by such a historical perspective, but the focus is also on roles. The remainder of this paper is organized as follows: Definitions and conceptions of innovation, particularly important for surveys of examples, will be outlined. The conceptual framework illustrates that there are different conceptions of innovation and that it is important to clarify how the concept is used and examples selected. Next, examples on innovation or innovative efforts are surveyed and described through a historical perspective. Many of the examples included here are taken from the Inland part of Southern Norway. The last part of the paper focuses on the example of the Coordination Reform of 2012. This section differs from Hartley’s (2005) work, in that the examples are presented in relation to three different innovative roles that are present when taking a historical perspective.

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CONCEPTUAL FRAMEWORK Even though Joseph Schumpeter is reckoned to be the most important source of scholarly inspiration in innovation studies (Fagerberg and Verspagen 2009; Martin 2012), he is more or less absent in the early literature on public sector innovation. Early studies here seem to be more inspired by Gabriel Tarde (e.g., Chapin 1928; Mort and Cornell 1941), who is said to be the founding father of innovation diffusion research. Schumpeter (1912) did not use the term “innovation” in the first German edition of Theory of Economic Development but instead used “new combinations.” Innovation finally appeared in his work first in 1927 (Schumpeter 1927, 295) and in his well-known shortened English edition from 1934. Afterwards, innovation and its five types became highly cited. Although Schumpeter had a broad concept of innovation, Tarde’s (1903) concept was arguably even broader and more open than Schumpeter’s, “to the extent that it goes beyond purely economic phenomena to encompass all social phenomena” (Djellal and Gallouj 2014, 8). Furthermore, although Schumpeter is normally connected to a macroeconomic conception of innovation (Damanpour 2014; Osborne 1998; Romanelli 1991), it is possible to argue that his approach also covers the micro, meso, and macro levels. Entrepreneurial activities are obviously at the micro level, the swarming process (swarms of entrepreneurs and followers) is the meso level, and it is well-known that the economic impact on the economy or industry is the macro. Therefore, some cases with economic significance (but not all) can be understood in light of Schumpeter’s approach. However, most cases of innovation and innovative activity are expected to be better understood through approaches that take social phenomenon into account. In such approaches, scholars have distinguished between schools of innovation research, such as diffusion research, innovativeness research, and process research (Wolfe 1994); perspectives, such as individualist, structuralist, and interactive process (Slappendel 1996); streams of research that have different focuses, such as structure, cognitive processes (e.g., learning), and organizational change

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(e.g., adaptation) (Lam 2005); and the main processes of innovation, such as generation and adoption (Damanpour 2014). Given the number of study areas discussed above, a survey of historical examples must clarify what should be included as models of innovation. Even though some of the literature on public sector innovation today operates with an impact or public value criterion (e.g., Bason 2010, 4; Hartley 2005, 30; Moore 1995, 299), this is not the case in earlier research. Often, along with the adopted criterion, the newness criterion is stressed as important (Clark 1968; Bingham 1976). “Innovation is very similar to change but is distinguishable by the criterion of newness” (Daft and Becker 1978, 4). Some scholars disagree, however. Some see innovation as only “the first or early use of an idea by one the organizations with similar goals” (Becker and Whisler 1967, 463) or as “Adopted changes considered new to the organization’s environment are innovations” (Daft and Becker 1978, 5). For example, Becker and Whisler (1967) argued that innovators take the risk and cost of search, while followers take on much less of such costs when “the innovators have demonstrated the feasibility of a new idea” (463). Schumpeter (1935) discussed the importance of newness in an economic context and mentioned the emergence of the motor-car industry as an example: … as soon as the various kinds of social resistance to something that is fundamentally new and untried have been overcome, it is much easier not only to do the same thing again but also to do similar things in different directions, so that the first success will always produce a cluster (6).

For the most part, however, innovation is defined as that which is only perceived as new by the adopting entity (Hage 1999; Lam 2005; Rogers and Shoemaker 1971). For example, De Vries et al. (2016) conducted a systematic review on public innovation studies from 1990–2014. Not only did they find that most studies lacked a definition of innovation but also that those who did have one usually based theirs on Rogers’ (2003, 12) definition that innovation is only required to be “perceived as new by an individual or other unit of adoption” (De Vries et al. 2016, 152). There are also those who,

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in one way or another, include the generation (development), acceptance, and implementation of something new into their definitions (Lam 2005, 115; Schroeder et al. 1989, 108; Thompson 1965, 2). Therefore, most definitions are about adopting something new in some capacity. In this paper, examples of innovation are surveyed and connected to the three main roles introduced earlier. The innovations in this study are mostly new to Norwegian municipalities. In some cases, also practices new to individual municipalities are included.

INNOVATION IN LOCAL GOVERNMENTS Innovation and innovative activities can be connected to three roles: the local government as an adopter, collaborator and cocreator, and welfare pioneer. These roles (categories) are not clear-cut or mutually exclusive. One of the roles, local government as a welfare pioneer is developed from the notion of the welfare municipality (e.g., Grønlie 1992), while the other two are extracted from the survey of examples and early literature on innovation in local governments.

Local Government as an Adopter The first role to consider is the local government as an adopter. The activities covered by this role are the adoption of new organizational units, technology, policy, strategy, services, programs, and new positions in the municipal organization. In addition, this role also includes the local government as being an implementer of state policies and programs. This innovation role is central to many early public sector innovation studies, such as those on local government as adopters of innovation (Aiken and Alford 1970; Bingham 1976; Carlson 1965; McVoy 1940; Mort and Cornell 1941; Yin and Yates 1975) and the municipal adoption of political inventions (Chapin 1928) or political innovations (Fox 1977; Hays 1964; Knoke 1982; McVoy 1940). Later, studies or large projects were conducted

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on how local governments in different countries cope with fiscal pressures by adopting different strategies that are more or less innovative to cope with fiscal stress (e.g., Appleton and Clark 1989; Clark 1994; Wolman 1987). One current research project that has been carried out over several years is this Urban Innovation Project. The Norwegian municipalities were formally created in 1837. The Local Government Act of 1837, also called the Alderman Act, built on both existing elements (e.g., appointed men in some cities) as well as introducing new elements. Two important new elements were the representation system and the newly created position of the mayor (the leader of the council). Furthermore, in 1837, it was decided that the mayors in the first municipalities within a county district should participate in an intermunicipal “council” once a year. The participants in this “council” were the mayors within the “county district,” the county prefect, and the bailiffs of the district. This implied that these mayors took a central role in the regional governance system, participating in financial and other decisions. This arrangement was a kind of forum for inter-municipal cooperation, composed of delegates from the municipalities within the county jurisdiction (Hansen 1993). Another example of the role of adopter can be seen in changes in the municipal political governance structure. Over the next century, especially in the 1900s, the political governance structure of Norwegian municipalities became increasingly complex. This implied broad participation of local politicians. As late as 1978, it was not unusual that a municipality had 60– 70 political committees. From the late 1970s, this old committee structure was replaced in many municipalities by a new political main-committee model based on a few main policy areas. Early in 1986, approximately 50% of the Norwegian municipalities had adopted this model, and only two years later, almost all Norwegian municipalities had adopted it. In the late 1990s, particularly the local elections of 1999 and 2003, there were experiments with directly-elected mayors in some municipalities. Examples of the municipality as an adopter of innovations can also be found in municipal sectors or service delivery. This paper reveals that in the American research, many educational innovations were discussed and

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observed during the 1960s and 1970s, and in some cases earlier. Examples of education innovations adopted include non-grading, integrated day, differentiated staffing, team teaching, open-space schools, educational technology, and programmed instruction (Baldridge and Burnham 1975; Bassett 1970; Carlson 1965; Charters and Pellegrin 1972; Gross et al. 1971; Hillson and Hyman 1971; Meyer et al. 1971). Some of these educational innovations also spread to Norway and were adopted by municipalities. For example, open-space schools and team teaching have been studied as radical organizational innovation (Meyer et al. 1971) since “The teachers are to work as a team, coordinating their work, exchanging pupils and tasks, jointly planning activities, and together facing a host of new and collective problems” (21). Furthermore, “The new physical arrangements of the open school are intended to change the work of the teachers in some of these ways” (ibid, 21). This innovation was implemented first in Hvaler in the county of Østfold in 1968. During 1971, it spread to 60 other municipalities (Reitan et al. 1976, 10), and in 1974, there were approximately 240 openspace schools in Norway. There was a further increase in the 1970s, but during the 1980s, classroom walls came up many places. In the late 1990s, a new generation of such schools, now known by the Norwegian term “baseskoler,” underwent a little renaissance again, as did the debate between camps for and against these schools (Vinje 2014). There are also examples of where governments initiated experiments and where municipalities participated. In 1992, the Brundtland government initiated experiments with municipal-state one-stop shops called public service offices. Seven municipalities participated and set up such shops in inter-governmental collaboration with local state services. Four different models were tested, and in 1999, the municipal-type service office became mandatory. Although the reformers, in preparation for a larger welfare administration reform (NAV), found such offices an insufficient measure to realize the main goal of the reform (a large merger process of two state agencies), one can argue that at least the idea of one-stop shops was taken up when the new local offices, which integrated services from employment, social insurance and social services, were begun in 2006.

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Some final examples here are the changes that followed the Local Government Act of 1992. The act abandoned most of the earlier legal restrictions on the internal organization of local governments, as well as consolidated a (hybrid) governance model that had similarities with the council-manager form. Inter-municipal arrangements existed before that, but in the period after the new law, a widespread adoption of different intermunicipal cooperation was witnessed, and this included a growth in the number of local government enterprises to approximately 2,550 in 2008. Such enterprises cover a number of functional areas and are inter-municipal but, in many cases, owned by one municipality (Aars and Ringkjøb 2011). In the 1990s, many municipalities also adopted different types of models of political structures and administrative structures (e.g., flatter organizational forms late in the 1990s). Other, more recent examples, though not connected to the Local Government Act, include changes in the way services are delivered, for example, transitioning from physical one-stop shops to online one-stop shops and other forms of digitalization. To sum up: Many of the examples in this section represented something new to Norwegian municipalities and, therefore, also new to the individual municipalities. For example, the new organizational and governance structures can be sorted under what American research has called political innovations (see Chapin 1928; Fox 1977; Hays 1964; McVoy 1940). We have also seen municipalities participating in programs and experiments, and such participation is, in some of the literature, recognized as innovation (Aiken and Alford 1970; Yin and Yates 1975).

Local Government as a Collaborator and Cocreator This role is connected to collaborative entrepreneurial activities. In other words, local governments are the main actor or participant in different external innovative activities. Such activities can involve collaboration on tasks (inter-governmental or inter-municipal collaboration), governance (political inter-municipal collaboration), utilizing new sources of supply (hydroelectric power), utilizing new forms of transportation (the

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automobile), creating organization (hospitals, local firms), establishing new types of organizations (savings banks, local transport firms), and arrangements (fire insurance). There are several old public sector innovation studies on such examples, but they were often covered outside public sector innovation studies. A few examples are Aiken and Hage (1968) on joint programs, and, much later, Hartley, Sørensen, and Torfing’s (2013) arguments for collaborative innovation. The former found that organizations that had more joint programs with other organizations tended to be more innovative, while the latter argued that collaboration can spur public innovation. Another later example is Moore and Hartley (2008), who explored innovation in public governance. There are several municipal examples here—and some of them will be commented on later (the important example of establishing hospitals). Earlier, it was mentioned that after 1837, mayors participated once a year in an inter-municipal council. Other early examples of inter-municipal cooperation were the functional municipalities that emerged during the second part of the 1800s. Examples of these are social municipalities, school municipalities, harbor municipalities, building municipalities, and fire municipalities, whose collaborations cut across municipal borders. A more recent example is that before 2006, municipalities were involved in many different types of inter-municipal collaboration. Hedmark municipalities were, on average, involved in 14.9 collaborations while Oppland municipalities were involved in 13.7 inter-municipal collaborations. One municipality could be involved in as many as 32 collaborations in Oppland and 27 in Hedmark (Econ 2006). Such collaborations may still be around service delivery but also support functions. There are also examples of public-private collaboration. One example is from municipal waste treatment. In the 1990s, Cambi AS collaborated with an inter-municipal waste treatment organization, owned by several Hedmark municipalities. The collaboration experimented with—and put into operation—a new technology based on the Thermal Hydrolysis Process. Since the inter-municipal operators had already learned to manage such waste-to-fuel processes, they were used in the subsequent spread of the

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technology, for example, they trained the operators of the largest UK wastewater treatment company. This local collaboration became the origin for a global technology in waste treatment (Pedersen 2016). One type of inter-municipal collaboration is of the political type. Since the early 1980s, there have existed inter-municipality regions, or more informal inter-municipal political cooperation organizations. These regions are a governance phenomenon, and in 2010, there were 69 regions and regional councils, organized in different ways regarding size, models, and type or cooperation. One interesting example and historical development is in Valdres. The inter-municipal region of Valdres was created in 1984. Here, it is claimed that collaboration goes back to 1888 when a tourism firm (a transport association) was created—in other words, inter-municipal cooperation around tourism. From 1961–1976, a more formal cooperation between the Valdres municipalities was practiced in terms of ambulating common executive committee meetings, where the host mayor and committee secretary were the leader and secretary of the meetings. All intermunicipal issues were eventually transferred to a new inter-municipal organization, the Regional Plan Council (in Norwegian: Regionplanråd) of Valdres. This organization dates back to 1967, when it was established on the basis of the Building Act of 1965 with the purpose of handling common planning tasks. In 1984, the inter-municipal council replaced the older Regional Plan Council in the Valdres region. Baldersheim (1987, 294) described the introduction of compulsory land use planning and the general plan that was required according to the Building Act of 1965, as among the most important innovations in local government in the 1960s. In addition, it should be noted that there is a similarity between the inter-municipal councils of today and the regional governance county system after 1837 with the “common municipality county,” as described earlier. The idea of a one-stop shop actually has a long history, for example, in connection with the first health centers (see Pedersen 2013). But it has also been put into practice in other areas. For example, in 1966, American President Lyndon Johnson called “for one-stop neighborhood centers in every ghetto” (Yin and Yates 1975, 109), and this request was followed by several such new centers in connection with the War on Poverty program.

