Evaluation Systems in Local Government: Are Evaluation Systems Useful Tools of Administrative Reform?

Abstract

Nearly 15 years have passed since the evaluation system in Japanese local government was introduced as a tool of administrative reform. However, there is still little empirical research on the effectiveness of evaluation systems. Our purpose in this paper is to verify quantitatively the effects that evaluation systems have on the quality of administrative services. We compare the size of this impact with that of other systems. Based on a discussion of recent governance, we analyze these effects in terms of efficiency and transparency in local governments. The dependent variable is the “Administrative service degree” taken from data at the city and special ward levels for fiscal year 2006. Using an ordinary least squares regression analysis, the predictor variables include the introduction of evaluation systems and making the balance sheet, evaluation results, and committee meeting minutes publicly available. We found that the introduction of evaluation systems and the appointed provider systems, and making the results of evaluations and all committee meeting minutes public, contributed to the improvement of administrative services. Moreover, the effect of the appointed provider systems was larger than that of introducing evaluation systems.