Austerity Research Articles

Making the Ethiopian Banking System Ready for Green Growth and Development

ABSTRACT After two decades of high economic growth and fast development progress, Ethiopia is facing significant macroeconomic challenges such as high inflation, foreign exchange shortage, and slowing growth. At the same time, it is imperative to bring the economy on a green and climate-resilient development path. In this context, the financial sector has an essential role to play. International financial institutions recommend reducing the fiscal deficit to dampen money growth and inflation and giving up exchange rate control. Based on an alternative analysis of inflation, this article argues that money supply restrictions and fiscal austerity may not only prove ineffective in addressing inflation while incurring high economic costs, but also impede a response that comes via productive and green investment to ease the economy’s supply-side constraints and to lower inflation. Rather than fixating on the quantity of money and market exchange rates, central banking should focus on the direction of financial flows to make sure they go into real green investment rather than speculative and inflation-driving investment. This policy blueprint will also reduce balance-of-payments problems and improve both internal and external monetary stability.

Factors affecting continuous participation in follow-up evaluations during a lifestyle intervention programme for type 2 diabetes prevention: The Feel4Diabetes-study.

Community- and school-based lifestyle interventions are an efficient method of preventing type 2 diabetes in vulnerable populations. Many participants, however, fail to complete the necessary follow-ups. We investigated factors affecting the continuous participation in follow-up evaluations during the Feel4Diabetes-study, a multilevel intervention programme implemented across Europe. Socioeconomic, sociodemographic and clinical factors were assessed for 2702 participants within six participating countries: Bulgaria and Hungary (low-to-middle-income countries, LMIC), Belgium and Finland (high-income countries, HIC) and Greece and Spain (high-income countries under austerity measures, HICAM). Statistically significant differences were detected with respect to sex, control group, education level, employment status, BMI and blood pressure measurements (systolic and diastolic blood pressure). Post hoc analysis revealed significant differences within socioeconomic regions. Higher levels of education were associated with significantly lower attrition in HIC (p < 0.05) and HICAM (p < 0.001), higher employment status was associated with lower attrition in HICAM (p < 0.001) and being female was associated with lower attrition in LMIC (p < 0.001). Surprisingly, the intervention group exhibited higher-than-expected attrition in HIC (p < 0.001) and HICAM (p = 0.003), and lower attrition in LMIC (p = 0.007). When tested together in the same multivariable predictive model, all sociodemographic and socioeconomic variables along with higher BMI retained their statistical significance, while systolic and diastolic blood pressure failed to remain significant. Key socioeconomic and sociodemographic factors along with BMI play a significant role in determining continuous participation in follow-up evaluations during school- and community-based intervention programmes.

An environmental scan of food and drink advertising on public transport around Adelaide schools.

Children and adolescents are particularly receptive to cues from food and drink advertising. Several policies recommend restricting unhealthy or discretionary ('junk') food advertising on government infrastructure such as public transport. Prior research in New South Wales (NSW) and Western Australia (WA) reveals a high proportion of discretionary food advertising outdoors and on public transport. The aim of this study was to identify the landscape of food and drink advertising on public transport assets around Adelaide schools. An environmental scan of food and drink advertising on public transport assets within 500 m of 65 Adelaide schools was conducted. The Council of Australian Governments Health Council's interim guide was used to categorise advertisements as 'suitable' or 'unsuitable' for promotion. Almost four in every five food and drink advertisements on public-transport assets observed around Adelaide schools included discretionary food or drink, and therefore were categorised as unsuitable for promotion. Advertisements on bus exteriors were more likely to promote discretionary foods, compared with bus shelters. This proportion of 'unhealthy' food advertising was comparable to previous research conducted in WA and NSW. SO WHAT?: In light of historic state/territory actions such as the ACT preventing discretionary food advertising on public transport, these findings should prompt a review and discussion of the suitability of food and drink promotion on government-owned South Australian transport and their associated assets.