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These centers were called innovations (ibid). In the Norwegian municipal context, as was mentioned earlier, there was the experiment with public service offices in the 1990s as examples of inter-governmental collaboration. One early attempt that represented something new was an experiment that started in Grimstad in July 1993 and ended in 1996. The new office was a collaboration—and partly a co-location—of municipal social services, services of the labor market agency, and the national social insurance (Torjesen 1996). The municipality and its partners wanted to continue a collaboration that had started in 1989 as a part of the free commune experiment. The collaboration was a kind of one-stop shop called the Youth Service Office, responsible for all measures concerning young users between 16–24 years of age with complex needs, including social help/assistance, social insurance, work, and education (ibid, 6). Even though it was not continued, it resembled the one-stop shop idea. Arguably, it was an early, innovation effort that represented something new. In accordance with Schumpeter’s (1912, 159) definition of new combination, collaborating in setting up new types of organizations represents innovation. An old example in many municipalities was their participation in establishing savings banks. The first savings bank was established in Norway in 1822, before the Local Government Act of 1837. However, over the next 75 years, savings banks were opened in every Norwegian municipality. In 1900, there were 414 savings banks in Norway. Many municipalities and local political leaders participated in setting up such banks. As one historian on Norwegian savings banks has concluded, “The typical rural savings bank was a product of municipal selfgovernment” (Rønning 1972, 33). In another context, when the savings bank was adopted in the United States, it “brought about innovation by imitation” (Redlich 1951, 288). This could also be said about establishing savings banks in Norwegian municipalities. There are also several historical examples around technological innovations. Municipalities have individually adopted or put into use many technological innovations over the decades. Examples that can be considered technological innovations include: sanitation, public transportation, roads, and municipal housing construction. There are also

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examples of participation through investing in something new. An early example would the railways in Løiten municipality, which, in 1857, bought shares in the railroad between Hamar and Elverum (Hovland 1987). Later examples are investing in local hydroelectric power plants (exploiting new sources of supply, such as hydroelectric power), telephone infrastructure, and local telephone companies or associations, as well as transport firms, which are examples of early activities to facilitate development. In the period from 1910 to the early 1920s, there was an explosive growth in municipal and inter-municipal power plants, so that local governments became the dominant player in the more rural parts of the electricity market (Teigen 2007). Another communication development in the period 1900– 1930 was the expansion of telephone and telecommunications networks. It was less common that municipalities were direct owners; instead, they set up a joint stock company (Teigen 2017). In some municipalities, the Alderman Committee became a coordinating force since the same local elites participated in different important decision arenas (e.g., on the board of the savings bank, the Alderman Committee). The examples described here are not wholly about the local government adopting a new unit, task, or service. Rather, many are about municipalities collaborating with others to establish something new in the community, such as a local transport firm, savings bank, or power plant. In some cases, we can call the municipality a facilitator. However, these examples are not widespread. The widespread innovations belong to the next role, the local government as a welfare pioneer. Some of the examples here (e.g., intermunicipal governance structures) can also be considered political innovation (see Hays 1964; McVoy 1940).

Local Government as a Welfare Pioneer This role does not necessarily mean inventing new welfare services, schemes, or arrangements but more so pioneering, championing, and mediating international trends or innovations from elsewhere. The role as a welfare pioneer, therefore, is one that initiates and finances new welfare

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services that later spread to others (municipalities) or are made mandatory or taken over by the state. The role may also include that individual municipalities develop or experiment with new solutions in state initiatives. There are some examples in older public sector innovation studies: Chapin (1928) focused on the invention and development of a commission government in the United States. Murphy (1971) studied a pioneering effort in New Haven that became part of the War on Poverty program in the 1960s. Before that, Dahl (1961) studied the same city and the same mayor Richard C. Lee – and introduced the term political entrepreneur. On the other hand, there are many public sector innovation studies on the spread or adoption of different welfare services or schemes (Aiken and Alford 1970; Yin and Yates 1975). For example, McVoy (1940) treated different laws, services, and practices as “indices of social innovation” (220). While the period 1837–1890 in Norwegian municipalities was characterized by modest activity (except for savings banks popping up in many places), the period from 1890–1970, broadly speaking, saw the adoption or initiation of several innovations, including technological innovations, such as investments in infrastructure (roads, telephone and electricity networks, public transportation, and sanitation) (Hovland 1987). In addition, local governments were also central in initiatives for hospital expansion in the early 1900s (from 45 to approximately 200 hospitals), as we will discuss later. In the period after 1890, Norwegian municipalities became pioneers in introducing new services (social welfare programs), and thus also pioneers in the development of the welfare state. The first employment offices were stablished in Bergen in 1897, Kristiania and Trondheim in 1898, and Stavanger in 1902. After legislation on this task in 1908, more such offices arrived in larger cities. With revised legislation in 1960, the Norwegian local employment offices were, after 1962, organized under the state. Grønlie (1991) mentioned several municipal pioneer efforts on a number of welfare areas from 1890–1920: the school sector (e.g., social measures for needy school children) (Hovland 1987), social sector and healthcare (e.g., municipal hospitals, nursing homes, old age homes), the cultural field (e.g., public libraries), employment services, municipal housing

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construction, tax offices, and the great social security initiatives. Among these, the Oslo Social Security Program became the template for the national old age pension program nearly 20 years later (Hatland 1987). However, the first municipally-financed age pensions came in 1916 in the rural municipality of Stor-Elvdal (Hovland 1987). In the 1940s and early 1950s, there was a strong movement for new municipal (social) insurances. In-need groups who fell outside of the social security system (people with disabilities, tuberculosis, widows, and single parents) were perceived as an important municipal welfare issue in many municipalities (Grønlie 1991). However, the peak of the welfare municipality was probably in the second expansion phase after World War II (in some cases already in the 1930s) until the late 1960s (ibid). The municipalities became school pioneers by establishing types and social measures in schools that were not statutory (Grønlie 2004), or what amounted to a large expansion of the welfare municipality. In more recent years, individual municipalities have been pioneers for other reforms: cash support (in Norwegian: kontantstøtten) had its municipal pioneer in Eidfjord and Bærum, school starting for 6-years-old children came first in Bærum, and Sund municipality was a pioneer for the school-leisure program (ibid, 648). In sum, the examples connected to this role are about pioneering, initiating, and financing new or better services but also mediating international trends. The examples are mostly similar to what, for example, McVoy (1940, 220) saw as indices of social innovation. In many of these cases, the state eventually regulated and codified these services, representing the diffusion from individual pioneering municipalities to others.

THE EXAMPLE OF HEALTHCARE We briefly mentioned that many municipalities, around 1890, established old-age homes, nursing homes, and the beginnings of primary healthcare. Schemes such as free school, dental care, and school doctors came to some places in this period, too. Local governments, then, have been

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central in establishing local hospitals, health centers, medical centers, healthy life centers, and a new type of acute bed units.

Hospitals Local governments played an important role in hospital expansion initiatives, that is, setting up new hospitals, often in collaboration with humanitarian organizations and the state. In the period from 1900–1930, the number of hospitals increased from 45 to approximately 200 (Grønlie 2006). In 1930, 71% of beds in general hospitals in Norway were owned by local authorities (ibid, 193). Although, 9% of these were jointly owned with counties. For example, between 1946–1963, the share of hospital beds owned jointly by local authorities and counties grew from 7% to 27%, meaning that a collaborative mode for organizing hospital care was expanding, and in the 1960s, the counties were in an increasingly prominent position (ibid, 196). But, as Grønlie (2006) pointed out, “The most important role in hospital building and expansion was played by municipal authorities” (193). In many cases, the municipal authorities used resources from the entire local community, including public, private, and voluntary actors (e.g., women’s organizations). Three different examples of this can be seen in Sarpsborg, Gjøvik, and the county of Vestfold. The hospital in Sarpsborg, opened in 1901, had been established by the Alderman Committee in 1897. Gjøvik hospital opened in 1925 and was taken over by the county council in 1945. Between 1923– 1925, the mayor of Gjøvik was an important driving force in establishing the Common-Municipal Hospital of Gjøvik, and he was able to speed the process up as well as collaborate with neighboring municipalities (Vardal, Vestre-Toten) and the Raufoss Ammunition Factories (Wang 2000, 9). This was the city of Gjøvik and its districts’ first joint project; other resources in the early phase were district doctors, Gjøvik Red Cross, and one large private donor who was the city’s wholesaler. While the hospital in Gjøvik was a result of more bottom-up collaborative effort, the initiative to establish the United Hospitals of Vestfold came from the Norwegian Health

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Directorate. However, mayors and municipal leaders, different medical leaders, as well as leaders in the county councils participated in the planning committee that came up with the organizational design and the governance structure of this “inter-municipal company/association” that was later both supported in the county council as well as with a royal resolution in June 1948, which lasted until 1964 (Skaare 1959, 3–7).

Health Centers and Medical Centers In rural Norwegian districts, the cottage hospital or the health center was a cheaper solution. For example, the first health center in Alta (established 1971) was a horizontal integration of different health and social services, delivered by either the county or municipality in a collaboration between these two authorities. By 1975, 11 municipalities in Norway had established different health centers, some with integrated physical health, social insurance, and social services (Pedersen 2013). In the 1970s, the centers represented a new way of delivering services and a departure from earlier practices. Later, a new type of center emerged and included collaboration with specialist healthcare in the form of decentralized (ambulatory) specialist healthcare. These centers, called district medical centers, were often inter-municipal. Examples of this are found in Fosen (seven municipalities), the northern part of Gudbrandsdalen (six municipalities), Valdres (six municipalities), and Alta. These were different partnership constructions. In some cases, other services were co-located within them (e.g., dental care from county councils in Valdres) and, in a few cases, owned by municipalities and county councils or hospitals together. In the late 1990s, a much smaller and new type of center emerged in public health and prevention. The first Healthy Life Center (in Norwegian: frisklivsentral) was established in 1996 in Modum municipality. By 2008, 42 municipalities had established such centers. In 2016, 264 municipalities and town districts had implemented such centers.

