German Municipalities Research Articles

Decentralized Corruption in Germany1

This article focuses on the link between administrative reform and decentralized corruption in German municipalities. It argues on the basis of survey findings, that the decentralization process of public service delivery from core administration to public enterprises during the last years has not only resulted in a shift of administrative authority, personnel and financial resources to newly established public enterprises but also in a shift towards decentralized corruption. Findings show that the perceived quantity of decentralized corruption is as high as bureaucratic corruption. In the course of decentralizing public service delivery to new administrative bodies, municipalities have missed the opportunity to adapt their audit systems. Old corruption risks have been shifted to public enterprises and new opportunities for corruption have been created. The data presented are based on a survey conducted with local audit experts and analyze the motivation, opportunity, and possibility for decentralized corruption.

Local Governments in the Wake of Demographic Change: Efficiency and Economies of Scale in German Municipalities

German municipalities are expected to suffer from (often significant) population losses in the upcoming decades. We assess these local governments' vulnerability to the fiscal consequences of this demographic decline through two means (using a sample of 1021 municipalities in the state of Baden-Wuerttemberg). First, we consider local government cost efficiency. This indicates that there is a substantial divergence in efficiency despite a homogeneous institutional setting, leaving at least some - mainly smaller - municipalities vulnerable to adverse demographic/financial shocks. Secondly, we estimate the elasticity of local government cost functions to population size. We find that costs rise (fall) underproportionally with population size for small municipalities, whereas this is less the case for larger municipalities. This implies that especially small municipalities are vulnerable to increasing cost pressures under declining population. The overall implication is that large German municipalities (over 10.000 inhabitants) will more easily be able to cope with the expected population decline than smaller ones, supporting a case for boundary reviews or more extensive inter-communal cooperation.

Das Gemeindesteuersystem erneut auf dem Prüfstand. Ökonomische Bewertung der Erfolgsaussichten einer modifizierten Variante des Reformmodells der Stiftung Marktwirtschaft

Abstract In Germany, the current situation of local government finance is still worrying. Up to now, all political attempts to reform the German local tax system fundamentally led to no satisfying result. For this reason, new reform initiatives gain particular attention in scientific and political discussion. Against this background, the paper examines the proposal for reform of the existing local tax system presented by Stiftung Marktwirtschaft. By highlighting public finance characteristics of economically reasonable local government finances as well as public choice characteristics of a politically successful reform, it will be shown that within some small but important modifications the proposal of Stiftung Marktwirtschaft is in a position to solve local government finance problems in a durable manner. This result is consecuted by an empirical simulation of the fiscal effects for all German local authorities. The fiscal simulation demonstrates that more then ninety percent of German cities and municipalities will gain from a political implementation of the proposal for reform.

Local economic policies as determinants of the local business climate: Empirical results from a cross-section analysis among East German municipalities

