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This chapter is aimed at contributing to the question of how institutional reforms affect multi-level governance (MLG) capacities and thus the performance of public task fulfillment with a particular focus on the local level of government in England, France, and Germany.

Drawing on concepts of institutional evaluation, we analytically distinguish six dimensions of impact assessment: vertical coordination; horizontal coordination; efficiency/savings; effectiveness/quality; political accountability/democratic control; equity of service standards. Methodologically, we rely on document analysis and expert judgments that could be gleaned from case studies in the three countries and a comprehensive evaluation of the available secondary data in the respective national and local contexts.

Institutional reforms in the intergovernmental setting have exerted a significant influence on task fulfillment and the performance of service delivery. Irrespective of whether MLG practice corresponds to type I or type II, task devolution (decentralization/de-concentration) furthers the interlocal variation and makes the equity of service delivery shrink. There is a general tendency of improved horizontal/MLG type I coordination capacities, especially after political decentralization, less in the case of administrative decentralization. However, decentralization often entails considerable additional costs which sometimes overload local governments.

The distinction between multi-purpose territorial organization/MLG I and single-purpose functional organization/MLG II provides a suitable analytical frame for institutional evaluation and impact assessment of reforms in the intergovernmental setting. Furthermore, comparative research into the relationship between MLG and institutional reforms is needed to reveal the explanatory power of intervening factors, such as the local budgetary and staff situation, local policy preferences, and political interests in conjunction with the salience of the transferred tasks.

The findings provide evidence on the causal relationship between specific types of (vertical) institutional reforms, performance, and task-related characteristics. Policy-makers and government actors may use this information when drafting institutional reform programs and determining the allocation of public tasks in the intergovernmental setting.

In general, the euphoric expectations placed upon decentralization strategies in modern societies cannot straightforwardly be justified. Our findings show that any type of task transfer to lower levels of government exacerbates existing disparities or creates new ones. However, the integration of tasks within multi-functional, politically accountable local governments may help to improve MLG type I coordination in favor of local communities and territorially based societal actors, while the opposite may be said with regard to de-concentration and the strengthening of MLG type II coordination.

The chapter addresses a missing linkage in the existing MLG literature which has hitherto predominantly been focused on the political decision-making and on the implementation of reforms in the intergovernmental settings of European countries, whereas the impact of such reforms and of their consequences for MLG has remained largely ignored.

Intellectual capital creation (ICC) in networks has been considered as central to the processes for responding to wicked problems. However, knowledge on the factors that explain ICC in networks is limited. We take a step toward filling this research gap by drawing on an extended view of social capital to identify specific network features that should explain ICC heterogeneity in engineered intergovernmental networks.

A sample of 655 local authorities participating in 8 networks was used to test the framework proposed. Data analysis followed a three-step approach. Firstly, confirmatory factor analysis was applied to assess the convergent and discriminant validity of the measures. Secondly, a non-parametric median test was conducted to determine whether the variables under study were statistically different for the eight networks. Lastly, the structural model underlying the conceptual framework was tested.

The authors found that the eight intergovernmental networks studied differed significantly in their levels of social interaction and ICC. At a structural level, three variables usually considered representative of social capital (social interaction, trust and shared vision) and two supplementary variables (shared resources and shared decisions) were proven to have significant direct and/or indirect effects on ICC.

No previous cross-sectional research has studied the link between the creation of social capital and intellectual capital in engineered intergovernmental networks. As this research focuses on networks and climate change, it contributes to the fourth and fifth stages of intellectual capital research.

The explanatory power of Multi-Level Governance (MLG) has been and is being questioned. Two main criticisms have been raised: first, that MLG is ultimately descriptive, not explanatory; second, that MLG is a case of concept stretching, that it is ultimately an umbrella notion rather than a theory. This chapter outlines what ripostes may be provided to such critiques and argues that the progress of the study of MLG and its usage in political science and public policy and management may lie to an important extent in fostering the dialogue with other streams of research (thus filling the gap of some ‘missing linkages’ in the extant MLG literature), like network governance; policy learning; the analysis of policy tools and the tools of government in complex systems; models in strategic management like stakeholder analysis and others.

This volume is a collective contribution by authors from different disciplinary backgrounds who all address, from different angles and by using a variety of research methods, the key question of how to bring into the MLG research agenda a range of disciplines and applied fields of inquiry that have so far only limitedly been used in the MLG stream of research and literature more systematically.

It arises from the volume that theoretical frames like network governance; policy learning; policy tools analysis; stakeholder analysis and others have important potential to further the MLG research agenda. A number of contributions address the transformation of MLG in the European Union (EU), the polity where MLG arrangements where first detected and labelled as such (Marks, 1993). Others apply MLG frames to other institutional settings, including non-democratic regimes.

