Sandro Cabral

Private Operation with Public Supervision: Evidence of Hybrid Modes of Governance in Prisons

Received theories suggest a possible cost-quality tradeoff when private outsourcing arrangements are used in public services. Using data from Brazilian prisons, our study provides evidence that contradicts this prediction: the prisons not only run at a lower cost, but also show similar or improved performance on a range of quality indicators. The attenuation of the cost-quality dilemma in our context is due to the hybrid management, which allocates control rights to a state-appointed public supervisor. We also discuss conditions in which the public supervisor may refrain from colluding with the private agent, therefore guaranteeing an effective monitoring of service quality.

Os desafios da produção de conhecimento em administração no Brasil

Foi motivo de satisfacao poder apresentar aos participantes do Encontro da Anpad, em setembro de 2012, e tambem agora, aos leitores dos Cadernos EBAPE.BR, o texto que resume o que foi exposto no encontro pelos colegas participantes do painel. O assunto de interesse permanente em nossa comunidade cientifica sao os rumos e problemas da producao de conhecimento em Administracao em nosso pais nos dias atuais.

The Modes of Provision of Prison Services in a Comparative Perspective

This paper aims to compare the performance of two modes of provision of prison services: public, and with the participation of private companies. There are few empirical studies concerning the alternative modes of governance in this sector, which differs from other public utilities in that there is an absence of network externalities and scale economies. In addition, an understanding of informal institutions is crucial for the performance of the service provider, either public or private. In this paper, we build a comparative analysis of two case studies of similar correctional facilities, one public and the other outsourced to a private company under the supervision of civil servants (hybrid governance structure), both located in the same region of Brazil. We found that the privately operated facility has achieved better performance indicators (in terms of number of escapes, riots, deaths, assistance to inmates etc.) than the public facility, which in part refutes the arguments of Hart, Shleifer and Vishny (1997) against private participation in prison services. We conclude that the reasons for these differences are related to lower levels of administrative controls; to the presence of civil servants within the privately operated prison, which contributes to reducing information asymmetries; to greater incentives for the private operator: to monitor employees, to bypass local judiciary constraints and to fulfill contractual obligations.

Public Procurement Strategy: The Impacts of a Preference Programme for Small and Micro Businesses

The authors assess the impact of a public procurement programme designed to encourage small and micro businesses (SMBs) in Brazil to take part in public procurement auctions. The programme had no effect on contracted prices. However, SMBs were more likely to have their contracts terminated as a result of poor performance. Implications for theory and for practice internationally are discussed in this paper.

Organizing Prisons through Public-Private Partnerships: a Cross- Country Investigation

In this paper, we analyze the private participation in prison services in three countries: Brazil, France, and the United States. We highlight striking differences in efficiency between these countries and argue that the explanation for these differences is not restricted to the way property rights are distributed (i.e.public vs. private management). Instead, our analysis suggests that understanding those differences also requires an analysis of the incentives provided by contractual choices as well as decision and revenue rights distribution and institutional constraints. The theoretical literature usually analyzes these blocks separately, and often focuses on property rights distribution. We argue that an efficient arrangement is the result of the way these elements are combined, giving rise to a distinctive governance structure.

An approach for evaluating the risk management role of governments in public–private partnerships for mega-event stadiums

Although public investment is often seen as a necessary source of funding for major sporting event facilities, the degree of government involvement remains a controversial issue. This paper proposes an approach that minimizes government investments, without deterring the interest of private investors, in building/refurbishing stadiums for mega-events. Using the FIFA World Cup as an example, we concentrate our attention on demand risks, i.e., the risks related to attendance at matches. In order to deal with the risk-return trade-off, we build a model based on real options theory, which allows us to evaluate the size of the incentive the private entrepreneurs need to invest in a Public–Private Partnership (PPP) setting. Our main findings indicate that ancillary investments near the stadiums are essential to mitigate risks and that the coordination of a central government may reduce the capital required for risk management when several stadiums need to be built in a short time frame. Our results suggest that government should evaluate some infrastructure PPP projects as a portfolio of investments, instead of looking at opportunities only in a single-project basis.