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The Coordination Reform of 2012 This reform represents a contemporary example of how municipalities are considered an important source of new solutions. The reform was concerned with the redistribution of healthcare, as well as having an emphasis on cooperation, coordination, and prevention. Several tasks within health care were transferred from the state-owned health enterprises to the municipalities. The reform had both domestic and international sources of inspiration (Pedersen 2013): The domestic sources described in the reform were solutions introduced by some municipalities, including the district medical centers (now renamed local medical centers), municipal acute bed units (later described as one of the key measures of the reform), Health Life Centers, and partnerships or other forms of collaboration in public health and preventive care, such as regional partnerships in public health. Many of these were already in operation before the reform and are partnership agreements between the county councils and municipalities in the area. The local medical center was another recommended and new organizational solution in the reform. In this center, services are provided both by municipal and specialist healthcare. Though the term was new, its function and tasks were not. Earlier district medical centers had performed essentially the same task. One could further argue that it had an organizational precursor in the health centers of the 1970s, though these varied greatly in what services they provided. These new local medical centers also reflected the earlier practice with decentralized specialist healthcare—either through ambulatory care or telemedicine. For example, decentralized specialist healthcare had been experimented with in four municipalities in Valdres and one hospital between 1973–1978 (Bruusgaard 1978). The local medical center became, in most cases, the preferred intermunicipal solution (Pedersen 2013) and has been studied as an example of inter-municipal innovation (Magnussen 2016). The last organizational solution in connection with the reform, the municipal acute bed units, has garnered international attention (Swanson and Hagen 2016). They were implemented as part of the Coordination Reform of 2012, with the explicit goal of treating patients, “who otherwise would

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have been admitted to hospitals,” with “equally good or better quality for selected patient groups than what a general hospital would offer” (ibid, 1). This practice became mandatory to all municipalities in 2016, which the municipalities met by organizing the facilities in different ways, such as municipal or inter-municipal units or locating them in different types of other units (nursing homes, local medical centers, health houses, emergency rooms, cottage hospitals, and even hospitals) (Skinner 2015). The domestic sources of inspiration were extant arrangements for acute help in the Fosen district medical center, as well as “cottage hospitals” in Finnmark and Hallingdal (ibid). For example, in Fosen municipality, the acute services (three acute beds) were organized in an intermediary department in the medical center. Some studies have claimed that these units represent a reinvention of the cottage hospital (Skinner 2015; Swanson and Hagen 2016). The purpose of these units was to establish more suitable and costeffective healthcare solutions as an alternative to acute specialist care, and Swanson and Hagen (2016) indicated that these new practices are steps in reaching such goals.

CONCLUSION Based on a commonly used definition of innovation, this paper has surveyed examples of municipal innovation and identified three roles municipalities have played over the decades. The innovative examples are from different time periods after 1837. The examples vary in whether they are only attempted innovation or innovation that is widespread (e.g., innovation connected to the role as a welfare pioneer). Municipal acute bed units, in connection with the Coordination Reform of 2012, nicely illustrates the arguments of the paper. Municipalities have pioneered many of the new solutions that were included in this reform. Norwegian municipalities are now in the middle of municipal reform that may result in them growing into much larger entities in a few years. Will they begin to innovate in different ways? The theoretical contribution of this

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paper is that the three identified roles can be turned into hypotheses of future innovation patterns.

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Scope for Local Adaptation]. Tidsskrift for omsorgsforskning 1 (2): 131144. Slappendel, C. 1996. “Perspectives on Innovation in Organizations.” Organization Studies 17 (1): 107-129. Swanson, J. O., and T. P. Hagen. 2016. “Reinventing the Community Hospital.” British Medical Journal 6: 1-9. Tarde, G. 1903. The Laws of Imitation. New York: Henry Holt and Company (Forgotten Books). Teigen, H. 2007. “Kommunane som nærings- og innovasjonsaktørar” [The Municipalities as Business and Innovation Actors]. In Innovative Administration, edited by R. Rønning, and H. Teigen, 146-174. Bergen: Fagbokforlaget. Thompson, V. A. 1965. “Bureaucracy and Innovation.” Administrative Science Quarterly 9: 1-20. Torjesen, D. O. 1996. Mellom byråkrati og flerbrukere [Between Bureaucracy and Multi-users]. Oslo: Statskonsult. Vinje, E. 2014. De norske baseskolene. [The Norwegian Open Schools] PhD dissertation, Aalborgs Universitet. Wang, T. 2000. I trass og tro: Sykehuset i Gjøvik 75 år [In Resistance and Faith: The Gjøvik Hospital 75 Years]. Gjøvik: Oppland Sentralsykehus. Wolfe, R. A. 1994. “Organizational Innovation: Review, Critique and Suggested Research Direction.” Journal of Management Studies 31: 405-431. Wolman, H. 1987. “Innovation in Local Government and Fiscal Austerity.” Journal of Public Policy 21 (2): 309-24. Yin, R. K. 1979. Changing Urban Bureaucracies. Lexington, MA: Lexington Books. Yin, R. K., and D. Yates. 1975. Street-level Government: Assessing Decentralization and Urban Services. Lexington, MA: Lexington Books. Yin, R. K., K. A. Heald & M. E. Vogel. 1977. Tinkering with the System: Technological Innovation in State and Local Services. Lexington, MA: D.C. Health.

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BIOGRAPHICAL SKETCH Tor Helge Pedersen Affiliation: Inland Norway University of Applied Sciences, Inland Business School, Lillehammer Education: PhD in Political Science, 2009. Research and Professional Experience: Pedersen has worked at what is now called Inland Norway University of Applied Sciences since 2001. He has broad teaching experience in public administration, change management, organization design, and organization and leadership. Research areas: Public administration, organizations and innovation. Examples of publications from the Last 3 Years: Pedersen, Tor Helge 2018. The Institutional-Organizational Legacies of the New Deal: The Example of the Tennessee Valley Authority, in Keynesian Policies – A New Deal in the European Narrative. Edited by Noralv Veggeland. New York: Nova Science Publishers. Pedersen, Tor Helge 2016. From King’s Controller to trust builder and guardian of civil rights. In Trust, Steering and Control, edited by Høyer, Hans Christian, Kasa, Sjur & Bent Sofus Tranøy. Oslo: Universitetsforlaget.

In: Public Administration Editor: Frederik S. Møller

ISBN: 978-1-53617-634-6 © 2020 Nova Science Publishers, Inc.

Chapter 3

WHAT IS THE SOCIAL IMPACT OF RESULTS-BASED MANAGEMENT? LIMITS OF THE MODELS IMPLEMENTED IN THE BRAZILIAN SUBNATIONAL UNITS Lorena Madruga Monteiro* Postgraduate Program in Society, Technologies and Public Policy, Tiradentes University Center, Maceió, Alagoas

ABSTRACT This article analyzes the criticisms and limits of the results management model implemented in the Brazilian subnational units, based on the specialized literature and three case studies (Alagoas, Pernambuco and Sergipe). It should be noted that the limits of this management model, such as its normative design, the centralization of decision makers and the difficult measurement of results, means that each case has diverse results and experiences. *

Corresponding Author’s E-mail: [email protected].

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Keywords: management by results, Alagoas, Pernambuco, Sergipe

INTRODUCTION Since the experience of results-based management carried out in the State of Minas Gerais in 2003, many Brazilian states and municipalities have contracted this management model. The issue of the reform and modernization of publicmanagement in the subnational units entered the public agenda, on the one hand, as a result of the National Program of Support for the Modernization of the management and Planning of the States and the Federal District (PNAGE), and the Program for Modernization of the External Control of Brazilian States and Municipalities (PROMEX) (Abrucio 2007), implemented during the first Lula administration, and, on the other hand, by the Competitive Brazil Movement (MBC), led by businessman Jorge Gerdau, assisted by Vicente Falconi’s consultancy, by the results-based management model. The Competitive Brazil Movement (MBC), which brought together a number of businessmen and consultants, sensitized public decision-makers, leaders of the executive, the judiciary and the legislature, through advocacy activities, to institute the “Mixed Parliamentary Front for the strengthening of Public Management” in 2012, which disseminated the idea of resultsbased management in Brazilian sub-national units as the best model for improving public spending and, consequently, for economic development. This management model disseminated by the MBC in Brazil is based on the premise that good management requires a calculated balance between resources and expenditures; competition among service providers; the establishment of goals to be achieved; financing results to achieve substantial public objectives; generating revenues; decentralizing activities; and guiding the government to the market (Osboune and Gaebler 1995). Therefore, these are not new ideas; they refer to those arising from the fiscal crisis of the 1970s that led several countries to adopt fiscal austerity measures, to contain public spending and to encourage public productivity, and which were updated in the recent European crisis.

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Faced with this context, this article problematizes from the specialized literature and three case studies the criticisms and limits of the results-based management model. The choice of cases was based on the fact that they were implemented in the same period, starting in 2007, by governments of political parties distant in the ideological spectrum (PSDB, PT and PSB), financed by loans from international organizations, as well as their implementation was driven by the ideas of the Competitive Brazil Movement. Based on the partial results of two studies that analyze the social impact of public management reforms in Alagoas, Sergipe and Pernambuco and on the specialized bibliography, the limits of this management model are exposed, such as its normative design, the centralization of decisionmakers and the difficult measurement of results.

REGULATORY LIMITS OF MANAGERIALISM AND MANAGEMENT BY RESULTS AND THE ISSUE OF PUBLIC SPENDING State hypertrophy, uncontrollable public deficit, were some of the issues that neoliberal governments from the 1970s tried to solve from the implementation of a reformist pro-market agenda, aiming at reducing the size and capacity of the State, its intervention in the economy and the restructuring of its organizational apparatus. In this sense, the adoption of New Public Management (NPM) was developed from the following [....] The evaluation of the success or failure of the public administration changes and is now trivialised by criteria close to those used in private administration..... From an initial orientation focused on the search for efficiency and the reduction of public spending, the reformism associated with NPM advances and addresses issues such as the focus on results, the quality of services provided. (Carneiro and Menicucci 2013, 139)

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According to Pollitt and Bouckaert (2002), although the principles are similar in the reforms implemented since the 1970s, their normative strategies differ. The first experiences of management reforms took place in member countries of the Organization for Economic Cooperation and Development (OECD). According to Ormond and Löffleur (1999, 97) reforms have occurred “in a wide variety of ways and in diverse contexts involving completely different national concerns and needs. Given this challenge, and the normative character of the discourses of managerial reforms, the new public management was considered “an empty screen”, because each experience had its own pattern, which hinders an evaluation of the model (Ferlie et al., 1999), and thus Unlike the Anglo-Saxon countries, the reforms did not bring major changes in the role of the State and its relations with the market and civil society, focusing on initiatives aimed at improving public management, in search of greater responsibility and improved performance. Attention is directed to localized changes in areas considered strategic. (Carneiro and Menicucci 2013, 153)

In addition to the Anglo-Saxon and OECD countries, some experiences with these management principles occurred in Latin America, however, “the efforts undertaken focused more on reducing costs than on promoting improvements in the performance of the public sector as they were mainly motivated by purposes of a macroeconomic nature, with emphasis on fiscal adjustment” (Carneiro and Menicucci 2013, 154). Moreover, despite having developed mainly in Anglo-Saxon countries and in OECD member countries, when reproduced in Latin American countries “it has come to represent the needs of the most diverse companies andgovernments, thus transcending the local historical and cultural matrixes” (Paula 2005, 38). However, although these experiences are based on normative principles and similar parameters, those of the market, implemented by governments considered neoliberal, “these administrative reforms consolidate new discourses and practices derived from the private sector and use them as references for public organizations in all spheres of government” (Secchi 2009, 348). On the other hand, New Public Management (NPM) emerged,

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also associated with a conception of bureaucratic state failure, alternatives, discourses that differentiate the experiences implemented, such as entrepreneurial government and the public governance movement (Secchi 2009). These new discourses, models, emerged from the 1990s, when the New Public Management began to be questioned, especially its results. In addition to the entrepreneurial government and the public governance movement, the orientation of the public service stands out as alternative models. Table 1. Management by objectives x Management by results Management by objectives Top-down approach Emphasis on objectives Linear management process Does not develop strategic management There is no link between management and labour policy Organization of the work of tayloristic type Source: Elaborated from Silvestre (2010).

Management by results Top-down approach Emphasis on results Linear management process Develops strategic management Management coupled with work policy Organisation of post-taylorist-type work

Public management by or for results is one of the recipes present in the ideas of New Public Management. Its first formulation refers to the work of Peter Drucker, published in 1954, in which he elaborated two expressions: Management by objectives, and management by results. According to Silvestre (2010, 174), management by objectives is differentiated by results in terms of emphasis of action. While “management by objectives focuses on the formulation and decision of objectives”, without giving special weight to control, monitoring and performance, management by results “favours a permanent and continuous feed-back of the entire organizational system, rather than the single formulation of objectives”. The table above systematizes the differentiation established by Silvestre (2010). Therefore, it is models that depend on the top-down bureaucracy that differ in the way in which the public organisation is run and in its emphases. Although the objective-oriented model has been applied in some countries and has the same nature as the results model, we are interested in further

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detailing the results model because it is the model that has been applied in Brazil recommended by international agencies. The idea and experience of public administrations based on resultsbased management has changed over time. Therefore, it is not a ready-touse model, its characteristics and strategies have changed in each concrete experience. However, only in the last two decades have its concepts started to be discussed and elucidated in the relevant literature. CLAD (2007), for example, understands management by results as a conceptual framework whose function is to facilitate public organizations to manage, in an effective and integrated manner, the creation of public value, achieving the government’s objectives and the continuous improvement of institutions. According to Bouckaert and Halligan (2007), the management by results should guide all government actions, aiming at the best performance of all areas. This performance is measured from a matrix model, in which it is verified if the allocated resources (inputs) had results (outputs) and the strategic impacts (outcome) of this objective. The literature on management by results can be grouped into two distinct arguments. On the one hand, those who maintain, based on the analysis of specific cases, that the idea of controlling results leads to dysfunctional public management, and thus the “application of NPM techniques sometimes produces a considerable increase in efficiency, but on other occasions we find disappointments and even perversions” (Pollitt and Gaebler 2002, 22), and on the other hand, those who consider the model appropriate but who effectively do not implement it correctly because, by emphasizing the measurement of performance, they end up making mistakes in choosing the problems (Bouckaert and Halligan 2007).