It never rains but it pours: Austerity and mortality rate in peripheral areas

This study examines the impact of austerity measures on mortality rates across Italian regions from 2003 to 2018. Since 2007, regions experiencing substantial healthcare financial deficits have been required to implement recovery plans (RPs). We use a recent difference-in-differences staggered matching estimator to assess the effects of this austerity policy on municipal-level monthly mortality rates. This allows us to evaluate the policy’s spatial heterogeneity across treated municipalities, accounting for their distance from the nearest hospital. The analysis reveals a significant negative impact of austerity measures on health, particularly in peripheral areas and among vulnerable populations. Mortality rates are higher in regions under RPs, with this effect escalating with increasing distance from hospitals. The policy’s impact is also more pronounced among vulnerable populations, with differences observed between genders and across seasons.

Working Capital Management and its Effect on Financial Performance of Public Universities in Coastal Region Kenya

Kenya's public universities face challenges such as budget cuts and declining enrollments. This puts pressure on institutions and highlights the need for strong financial management systems. The main goal of this research was to assess the influence of working capital management (WCM) on financial performance (FP) of coastal public universities in Kenya. The effects of cash, accounts receivable, accounts payable, inventories and the size of the university on financial performance were examined. The study utilized primary and secondary data analysis involving financial controllers and managers for primary data collection. Secondary data from 2013 to 2019 was also collected from financial reports of selected universities. The findings of this study demonstrated the beneficial effect of working capital management on financial performance. The study highlights the importance of implementing tailored financial management strategies for each institution based on their specific needs and size. Recommendations include focusing on cash management, improving receivables and payables management, optimizing inventory strategies, and considering university size when designing working capital approaches.

Implementing 'Closing the Gap' policy through mainstream service provision: A South Australian case study.

The Australian government's 'Closing the Gap' (CTG) strategy has been implemented via multiple strategies. We examined CTG policy in early childhood within Southern Adelaide during the first decade of implementation (2008-2018) and critiqued the complexity and challenges of policy that is designed to promote health and well-being of Aboriginal and Torres Strait Islander children but lacked Aboriginal control. A qualitative case study was conducted in Southern Adelaide, and we interviewed 16 policy actors from health and early childhood education sectors. Thematic analysis revealed key themes to show how policy had been implemented through mainstream structures. The rapid roll out of the CTG strategy, the limitations of short-term funding, cuts to Aboriginal health services, tokenistic consultation, and the mainstreaming of service provision were key features of policy implementation. The influence of Aboriginal leaders varied across implementation contexts. Participants advocated for services in health and education that are culturally safe to improve health of children, families, and communities. The implementation of the CTG strategy in Southern Adelaide was rushed, complex, and lacking Aboriginal control. This contributed to the marginalisation of Aboriginal leaders, and disengagement of families and communities. A more collaborative and Aboriginal led process for policy implementation is essential to reform policy implementation and address health inequity. SO WHAT?: Findings from this study suggest that policy has continued to be implemented I ways that reflect colonial power imbalances. Alternative processes that promote the recognition of Indigenous rights must be considered if we are to achieve the targets set within the CTG strategy.

Accessibility of Halal Certification Bodies in Australia: A Website Content Analysis

ABSTRACT The increasing Muslim population and growing demands for Halal products have necessitated a corresponding growth in Halal certification. While Muslim-majority countries typically practice centralized Halal certification governance, non-Muslim countries, including Australia, have their own unique Halal certification body systems. The Australian Government recognizes 24 Halal certification bodies. Previous studies have primarily focused on the general requirements for certification. In contrast, our study takes a unique and novel approach, attempting to understand each body’s system and accessibility from the point of view of customers and food producers. This novel approach should pique the interest of our audience, as it offers a fresh perspective on a well-studied topic. We implemented website content analyses through website searches and comparative analysis to identify information that can assist Halal product consumers and certification applicants. While most bodies have established guidelines for Halal certification, several areas remain unclear, with no procedures to aid consumers and producers in checking and applying for certifications. Our study identifies these areas for improvement, with the goal of enhancing information accessibility and marketability of these bodies to assist consumers and applicants in obtaining proper guidance on Halal certification. This research is not just theoretical, but it has practical implications that can significantly improve the Halal certification process in Australia, making it more accessible and marketable. This reassurance of practical application should instill confidence in the audience about the relevance and usefulness of the study.

