Good urban governancewilmoth.com.au/publications/2016-06 BMCC talk.pdf · • Aligned with UNE and...

Good urban governance Blue Mountains City Council

Katoomba, 16 June 2016

David Wilmoth Learning Cities International Pty Ltd

Outline

•  Introduction •  BMIHMS •  Overview of corporate

governance •  Overview of urban

governance

•  Metropolitan governance

•  Current issues for discussion

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Blue Mountains International Hotel Management School Leura, Sydney, Suzhou and Subang


BM International Hotel Management School •  History •  Governance •  Programs •  Campuses •  Engagement


• https://www.youtube.com/watch?v=Of0oiOHbkY4&width=800&height=500

History, governance and campus • 1991 founded by Fritz

Grubler, Max Player and Robert Willingham on Swiss model

• Aligned with UNE and UQ then went independent

• 2005 acquired by Laureate • 2015 merged with Torrens

University Australia, retaining brand and programs

• Campuses Leura, Sydney, Suzhou and Subang, other locations

• 1,400 students, bachelor and masters degrees in hotel and resort management, events, global business, restaurant management

• Leura the home and campus of practice; renowned industry and community engagement

• Many national and international awards


An overview of corporate governance We know what we have to do


Corporate governance frameworks • Longstanding practice private

sector now across government and NFP sectors

• AS8000-2003 Australian Standard: Good Governance Principles. Also AICD, ASX

• OLG model codes incl. guidance for Council officials and BMCC Code of Conduct

• Also see LG Perspective at file:///Users/davidwilmoth/Downloads/Good%20governance%20principles%20(AS%208000-2003)%20-%20a%20shorter%20version%20with%20LG%20perspective%20PJ%20080309.pdf

Also relevant are Australian standards and guidelines for • Risk management AS/NZS

ISO 31000:2009 • Risk management in not-for-

profit organizations HB 266:2010

• Compliance programs • AS 3806—2006


Principles of good governance (AS-8000) Structural elements • Commitment • Governance policy • Board/Council responsibility • Continuous improvement •  Identification of governance

issues • Operating procedures for

governance • Dealing with governance

breaches and complaints

• Record keeping •  Internal reporting • Education and training • Visibility and communication • Monitoring and assessment • Review • Liaison with stakeholders


Principles of good governance (AS-8000)

Governance principles 1.  Role, powers and

responsibilities of Councils 2.  Disclosure and transparency 3.  Role of stakeholders in

corporate governance

Typical areas of focus •  Risk management •  Compliance •  Internal audit •  Anti-corruption, fraud •  Council and subsidiary

management •  Ethical and responsible decision-

making •  Corporate social responsibility •  Stakeholder rights and

responsibilities •  Sustainable development •  Disclosure and transparency


AICD’s corporate governance framework

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•  Integrity • Leadership • Competence • Enterprise • Fairness • Commitment • Confidence • Respect • Accountability • Transparency

The rise of urban governance A murky provenance making good


Urban governance • Good governance is a means

to most policy ends and an object of policy itself

• Norms of good governance are shared by many frameworks

• Recent push-back against norms avowedly universal – e.g. human rights as a Western conspiracy and political rights as imposition of democracy

• Policy governance including urban policy is a recent field

•  ‘Urban’ as usual has several meanings in governance, esp.

•  City jurisdictions vs. •  Governance of urban areas

physically or functionally •  Governance of urban planning

and development • All apply to our discussion

today 16/06/16 Good urban governance BMCC talk 12

The origins of governance: a loaded concept? Neo-classical economics

Public choice theories From government to governance

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Use of economic theory for policy

Neo-classical economics Public choice theory

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Buchanan and Tullock 1961

The Calculus of Consent

Use of economic theory for policy

Neo-classical economics Public choice theory Public choice practice

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Osborne and Gaebler 1992

Re-‐inven3ng Govern-‐ment

Buchanan and Tullock 1961

The Calculus of Consent

From government to governance New governance thinking

16/06/16 MUPS DM&GN 16

Shrink the government / tame Leviathan


16/06/16 MUPS DM&GN 17

Use the private sector


16/06/16 MUPS DM&GN 18

Encourage voluntarism / engage civil society


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Shrink the government / tame Leviathan

Use the private sector

Encourage voluntarism / engage civil society

Tripar&te governance

Extension of governance concept

• Reaction to thinking • Reaction to practice

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• Progressive extension • The search for ‘good

governance’ • Application to international

development

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• Particular application to urban governance