This volume is a collective attempt to suggest ‘cross-fertilisations’ from other disciplines or applied fields that may lead to unleash more of the potential and promises of the MLG agenda. It is hoped that this work lays some of the foundations for building bridges between the MLG literature and disciplines and theoretical frames that may be effectively brought into the MLG research agenda.

MLG has long gone beyond the academic debate, to become an analytical lens employed by EU and other institutions across the globe. MLG informs the practice of policy-making. By addressing some key gaps in the extant literature and furnishing perspectives to link MLG to disciplines that may provide theories and models to further its analytical potential, this volume aims at contributing to improving the practice of MLG.

The volume is – to our knowledge – the first systematic attempt to bring into the MLG literature a whole range of theories and models that may provide ways forward to the understanding and usage of MLG.

This chapter attempts to answer some of the questions raised in this volume, in particular: (1) provide a concise but precise definition of multi-level governance; (2) prove that it is a theoretical and not just a descriptive concept and (3) dispel some of the misconceptions associated with it, for example, that (a) multi-level governance underplays and conceals the exercise of power or (b) it is incompatible with democracy.

The chapter is correspondingly organized in four sections, preceded and followed by short introductory and concluding sections. The four sections address, respectively: (1) the definition of multi-level governance (MLG) (‘Solving the dependent variable problem’); (2) the causes that explain the emergence and diffusion of MLG arrangements (‘The contextual causes of MLG’); (3) the changes that it triggers in the manner in which power is deployed (‘The institutional consequences of MLG’); (4) the democratic implications of the diffusion of MLG arrangements (‘Are MLG arrangements democratic?’).

The methodology employed is mainly that of ‘conceptual analysis’ (Sartori, 1984), which implies that the connotational features (those features which minimally allow us to identify cases of MLG) of the concept are identified so that we can delimit the denotational extension of the concept (the universe of phenomena which can be identified as cases of MLG). This chapter contains a highly abridged version of this conceptual analysis, which is fully developed in Piattoni (2010a).

MLG denotes a growing class of policymaking arrangements characterized by the simultaneous activation of governmental and non-governmental actors at various jurisdictional levels. These arrangements have identifiable contextual causes, even if the precise contours of MLG arrangements depend on the capacity of the actors to mobilize arguments and people on behalf of their specific ideas, values and interest. The precise shape that these arrangements will take, therefore, depends on the mobilization capacity of the actors (and on the capacity of other actors to contain or delimit such mobilization). The causes of mobilization are mainly contextual, having to do with the increased complexity and overload of state activities and with the growing request for direct involvement on the part of civil society organizations. Both these trends induce states to seek joint solutions to common problems, hence MLG dynamics occur on three axes: a centre-periphery axis, a state-society axis, and a national-international axis which challenge, respectively, the centrality, the distinctiveness and the sovereignty of the state.

This conceptualization of MLG allows us to analyse the extent to which different policymaking arrangements respond to MLG logics and to understand which actors and which levels are mostly responsible for the particular configuration that obtains. This conceptualization of MLG, although here deployed in a purely discursive manner, could enable us to ‘measure’ the degree of institutional and political empowerment of subjects, other than central state actors, in various policy realms.

The most important social implication is the impact that MLG arrangements have on how democratic decision-making occurs, on what we mean by democracy, and on the societal perception of how contemporary democracies work. The chapter argues that trying to apply to MLG arrangements democratic criteria and standards that were developed for the unitary, distinctive and sovereign state is misleading and that we must rather develop an updated notion of democracy appropriate for the interconnected, multi-level context in which we live. The concept of ‘transnational democracy’ is cursorily offered as a promising direction for further reflection.

The chapter is wholly based on the long-term work and reflection of the author on MLG and on the scholarly contributions of the other authors of the volume.

The purpose of this paper is to study how people use competing accounting numbers to make sense of and legitimize actions in a complex environment in times of crisis.

This paper analyzes the implementation of a standardized budget model at a USA intergovernmental organization, by relying on a triangulation of data sources, including face-to-face interviews, direct observations, and archival documents. The organization faces one of the greatest crises it has ever experienced. An accounting team and a human resources team make sense differently the same reality–staffing. The sensemaking perspective framework is utilized to provide a theoretical structure for the analysis.

The understudied organization undergoes constant evolution during the budgetary crisis; data reveal different forms of cues, which activate the sensemaking process, such as fading and compressed cues. Although compressed cues subsequently emerge, they play a more crucial role in managers' enactment than pre-existing fading cues. Artificializing accounting numbers refer to the social process of constructing compressed cues or artificial artifacts that are neither wrong nor right, neither soft nor hard and not useful for peoples' sensemaking but used to legitimize managers' strategic decisions.

This artificializing process explains the people's resistance to policy implementation. Furthermore, the multiplicity of cues provides useful information for regulators and managers to understand uncertainty during a crisis.