Can primary health care mitigate the effects of economic crises on child health in Latin America? An integrated multicountry evaluation and forecasting analysis

Latin American and Caribbean countries are dealing with the combined challenges of pandemic-induced socicoeconomic stress and increasing public debt, potentially leading to reductions in welfare and health-care services, including primary care. We aimed to evaluate the impact of primary health-care coverage on child mortality in Latin America over the past two decades and to forecast the potential effects of primary health-care mitigation during the current economic crisis. This multicountry study integrated retrospective impact evaluations in Brazil, Colombia, Ecuador, and Mexico from 2000 to 2019 with forecasting models covering up to 2030. We estimated the impact of coverage of primary health care on mortality rates in children younger than 5 years (hereafter referred to as under-5 mortality) across different age groups and causes of death, adjusting for all relevant demographic, socioeconomic, and health-care factors, with fixed-effects multivariable negative binomial models in 5647 municipalities with an adequate quality of vital statistics. We also performed several sensitivity and triangulation analyses. We integrated previous longitudinal datasets with validated dynamic microsimulation models and projected trends in under-5 mortality rates under alternative policy response scenarios until 2030. High primary health-care coverage was associated with substantial reductions in post-neonatal mortality rates (rate ratio [RR] 0·72, 95% CI 0·71-0·74), toddler (ie, aged between 1 year and <5 years) mortality rates (0·75, 0·73-0·76), and under-5 mortality rates (0·81, 0·80-0·82), preventing 305 890 (95% CI 251 826-360 517) deaths of children younger than 5 years over the period 2000-19. High primary health-care coverage was also associated with lower under-5 mortality rates from nutritional deficiencies (RR 0·55, 95% CI 0·52-0·58), anaemia (0·64, 0·57-0·72), vaccine-preventable and vaccine-sensitive conditions (0·70, 0·68-0·72), and infectious gastroenteritis (0·78, 0·73-0·84). Considering a scenario of moderate economic crisis, a mitigation response strategy implemented in the period 2020-30 that increases primary health-care coverage could reduce the under-5 mortality rate by up to 23% (RR 0·77, 95% CI 0·72-0·84) when compared with a fiscal austerity response, and this strategy would avoid 142 285 (95% CI 120 217-164 378) child deaths by 2030 in Brazil, Colombia, Ecuador, and Mexico. The improvement in primary health-care coverage in Brazil, Colombia, Ecuador, and Mexico over the past two decades has substantially contributed to improving child survival. Expansion of primary health-care coverage should be considered an effective strategy to mitigate the health effects of the current economic crisis and to achieve Sustainable Development Goals related to child health. UK Medical Research Council. For the Spanish and Portuguese translations of the abstract see Supplementary Materials section.

New development: In-house consulting—a critical appraisal

IMPACT The article will be of interest to practitioners around the world who are seeking to develop appropriate responses to their government’s over-reliance on consultants. As part of this, Australia can serve as a case study on the use of in-house consulting firms to address this issue. While it is too early to distil lessons from the experience of the new Australian Government Consulting (AGC) unit, the article provides useful background and contextual information about the initiative, and discusses its chances of success. In addition, the article will be of interest to academics and researchers as the use of in-house consulting has received minimal attention in the literature on government’s use of consultants.

System Reform: The Ever-Elusive Quest—An Australian Study of How System Middle Leaders’ Role Enactment Influences the Attainment of Policy Coherence

