The wealth of nations depends on the quality of their infrastructure. Often, however, infrastructure suffers from ineffective investments and poor maintenance. Proposed solutions, such as New Public Management or Public-Private Partnerships (PPPs) tend to develop into Politicians-Private Partnerships as politicians collude with private firms to exploit present and future tax-payers. Therefore, it is necessary to give citizens better control over collective decision making. While there is a significant economic literature on empowering citizens via decentralization and direct democratic institutions, the role of electoral rules has thus far been rather neglected. An interesting case in point is Switzerland, which is well known for its high-quality infrastructure, extensive decentralization, and direct democracy. However, this paper argues that there is an additional and previously neglected institution that moves Swiss politicians away from client politics towards better serving public interest: Switzerland’s unique electoral institutions which effectively combine proportional elections with multi-seat majority elections. We explain how these institutions work, how they enhance the relationships between citizens and public and private entities, and we argue that they could be implemented in other countries.
Learning from experience to improve future infrastructure public-private partnerships is a focal issue for policy makers, financiers, implementers, and private sector stakeholders. An extensive body of case studies and “lessons learned” aims to improve the likelihood of success and attempts to avoid future contract failures across sectors and geographies. This paper examines whether countries do, indeed, learn from experience to improve the probability of success of public-private partnerships at the national level. The purview of the paper is not to diagnose learning across all aspects of public-private partnerships globally, but rather to focus on whether experience has an effect on the most extreme cases of public-private partnership contract failure, premature contract cancellation. The analysis utilizes mixed-effects probit regression combined with spline models to test empirically whether general public-private partnership experience has an impact on reducing the chances of contract cancellation for future projects. The results confirm what the market intuitively knows, that is, that public-private partnership experience reduces the likelihood of contract cancellation. But the results also provide a perhaps less intuitive finding: the benefits of learning are typically concentrated in the first few public-private partnership deals. Moreover, the results show that the probability of cancellation varies across sectors and suggests the relative complexity of water public-private partnerships compared with energy and transport projects. An estimated $1.5 billion per year could have been saved with interventions and support to reduce cancellations in less experienced countries (those with fewer than 23 prior public-private partnerships).
This study investigates the impact of digital payment infrastructure accessibility on the social influence of microenterprises in Barranquilla, Colombia, while examining the mediating roles of financial inclusion, digital literacy, social support networks, and collaboration with social innovation initiatives. Employing a mixed-methods approach, the study analyzes data from a sample of 25 microenterprises operating in various sectors. The findings, based on statistical techniques such as multiple regression, path analysis, and structural equation modeling (SEM), provide strong evidence for the positive influence of digital payment infrastructure accessibility on the social relationship of microenterprises. The results also highlight the crucial roles played by financial inclusion and social support networks in mediating this relationship. The study contributes to the growing body of literature on the factors driving the social effect of microenterprises and offers valuable insights for policymakers and practitioners aiming to foster inclusive economic development in the region. The findings suggest that investing in the development and expansion of digital payment systems, alongside efforts to promote financial inclusion and strengthen social support networks, can have far-reaching benefits for microenterprises and their communities.
This paper contributes to a long-standing debate in development practice: under what conditions can externally established participatory groups engage in the collective management of services beyond the life of a project? Using 10 years of panel data on water point functionality from Indonesia’s rural water program, the Program for Community-Based Water Supply and Sanitation, the paper explored the determinants of subnational variation in infrastructure sustainability. It then investigated positive and negative deviance cases to answer why some communities successfully engaged in system management despite being located in difficult conditions as per quantitative findings and vice versa. The findings show that differences in the implementation of community participation, driven by local social relations between frontline service providers, that is, village authorities and water user groups, explain sustainable management. This initial condition of state-society relations influences how the project is initiated, kicking off negative or positive reinforcing pathways, leading to community collective action or exit. The paper concludes that the relationships between frontline government representatives and community actors are important and are an underexamined aspect of the ability of external projects to generate successful community-led management of public goods.
This paper examines the relationship between renewable energy (RE) generation, economic factors, infrastructure, and governance quality in ASEAN countries. Based on the Fixed Effects regression model on panel data spanning the years 2002–2021, results demonstrate that domestic capital investment, foreign direct investment, governance effectiveness, and crude oil price exhibit an inverse yet significant relationship with RE generation. An increase in those factors will lead to a decline in RE generation. Meanwhile, economic growth and infrastructure have a positive relationship, which implies that these factors act as stimulants for RE generation in the region. Hence, it is advisable to prioritise policies that foster economic growth, including offering tax breaks specifically for RE projects. Additionally, it’s crucial to streamline governance processes to facilitate infrastructure conducive to RE generation, along with investing in RE infrastructure. This could be achieved by establishing one-stop centres for consolidating permitting processes, which would streamline the often-bureaucratic process. However, given the extensive time period covered, future research should examine the short-term relationship between the variables to address any potential temporal trends between the factors and RE generation.
The reference urban plan is an urban planning tool often used to orient the development of Chadian cities. However, expanding Chadian urban centers, such as Sarh, face challenges in implementing urban planning orientations of their urban plans within the set deadlines. The objective of this study is to identify the factors impeding the effective implementation of the reference urban plan for Sarh town. The methodology employed encompasses a literature review, individual interviews with urban planning experts, geographic information system (GIS) data, household surveys and statistical analysis. The results revealed that less than a quarter (19.72%) of the households surveyed were aware of the reference urban plan. The applied logistic regression model identified age, occupation and level of education as the main factors influencing public participation in the preparation of the reference urban plan. On average, 33.33% of the urban planning guidelines and 21.74% of the projected urban projects were implemented, with a difference of 1631.28 hectares (ha) between the projected plan and the actual plan for the town. Five factors were identified as contributing to the failure to implement the reference urban plan for Sarh town, including low funding, inadequate land management, a lack of political will, weak governance and poor communication. Consequently, participatory and inclusive planning approaches, effective financial mobilisation, strong governance, and the use of modern technologies such as GIS tools are recommended to enhance the implementation of urban planning tools.
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