Blume L. (2006) Local economic policies as determinants of the local business climate: empirical results from a cross-section analysis among East German municipalities, Regional Studies 40, 321–333. For the period after 1995, there is empirical evidence that differences in East German local economic policies explain a significant part of the variation in the local business climate. A cross-section analysis among 92 municipalities shows that successful economic policies consisted of a balanced mix of traditional instruments (consulting, real estate management, investment in infrastructure) and modern, competition-oriented activities (city marketing, new public management, regional cooperation and public–private partnerships). At the current level of intergovernmental competition among East German municipalities, there are no signs of a ruinous race in subsidies. Discriminating subsidies even have a negative effect on the business climate in cities that have implemented these. Blume L. (2006) Les politiques économiques locales en tant que déterminants du climat commerial local: des résultats empiriques d'une analyse transversale des municipalités en Allemagne de l'Est, Regional Studies 40, 321–333. Depuis 1995, des résultats empiriques laissent supposer que les différences de politique économique locale en Allemagne de l'Est expliquent une part non-négligeable de la variation du climat commercial local. Une analyse transversale de 92 municipalités montre que les politiques économiques efficaces comportaient un ensemble équilibré de mesures traditionnelles (à savoir, conseil, gestion de l'immobilier, investissement dans l'équipement) et des activités modernes orientées vers la compétition (à savoir, commercialisation urbaine, nouvelle gestion publique, coopération régionale et partenariats publics–privés). Au niveau actuel de la compétition intergouvernementale entre les municipalités en Allemagne de l'Est, il n'y a aucune signe d'une course à la subvention ruineuse. Des subvention discriminatoires ont un impact négatif même sur le climat commercial des villes où on les a mises en application. Politique économique locale, Climat commercial local, Municipalités en Allemagne de l'Est Blume L. (2006) Kommunalwirtschaftliche Bestrebungen als ausschlaggebender Faktor des jeweiligen örtlichen Geschäftsklimas: Ergebnisse einer Querschnittsanalyse ostdeutscher Gemeinden, Regional Studies 40, 321–333. Es gibt empirische Beweise für die Zeit nach 1995, daß Unterschiede in ostdeutschen kommunalwirtschaftlichen Bestrebungen einen signifikanten Teil der Unterschiede im örtlichen Geschäftsklima erklären. Eine Querschnittsanalyse von 92 Gemeinden zeigt, daß erfolgreiche Wirtschaftspolitik aus einer ausgewogenen Mischung der üblichen Instrumente (Beratung, Immobilienverwaltung, Investierung in der Infrastruktur) und modernen, wettbewerbsorientierten Anstrengungen (Marketing der Stadt als solcher, neue öffentliche Verwaltung, regionale Zusammenarbeit und Partnerschaften privater mit der öffentlichen Hand) besteht. Auf der gegenwärtigen Ebene des Wettbewerbs zwischen den Verwaltungen ostdeutscher Städte gibt es keinerlei Anzeichen eines ruinösen Wettlaufs um Zuschüsse. Diskriminierende Zuschüsse üben sogar eine negative Wirkung auf das Geschäftsklima der Städte aus, die dergleichen eingeführt haben. Örtliche Wirtschaftspolitik, Örtliches Geschäftsklima, Ostdeutsche Städte Blume L. (2006) Políticas económicas de ámbito local como determinantes del clima comercial: Resultados empíricos de un análisis representativo entre los municipios de Alemania del este, Regional Studies 40, 321–333. Existen pruebas empíricas de que, para el periodo después de 1995, las diferencias en las políticas económicas locales de Alemania del este ilustran una parte importante de la variación en el clima comercial de ámbito local. Un análisis representativo entre 92 municipios demuestra que las políticas económicas de éxito estaban formadas por una combinación equilibrada de instrumentos tradicionales (consulta, gestión inmobiliaria, inversión en infraestructura) y actividades modernas orientadas a la competición (comercio en ciudades, nueva gestión pública, cooperación regional y asociaciones entre organizaciones públicas y privadas). En el nivel actual de competición entre gobiernos de los municipios de Alemania del este, no se observan indicios de una carrera ruinosa de subsidios. Los subsidios discriminatorios tienen incluso un efecto negativo en el clima comercial en las ciudades en que han sido implantados. Políticas económicas locales, Clima comercial de ámbito local, Municipios de Alemania del este

Managing implementation processes

In order to improve financial decision making in local governments in Germany, accrual output-based budgeting is being introduced. As the dynamics of implementation processes are often neglected, we research the shift from established rules and procedures to the application of accrual accounting, especially how public managers deal with new financial management systems and how their expectations are fulfilled. Based on a dynamic capability approach, six case studies in German municipalities are conducted. In a comparative analysis we focus on the dynamics of implementation processes. The findings emphasize that the application of accrual accounting is dependent on strategic orientations of top managers, involvement of middle managers and the capability to develop new structural routines in managing change.

The incentive effect of fiscal equalization transfers on tax policy

A theoretical analysis considers the impact of a typical system of redistributive “fiscal equalization” transfers on the tax effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base reduces those transfers, might be positively associated with the local tax rate while the volume of grants received is likely to be inversely related to the tax rate. These predictions are tested in an empirical analysis of the tax policy of German municipalities. In order to identify the incentive effect the analysis exploits discontinuities in the rules of the fiscal equalization system as well as policy changes. The empirical results support the existence of an incentive effect, suggesting that the high marginal contribution rates induce the municipalities to set significantly higher business tax rates compared with a situation without fiscal equalization.

Analysis of Public Management Change Processes: The Case of Local Government Accounting Reforms in Germany

In Germany, financial pressure and a lack of efficiency have caused the need for several reform processes in the local governments of German municipalities. These local governments are facing a growing contradiction between decreasing levels of financial support and increasing responsibilities. In order to address this tension, municipalities are starting to change their accounting systems by implementing accrual accounting and output-based budgeting. Starting from a description of reform processes in German municipalities, we use the concept both of the resource-based view and of dynamic capabilities in order to observe the implementation of these new accounting standards. Based on six case studies, our empirical findings show that the idiosyncratic adaptation of new standards in municipalities leads to a diversity of outcomes in the implementation process. Finally, the future prospects of further public financial management reform processes in Germany are presented.

The Incentive Effect of Fiscal Equalization Transfers on Tax Policy

A theoretical analysis considers the impact of a typical system of redistributive transfers on the taxing effort of local jurisdictions. More specifically, it shows that the marginal contribution rate, i.e. the rate at which an increase in the tax base reduces those transfers, might be positively associated with the local tax rate while the volume of grants received is likely to be inversely related to the tax base. These predictions are tested in an empirical analysis of the tax policy of German municipalities. In order to identify the incentive effect the analysis exploits discontinuities in the rules of the fiscal equalization system as well as policy changes. The empirical results support the existence of an incentive effect, suggesting that the high marginal contribution rates induce the municipalities to raise their business tax rates significantly.