Within an educational context, the current aim of policy translation is to achieve policy coherence by strategically and structurally aligning components, enabling whole system reform. While acknowledging the importance of this coherence conceptualisation, the current literature perspective primarily emphasises message conveyance, and lacks a dimension that identifies policy coherence as the result of how individuals, including middle leaders, interpret and translate policy into actions, both individually and collectively. System middle leaders occupy a unique position within organisational structures, as they bridge the gap between executive system leaders and school- based leaders. To investigate how policy is interpreted and translated within their roles and the impact this has on attaining policy coherence, this study employed an interpretivist approach to exploratory case study methodology, grounded in a review of authoritative literature. The aim was twofold; first, to enhance understanding of policy coherence development at the system middle level by exploring the role enactment of system middle leaders within a large Australian government education system; and second, to examine the interconnectedness and impact of leaders’ role enactment on policy coherence for system reform. Findings suggest that achieving policy coherence is hindered by a lack of role clarity among system leaders, in relation to policy implementation, stemming from the inconsistent interpretation and translation of policy into system strategy documentation and a deficiency in formal policy interpretation and role induction practices. As a result, individual system leaders often turn to informal policy interpretations and interactions with peers to clarify roles, leading to role tensions, accountability ambiguity and partial policy implementation. As a result, this study concludes that the integration of role theory, policy implementation theory and organisational alignment theory offers an interpretivist insight into the development of policy coherence for system reform, illuminating a theoretical pathway and practical recommendations for systems to attain policy coherence.

Industrial relations as power, place and time: the case of Queensland coal mining

ABSTRACT How has the coal mining industry been changing as employers and unions organise their power resources to control and remake spaces of working and living? The most obvious likely changes are those driven by climate change policies. These are, however, only the most obvious, albeit fundamental, transformations facing coal mining workforces and unions. In the massive export coalfields of the State of Queensland, which have been central to the Australian politics of climate change, a less discussed phenomenon has been unfolding, a remaking of place and power in industrial relations. Employer-driven changes, namely automation, the geography of work and bargaining processes, and workforce composition, have presented themselves as the immediate threats to local traditions of work and social practice, not climate policy. ‘Power resources approaches’, when spatialised, historicised and entwined with labour process analysis, help to explain the breadth of employer-driven change and the unevenness of union responses.

“Consider Carefully the Best Use of Our Limited Resources”: Australian Space Policy, 1960–72

In Australia's long engagement with space activities, the 1960s are singled out as a particular period of technological achievement. In turn, these achievements are often described as having been a potential foundation for an expanded Australian space programme that was rejected by the Australian government. However, these arguments, which might be termed a narrative of “missed opportunity” in writing about Australia's space past, are rarely made with reference to the archival record. This article argues that analysis of key decisions around space during the 1960s show that rather than being dismissive of space technology, the Australian government was cognisant of the potential benefits of space. It was supportive of Australian involvement when it met with broader national needs and willing to expend significant government resources in investigating and supporting space endeavours. Equally, it declined to expand Australia's expenditure on space when, like any other policy area, the proposals did not meet Australian needs, were poorly designed, or both.

ChatGPT in public policy teaching and assessment: An examination of opportunities and challenges

AbstractThis paper presents the findings of an innovative assessment task that required students to use ChatGPT for drafting a policy brief to an Australian Government minister. The study explores how future public policy students perceive ChatGPT's role in both public policy and teaching and assessment. Through self‐reflective essays and focus group discussions, the research looks at the limitations of ChatGPT that the students identified, demonstrating it struggles to produce analytically sound, politically responsive, and nuanced policy recommendations. The findings align with the “technoscepticism” theoretical frame, indicating concerns that artificial intelligence (AI) tools could undermine good policy analysis processes. The students supported greater use of ChatGPT in the classroom, to increase ChatGPT‐literacy, help students learn to engage ethically and appropriately with AI tools, and better develop evaluative judgement skills.The paper contributes insights into the intersection of ChatGPT, teaching and assessment, and public policy and seeks to prompt further exploration and discussion on the implications of integrating ChatGPT into both public policy and its education and assessment.Points for practitioners Future public service graduates are highly sceptical about the value of ChatGPT for developing policy. They are concerned about the ethical implications, the lack of transparency, and the impact it may have on marginalised communities.

Austerity and elections

AbstractThis paper revisits the conventional but unproven wisdom that voters penalize governments for adopting fiscal austerity in a sample of advanced economies. We consider the composition of the austerity package and the economic manifesto of the implementing government, and find that austerity packages consisting mostly of tax hikes have a significant electoral cost, which is larger for government parties that campaigned on a free‐market manifesto. Conversely, expenditure‐based austerity is costlier for government parties that did not run on a small‐government platform, but may be beneficial for those that did.

