Multi Level Governance – better and
more efficient decision making
TransGovernance Seminar, Oslo
11 September 2014
Björn Hasselgren, KTH Royal Institute of Technology
Institutional level and change (Williamson, 2000)
INFORMAL INSTITUTIONS – Language, Culture, Customs
Spontaneous
100- 1000 y
Social theory
INSTITUTIONAL ENVIRONMENT – Property rights, legal systems
Get the institutional setting right
10 - 100 y
Economics of property rights/political theory
GOVERNANCE STRUCTURE - Governance, contract
Get the governance structures right
1-10 y
Transaction cost theory
RESOURCE ALLOCATION – Prices, incentives
Get the marginal conditions right
Neo-classical theory
Continuous
Development over time of transport infrastructure
- a co-evolutionary approach
Public sector
Development of transport
infrastructure systems
Technology
Economics
Politics and
”socioculture”
Private sector
Governance of cross border projects,
levels and organizational structures
The supranational/national/regional/local – divide
The public/private-divide
Formal governance structures in agencies or corporations
The use of EU-structures
Some different organizational models for
transport infrastructure
Aspect
Government agency
State owned
company/Public
utility
PPP projects
Private projects
Organization
Financing
Agency
Grants/loans
Limited company
Government
ownership/capital
and borrowing
Limited company
Private
ownership/capital
and borrowing
Limited company
Private
ownership/capital
and borrowing
Incentives for
efficiency
Low
Medium
Medium/High
Medium/High
Contract complexity
Low
Low
Medium/High
Low/Medium
Transparency for
citizens
Good
Good
Needs to be
regulated
Can be regulated
Political acceptance
Good
Good
Unclear/negative
Unclear/negative
Risk of the public
sector party
Medium
Medium
Medium/High
Medium
Legal conformity
Transparency for
co-financing from
other partners
Good
Some opportunity
Good
Possible
Demands analysis
Possible
Demands analysis
Possible
How can cross-border perspectives be fostered?
• The institutional environment – regulation, political support
• Culture and communication – language, political/business culture
• Profits and business cases are necessary!
• Competition – diversity is good!
• Financing and risk – government guarantees?
• Knowledge – innovation and research
• Long-term perspectives are necessary
Do we see the necessary preconditions for success
with cross-border links and transport?
Politics and
• How should transport infrastructure be financed?
”socioculture”
• What role should the government have?
• Is there political support for cross-border perspectives?
Economics
• Is there a business case? Too high risks/uncertainty?
• Is there financing for innovators and entrepreneurs?
• Do we have common technical standards that support cross
border perspectives?
Technology
Possible ways ahead
Government/centralized coordination
EU
Now
Supranational
National
Cross border
private or
mixed
organizations
National
private or
mixed
organizations
Spontaneous
coordination
A possible division of responsibilities
.
Planning
Coordination
Information
Business planning enhancement
Trade facilitation
Public sector actors
Financing
Ownership
Management
Public and private
sector actors
Conclusions
The suprantional/national/regional ”tension”
The market/government ”tension”
Areas covering EU and non EU – in one sense makes it less
”powerful” for the future, but at the same time gives it unique
position to overcome obstacles towards cooperation
Obvious potential to develop cross border–roles in planning and
coordination/information – but be careful not to expect too much
Include cross border aspects in national planning
Try alternative financial and organizational solutions for new links
– a Nordic Transport Administration?
Björn Hasselgren, PhD
KTH
Architecture and the Built Environment
+46-70-762 33 16
[email protected]
www.kth.se/blogs/hasselgren
@HasselgrenB