Die räumliche Struktur des Flächenverbrauchs in Deutschland

Next to the quantitative reduction of land consumption, the control of the territorial setting of newly urbanised areas must be acknowledged as a key task of sustainable urban development. Therefore policies against urban sprawl require precise land-use data to inform politicians on the spatial patterns of urbanisation. This article presents an approach for analysing land-use change based on municipality data. For the first time a municipality data base on land-use for the whole territory of Germany has been adopted. The usage of municipality data allows a more sophisticated picture of the patterns of land consumption compared to traditional county-data approaches. The analysis focuses on the spatial concentration of land consumption as well as the distribution of newly urbanised areas among about 13 000 German municipalities.

Osamosvojitvi slovenije leta 1991

Nemške občine se razlikujejo med seboj po svoji upravi v smislu samouprave, ki je za-gotovljena z ustavo. Neposredna posledica je vedno več omejitev pri prenosu odgovor-nosti, na področju financ in pri evropskem upravljanju.

On the acceptance of animal production in rural communities

In 18 East German municipalities, nine of them with a planned pig production site and the other nine with an existing pig production site, a survey was carried out on the factors influencing the acceptance of pig production. The influencing factors examined were the personal attitude on particular aspects of pig production, socio-demographic characteristics, the personal involvement in local decision-making, the size of livestock and the production technology. As a result, existing production sites are perceived more positively than planned sites, without any influence of size and production technology. The difference may be explained by the fact that planned sites are evaluated in respect to economic arguments as jobs and income (market goods), while existing sites are rather evaluated in respect to environmental factors (public goods). For new investments the results lead to the recommendation to emphasise its economic aspects, to integrate the investor socially in the rural community and to apply technology that prevents pollution for the neighbourhood. More importantly, the results show the shortcomings of a “top down” approach and the indispensability of endogenous resources in regional development.

Protest and Reform in Asylum Policy: Citizen Initiatives versus Asylum Seekers in German Municipalities, 1989-1994

Many writers have argued that anti-immigration politics in Germanyand other West European countries have been driven by radical-rightparties or the electoral maneuvering of national politiciansfrom established parties. Others have argued that waves of violenceagainst immigrants and ethnic minorities have spurred anti-immigrationpolitics, or that racist ideologies and socioeconomic inequalityare the root causes. By comparison, authors have paid relatively littleattention to anti-immigration mobilization at subnational levels,including the public positions taken by subnational politicians andthe activities of movement groups, or “challengers.” Nonetheless,research has shown that subnational politicians are often importantin pressing national campaigns for immigration controls. Moreover,as I have argued elsewhere, anti-immigration politicians in Britainand Germany have responded in large part to local challengers, whowere aided by political elites at local and regional levels.

Tax base effects and fiscal externalities of local capital taxation: evidence from a panel of German jurisdictions

This paper provides empirical evidence on the tax base effects of local capital taxation. Using a large panel of German municipalities it tests whether both the local tax rate and the tax rate in adjacent jurisdictions affect the local tax base. The results obtained from a spatial GMM approach confirm a strong negative impact of the local tax rate, whereas the average tax rate of neighboring municipalities proves insignificant. Only if interacted with the relative population size of neighbors a significant positive impact is found, indicating that externalities from taxing decisions of adjacent jurisdictions are experienced only by relatively small municipalities.

The jurisdictional framework for municipal action to reduce greenhouse gas emissions: Case studies from Canada, the USA and Germany

This paper addresses two questions: (1) Given a commitment at the national level to reduce greenhouse gas (GHG) emissions, what tools are available to national‐level governments to induce complimentary actions required at subnational levels? (2) In the absence of a serious commitment at national and regional levels to reduce GHG emissions, what is the scope for, and jurisdictional rights of, cities to undertake actions? In this context, federal, regional and municipal legislation relevant for GHG emissions is examined in Canada, the USA and Germany. Regarding the first question, different national governments find themselves in considerably different positions to implement climate initiatives at subnational levels, with the German government in the strongest position and the Canadian government in the weakest. The implications of this for a nation's willingness to adopt emission reduction targets could be serious. Regarding the second question, there are few significant differences among Canadian, US and German municipalities’ jurisdictional capabilities (and limitations) to reduce GHG emissions. Though limited in their legal capacity, these municipalities demonstrate that through their own, often informal, initiatives they can reinforce and compliment the more formal, regulatory actions by senior‐level governments, thereby paving the way for senior‐level governments to deliver meaningful domestic emission reductions.