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Extension of governance concept • Reaction to thinking • Reaction to practice • Progressive extension • The search for ‘good

governance’ • Application to international

development • Particular application to

urban governance

16/06/16 MUPS DM&GN 23

Newer concepts for urban governance • Network governance • Collaborative governance • Interactive governance • Multilevel governance

• ‘Governance without government’

• Metagovernance • Global governance • Community governance

16/06/16 InternaQonal metro governance -‐ Tehran conf. 24

Good policy governance OECD

1.  Participatory 2.  Consensus-oriented 3.  Accountable 8.  Transparent 9.  Responsive 10. Effective and efficient 11. Equitable and inclusive 12. Follows the rule of law 16/06/16 Good decision-‐making 25

UN HABITAT global campaign on urban governance http://mirror.unhabitat.org/content.asp?typeid=19&catid=25&cid=2097


Their definition: • Urban governance is the sum of the many

ways individuals and institutions, public and private, plan and manage the common affairs of the city. It is a continuing process through which conflicting or diverse interests may be accommodated and cooperative action can be taken. It includes formal institutions as well as informal arrangements and the social capital of citizens.

UN HABITAT Global Urban Governance Campaign criteria


UN HABITAT urban governance index


Basic principles of integrated urban governance (Metropolis 2011)

• Decisions made close to the citizens and subsidiarity as a principle within the city

• Systematic approach •  Integrated action • Client orientation • Public participation • Enabling and empowerment • Management approach 16/06/16 Good decision-‐making 29

Metropolitan governance Blue Mountains’ metropolitan role and changing metropolitan governance


What is a metropolitan area governance body? (OECD criteria 2014)

1. Geographical scope Must cover central city and a large share of remainder of metropolitan area. If beyond, metropolitan area must be main sphere of responsibility. 2. Involved actors National or sub-national governments must be dominant actors within the organisation or else it itself has sub-national government status.

3. Thematic focus The organisation must primarily deal with issues relevant to metropolitan area governance. Sub-national governments that coincide with metropolitan areas aren't counted 4. Thematic width An organisation must have a mandate to work on more than one issue related to metropolitan area governance, i.e., not a single issue bodies or sectoral authority.


Two perennial paradigms of metro governance

Consolidationist model •  Too many governments •  Duplication of functions •  Externalities and public goods •  Overlapping jurisdictions •  Coordination •  Clarity •  Aggregation of polity •  Single institution or coordinated

process

Public choice model •  Too much government •  Polycentric systems can

work •  Intergovernmental

agreements, single purpose districts, even partial consolidations, but decentralise authority

•  Markets adjust even for public services; quasi-markets

•  Mobilises civil society, private sector


What does the evidence support?

•  Tiebout 50 years on •  Public choice approaches with

fragmented LGs and special purpose districts can make efficiency gains

•  A progressive case for resilience of splintered cities (e.g. Graham & Marvin 2001).

•  However in US fragmentation promoted social and economic disparities, fiscal imbalance, environmental slippage and ethnic segregation

•  2014 survey across OECD countries showed there are on balance costs of fragmentation and benefits of having a metro agency but these are only correlations


Ideas and experience move together Inception year of OECD metropolitan governance bodies (number)


Public choice and

small governm

ent

reac4on

Most metropolitan bodies have no legal powers (number, OECD 2014)


Informal coordination is the dominant type of governance arrangement (OECD 2014a)


Most metropolitan governance bodies are led by local government (%, OECD 2014a)


Fields of work of metropolitan authorities (%, OECD 2014)


Patterns of cross-border city learning (Red learns from blue: Tim Campbell. 2012. Beyond Smart Cities: How Cities Network, Learn, and Innovate Routledge/Earthscan)


Issues and discussion For the discussants to lead


Some governance issues for discussion • Culture of using risk

management practices and culture

• Compliance management framework and owners of risk

• Relation to and use of BMCC Code of Conduct and Health Checks?

• Qualifications for office, conflicts of interest and probity à la Burwood

• Governance of council enterprises and business activities

•  Benchmarking and peer learning on urban and corporate governance?

• Capacity building for good governance including community capacity and resilience

• Greater Sydney Commission and changing governance of planning and development

•  Fitness for future while other LGAs are merging

• Constitutional recognition of LG 16/06/16 Good urban governance BMCC talk 41

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