International Journal of Regulation and Governance - Volume 11, issue 1

Authors: Burns, Tom R | Roszkowska, Ewa

Article Type: Research Article

Abstract: This article develops the earlier analyses of the Pareto multi-agent problematique concerning collective choice situations, where members of a group, community or society, having diverse values, beliefs, and other predispositions, are faced with alternative allocations, institutional arrangements, or states of the world and may collectively choose a particular allocation, institutional arrangement or state of the world if they can agree on the choice. This type of multi-value governance situation is increasingly prevalent not only at political and societal levels, but also at the level of many enterprises, for instance, those advocating corporate social responsibility and working on economic as well …as social and environmental goals. The article builds on research that has identified institutionalized governance mechanisms, which resolve confl icts of inefficient or non-optimal states and disequilibria. In other words, Pareto optimization problems, in the face of general non-unanimity or conflict regarding the outcomes among involved actors, can be resolved. The approach, based on Sociological Game Theory (SGT), has developed specific models of adjudication, negotiation, and democratic procedure and investigated their legitimacy bases, the limits of such societal procedures, and the accomplishment of societal efficiencies through such procedures. The re-conceptualization of the “Pareto problematique” is based on a general principle of “legitimation of collective choices”. Such collective choices are likely to be accepted by the majority or key agents (such as government agencies, businesses, NGOs, and so on) in the society. However, legitimacy does not guarantee effectiveness. On the one hand, it creates social order and sustainable society, on the other hand, a process legitimized by one or more of the societal legitimizing procedures may nonetheless lead to highly ineffective (or “inefficient”) outcomes, even catastrophes. There is no guarantee that legitimate collective choices are the best or right choices (this critique also applies to Pareto's approach, as we have pointed out elsewhere). In general, effective choices, whether legitimate or not, require the application of relevant or appropriate knowledge (often, multiple types of knowledge are required). Overcoming the dilemma of gaining social acceptance and achieving knowledge-based technical effectiveness requires dual (or multiple) governance systems. This article identifies and analyses the governance structures and procedures, which bring systematic knowledge to bear on collective choice problems. Many contemporary forms of collective decision-making entail mobilizing and applying expertise, such as technical and scientific, economic, organizational, legal, and cultural knowledge, and combining these with legitimizing procedures to gain acceptance of collective decisions and, thereby, accomplish social equilibria. A few models of such integrative governance systems are identified and discussed in the article. Show more

Keywords: social optimum, societal procedures, collective choice, legitimacy, effectiveness, Pareto efficiency

DOI: 10.3233/IJR-120098

Citation: International Journal of Regulation and Governance, vol. 11, no. 1, pp. 1-23, 2011

Authors: Nallathiga, Ramakrishna

Article Type: Research Article

Abstract: The reform of the urban water supply sector in India has been somewhat slow, thanks to the lack of focus on delivery systems that are under the purview of state and local governments. Urban water supply is still largely viewed as a public good provided by a local government or a parastatal agency without examining its long term sustainability. Even large metropolitan cities are yet to undertake basic reforms for improving the efficiency of water service provision and making it financially self sufficient. There has hardly been any strategic focus on ‘demand management’ and on improvement in service delivery efficiency. …This paper provides an analytical overview of the water resource status in general, and that of urban water in particular, with reference to the need for reforming the sector in terms of improving service and delivery. The reform agenda set out includes the aspects of water institutions, finances, and governance. It is also argued that the financial sustainability/cost recovery and affordability/ access to the poor may be balanced, both through tariff design as well as new institutional finance models. It is hoped that the large capital investments coming through partnership funding arrangements under JNNURM should provide incentives for urban local governments (ULG) to move on a reform path, so that the assets created are well maintained and utilized beyond their design life span. This calls for building up a comprehensive management capacity in the ULGs that also meets the shifts in demand. Show more

Keywords: water resource management, urban water supply, water governance, financial and institutional reforms

DOI: 10.3233/IJR-120099

Citation: International Journal of Regulation and Governance, vol. 11, no. 1, pp. 25-52, 2011