PUBLIC EXPENDITURE AND MEASUREMENT OF RESULTS IN PUBLIC MANAGEMENT The debate and discussion on the quality of public spending and the measurement of results in public management goes back to the 1990s, driven

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by the agenda of the World Bank and the International Monetary Fund (IMF). However, on the issue of public spending “these international bodies have been emphasizing the quality of public spending, not simply cutting public spending. Both have been committed to introducing the theme “quality of public spending” in the reform agenda of the State of several countries, including Brazil” (Alonso 1999. 37). However, in Brazil, while management projects based on the measurement of results have been experienced since the 1990s at the federal level, through State reform, and in the 2000s in subnational units, the issue of directing public management spending is a recent and permanent debate that refers to “the fiscal crisis of the State and the exposure of domestic markets to international competition have imposed the need for State reform to privilege the quality of public spending” (Alonso 1999, 43). Recently, issues related to state capacity and quality of public spending have been analyzed at the state level. On the one hand, analysts privilege the debate on the efficiency of spending and its reduction, and on the other hand, those who argue that “to the extent that it is demonstrated that the improvement of social indicators is a consequence of the increase in public spending in the social area, these expenditures become politically justified” (Bresser Pereira 2004, 11). The debate on public spending in state administrations was boosted by the Fiscal Adjustment Programme, the complementary law on Fiscal Responsibility, the National Support Programme for the Modernisation of State and Federal District Management and Planning (PNAGE) and the Programme for the Modernisation of External Control of Brazilian States and Municipalities (PROMEX). To answer these questions, many states have implemented results-based management models to adjust their accounts and improve their social indicators. In relation to the debates on New Public Management, from which result management models derive, Pacheco (2009, 12) summarizes the current debate. [....] One of the groups as efficiency advocates (or cost minimizers), the other as reformers seeking to improve public sector performance (results maximizers); the first group uses mechanisms of punishment and

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Lorena Madruga Monteiro rewards according to the performance achieved; for the second, the target is relationship-based learning as a way to achieve better results (Pacheco 2009, 12)

Therefore, the implementation of management models by results is a reality for several states of the Brazilian federation. However, although disseminated in several public administrations, their assumptions have not yet been evaluated. The impact of spending or its reduction on social indicators needs to be measured. The case of the management experience by results in Sergipe, presented below, represents a case of reduction of expenses, with the concern of maintaining parcels of well-being for the population, although the impact has not been measured in terms of social indicators.

COST REDUCTION AND REVENUE GENERATION IN THE PROGRAM “MODERNIZING PUBLIC ADMINISTRATION” OF THE STATE OF SERGIPE The Modernizing Public Administration program was the result of a partnership between the state government and the Competitive Brazil Movement, with the assistance of the Management Development Institute (IDG). It followed the prescription of the international literature based on the reduction of spending for wealth generation, but preserving social welfare. This program, implemented in 2007, had as its “goal the increase of the State’s investment capacity in up to R$ 127 million, for the first 17 months of work [...]” (Teles et al. 2009, 03). According to a statement by the governor at the time, Marcelo Déda, of the PT, the objective of the program [...] was to promote managerial advances without neglecting the fulfillment of the essential role of the State, which is to promote social well-being. We never wanted to fall into what I call the ‘fetishism of the method’, that is, the management shock driven only by the spirit of bureaucracy. We have

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made the shock a tool for fulfilling the commitments made to society, legitimised by the mandate that the Sergipe have given me.

According to Teles et al. (2009), the expense management matrix was created, which aimed at reducing and controlling current expenses, and the revenue management matrix, with the objective of increasing revenue collection, mainly via ICMS and IPVA. According to an article published in the media during the period of implementation of management by results in Sergipe, Governor Déda pointed out that, until then, there had been noncompliance with the Fiscal Responsibility Law, which made it difficult for the State to access credit operations and transfers of funds, in addition to unregistered payments. Thus, for Governor Déda, an anachronistic management culture existed in Sergipe, which wasted public resources. Management by results was implemented in the State of Sergipe, initially in four secretariats considered a priority: Administration, Education, Health and Public Safety. During the course, the other state agencies were incorporated, totaling, at the end, 20 secretariats and state entities included in the program (Teles et al. 2009). According to Teles et al. (2009), 2007 was a year of planning and monitoring in the secretariats involved in management by results to define the necessary actions. The goals established, from the INDG consultancy, were: 1) improved quality of service; 2) increased revenue, without tax increase; 3) reduced expenses, without reducing services; 4) Valuation of the civil servant (Teles et al. 2009). Based on the identification of the items with the highest expenses, it was characterized the expense packages that should be controlled and monitored by the matrix management of expenses, such as: Food, fleet, leasing of machinery and equipment, real estate, maintenance, conservation, cleaning and surveillance, various materials, medicines and health materials, personnel, advertising and propaganda, third party services, medical services, IT and reprography, utility, taxes and fees, travel and representation (Teles et al. 2009). Based on this, the goals to be followed and the monthly monitoring stages were agreed upon, through the monthly and accumulated expenditure monitoring matrix of each agency, the three-generation report, which

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controls what was done and provides for future actions to correct the deviations from the process. All these matrices have constantly strengthened, fed and modified the strategic action plan through the action plan manager. Adopting these strategies from “October 2007 to September 2008, it presented a real gain for the State of Sergipe in the amount of R$ 160.6 million” (Teles et al. 2009, 14). According to Teles et al. (2009, 17) Not only did the GMD achieve its main objective of controlling and reducing expenses, but it also allowed all the agencies involved to develop a practice of better management of their expenses. The use of the methodology, which provides for the weekly updating of the action plans and the holding of follow-up meetings with the presence of the leaders of the Secretariats and the Government, promoted the continuous learning of the processes and the dissemination of the best practices.

The joint work of the INDG consultancy with the secretariats prepared the managers to continue the management model implemented. Governor Déda himself was enthusiastic about the management model, and its continuation, as illustrated by his speech: “[...] the ‘bedside book’ of the secretaries must be the strategic planning of the State Government and that will personally accompany the projects of each portfolio and their results”. As well as its assessment of the partnership with MBC: [...] The work with MBC exceeded even the most optimistic forecasts. If in the beginning the goal was to save R$ 40 million and increase revenue by R$ 87 million, the results achieved added up to a saving of R$ 161 million and an increase in revenue of more than R$ 142 million.

The Program modernizing the Public Administration of the State of Sergipe, in addition to controlling public accounts, made it possible to attract investments and loans to the State. This new configuration marked the second phase of management by results in this state expressed in the Sergipe program, government of all, described in the Multiyear Plan (PPA) from 2007 to 2010 and in the 2010 to 2015.

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CENTRALITY OF DECISION-MAKERS IN THE IMPLEMENTATION OF RESULTS-BASED MANAGEMENT AND THE ISSUE OF MEASURING RESULTS The implementation of management models occurs from the top down, such as “Top Down” policy implementation models. According to Melo e Silva (2000), a government policy implementation program reflects “a game of a round where government action, expressed in intervention programs or projects, is implemented from top to bottom” (Silva e Melo, 2000, 05). Therefore, the implementation depends on the action of managers linked to the government hierarchy, public administration, constituting a prospective perspective of government policy and program, and not of a state policy. According to Najan (1995), several models of implementation of public policies and government programs have in common the need for interorganizational communication of policy norms, activities and resources that depend on the disposition of implementers and the characteristics of implementing institutions. In other words, for a policy or management program, once formulated, to be successfully implemented, one must consider how the activities are distributed, communicated, organized and understood by the implementers and the executing bureaucracy (Monteiro, 2016). As in the process of implementing public policies, the implementation of a management program [...] presupposes a naive and unrealistic view of the functioning of public administration, which appears as a perfect operating mechanism, where it would be possible to ensure the reliability of the implementation to the design initially proposed” (Silva and Melo, 2000, 8). In the case of programmes for the contractualisation of results or management by results, a series of problems arise in their implementation, such as [...]unambitious goals, failures in the supervision of the fulfillment of goals, non-inclusion in the contract of important activities of the agency,

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Lorena Madruga Monteiro vague objectives, non-existence of sanctions for unfulfilled goals, greater influence of the agencies than of their supervisory bodies in the preparation of the results contracts (or the persistence of asymmetry of information, between the entity providing services and the body responsible for public policy before society) [...]. (Pacheco 2004, 02)

The issue of setting targets, in addition to the other problems highlighted by Pacheco (2004), is one of the problematic points in the implementation of results-based management. On the one hand, the managers of the higher hierarchy “may not want to define a priori the results to be achieved” (Pacheco 2004, 06), and on the other hand, given the concrete ignorance of the organizational and societal reality that want to intervene and generate impact, the managers are in doubt between “the contracting of previously specified services (outputs) or the effective contribution to the resolution of a problem (outcomes)” (Pacheco 2004, 06). According to Pacheco (2004) who analyzed the experiences described by Sylvie Trosa, who participated in management reform in France, the United Kingdom and Australia, [...] both forms of contractualisation are important, since they answer two different questions. The contract formulated based on the outputs allows to know what is effectively produced with the public resources; the concern with outcomes or impacts allows to inquire about the effectiveness and usefulness of what is produced.” (Pacheco, 2004, 06-07)

According to Pacheco (2004), the reading of Sylvie Trosa suggests, ideally, first to hire the services, as a way to measure the performance of the public organization, and from there, establish the goals or expected results (results), which with the knowledge of the products, will be less ambitious. However, despite this ideal suggestion, the problem lies in the measurement of the goals and desired results (outcomes). How to know, to isolate, in a given reality, those variables that really affect the situation we want to change. For Pacheco (2004, 07), the issue of measurement demands an evaluation-type procedure of public policies, much more complex “than the hiring of results”.

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These models are based on targets that must be accompanied by improvements in social indicators. However, in the absence of in-depth and longitudinal studies, there is little impact on social indicators in the contexts in which such models have been implemented. Therefore, until then, it can be considered that these organizational models are based on norms, revenues from the private sector that have little impact on public management. Therefore, the implementation of management models by results is a reality for several states of the Brazilian federation. However, although disseminated in several public administrations, their assumptions have not yet been evaluated. The impact of spending or its reduction on social indicators needs to be measured. Below is a description of the models implemented in Pernambuco and Alagoas that reiterate many of the problems pointed out by the bibliography in relation to management by results.

THE CENTRALITY OF THE DECISION MAKER IN THE “PACT FOR LIFE” IN PERNAMBUCO In the State of Pernambuco, the implementation of the results-based management program “Todos por Pernambuco” began in 2007, and in the area of public security the “Pact for Life” was implemented during the term of office of Governor Eduardo Campos, of the PSB. Eduardo Campos had a researcher in the area of Public Security appointed to advise him, the professor of the Federal University of Pernambuco, Luis Ratton. In mid-May 2007, the Pacto pela Vida security policy was made official. His plan included some lines of action, such as: 1) Qualified repression of violence (improvement in victim care, optimization of ostensive policing resources, criminal investigation); 2) Institutional improvement (modernization of the technical and operational capacity of the civil and military police, the prison system and the Secretariat of Social Defense); 3) Information and knowledge management (projects aimed at consolidating instruments aimed at diagnosing the state situation, planning, monitoring

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and evaluating the Pact for Life); 4) Training and capacity (integrated education plan in the State, sensitization of public security managers and operators regarding the social vulnerability of minority groups, training in the use of less lethal weapons, training of public security managers, dissemination of the culture of harm reduction in the repression of drug use); 4) Social prevention (multisectoral proposals aimed at inhibiting the social conditions of violence); 5) Democratic management (Implement mechanisms of social participation in the formulation of solutions in the area of public security) (Macedo, 2012). From these axes, 138 projects were prepared that became programs or subprograms related to knowledge and dissemination of Human Rights, violence prevention in schools and communities, economic inclusion, mediation of conflicts in communities, prevention of violence in stadiums, promotion of culture and sports, treatment of users of illicit drugs, disarmament, strengthening of guardianship councils, protection of victims of violence, confrontation of violence and sexual exploitation of children and adolescents, planning of safe urban spaces, creation of the State Public Security Council and incentive to the formation of municipal councils, realization of the 1st State Conference on Public Security of Pernambuco, State Public Security Forum (Macedo, 2012). According to Ratton, Galvão and Fernandez (2014, 12) The first task of the newly created Governor’s Public Security Advisory Office was to coordinate the process of developing two products: a diagnosis of violence in the state and, based on this diagnosis, a State Public Security Plan (PESP-PE 2007). This plan was built during the months of March and April 2007, based on the systematization of the debates that took place in the State Forum of Public Security. The State Public Security Forum was the space created for debate with the listening of civil society and had two moments: the technical chambers and the plenary.