This study presents a rare case of an international third sector organization amid a budgetary crisis. Among few studies referring to numbers as sensemaking resources, this study focuses on the importance of systematic power and corporate power relative to the process of sensemaking.

The success of the European Union is without comparison. With the inclusion of the European Free Trade Association, as well as much of Eastern Europe (a likely inevitable event by the turn of the century) it will have a population, GNP, economic and political force second to none among the world′s great powers. The tripartite NAFTA between the USA, Canada and Mexico may be only the precursor to a North American Common Market. Countries in the Pacific are taking notice of these economic pairings and wondering what they might have to do to compete against either or both. The inevitable conclusion to these two Common Markets appears to be efforts towards the creation of a Pacific Rim Common Market (PRCM). Examines the factors behind the success of the European Common Market, compares them with the present situation in the Pacific Rim, provides a set of prerequisites necessary before a successfully operating PRCM can develop, offers several alternatives to what an eventual PRCM may look like, and discusses the current likelihood of a PRCM. Concludes that any PRCM must include the USA to offer balance and offset potential Japanese economic hegemony. The likelihood for a PRCM in the near future is dim, owing to immense differences between the potential member nations and the lack of experience in working together for mutual, regional interests instead of national interests.

Setting the multinational enterprise (MNE) apart on the basis of a weakly specified idea of foreignness may impede progress in international business (IB). The discipline lacks a paradigm to assimilate the idea of foreignness as an incident of internationality, a global condition describing the political context within which the MNE functions and which confers uniqueness on that institution. However, a plausible re-imagining of the MNE is possible and useful, and here a candidate for such an ontological shift is proffered. Rather than a firm struggling in one or more foreign contexts, the MNE is reconstructed as a foreigner contending with the responsibilities of a firm. The proposed re-imagining of the MNE is experimentally substituted for the received ontology in different IB research contexts. It transpires that this ontological revision maintains intelligibility in those contexts while usefully exposing new directions in which to pursue knowledge. In consequence of re-imagining the MNE, that institution may be situated more precisely amid the international system’s primal constituents, and links may be more effectively established with other bodies of research addressing the functioning of the international political economic system.

The purpose of this paper is to discuss the prospects of a Southeast Asian knowledge economy in light of regional integration processes and the participation of Southeast Asia in global innovation networks.

The evidence base is a combination of quantitative data on R&D investments, patent applications and publications, with qualitative data from 40 semi-structured expert interviews conducted with innovation experts, research managers and policymakers in six ASEAN Member States.

Despite economic growth and increases in R&D inputs and outputs in individual ASEAN Member States, innovation policy at regional ASEAN level remains weak. In addition, the economic integration of the ASEAN Economic Community is progressing slowly. In this environment, evidence is presented for a certain level of regional integration when it comes to the exploitation of knowledge produced within and outside of ASEAN. While a regional market for knowledge exploitation is conceivable, this is not accompanied by the regional integration of knowledge production.

The main practical implication of this argument is the need for ASEAN policymakers to appreciate the disconnection between regional knowledge production and exploitation. This paper offers conceptual tools to engage in ASEAN-level policy discussions on this issue that can help facilitate the best possible regional outcome.

Despite several studies on the ASEAN Economic Community process, there has been no contribution so far that combines a discussion of the economic integration process with a look at the regional knowledge economy and innovation systems. This perspective does not only contribute to innovation systems literature, but also entails important policy lessons.

Indeed, the value of money laundering globally is between 2% and 5% of the world’s gross domestic product, which represents $800bn to $2tn per year. There is therefore a dire and urgent need to curb money laundering offences at both national and international level. As such, the purposes of this research are to critically analyse the anti-money laundering (AML) laws and regulations of Mauritius, to identify loopholes in inherent in the Mauritian system and to suggest recommendations to enhance the AML laws in the country.

To achieve these research objectives, the study will adopt the black letter methodology by analysing laws and regulations on AML of Mauritius and will also conduct a comparative analysis against the corresponding AML laws of South Africa. In fact, South Africa has been selected for the comparison to assess how Africa’s most powerful economic powerhouse is dealing with issues of money laundering and whether Mauritius may implement some of these measures to enhance its legal and regulatory framework on AML.

The research sets out a comprehensive view on the AML legislative framework of South Africa and Mauritius. It has highlighted the mechanisms used in these two countries to combat money laundering is the risk-based approach. Finally, recommendations have been proposed to improve the existing AML frameworks of Mauritius and which can further protect the financial system of the country. However, these suggestions will depend on the evolution of financial crimes within and outside the jurisdiction, and ongoing amendments will always be required to rigidly protect Mauritius from money launderers.

At present, to the best of the authors’ knowledge, this study will be amongst the first academic writings on the effectiveness of the legal and regulatory measures undertaken by the Mauritian authorities to deal with AML crimes in the country. The study is carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.