If there is social capital, good Mayors are re-elected

Are the public more likely to re-elect a mayor who invests in long-term development? Yes, if there is social capital. The Department of Management’s Dr Luca Andriani shares the results of his latest research in collaboration with colleagues Alberto Batinti and Andrea Filippetti.

If a mayor is good, she should be re-elected. Prior research tells us that what distinguishes a “good” mayor from a “bad” mayor is the adoption of long-term oriented and transparent municipal fiscal policies. “Good” mayors re-allocate the municipal budget more towards capital investments (rather than current expenditures) and towards property tax, which is more transparent than a surcharge income tax. However, “good” mayors are not always re-elected. In this study, we argue that social capital might be a key reason. In a context with low social capital, municipal long-run fiscal strategy might not be rewarded.

Social capital generally refers to elements of cooperation, reciprocity and mutual trust regulating relations among members of a community. It is generally expressed through the presence of civically engaged citizens preferring leaders and governments that show credible commitments in taking good care of public resources, in acting efficiently and fairly and that adopt long- rather than short-run political economic strategies.

In this study, we look at the Italian context, as this is characterised by a pronounced economic regional disparity between the southern regions recording low economic growth and high unemployment and the more economically advanced northern regions. Italy is also a country with a large disparity of social capital endowment across regions and municipalities for several institutional and historical reasons (Putnam 1993).

Since the late 1990s, Italy has implemented two significant reforms aiming to bring local public institutions closer to the citizens’ needs and preferences: an electoral reform to appoint local governments and mayors and a fiscal reform towards a more federalist system. These changes have been pursued by economically wealthy regions seeking greater autonomy. They were also advocated as remedies to stimulate those administrations in regions that are less developed and efficient.

We test whether the probability of “good” mayors being rewarded, i.e. re-elected, is influenced by the level of social capital endowment existing in the municipality. We investigate this empirically in 6,000 Italian municipalities over the period 2003-2012. We consider the structural dimension of social capital as one referring to the individual’s involvement in associational activities and social networks. This dimension captures citizens’ prosocial behaviour and individuals’ attitude towards planning capacity and forward-looking decision making

Our results show that “good” mayors are more likely to be re-elected in contexts with more social capital. One can speculate that social capital may favour the reallocation of the municipal fiscal budget towards public investment vis-à-vis current expenditures and towards property tax vis-à-vis surcharge income tax, thus enhancing the efficiency and transparency of local public policy.

What does this mean for policy makers?

These results raise important reflections on the implementations of public policies promoting decentralization.

Fiscal federalism theory claims that decentralization improves the ability of local institutions to tailor specific policies aiming to meet citizens’ demands (e.g., DiazSerrano and Rodríguez-Pose, 2015). This gets reflected in the citizens’ satisfaction (e.g. Espasa et al., 2017; Filippetti and Sacchi, 2016). This study qualifies these results, showing that decentralization works relatively well in the presence of high levels of social capital. In social contexts where individuals value forward-looking and transparent fiscal policies, decentralization promotes better public policies and benefits public sector financial performance.

However, this study also advocates that decentralization policies should be coupled with initiatives to improve the capacity of local institutions to stimulate the accumulation of social capital. This could be pursued through two complementary strategies. Firstly, by employing programmes that favour the capacity-building of civic associations, including organizations for environmental, human, democratic rights. Secondly, by enabling these associations to be more involved in local governance. This can be achieved by providing local associations access to formal and informal avenues for participation, engagement and closer monitoring of local public decision-making process.

This blog is based on the following research paper:

Batinti, A. Andriani, L and Filippetti, A (2019) Local Government Fiscal Policy, Social Capital and Electoral Payoff: Evidence across Italian Municipalities. Kyklos 72(4): 503-526

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Researching History of Art in Venice and Padua

This post was contributed by Dr Laura Jacobus, senior lecturer in the Department of History of Art.

Sitting at my desk squinting at indecipherable medieval documents, I’m suddenly transported to the near-future and the summer term at Birkbeck, when I’ll be sitting at my desk squinting over indecipherable exam scripts. Academics take research leave in order to refresh their thinking and inform their teaching, keeping up at the cutting-edge of knowledge, so that we can then deliver that to our students and to the wider world of scholarship. But from students’ point of view our disappearances may be less explicable. So I thought I’d write a bit about what I’m doing.

I’ve been using this term to pull together research that I began many years ago on the Arena Chapel in Padua. It’s a fourteenth-century building, with practically every surface decorated with stunning frescoes by Giotto. I have already published a book on it, but I’d found a great deal of material which was still of interest, and it didn’t belong in that book because it had nothing to do with Giotto. This term is an opportunity to pull that material out of the filing cabinet (yes, some of it goes back that many years) and try to make sense of it, getting an overview of what needs to be done and doing some of it.

Before my leave started I’d booked a two-week research trip to Venice and Padua, and over Christmas I planned that meticulously. I had nine different archives and specialist libraries that I wanted to visit, some of them with quite short and irregular opening times. As things turned out I only managed seven of them, and in one of those the specialist collection I needed to see wasn’t available, but this is quite a high success rate for a research trip, and I may be able to go back for a few more days before the end of my leave. And, I have to say, some of those libraries were a pleasure! I’m including a photograph (below) of one, the seventeenth-century library of the monastery of San Giorgio Maggiore, designed by Longhena and still with all its original furnishings.  I was very lucky to be staying in a newly-opened research centre in the former monastery there, so this was my local library during my stay. Before anyone gets too envious, I should also say that one of the other libraries was in a below-sea-level 1960s basement. Still, there’s no denying that doing research on Italian medieval and renaissance art has its attractions.

Longhena Library

The seventeenth-century library of the monastery of San Giorgio Maggiore, designed by Longhena and still with all its original furnishings

The trip to Italy allowed me to find and photograph around twenty documents that should help fill some of the gaps in my evidence, but first I have to read, transcribe, translate and edit them.  I returned to London three weeks ago, and have spent much of the time since then doing just that.  It will take many more weeks to do it (more weeks than I have leave), and I am including photographs of some of them so that you can see why. A few are rather beautiful – such as this copy of a letter from Maddalena Scrovegni, the first female humanist, to the Duke of Milan in 1389…

Maddalena Scrovegni's letterMaddalena Scrovegni letter detail

…but most are definitely not. This is the copy of her brother’s will, written at a time when the family had lost everything in 1435.

DSCF0993 Pietro endowment 1435 July 30 cropped p.1Pietro Scrovegni will (1444-1450 copy) detail

I’m interspersing the work on these transcriptions with drafting sections of the next book, treating one kind of work as a break from the other. It sounds like a messy process, and in many ways it is, but the shape of the book is gradually emerging from these parallel processes of thinking, writing and evidence-gathering. If you happen to be working on a dissertation or thesis, this may sound familiar- as will the feeling of time running out! One day, a book called ‘The Afterlife of the Arena Chapel’ will appear, but probably not before I’ve marked quite a few more medieval-looking exam scripts.

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