Based on this diagnosis and the discussions of the First State Public Security Forum, at the end of 2007 the components of all the thematic chambers and the high level of government defined, in plenary session,

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among all the projects presented, the focus of the policy: the reduction of homicide rates. According to Zaverucha and Nóbrega Júnior (2015), despite not having a scientific explanation, the goal set was to reduce homicides by 12% per year. This goal had been built upon international indicators, not upon the reality of the State of Pernambuco (Macedo 2012). According to Ratton, Galvão and Fernandez (2014, 14) The target of reducing the CVLIs rate by 12% per year has become a regulatory element in the management of the Pact for Life. In a way, the goal points to the type of city and society that one wanted to build in Pernambuco. It is important to highlight that the legitimacy of the target was also a value in dispute at the beginning of2007. The establishment of this goal was resisted both by sectors of police organizations and by sectors of civil society in Pernambuco. But the Governor supported this idea and the need to establish a mechanism that would enable the implementation of a results-based management model.

However, between 2007 and 2008 the homicide rate was reduced by only 4.4%, which generated a certain reaction of society to the Pact for Life, including the creation of a blog that updated the number of homicides daily. In the evaluation of Macedo (2012, 83-84) in this period [...] the action plan that the endorsement does not indicate a certain direction, since the 138 projects foreseen cover a wide scope of action, with deadlines, often unfeasible. In this sense, the historical condition of the State leadership in relation to crime indicators would require the election of priority focus, to be made explicit in the referenced text, making the adoption of a multisectoral and comprehensive plan problematic and unenforceable in a context of scarce economic resources.

Covenant II began in mid-2008 and is defined, according to Zaverucha, by the greater involvement of the governor and by the hiring of advice from the Institute for Management Development (IDC). Macedo (2012, 87) reaffirms, in plan II, the importance of the political will of the governor: “the policy starts to present more expressive favorable results when the governor is more directly involved in the course of implementation and negligence

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part of the actions planned, choosing priorities from a look at successful national and international experiences of crime reduction”. In the evaluation of Rocha (2016, 11) the centrality of the political will of Governor Campos was determinant of the result of the program, as transcribed below: The success of the program can be largely attributed to the decision or political will of the chief executive to elect public security as a priority in his management, with the creation of a special Advisory Office for the public security area, the hiring of a researcher with experience in the area of security and the adoption of institutional reforms in the police forces, such as the modification of the selection criteria.

One of the most reiterated aspects of the central role of the governor in the search for permanent political actions for the reduction and control of homicides was his participation in the weekly meetings of the Pact’s Steering Committee, together with the coordinators of the sectorial chambers, the support teams of the social defense secretariat, and the planning and management secretariat, as well as the high leadership of the civil and military police, the fire department and the expert bodies. In the institutional analysis undertaken by Zaverucha and Nóbrega Junior (2015) on the factors that led to the reduction of homicides during Pacto pela Vida II, the authors highlight other aspects besides the centrality of the decision-makers in the conduct of the program, but, of course, that depended on their positions. One of the factors was the increase in the number of Military Police that “was 25% between 2007 and 2009, which made its number jump from 199 police officers per 100 thousand inhabitants to 255/100 thousand, exceeding the threshold recommended by the UN (Zaverucha and Nóbrega Júnior 2015, 241). Another was the investment in police intelligence. As well as the joint action of several government departments, under the coordination of SEPLAG, as highlighted by Ratton, Galvão and Fernandez (2014, 14) The fact that SEPLAG is in charge of the technical coordination of the steering committee reveals the role of the government’s brain that this secretariat assumes in the management of Eduardo Campos. And it also

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indicates, when it comes to Public Security, a conception of policy that is not restricted to the police, but involves other government secretariats and the articulation with other powers. It also symbolizes and reinforces the governor’s personal commitment to the topic. The PPV management model, therefore, has a governance dimension - an element of power and political leadership - and management.

The management model implemented, as well as the leadership of decision-makers, according to the analyses of the Pact for Life policy, was decisive for the positive results achieved, such as the reduction of the homicide rate by 39% from 2006 to 2013 in the State of Pernambuco. Therefore, in this period, the reduction in homicide rates was significant, contrary to the subsequent period, which began to grow again. It should be noted that the most expressive period is that still conducted by Eduardo Campos, under the guidance of Luiz Ratton. Therefore, this evidence reinforces the thesis of the importance of decision makers in conducting the program for more effective results.

THE ISSUE OF GOALS AND MEASURING RESULTS IN THE “ALAGOAS IS IN A HURRY” PROGRAM Teotônio Vilela, in his first year as governor of the state of Alagoas, in 2007, carried out an administrative reform that reduced the number of secretariats from 47 to 17, and implemented, in 2008, the Results Oriented Strategic Management (GEOR). According to Silva (2009), the objective of the GEOR, built in line with the PPA of 2008-2011, was to improve the quality of public spending in order to produce better social results in the State. The implementation of GEOR was driven by the recommendations of the Competitive Brazil Movement that indicated the hiring of the company Macroplan. However, in spite of carrying out “some of the actions foreseen in the execution schedule, due to the withdrawal of the Competitive Brazil Movement (MBC), which ceased to be the sponsor and the lack of state

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funding, it was not possible to continue the structuring project” (Silva 2009, 150). As the presentation of the program Alagoas is in a hurry, in the first mandate was built the strategic agenda, based on available data, interviews with government members and leaders, and guidelines from the governor. This strategic agenda was constructed, analyzed, and discussed with the government’s principal secretaries and deputies during the Strategic Planning Workshop held in July 2007. Table 2. Targets, indicators and expected results of the “Alagoas is in a hurry” programme Operating concern Improved quality of life

Indicators

Medium-term strategies

Human Development Index (HDI) Homicide Rate Infant mortality rate Evolution of life expectancy at birth Rate of coverage of sewage and piped water networks

Human capital development

Coverage of early childhood, primary and secondary education Basic education development indices (IDEB) Distortion rate Age/Serial

To regionalize and expand health care, with a focus on reducing child mortality Increase the effectiveness of primary health care services Stepping up coordinated actions to combat crime Expand investment in basic and social infrastructure, with emphasis on sanitation Provide attractive primary and secondary education for all Support municipalities in expanding the supply of early childhood and elementary education Expand the supply of vocational and technical education articulated with the productive sector Attracting investment to economically depressed regions Promote productive inclusion actions Reduce illiteracy and increase the schooling of young people and adults

Eradication of indigence, reduction of poverty and inequality

Proportion of people living below the extreme poverty line Proportion of people living below the poverty line Youth illiteracy rate Income concentration index Participation of young people in the labour market Growth, GDP growth per capita coordination Rate and unemployment and economic Spatial coordination of economic diversification activities Sectoral distribution of state GDP

Improving the business environment and attracting businesses Expand tourism Expand infrastructure Increasing the productivity of family farming, livestock, aquaculture, and the milk production chain Individual entrepreneurial support

What Is the Social Impact of Results-Based Management? Operating concern New institutions and renewal of Public Management

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Medium-term strategies

Evolution of consolidated debt, net Strengthen the planning and management cycle current revenue with emphasis on modernization and Personnel expenses, as a computerization of public services. proportion of net current revenue Consolidate the process of public finance Citizen satisfaction with the management with an emphasis on reducing services provided by government expenditure and increasing revenue. employees Contracting of non-state public organisations Staff satisfaction with government and concessions to private initiative human resources policies Valuation of servers Valuing the Satisfaction of Alagoas with the Public policies to strengthen ethics, citizenship image and government of Alagoas and human rights cultural Image of society in the state of Promote entrepreneurship and youth leadership changes Alagoas Source: Adaptation made by the author of PPA 2011-2016.

In the 2012-2016 multi-year plan document sent for legislative approval, it is stated that, in the period from 2007 to 2011, analyses were carried out to define priority areas in databases such as IBGE, IPEA, Ministry of Health and Education, Secretariat of Planning and Budget, Finance, among others; as well as other development plans were consulted such as the strategic planning of the municipality of Maceió, the Alagoas Master Plan, Investe Alagoas, the FICO (of the trade association of Alagoas), PAPL Alagoas Program: Development Strategies (2004). The document also states, although not named, that 31 individual interviews were conducted by the Macroplan-IETS consortium teams with the government team and representatives of segments of society in Alagoas. The defined targets refer to six priority areas of “Alagoas is in a hurry”. In these areas, according to the PPA, a series of more general measures would be implemented (although the document does not contain concrete strategies for resolving these issues, which is in fact another letter of intent) and their results monitored according to the indicators specified in Table 2. The above table shows that there is a discrepancy between the desired goals and the indicators monitored. They use result indicators (outputs), and disregard process indicators, which, according to the literature, would be the most appropriate for medium-term evaluation. Just as exteriorities are not considered either. Therefore, the results-based management model adopted

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in the State of Alagoas reflects the deficits and difficulties pointed out by the literature. In one of the last reports of the “Alagoas is in a hurry” programme, it is stated that, despite the programme’s goal of eradicating poverty, only 43.46% of the targets have been achieved. As well as the area of Quality of Life Improvement, only 43.97% of the project portfolio reached its course. According to the evaluation of Angel et al. (2016, 14) the program had little social impact, although in the “[...] more internal areas management (appreciation of the image and cultural change and innovation in public management) or those of a more economic nature (growth, deconcentration and economic diversification and development of human capital) were lacking on average less than 20% to be achieved. Therefore, the Alagoas program is in a hurry, based on management by results, and on the matrix methodology, despite having improved the internal management of the State of Alagoas, it did not succeed in its structuring goals. It is noteworthy that despite presenting itself as a State program, it was a government program with high centrality of the governor and the secretary of SEPLAC in conducting the program. In this sense, it is configured as a top-down government program, in the sense attributed by Silvestre (2010) to management programs guided by objectives or results. This defined the discontinuity of the program, which, despite having established medium and long term goals, was discontinued in the management of Renan Filho, current governor.

FINAL CONSIDERATIONS The debate on managerialism, control of public spending and management by results in the Brazilian states was driven by the Fiscal Adjustment Program, by the complementary law of Fiscal Responsibility, by the National Program of support to the Modernization of the management and planning of the states and the Federal District (PNAGE), and by the Program of Modernization of the external Control of Brazilian states and municipalities (PROMEX). To answer these questions, many states have

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implemented results-based management models to adjust their accounts and improve their social indicators. At the level of civil society in recent years, management by results has been the prescription recommended by business sectors with influence on state and municipal governments. In this sense, the performance of the Competitive Brazil Movement (MBC) in the dissemination of the contracting of this model in state public administrations, as well as in the appointment of private consultancies, is noteworthy. This brief analysis of the experiences of management by results in the states of Alagoas, Sergipe and Pernambuco reveal, in line with the specialized literature, that there is no ready prescription that leads to the same results, on the contrary, a series of variables influence the process, such as the centrality of decision makers, the planning and monitoring of processes, not only the results, among others. These issues are clear in the analysis of the three results-based management programmes.

REFERENCES Aberbach, Joel, Robert Putnam, Bert Rockman. 1981. Bureaucrats and Politicians in Western Democracies. Massachuts: Harvard University Press. Abrúcio, Fernando Luiz. 2007. “Recent trajectory of Brazilian public management: a critical assessment and the renewal of the reform agenda”. Brazilian Journal of Public Administration [online]. 41: 6786. Accessed February 20, 2008. Doi:10.1590/S0034-761220070 00700005. Alessandro, Martín, Mariano Lafuente, Ray Shostak. 2014. Leading from the center: Pernambuco’s management model. P. cm. - (IDB Technical Note; 638). Alonso, Marcos. 1999. Public service costs. Brazilian Journal of public sector, 50(1): 37-63. Accessed March 15, 2015. Doi:10.21874/ rsp.v50i1.340.