Impactos da participação privada no sistema prisional: evidências a partir da terceirização de prisões no Paraná

This paper aims to discuss the impacts of private companies on public service provision by analyzing the outsourcing of prison services in Parana State, Brazil. By using a principal-agent approach, the present work compares privately operated prisons with traditional prisons wholly managed by the state 2001 to 2006. It evaluates whether or not outsourcing impacted the performance indicators of prisons and, consequently, analyzes the effectiveness of outsourcing. In accordance with the theoretical references, the strategic decisions of governments when involving the private sector in the prison system would lead to reduced costs in detriment of the quality of services. However, the results show that outsourced prisons did not only show cost savings but also increased quality standards in comparison with traditional public prisons. The study concludes by discussing the organizational mechanisms that might generate such results. Key-words: outsourcing; prisons; public service provision. Impactos da Participacao Privada no Sistema Prisional: Evidencias a partir da Terceirizacao de Prisoes no Parana RAC, Curitiba, v. 14, n. 3, art. 1, pp. 395-413, Mai./Jun. 2010 www.anpad.org.br/rac 397

Monitorando a polícia: um estudo sobre a eficácia dos processos administrativos envolvendo policiais civis na corregedoria geral da Bahia

n the organizational structure of the police, the internal affairs division has the role of investigating professional misconduct attributed to police officers. When an improper conduct is detected, an investigation process is triggered. There is room, however, for concerns regarding whether the process will be impartial, given that police officers may attempt at influencing decisions for their own benefit or, at least, try to postpone the conclusion of the investigation. In our paper, we analyze a sample of 143 investigation processes against police officers in the General Internal Affairs Division of the State of Bahia, Brazil. We seek to identify the factors that contribute to the investigation process are concluded or not. Our econometric results show that the position that the police officer has in the organization and his tenure on the job (which should be correlated with the extent of informal relationships developed within the organization) do influence the probab ility of the investigation will concluded or not. Thus, results indicate that police officers seem to use formal and informal channels of influence to mitigate the threat of punishmenta conduct that is, therefore, misaligned with the public interest.

PPPs e decisões de investimento na construção de estádios de futebol

O presente artigo objetiva discutir os limites e as possibilidades da utilizacao de Parcerias Publico-Privadas (PPPs) para construcao de estadios de futebol. Para tanto, primeiramente, discute-se as PPPs e seus riscos. A presenca de riscos associados as PPPs suscita a incorporacao da teoria de opcoes reais – instrumental capaz de lidar com situacoes de incerteza quando da analise de investimentos. Tendo como pano de fundo as discussoes em torno da candidatura da cidade de Salvador como sede a Copa do Mundo de Futebol de 2014 no Brasil, realizamos um exercicio que ilustra as condicoes em que as PPPs sao adequadas para a viabilizacao de uma nova arena esportiva apta a atender os padroes estipulados pela FIFA. Para operacionalizar o problema, estabelecemos uma metodologia de calculo para o premio de um seguro a ser contratado para situacoes de baixa demanda. Ao final do artigo conclui-se que, em funcao das incertezas de demanda associadas a bilheteria de jogos de futebol, em parte condicionadas ao desempenho esportivo dos mandantes dos jogos, empreendimentos no entorno do estadio sao essenciais para mitigar os riscos e, por consequencia, viabilizar as PPPs.

Analisando a reconfiguração da cadeia de produção de pneus no Brasil pela economia dos custos de transação

This paper discusses the reconfiguration of Brazils tire production chain resulting from the pioneer outsourcing and vertical disintegration of the tire cord treatment units, also known as dipping units. A case study of the contractual relationship between two large multinational corporations is used as a methodological strategy. Analyses are made of the process of contractual adaptation and of the factors that may have contributed to delay the decision to restructure the tire production chain in Brazil. The Transaction Cost Economics approach was chosen as the theoretical framework, mainly due to its analytical capacity regarding the limits of action of firms or organizational networks. The empirical findings indicate the importance of specialized local suppliers as a critical factor in the restructuring of the supply chain through outsourcing strategies. The institutional environment, both formal and informal, is as relevant to the contractual process as it is to the decision-making involved in the definition of new organizational boundaries.