Is Austerity Responsible for the Stalled Mortality Trends Across Many High-Income Countries? A Systematic Review.

This article systematically reviews evidence evaluating whether macroeconomic austerity policies impact mortality, reviewing high-income country data compiled through systematic searches of nine databases and gray literature using pre-specified methods (PROSPERO registration: CRD42020226609). Eligible studies were quantitatively assessed to determine austerity's impact on mortality. Two reviewers independently assessed eligibility and risk of bias using ROBINS-I. Synthesis without meta-analysis was conducted due to heterogeneity. Certainty of evidence was assessed using the GRADE framework. Of 5,720 studies screened, seven were included, with harmful effects of austerity policies demonstrated in six, and no effect in one. Consistent harmful impacts of austerity were demonstrated for all-cause mortality, life expectancy, and cause-specific mortality across studies and different austerity measures. Excess mortality was higher in countries with greater exposure to austerity. Certainty of evidence was low. Risk of bias was moderate to critical. A typical austerity dose was associated with 74,090 [-40,632, 188,792] and 115,385 [26,324, 204,446] additional deaths per year. Austerity policies are consistently associated with adverse mortality outcomes, but the magnitude of this effect remains uncertain and may depend on how austerity is implemented (e.g., balance between public spending reductions or tax rises, and distributional consequences). Policymakers should be aware of potential harmful health effects of austerity policies.

The principle of adequate social protection in the European Pillar of Social Rights: Assessing the instruments used to realise its potential

Improving the social security protection of atypical workers has been high on the EU agenda in recent years. With the adoption of the European Pillar of Social Rights in 2017, the EU wished to break away from a decade of austerity measures. The EU further developed the right to adequate social protection in the Pillar through the Recommendation on access to social protection for workers and the self-employed. This instrument urges EU Member States to ensure adequate access to social protection for workers, regardless of their employment relationship, and the self-employed. As part of the EU's recovery strategy during and after the Covid-19 crisis, several financial instruments were developed to support EU Member States. Through the Temporary Support to Mitigate Unemployment Risks in an Emergency, EU Member States received support for job retention schemes. The EU also adopted the Recovery Resilience Facility, which provided grants and loans. Another support instrument was the European Social Fund Plus. This article discusses those recent EU initiatives, focusing on unemployment and the protection of atypical workers and the self-employed. With the introduction of the European Employment Strategy (1997), a closer link was made at EU level between unemployment, increasing labour market participation and activation measures. Less attention was paid to ensuring adequate unemployment protection. In recent years, however, it appears that the EU has been playing an increasing role in providing funding for temporary support and in introducing changes to EU Member States’ policies.

Citizen science as a vehicle to address multiple policy objectives: Case studies from Australia.

Despite increasing interest in citizen science as an approach to engage members of the public in research and decision making about health and wellbeing, there is a lack of practical evidence to guide policy and practice organisations to utilise these approaches. In this study we investigated how and why citizen science came to be incorporated into the work of two policy organisations. We offer two in-depth case studies of Australian government organisations which have utilised citizen science in environmental and healthy ageing policy. Interviews with organisational informants and relevant documents were analysed inductively to explore how citizen science came to be adopted, legitimised and supported. Citizen science was utilised to address multiple organisational objectives, including increasing community participation in science; enhancing individuals' wellbeing, learning, and skills, and generating data to support research and policy in a relatively cost-effective manner. In both cases, grant funding was a mechanism to support citizen science, with project delivery facilitated through academic-policy partnerships and led by external academic or community partners. Although citizen science is relatively new in policy and practice settings, this study underscores the value of these approaches in realising co-benefits for organisations, academics, and community members. The support and advocacy of senior managers as 'champions', and a willingness to invest in trialling new approaches to address policy problems are necessary ingredients to foster acceptance and legitimacy of citizen science. SO WHAT?: Citizen science initiatives can be strategically utilised by health promotion organisations to enact priorities related to genuine community involvement, support research and innovation and facilitate collaboration and partnerships between academic, policy and community stakeholders.