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Bouckaert, G. and J. Halligan (eds). 2007. Managing Performance: International Comparisons. London: Routledge/Taylor and Francis. Bresser-Pereira, Luiz. 2003. Political economy of social spending in Brazil since 1980/85”. Brazilian Journal ‘Econômica’, 1:101–108. Bresser-Pereira, Luiz. 2006. State Reform for Citizenship. São Paulo: Ed. 34. Carneiro, Ricardo and Telma Menicucci. 2013. “Public management in the 21st century: Pending reforms.” In: Health in Brazil in 2030: Strategic Prospecting of the Brazilian Health System: Development, State and Health Policies. Edited by José Carvalho Noronha and Telma Ruth Pereira. Rio de Janeiro: Fiocruz/Ipea/ Ministry of Health/ Secretariat of Strategic Affairs of the Presidency of the Republic. Cavalcante, Arbósio. 2006. Overcoming stagnation. How Alagoas managed to overcome the bankruptcy of the public structure, advance social issues and focus on development. Maceió: EDUFAL. Denhardt, Robert. 2012. Public Administration Theories. São Paulo: Cengage Learning. Evans, Peter and James E. Rauch. 1999. “Bureaucracy and Growth: A CrossNational Analysis of the Effects of “Weberian” State Structures on Economic Growth”. American Sociological Review, 64:48-765. Ferlie, Ewan et al. 1999. The new public management in action. Oxford University Press. Fortis, Martin. 2009. ‘Results-oriented budgeting: Instruments for democratic empowerment in Latin America”. Brazilian Journal of public sector, Brasília, 60: 125-140, Accessed February 20, 2010. Doi: 10.21874/rsp.v60i2.17. Garces, Ariel and João Paulo Silveira. 2002. Results-oriented Public Management in Brazil. Brazilian Journal of public sector, 53(4):53-77. Accessed February 20, 2008. Doi:10.21874/rsp.v53i4.294. Hood, Christopher. 1995. “The new public management” in the 1980s: variations on a theme”. Accounting, Organizations and Society, 20,:93109. Accessed February 27, 2008. Doi:10.1016/0361-3682(93)E0001W.

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Limeira, Cristina. Finances. 2006. In: Overcoming stagnation. How Alagoas managed to overcome the bankruptcy of the public structure, advance social issues and focus on development. Edited By Cavalcante, Arbósio. Maceió, EDUFAL. Macedo, Andreia. 2012. “Police whenever you want, do it! Analysis of the governance structure of the Pernambuco Pact for Life”. Phd Diss., University of Brasília. Monteiro, Lorena. 2016. “Top Down model: a reflection on the implementation of public policies and the participation of government managers “. Brazilian journal of organizational management. 3: 25-35. Doi: 10.22277/rgo.v9i3.3253. Najam, Adil. 1995. Learning from the Literature on Policy Implementation: A Synthesis Perspective. IIASA Working Paper. IIASA, Luxenburg, Austria: WP-95-061. Nascimento, Candido et al. Planning. 2006. In: Overcoming stagnation. How Alagoas managed to beat the bankruptcy of the public structure, advance social issues and focus on development. Edited By Cavalcante, Arbósio. Maceió, EDUFAL. Nóbrega Júnior, Maria Jose. 2010. “Homicides in Brazil, the Northeast, and Pernambuco: Dynamics, Causal Relations, and Public Policy”. PhD, University of Pernambuco. Oliveira, Joao. 2016. “Evaluation of the results of the pact for life and dynamics in the municipalities of Pernambuco”. PhD dis, University of Pernambuco. Ormond, Derry and Elke Löffler. 1999. “The new public management: what to enjoy and what to reject?” Brazilian Journal of public sector. 50(2): 66-96. Accessed Accessed February 20, 2008. Doi: 10.21874/rsp.v50i2.347. Osborne, David and Ted Gaebler. 1995. Reinventing the government; how entrepreneurship is transforming the public sector. Brasília: MH Comunicação. Pacheco, Regina Silvia. 2004. “Contractualization of results in the public sector: The Brazilian experience and the international debate”. Madri: IX Congresso Internacional do CLAD.

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Paula, Ana Paes. 2005. “Brazilian public administration between managerialism and social management”. Journal of Business Management, 45: 36-49. Accessed February 20, 2008. Doi: 10.1590/ S0034-75902005000100005. Pollitt, Christopher and Ted Gaebler. 2002. “Assessing public management reforms: an international perspective”. Brazilian Journal of public sector, 53(3):7-31. Accessed February 20, 2008 Doi: 10.21874/ rsp.v53i3.287. Rocha, Claudionor. 2006. “Good practices in public safety”. Legislative advice. Câmara dos Deputados, Brasília. Sechi, Leonardo. 2009. “Organizational models and public administration reforms”. Brazilian Journal of Public Administration, Rap, 43(2):34769, Accessed February 10, 2010. Silva, Genildo. 2009. Public management by result: an alternative for the development of Alagoas? Brazilian Journal of Political Economy of development, 5: 143-156, Accessed February 20, 2008. Silva, Gustavo da, José Anjo, Rodrigo Guimarães. 2016. “Which Alagoas are in a hurry? Prospects for State Reform and Modernization in State Public Administration”. Brazilian Congress of Organizational Studies. Silva, Pedro and Marcus André Melo, 2000. The process of public policy implementation in Brazil: Characteristics and determinants of program and project evaluation. Campinas: UNICAMP, Center for Public Policy Studies: NEPP, caderno 48. Silvestre, Hugo. 2010. Public Management: Models of provision in the Public Service. Escolar Editora, Lisboa. Teles, Jorge et al. 2009. Modernizing the public administration of the State of Sergipe: Matrix Management of expenses. II Consad Congress of Public Management. Brasília. Zaverucha, Jorge, Nobrega Júnior, Jose Maria. 2015. “The pact for life, decision makers and the reduction of homicidal violence in Pernambuco”. DILEMAS: Brazilian journal of conflict studies and social control. 8(2): 235-252 Accessed March 17, 2016.

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BIOGRAPHICAL SKETCH Lorena Madruga Monteiro Affiliation: Graduate Program Society, Technologies and Public Policy of the Tiradentes University Center (UNIT / AL) Education: Bachelor of Social Sciences. Master and Doctor in Political Science from the Federal University of Rio Grande do Sul. Research and Professional Experience: Researcher associated with Sergipe Institute of Technology and Research, develops research on: State and bureaucracy, public management, political sociology, public policy. Publications from the Last 3 Years: 1. Monteiro, L. M., Santos Junior, J. E. The social impact of public management reforms in the Northeast. Alagoas, Pernambuco and Sergipe in comparative perspective (2007-2013) 1. ed. Rio de Janeiro: Bonecker, 2019. v. 1. 120p. 2. Monteiro, L. M., Moura, J. T. V. Mapping the debate between public management models in Brazil. NAU - The electronic magazine of the social residence. v. 10, p. 99-111, 2019. 3. Monteiro, L. M. The social impact of public management reforms in the Northeast: Notes on Alagoas, Pernambuco and Sergipe (20072013). E&G - Economy and Management Magazine, v. 18, p. 2243, 2018. 4. Monteiro, L. M., Moura, J. T. V., Simonard, P Scales of justice in democracy: a reflection on the struggles of black youth movements and quilombolas in Brazil. In: Verônica Teixeira Marques, Perci Coelho de Souza. (Org.). Human Rights in Contemporary Democracy: Old and New Fights. Vol. 2. 1ed. Rio de Janeiro: Bonecker, 2018, v. 2, p. 16-30.

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Lorena Madruga Monteiro 5. Santos Júnior, J. E., Monteiro, L. M., Rodrigues, D. F. The model of the multiple flows of Kingdon and Public Security policies: the case of the Pacto pela Vida de Pernambuco programme (20072013). Brazilian Journal of Public Security, v. 12, p. 91-110, 2018. 6. Monteiro, L. M. Top Down Model: A reflection on the implementation of public policies and the participation of government managers. RGO. Organizational management magazine, v. 9, p. 25-35, 2017.

In: Public Administration Editor: Frederik S. Møller

ISBN: 978-1-53617-634-6 © 2020 Nova Science Publishers, Inc.

Chapter 4

THE FLOOD RISK INFORMATION USED IN SPATIAL POLICY-BASED DESIGN FOR SOCIO-ECONOMIC INTEGRATION OF THE MOST VULNERABLE PERSONS FROM RURAL AGGLOMERATIONS. STUDY CASE ROMANIA Cristina Ghe. Lincaru1,*, Speranța T. Pîrciog1, Adriana St. Grigorescu2 and Cristina St. Stroe3 1

Department of Labour Market, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania 2 Department of Public Management, National University of Political Studies and Public Administration, Correspondent Member of Academy of Romanian Scientists, Bucharest, Romania 3 Department of Social Policies, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania

*

Corresponding Author’s E-mail: [email protected].

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ABSTRACT In the context of looking for spatial integrated complex solutions (OECD 2006) regarding the poverty alleviation and social cohesion needs increasing in rural areas, we suggest a conceptual and analytical framework based on risk identification. The risk identification is in line with Domokos et al., (2015), concerning the research question: “Which are the factors that need to be present and appropriately applied for the process to be adequately managed?” The Sendai Framework for Disaster Risk Reduction (SFDRR) 20152030, was adopted by the Member States of the United Nations in 2015. Safaie et al., (2017) in support to SFDRR, states that using risk information in policy design is still a challenge. SFDRR put disaster risk on the priority for action: “understanding disaster risk in all its dimensions of vulnerability, capacity, exposure of persons and assets, hazard characteristics and the environment.” Bhatta (2008) describes the demanded “holistic framework for risk management in public policy” as a composite between empirical /factual and public context requirements. In our case study, the floods are the measurable parameters of the problem, and the public context is the focus toward large scale activation of the most vulnerable persons. We apply Spatial Analysis in Arc Gis Pro 2.3 to map the historic flood risk assessment and the rural agglomerations of the vulnerable persons. Floods are one of the highly relevant hazards for Romania. We use the historic flood risk assessment illustrated in the flood hazard map for Europe, 500-year return period, based on European Commission, Joint Research Centre (JRC), but not an official one. In Romania, some of the most vulnerable persons are minimum income beneficiaries from rural areas. The result of Exploratory Spatial Data Analysis (Anselin, 2005) is the map of the minimum income benefit beneficiaries at the locality level (LAU former NUTS 5). Agglomerations correspond to the clusters locations with High – High (HH) income beneficiaries densities applying Local Indicators of Spatial Association (LISA). The discussion concerns the rural areas social protection policies an additional dimension given by the Environment Security needs with “Adaptive Social Protection” (ASP) accordingly solutions (Devereux, 2016). Floods are next to climate change phenomenons and hazard disaster (Earthquakes, WildFire, Tsunami, Coastal Erosion, Landslide, Sea Level Rise, Natech, Biologica – according to Safaie et al., 2017), as a source of cumulative undesirable effects. The conclusions point to the new role of the Public Administration: Perspectives, Management and Challenges for new spatial policy-based designs.

The Flood Risk Information Used in Spatial Policy-Based Design … 93 Keywords: rural agglomerations of the most vulnerable persons, flood risk, spatial analysis, economic integration

INTRODUCTION Persistent Romanian Rural Poverty Agglomeration in Time Romanian rural areas are still marginalized economically and socially. They are vulnerable and strongly impoverished. The population decreases both naturally and through migration. Rural localities, depopulated and with an aged population, lessen their capacity to participate in economic activity. These locations lose day by day the human resource, the primary source of human capital. Economic activity specializes in agriculture, forestry and fishery. There is a lack of diversity and a long distance to the growth areas cities. These sectors are dependent on space, and are exposed to climate change. Recovery is no more possible in a smart economy and a globalization framework. Disconnected from the production flows (local, national and global), these areas turn out to be marginalized communities. Marginalized status includes, next to low economic performance, a low level of infrastructure. People in these communities have a low level of quality of life. Regardless of intense poverty alleviation efforts, improvement is less present. The spatial pattern is of persistent agglomeration in time. The question is, what factor is beneath this persistence? Our theoretical approach subscribes to the Agglomeration Theory and New Economic Geography, following (Krugman 1991; Carlino and Kerr 2015; Fujita, Krugman, and Venables 1999; Moretti 2004; 2012). The heterogeneity of spatial income distribution measured by the degree of clustering. Anselin’s (1995; 2005) cluster and outlier analysis identifies hot spots, cold spots and spatial outliers. So the spatial clustering income and unequal distributions are high-income clusters and low-income clusters. A mirror to “creative hubs” (Moretti, 2012) are the “poverty agglomerations.” In other words, poverty agglomeration is inevitably the “dark side of the Moon.”

