Local Government in a Global World (Australia and Canada in Comparative Perspective)

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1 Emmanuel Brunet-Jailly, University of Victoria, Canada & John Martin, LaTrobe University, Australia

2 Our aim with this book to explore, to document and to assess 20 years of changes and reforms affecting local government, and to question the influence of globalizing trends We look at: (1) Citizen participation and governance (2) Restructuring and reforms of local governments (3) Usage of performance measures and management systems in administration of local governments (4) Relations of local governments with higher levels of governments

3 Rationale in comparing Australian and Canadian s local governments: Federal structures are similar Local Governments are instruments of Provinces/States Local governments established since early colonial days Local property taxes - key revenue source Revenues about 10% of all governments in Canada and 6% in Australia Similar range of services About 3700 in Canada 600 in Australia

4 Why do we look at Local Government in a Global World? - Huge literature on (1) The global economy modifies the politics of state relations intergovernmental top down bottom up international. (2) The global economy, new technologies, free trade transform the relations of states and other governments governing is more complex! (3) Free trade regimes pressure governments to deregulate, decentralize and download (4) All seem to enhance sub-national entities as economic players the articulation of each level of government key to the construction of a local territorial economy

5 Basically, there are three major trends: (a) Central government are less able to regulate, to organize fiscal equalization, reduce inter-regional and provincial competition (b) Central governments encourage intergovernmental competition (c) Decentralizing and devolving changes intergovernmental relations, local institutions and governing capacity These don t look at changes in democratic accountability, local bureaucracies, local restructuring and intergovernmental influence i.e. our four themes.

6 The literature: Participation and Governance Shift from government to governance Governance more about public policy process and engagement than about structure government like institutions Governance engages citizens and interest groups widely Governance is about certain degrees of formality of participation and process, including in and out groups.

7 What we find on Participation & Governance Distinction between Government and Governance is clear government still dominate local politics Trends are not for all communities: smaller, peri-urban and rural communities do not experience those changes : Australia (Aulich): There are initiatives, and rhetoric on third way politics, stakeholders, inclusion, partnerships and community, but the overall evidence is inconclusive. Canada (Philips): There are three models of citizen and community engagement: community government, local governance and community governance The current community building agenda is driven by non-governmental actors and communities shifting from government to governance. Municipalities are no longer only deliverers of services.

8 The literature on Restructuring and Reforms Political space the forms and functions of cities follows a variable geometry of institutional arrangements traditional multi-functional government or a multitude of uni- functional governance arrangements The size of constituencies and the forms and function(s) of government institutions have implications for local democracy and the delivery of local services Democratic accountability and efficiency of a service-delivery system (economies of scales/market mechanisms) are key to the debate New Public Management literature favours uni-functional delivery - efficient governance mechanisms as well as PPPs and privatisation

9 What we find on Restructuring and Reforms Restructuring does not emerge from clear strategic federal, state/provincial policies The New Public Management literature is influential in Australia Australia (Marshall): Underscores the managerial role of local governments, and justifying reform Regional development organizations and privatization of regional services are successful initiatives Canada (Sancton): Finds it difficult to link the managerial views of New Public Management in the Canadian rationale for reform In Canada the efficiency/effectiveness criteria are lost in discourses/debates Reforms take place giving functions to two tier local governments in East.

10 The literature on Performance Management New Public Management literature focus on measuring and managing the performance of government What is measured and What are the management implications have been the subjects of considerable academic debate Is it financial performance or customer and citizen concerns? What is measured and how it is processed in local government is fundamental for local strategic decisions

11 Australia (Kloot & Martin) What we find on Performance Management Underscore that State government demand local governments to report on a myriad of measures this model prevails across Australia Note, however, that managers are primarily concerned with issues of public service and citizen s concerns they have limited means, though to collect information There is an overall move toward excellence that includes community and citizen consultation and collaboration but is limited by current available technologies in local governments Canada (Agocs & Brunet-Jailly) Focus on two deficiencies (1) the failure of governments to involve citizens and elected officials in the development of measures of performance, (2) a focus on performance measure rather than on management systems

12 The literature on Intergovernmental Relations What is the constitutional status of municipalities? Are they natural persons with spheres of jurisdiction? Are they an order of government? Are municipal provincial/state relations hyper fractionalized and quasisubordinate? Or, hyper fractionalized, not subordinate? Asymmetric?

13 Australia (Sansom) What we find on Intergovernmental Relations Constitutionally - local governments are creatures of states but recognized as federal intergovernmental policy partners. Presence in federal state ministerial councils and on Council of Australian Governments. Federal level provides significant level of funding Federal policies give local governments a national stage. Funding is scheme organized for efficiency Canada (Graham) Constitutionally - local government are the creatures of provinces Some provinces grant natural person powers Local governments implement federal programs Overall Overview: local governments are part of policy making process in Australia, in Canada they are not associated to federal/provincial discussions.

14 Conclusion 1 There is evidence of a shift from government to governance but scant evidence of increased citizen participation but for larger communities in Canada. Restructuring and reforms take place in Canada and Australia NPM ideas are influential in Australia. Services are contracted out in Australia they are downloaded in Canada. Performance measures are implemented both in Australia and Canadathese measures are used in reporting activities but there is little evidence that citizens and elected officials are involved Intergovernmental relations are still subordinate but more complex local governments have gained formal policy influence in Australia. In Canada, there is no evidence that rural communities are left behind.

15 Local Government in a Global World, Australia and Canada in Comparative Perspective: Conclusions Conclusion 2 Globalization does not translate into increased influence of local governments, but: 1- Citizen participation and performance management exercises are in formative stages. 2- There is some evidence that consolidation and participation correlates with influence Toronto and Australian regional organizations of councils combine size, functions and professionalization which correlates with functional intergovernmental influence. 3- The policy involvement in federal policy making is notable It is formal in Australia It is informal in Canada 4- Both systems are more competitive and less equitable there is no more one size fit all policy both systems are based on asymmetry

16 Thank You for your attention!