The Re-Institution of Local Self-Government in Eastern Germany

After unification the centralized political order of the former East Germany was replaced by a system which gave back the right of self-government to democrati cally elected local institutions. The re-establishment of local government and municipal administration has proved to be difficult, however. On the structural level, the new administrative order only partly fits the actual problems eastern German municipalities are faced with. In terms of personnel, new departmental heads and administrators do not have sufficient ex perience in administration or appropriate qualifi cations in legal matters. Dependent on the help of western German advisers, unfamiliar with democratic procedures and under pressure from citizens and politicians alike, the new local governments have to solve a wide range of political and economic problems. Inappropriate de cisions seem to be inevitable under these circum stances, leading to widespread reproach at being unable to cope with the new situation. Based on an empirical study in several municipalities in eastern Germany, this complicated process of re-establishing a functioning local government and public adminis tration is described and analysed.

Setting New Spending Priorities in Japanese Prefectures

Several propostions about resource allocation behavior are tested with data for the Japanese national government and 46 prefectural governments. Results are compared with those from parallel tests employing data for the West German national government and 105 municipal governments. Most of the behavior observed in both countries seems compatible with the incremental model's assumptions. However, the West German national government's spending patterns are shown to be just as stable as the Japanese national government's. This finding runs counter to baransu descriptions of budgeting in Japan. Findings for subnational governments in both countries also contadict the literature. In particular, the expenditure pattern variability of Japanese prefectures and West German municipalities decreases with increased interparty competition.

Racialism on the Left E.D. Morel and the “Black Horror on the Rhine”

On April 6, 1920 the French government, in reprisal for the entry of German troops into the demilitarized zone of the Ruhr, occupied Frankfurt, Darmstadt, Hanau, and Homburg. During the occupation French Moroccan soldiers fired on a German mob in Frankfurt and killed several. In covering the event the Daily Herald, alone among English newspapers, called special attention to the “race” of the French troops. It headlined:FRANKFURT RUNS WITH BLOODFRENCH BLACK TROOPS USEMACHINE GUNS ON CIVILIANSOn April 10, the Herald followed its accounts of events on the Rhine by a front page article by Edmund Dene Morel under banner leads:BLACK SCOURGE IN EUROPESEXUAL HORROR LET LOOSE BY FRANCE ON RHINE DISAPPEARANCE OF YOUNG GERMAN GIRLSFrance, Morel wrote, “is thrusting her black savages …into the heart of Germany.” There “primitive African barbarians”, carriers of syphilis, have become a “terror and a horror” to the Palatinate countryside. The “barely restrainable beastiality of the black troops” has led to many rapes, an especially serious problem since Africans are “the most developed sexually of any” race and “for well-known physiological reasons, the raping of a white woman by a negro is nearly always accompanied by serious injury and not infrequently has fatal results.…” Morel had reports of rapes, “some of them of an atrocious character”, and of “dead bodies of young women discovered under manure heaps and so on”. German municipalities were forced to provide bordellos and white women, and even young boys, for these over-sexed blacks. Master-minding this effort to “ruin, enslave, degrade, dismember [and] reduce to the lowest depths of despair and humiliation a whole people” was a “ruthless” and militaristic French government. Furthermore Morel warned his working class readers, “If the manhood of these races, not so advanced in the forms of civilisation as ourselves, are to be used against the Germans, why not against the workers here or elsewhere?”

THE FINANCIAL SIGNIFICANCE OF THE GAINFUL ACTIVITIES OF GERMAN MUNICIPALITIES.

Annals of Public and Cooperative EconomicsVolume 7, Issue 2 p. 183-194 THE FINANCIAL SIGNIFICANCE OF THE GAINFUL ACTIVITIES OF GERMAN MUNICIPALITIES. Dr. Albert SCHULTE, Dr. Albert SCHULTE (Berlin).Search for more papers by this author Dr. Albert SCHULTE, Dr. Albert SCHULTE (Berlin).Search for more papers by this author First published: May 1931 https://doi.org/10.1111/j.1467-8292.1931.tb01273.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Volume7, Issue2May 1931Pages 183-194 RelatedInformation

THE ECONOMIC ACTIVITIES OF GERMAN MUNICIPALITIES.

Annals of Public and Cooperative EconomicsVolume 5, Issue 3 p. 209-270 THE ECONOMIC ACTIVITIES OF GERMAN MUNICIPALITIES. Dr. Oskar MULERT, Dr. Oskar MULERT President of the German Municipal Union.Search for more papers by this author Dr. Oskar MULERT, Dr. Oskar MULERT President of the German Municipal Union.Search for more papers by this author First published: September 1929 https://doi.org/10.1111/j.1467-8292.1929.tb01740.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Volume5, Issue3September 1929Pages 209-270 RelatedInformation