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Atkinson et al., (2002:78) point out that poverty is relative, gradual and multidimensional. The European Council (2010, p. 12) adopted the 2020 objective of “promoting social inclusion, in particular through the reduction of poverty, by aiming to lift at least 20 million people out of the risk of poverty and exclusion.” This document defines this population as the number of “persons who are at-risk-of-poverty and exclusion according to three indicators; at-risk-of-poverty, material deprivation, and jobless household. The spatial poverty heterogeneity is higher in rural areas than in urban areas. Recently, “poverty and social exclusion levels in rural areas are more than twice as high as those in cities” (SWD 1022 final 2019, p. 35). Rural populations exposed to high poverty risks (face in general, particularly high poverty rates), are children, people with disabilities, members of the Roma community and the elderly. We find that this process of spatial clustering of persons with a high risk of poverty is evident in the case of social assistance beneficiaries. In Romania, some of the most vulnerable are the Minumum Guarantee Beneficiaries (MGB). MGB people are in the center of poverty alleviation policies promoted by the Romanian Labour Social Justice Ministry (RLSJM). This ministry, following 2016, assumes to reduce poverty and increase social cohesion through “spatially integrated complex solutions.” The GAR2015 (2015: 188) changes the vision regrading the relation to poverty and disaster. Disaster risk and its extensive risks are rooted within poverty and not an externality. Therefore: Managing the risks inherent in social and economic activity requires a combination of three approaches: 1. prospective risk management, which aims to avoid the accumulation of new risks; 2. corrective risk management, which seeks to reduce existing risks; 3. compensatory risk management to support the resilience of individuals and societies in the face of residual risk that cannot be effectively reduced.1 1

GAR 2015. Making Development Sustainable: The Future of Disaster Risk Management. Global Assessment Report on Disaster Risk Reduction. 4.2015. Geneva: United Nations.

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RURAL POVERTY IN LITERATURE Bertolini (2019) considers the problem of rural poverty unresolved even in developed countries. The positive effects of the interventions in rural agricultural policies have not been able to eliminate them. In the case of rural poverty, the coordination between top-down and place-based policies is requested. In some areas there are “cumulative negative effects of a vicious cycle of the labour market, demography, education and remoteness” (Bertolini, 2019, p. 1). Cord (2013) argues for the importance of developing strategies for reducing rural poverty regardless of the development stage of the country. Ravallion (2016) founds limits in urban and rural poverty comparisons given by the price variability. In the case of developing countries, “transport costs are often high, and there are other impediments to market integration spatially” (Ravallion 2016, 167). Alderman (2008, 22) concluded that uninsured risks from agriculture and rural life “perpetuate rural poverty are a continuing source of new poor.” The vicious cycle of high risk, low investment and high welfare costs repeat. Cord (2013, 67) defines the specific and universal characteristics of rural poverty. One is the “high-risk environment for households, given their vulnerability to climatic fluctuations,” while livelihood is based mostly on nature. Rural accessibility is an essential condition for development. ILO (2008) associates infrastructure with poverty reduction and job creation, an essential component of supporting economic growth and local development. The Rural Access Index (RAI) produced by the World Bank Group “measures the proportion of the rural population who live within 2 km of an all-season road,” based on GIS maps. Romanian rural populations counted over 1.1 million people without access to a road in 2004. Sumner (2019) remarked that premature de-industrialisation is a poverty factor in the case of middle-income countries. Tertialization is not able to support the economy in open global trade and global value chain framework.

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PRACTICES IN ROMANIA REGARDING RURAL POVERTY ALLEVIATION Poverty alleviation in Romania works under the Social Assistance Law L292/2011. Its purpose is to prevent and combat poverty and the risk of social exclusion, therefore they granted social assistance benefits. Social aid is a means-tested benefit applied by the Law 416/2001 for a person or a family called Minimum Guarantee Revenue (MGR). MGR was the primary tool to assure a minimum standard of living for the populations in poverty risk, replacing the lack of income from work. Starting on 27 July 2013, persons that benefited from MGR were long term, unemployed persons. According to the unemployment L76/2002 at Art.5 point IV, modified by the L250/2013, these persons are eligible for active measure provided by Public Employment Service (PES). The obligations by L416 for MIG beneficiaries (single persons and families), tightened since (see other client’s paragraph) 22 October 2018 though the L192/2018. MGR was replaced by Minimum Inclusion Income which was in force starting 1 April 2021 through L196/2016. Poverty alleviation philosophy radically changed after 2013. The means-tested benefits and social protection changed to the assurance of livelihoods with social protection policies addressed to the individual. The Single Point of Contact (SPC) from SPO, according to Government Emergency Ordinance (GEO) 73/2017 (Art (6) -1) amending 202/2006 (r1) coordinated the provided integrated services. SPO and its regional network offer services and activation measures for persons in poverty risk, with working capacity and available to work. These activation measures allow the transition to employment at the minimum wage in the economy. The employer receives temporary subsidies regardless of the worker’s productivity. Thus, the income from work replaces the benefits of the social assistance mechanisms. The National European Social Fund (ESF) framework defines persons at risk of poverty or social exclusion and some communities at risk. The rural people in risk of poverty are a specific case (see Appendix 1).

The Flood Risk Information Used in Spatial Policy-Based Design … 97 The activation mechanism has two components - the youth component and the adult component. The first operates based on the EU Council Recommendations of 2013 (guarantee for young people). The second operates based on EU Council Recommendations of 2016 (long-term unemployed and people far away from the labour market). The JobIntegration Agreement (JIA) is the adults’ primary activation tool. It aims to eliminate barriers to work, providing an integrated approach to activation. JIA could include: Job-search assistance and in-work assistance; the validation of nonformal and informal learning; rehabilitation, counselling and guidance; education; vocational education and training; work experience; social support; early childhood education and care; health and long-term care services; debt-counselling; and housing and transport support.2

The National ESF framework defines integrated services as social, medical, socio-medical, psychological, educational services provided together. The aim of the integrated services is to prevent or combat poverty, social exclusion or the situation of vulnerability. Among the eligible activities are those “in the field of improvement of living conditions” (MFE 4S160). The high level of housing deprivation hampers social inclusion. One in seven households faces a serious housing problem (e.g., humidity, lack of sanitary facilities). Overall, housing deprivation is the highest in the EU. Romania’s housing stock is low quality, energy inefficient and deteriorating because of lack of maintenance (Housing Europe, 2017)…. Social housing policies are being decentralized without a strategic framework, which makes poverty worse in areas that are already poor. Through measures co-financed under the European Social Fund

2

Recommendations Council Council Recommendation of 15 February 2016 on the integration of the long-term unemployed into the labour market (2016/C 67/01) https://eurlex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016H0220(01)&from =EN, C67/4.

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FLOODS RISK MANAGEMENT IN ROMANIA The United Nations Office for Disaster Risk Reduction (UNDRR former UNISDR) in the Annual Global Risk Assessment (2015) identifies for Romania, the floods (67%) followed by earthquakes (33%) as the most likely disaster risks (except cyclonic winds, storms, tsunamis, volcanoes). Vereinte Nationen (2015) Floods are contextual, associated with the risks of flooded rivers. This type of disaster has a high degree of uncertainty compared to other types of disasters. On a national level, The Romanian General Inspectorate for Emergency Situations (IGSU) is a public structure subordinated to the Ministry of Internal Affairs, created on December 15, 2004, by merging the Civil Defense Command with the General Inspectorate of the Military Firefighters Corps. IGSU (2017, p. 26) for 2005-2006, showed the flood damages counting over 2 billion Euro (infrastructure and economic) and 93 dead people. Floods are the first disaster in the risk profile for Romania according to the International Disasters Database EM-DAT4. During 1990-2014 floods appear with the highest frequency of 55.4%, and is the second largest factor of mortality of 42.6%, and the highest factor for economic damages of 85.9%. The European Parliament and the Council adopted on October 23, 2007, the Directive 2007/60/EC regarding Assessment and Management of Flood Risks. The purpose of the flood directive is “the reduction of the adverse consequences for human health, the environment, cultural heritage and economic activity associated with floods in the community.” The implementation of this directive includes preliminary flood risk assessments (ICPDR, 2011), flood hazard and risk maps and flood risk management plans. Also, this directive defines: 3 4

SWD 1022 final 2019, p. 37. https://www.preventionweb.net/countries/rou/data/.

The Flood Risk Information Used in Spatial Policy-Based Design … 99 1. ‘flood’ means the temporary covering by water of land not normally covered by water. This shall include floods from rivers, mountain torrents, Mediterranean ephemeral water courses, and floods from the sea in coastal areas, and may exclude floods from sewerage systems; 2. ‘flood risk’ means the combination of the probability of a flood event and of the potential adverse consequences for human health, the environment, cultural heritage and economic activity associated with a flood event.5

Romania implements the Directive 2007/60/EC since 6 September 2010 through the National Strategy of Long and Medium Term Management of Flood Risks, approved by the Government Decision (GD) 846/2010. This new strategy continues and improves the former National Strategy for the Flood Risk Management, approved by GD 1.854/2005. The 2010 strategy assumes, among the quantifiable targets until 2035, measures and actions: - Reduction of the number of people exposed to the potential risk of floods at flush flooding with debts having the probability of exceeding 1% by about 62% compared to 2006; - Reducing the social vulnerability of communities exposed to floods - 50% within ten years and up to 75% in the long term, in 30 years .…. Measure K: Relocation, land acquisition and cultural change. In the period 2010-2029, a budget of 150 * 106 Euro allocate. Action K2: Removing exposed homes from areas at high risk of flooding when this is justified. Reducing the risk of long-term flooding, especially when people’s lives are at stake.6

The directive’s National Flood Hazard and Risk Maps created in 2013 from the Collaboration Protocol concluded between the National Administration “Romanian Waters” and the county councils.

5 6

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32007L0060&from=EN. Hotărârea nr. 846/2010 pentru aprobarea Strategiei naționale de management al riscului la inundații pe termen mediu și lung.

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Sursa: Created on 15.10.2012 15:28 by Daniela Vladescu, Updated on 15.10.2012 15:28 by Daniela Vladescu. http://www.rowater.ro/EPRI, Maps with flood risk areas. Figure 1. Area with potential risk of floods occurrence 2012 –INHGA.

The Romanian government issued since 2016 the 11 Flood Risk Management Plans corresponding to each river basin administration and the Danube River. The government plan, according to GD 53/2017, use these maps and plans as the basis for the actions and investments to implement the Floods Directive. According to the Regulation on Emergency Management7 (from 7th March 2019, active since 8 July 2019, Art.36 (3)-m), the Ministry of Waters and Forests participates in the creation of databases for damage inventory for all types of floods by the provisions of the Flood Directive. The National Flood Hazard and Risk Maps, according to Flood Directive is published by IGSU (2017) and made by The National Institute 7

Regulation regarding the management of emergency situations generated by dangerous hydrometeorological phenomena having the effect of floods, hydrological drought as well as incidents / accidents in hydrotechnical constructions, accidental pollution of the watercourses and marine pollution in the coastal area.

The Flood Risk Information Used in Spatial Policy-Based Design … 101 of Hydrology and Water Management (INHGA8). Figure 1 locates the “significant historic floods and delimitation of areas with significant potential flood risk” and area with a potential risk of floods occurrence. UNDRR (2019) trys to understand disaster holistically, beyond the direct loss and damages. Therefore, the analysis moves “from regional, national and subnational data to the household level.”