Challenges and opportunities in Australian greenhouse gas storage legislation: insights from the CarbonNet project

Co-funded by the Victorian and Australian Governments, the CarbonNet Project (CarbonNet) was established in 2009 to enable commercial deployment of carbon capture and storage (CCS). The duration and first-of-a-kind nature of the project has also provided an opportunity to test the Australian legislative greenhouse gas (GHG) framework. Although the Commonwealth legislative regime has comprehensive GHG legislation in place, one of the recognised barriers to geological storage in Australia is permitting and regulatory complexity. CarbonNet’s practical application of the legislation has emphasised that regulatory maturity will only be achieved once a number of projects have been permitted through the full project lifecycle. While the project has achieved many regulatory firsts, there have been several policy and regulatory challenges. Successes have come via legislative reform, scientific investigation and collaboration, and stakeholder engagement and communication. This paper provides insights into CarbonNet’s regulatory journey and key learnings in testing first-of-a-kind regulatory processes. It also explores opportunities for improvement in the GHG regulatory framework, while noting the progress of recent legislative reform and government collaboration. The paper concludes with a recognition of the need for the CCS regulatory framework to be straightforward, fit-for-purpose, proportionate, risk-based, and not overly prescriptive or complex. CCS projects may span decades and require significant upfront investment from multiple companies or consortia. Proponents and investors require confidence in the regulatory framework underpinning a project before making these large commitments. Accordingly, there is a key role for both Australian and State governments in providing the enabling legislative and regulatory framework for CCS projects.

Safeguard Mechanism reforms – how big and how much will it cost?

In an effort to reduce greenhouse gas emissions, the Australian government legislated the Safeguard Mechanism (SGM) in 2016. It is generally accepted that it had minimal impact, with no material reduction in greenhouse gas emissions resulting. In a move to address this, the legislation was amended, effective July 2023. These amendments rewrote the rules – baselines will reduce over time, the method of setting them will change, new concepts such as ‘international best practice’ will be introduced and new projects (including those already sanctioned, but not yet onstream) will be subject to tougher requirements. Our analysis will review the impact on the upstream projects currently covered by the SGM, and a select group of new projects. We will give our view on how the transition from the facility-specific to industry-average baselines impacts operators, and identify some of the potential winners and losers. Whilst first reporting is not due until the end of the 2024 financial year, there is still significant uncertainty on how the amended SGM will operate, specifically with regards to ‘industry best practice’. The paper will analyse what this could mean, and potential impacts. Is the SGM the roadmap to net zero that the industry is looking for? The work will leverage Wood Mackenzie’s asset by asset emissions data, and our unique insight into the economics of upstream developments. Ultimately, we will assess the trade-off that has been made by the Australian government – emissions for commerciality – and its long-term impact on the upstream sector.

Operating in the context of evolving climate disclosure practices and frameworks

The standards for companies reporting on the environmental impacts of their operations have changed drastically over the last decade and are about to become even more complex. Initially, limited regulation or guidance available to companies in relation to climate disclosures led to widely diverging practices. This has resulted in many companies facing allegations of ‘greenwashing’ and in some cases litigation and shareholder activism. However, the Australian Government has recently announced it will implement mandatory climate reporting commencing from 1 July 2024 for many Australian companies. Additional climate disclosures – encouraged by pressure from stakeholders and required by the new reporting regulations – will make environmental risk management more complex. The additional disclosures will also provide further opportunities for interference with the approval process for new projects, if there are inconsistencies between a company’s climate disclosures generally and what they have said in their project approval documents. In this paper, we provide an overview of effective strategies and mitigation steps that can be taken to reduce this risk of disruption and disincentivise activist interference more generally, drawing from recent climate change proceedings and experience advising energy and resources clients in relation to climate change and Environmental Social and Governance (ESG) issues more broadly. In particular, we will cover the aspects of the new mandatory climate reporting regime that will be most difficult to comply with; common greenwashing pitfalls; stakeholder/activist engagement planning; and how Boards should approach these issues.