METHODS Rural MGR beneficiaries Marginalized Communities from risk flood areas as a result of a toolchain workflow process. This process includes analysing patterns, mapping clusters and Mapp’s overlay tools from Arc GIS Pro 2.3 and GeoDA. The first two tools are Exploratory Spatial Data Analysis (Anselin, 2005) tools. In the first step, we analyse the pattern of the rural density of MGR beneficiaries at the locality level (LAU2 level, former NUTS 5 and comprised of the municipalities and communes of the European Union).9 The number of MGR in June 2018 was provided by the Agentia Pentru Plati si Inspectie Sociala - ANPIS [The Agency for Payments and Social Inspection]. The number of MGR divided by location area in square meters is the value of the attribute associated with its localities (NUTS 5 level) as features. These features could form a clustered, dispersed or random pattern according to the similarity of their attribute characteristics. The First Law of Geography (Tobler, 1970) states that everything is related, but objects closer together are more related than objects farther apart. This relationship is also known as spatial autocorrelation. As features that are further apart, their values become more similar or less similar. If features are close together they have similar values that are clustered. If features that are close together 8 9

Romanian: INHGA - Institutul Național de Hidrologie și Gospodărire a Apelor. The lower LAU level (LAU level 2, formerly NUTS level 5) consisted of municipalities or equivalent units in the 28 EU Member States, since 2017, only one level of LAU has been kept. Source: https://ec.europa.eu/eurostat/web/nuts/local-administrative-units

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have different values, there is dispersion (Bennett, Vale, and d’Acosta, 2015). Moran’s I measure spatial autocorrelation based on feature locations and attribute values using Global Moran’s I statistic (Anselin, 2005). Moran’s I of rural MGR beneficiaries in June 2018 is, in GeoDa, indicating the presence of spatial autocorrelation, and clustered patterns. In the second step, we map the clusters, as an application of the Local Moran’s I. We use the Anselin’s Cluster and Outlier Analysis tool in GeoDa and map the result in Arc GIS Pro. The rural MGR Marginalized Communities Agglomerations correspond to the locations of the clusters with High – High (HH) income beneficiary’s densities applying Local Indicators of Spatial Association (LISA). The cluster and outlier analysis is made in GeoDa and the map in Arc Gis. This method answers the question: Is each feature significantly different from the other features (higher and lower than other features) and is each neighbourhood significantly different from the other neighbourhood. (Bennett, Vale, and d’Acosta 2015) Each location label is HH, LL, HL or LH. Locations with values higher and similar to their neighbours are hot spots or High High (HH) locations. Locations with values lower and similar to their neighbours are cold spots or Low Low (LL). The location that is higher and surrounded by locations with lower values of the attributes is a High Low location. Finally, the location that is lower and surrounded by locations with higher values of the attributes are Low High locations (LH). These locations (HL and LH) with values that are different from their neighbours are spatial outliers. We select the HH hot spot of locations with a high density of MGR beneficiaries’ agglomerations and map it. In the third step, we overlay in Arc Gis Pro, the Flood Directive Map with the rural MGR Marginalized Communities’ previous result. The Flood Directive Map is the Hazard Map for Europe, 500-year return period, available in Gis publish by Joint Research Centre (JRC). The map overlay initiated by McHarg (1971) “is a procedure for combining the attributes of intersecting features that are represented in two or more georegistered data layers” (DiBiase and Dutton 2009).

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RESULTS Analyzing patterns is made in the case of the Queen contiguity spatially weighting method of the first order. The contiguity statistics for the 2875 rural LAUs include: 0 min neighbours and 13 maximum neighbours; the mean neighbours for one LAU is 5.16 LAUs, and median neighbours are 5 LAU. Assessing the significance is made by randomization running LISA for 999 permutations number. The global Moran’s I index of 0.270915 is the slope of the rural density of MGR beneficiaries and their spatially lagged counterparts on the vertical axis. (Figure 2) The reference distribution for 999 permutations has a histogram (pyramid) shape, and the statistic of the actual data is the vertical bar (Figure 3). The global Moran I is at the 0.27 well in the right of the reference distribution, and this suggests a firm rejection of the null hypothesis. (Anselin, 1995). Also, the pseudo significance level p-value is 0.001 lower than 0.01. In this case, with a 99% confidence level, we reject the null hypothesis, and the rural density of MGR beneficiaries at LAU level are more spatially clustered than would be expected if underlying spatial processes were random. (Figure 2) It is theoretical that mean E[I] is -0.0003 equal with the mean of the reference distribution of -0.0003. The standard deviation of the reference distribution is 0.0117. The significance confirmed by the value of the positive value of high standard deviation z-score of 23.2010, higher than the critical score 2.5 associated with standard deviation. The z-value corresponds to the computed Moran’s I standardized value of a normally distributed random variable. The observed spatial pattern is not the result of random chance. We reject CSR, and the rural density of MGR beneficiaries at the locality level (LAU) present a clustered pattern. For each of the four quadrants are the four types of spatial autocorrelation (HH, LL, HL and LH) and their attribute statistics (Table 1). The HH clusters are our interest pattern to be mapped. From the 2875 rural LAU, there are 76 core LAU with a high level of MGR beneficiaries surrounded by LAUs with a high level of the same attribute, affecting 2.6% from total rural LAUs.

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From the total 401291 MGR, there are 8.3% of people located in the HH clusters counting 33383 beneficiaries. The mean of MGR in HH cluster is 439 people, while the national mean is 140 people. There are 2600 LAUs with a random pattern, more than 90% from the rural locations. These HH identified locations are characterized by a minimum of 146 MGRs and a maximum of 439 MGRs, while at a national level the mean interval is between none and 2092 people. The rural MGR Marginalized Communities are the HH clusters mapped in Figure 4. In Figure 4 the rural MGR Marginalized Communities (HH) are mapped as well as the rural density of MGR spatial distribution by counties. Figure 5 maps the rural MGR Marginalized Communities (HH) in June 2018 – details for LAU with higher MGR density – density over 3MGR persons/m2 are also shown.

Source: calculated by authors in GeoDA. Figure 2. The Moran’s I index of the rural density of MGR beneficiaries (VG) in June 2018.

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Source: calculated by authors in GeoDA. Figure 3. The reference distribution of the rural density of MGR beneficiaries in June 2018 result of the 999 permutations.

Table 1. The clusters type identified and their attribute statistics LISA Number of Number of MGR beneficiaries from rural LAUs in Cluster rural LAUs June 2018 type N % of Mean Sum Min Max Std. Var. Total N Dev.

% of Total Sum 0 2600 90.4% 138 358720 0 2092 172 29549 89.4% HH 76 2.6% 439 33383 146 1165 241 58136 8.3% LL 165 5.7% 31 5129 0 128 28 804 1.3% LH 23 0.8% 78 1788 6 137 39 1493 0.4% HL 9 0.3% 247 2224 159 396 85 7214 0.6% No N 2 0.1% 24 47 11 36 18 313 0.0% Total 2875 100.0% 140 401291 0 2092 177 31446 100.0% Source: data ANEPIS. Calculated by authors in Arc Gis and SPSS. Note: No N no neighbours.

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There are six hot spots of high cumulative risk of poverty and flood risk. These are at the intersection of the counties. By decreasing risk intensity and coverage area, the following clusters are visible: • Cluster 1: Bacău. Vaslui. Galati. Iasi. Vrancea and Neamț; • Cluster 2: Dolj - Mehedinți. The Olt. Teleorman • Cluster 3: Dâmbovița-Argeș; • Cluster 4: Buzău-BrăilaVrancea; • Cluster 5: Brașov-Covasna-Mureș • Cluster 6: Suceava –Neamț. The MGR Marginalized Communities from flood risk areas (Figure 6) is the result of the overlay of Figure 1 (JRC version) with Figure 5. The highest risk communities with both risks of poverty, social exclusion that are exposed to high flood risk areas located in: Siret and Buzau basin Cluster 4 and 1; Danube meadow - Cluster 2; Prut river basin - Cluster 1; Mureș river basin - Cluster 5; Dâmbovița and Argeș basin - cluster 3.

Source: Map made by the authors. Data ANPIS, Shapefile ESRI RO; HH - locations in the cluster of nuclei of agglomerations of beneficiaries of MGR Figure 4. The rural MGR Marginalized Communities (HH) and the rural density of MGR spatial distribution at June 2018.

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Source: Map made by the authors. Data ANPIS, Shapefile ESRI RO; HH - locations in the cluster of nuclei of agglomerations of beneficiaries of MGR. Figure 5. The rural MGR Marginalized Communities (HH) at June 2018 – detail for LAU with higher de MGR density – density over 3MGR persons/m2.

DISCUSSIONS AND CONCLUSION Rural areas are subject to space-dependent risks like flood risk. There are communities, like The MGR Marginalised Communities from flood risk areas that require complex solutions (OECD, 2006). Poverty alleviation and social cohesion in floods risk rural areas need a risk identification in line with Domokos et al., (2015). The six hot spots with high cumulative risk of poverty and flood risk, are the interference of the counties, not fully covered by the counties administration units. On the other side, these marginalized communities are in the Flood Risk Management Plans and a Flood Strategy in long term perspective (2035). If the flood risk areas confirmed for the last 500 years continue, then even integrated services are at risk. The cohesion policy’s success depends on the risk information (i.e., flood risk) and

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integration in design (Safaie et al., 2017). Risk hazard is assumed as an objective for the Flood Strategy, a public policy aspect in line with (Bhatta, 2008). However, in the context of climate changes when risk could occur everywhere (id floods in Romania), it requests a holistic framework for risk management in the adoption of all public policies. The MGR Marginalized Communities from Flood Risk Areas have poor housing conditions, exposed to severe material deprivation. National Strategy for the Flood Risk Management assumes a reduction of the number of people exposed to the potential risk of floods through relocation during 2010-2029. Severe housing deprivation (SHD) % of tenants is 23.8% in 2018 in Romania, higher by 18.2pp then EU28 average of 5.6%. The intensity of SHD in rural areas is 26.1% in Romania, higher by 21.1pp than Eu28 average. A new role of the Public Administration emerges. It has to adopt Perspectives, Management and Challenges in spatial policy-based design for public policies. Databases created since 2019 for damage inventory for all types of floods following the provisions of the Flood Directive is an important step. Habegger (2008: 14) points out that “risk analysis and management is the core of public policy and corporate governance in recent times.” Ishiwatari (2019) finds that enhancing resilience and achieving sustainable development depends on the development level of the country. Asian experience proves that disaster risk reduction requires significant investment in flood protection. The basis of the public management of risks could be, according to Lodge (2009: 406), the debate and “acknowledging limitations rather than solutions.” Public policies represent a relation in different dimensions between people and their places (Lincaru et al., 2018). Social development policy is shifted from sectoral to territorial development (OECD, 2011, p. 24), from space blind policies to Place-Based Policy - Opportunities-Oriented Policies (Barca, 2009, p. 2). The discussion also concerns the rural areas’ social protection policies (Alderman 2008, 22) like access to risk assurance. An additional dimension is the environmental security needs, with “Adaptive Social Protection” (ASP) solutions (Devereux, 2016).

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Source: Map made by the authors. Data ANPIS, Shapefile ESRI RO; HH - locations in the cluster of nuclei of agglomerations of beneficiaries of MGR. Figure 5 overlay with The Flood Directive Map in Gis (simiar with the Figure 1). Figure 6. The MGR Marginalized Communities from Flood Risk Areas.

Floods are next to climate change phenomenons and hazard disasters (Earthquakes, WildFire, Tsunami, Coastal Erosion, Landslide, Sea Level Rise, Natech, Biologica – according to Safaie et al., 2017), as a source of cumulative undesirable effects. The flood risk map is a valuable input for a spatial policy-based design for socio-economic integration of the most vulnerable people from rural areas. Our contribution is The National Flood Hazard and Risk Map enriching with areas with the most vulnerable people. This map connects the Flood Risk Management Plans and the Integrated Services to be designed for the new Strategical cycle 2021-2017 to be funded by the ESF + framework. This new policy approach should be natural to develop if the public administration adopts spatialized data and GIS tools. Our results confirm once again that “disaster risk, and extensive risk, in particular, is intrinsic to poverty” (GAR, 2015: 187). Lastly, Romania, on

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the route of resilient development has to manage risk, rather than manage disasters.

ACKNOWLEDGMENTS This work was supported by a grant from the Romanian Ministry of Research and Innovation- Ministerul Cercetarii si Inovarii din Romania, The Government of Romania, the National Research and Development Plan – Programme NUCLEU, 2019-2022, InovSoc program of the INCSMPS – the National Labor Research Institute of Romania, project no: Perspective funcționale a piețelor locale ale muncii în România, în contextul economiei inteligente și innovative / [Functional perspectives of local labor markets in Romania, in the context of smart and innovative economy] PN 19130101, coordinated by dr. Pîrciog, S.

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APPENDIX 4S160. People at risk of poverty or social exclusion from marginalized communities who benefit from integrated services “Marginalized Community” means a community that simultaneously fulfils the following three conditions:   

has a low level of human capital; has a low level of employment in the formal sector; has poor housing conditions

where: 1.1. A community has a low level of human capital if it has any two of the following three indicators: the proportion of 15-64year-olds who have graduated at most 8 classes (gymnasium), the proportion of people with disabilities, chronic diseases or other conditions that limit their daily

The Flood Risk Information Used in Spatial Policy-Based Design … 115 activities, the proportion of children and young people (0-17 years) in the total population have values that exceed the corresponding minimum threshold:  



The proportion of persons 15-64 years old who have graduated a maximum of 8 classes (gymnasium): 22% The proportion of people with disabilities, chronic diseases or other conditions that limit their daily activities, in the total population of the community targeted by the project: 8% The proportion of children and young people (0-17 years) from the total population in the community targeted by the project: 20.5%

1.2. A community has a low level of employment in the formal sector if the indicator Proportion of persons aged 16-64 who are not on the formal labor market (employed with a contract of employment or working officially on their own, with or without employees - employer or administrator of company, PFA, AF, individual enterprise, freelance) and neither follows a form of education nor has values of over 22.5% (the minimum threshold). 1.3. A community has poor housing conditions if at least one of the indicators: the proportion of overcrowded dwellings (