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Measuring for Absorption: How the Institutionalisation of EU Cohesion Policy Influences the Use of Performance Indicators in Hungary

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  • Mike Károly
  • Balás Gábor

Abstract

We investigate the performance measurement of the implementing agencies of EU Structural Funds in Hungary. Following the advice of Thiel and Leeuw (2002), we focus on the incentives created by the institutional environment of these agencies. The core of this environment is a double principal-agent relationship between the European Commission (EC), the national government and the Managing Authority. We investigate its institutional features and the resulting organisational incentives for Managing Authorities in Hungary. Relying on programme evaluations, we explore how these incentives actually affected the design and use of performance measurement by Authorities in two policy fields: active labour-market policy and higher education. We find that external incentives to focus on absorption and formal compliance created bias against integrating performance measurement into the policy process and tackling problems of performance risk and non-measurability.

Suggested Citation

  • Mike Károly & Balás Gábor, 2015. "Measuring for Absorption: How the Institutionalisation of EU Cohesion Policy Influences the Use of Performance Indicators in Hungary," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 8(2), pages 125-147, December.
    • Handle: RePEc:vrs:njopap:v:8:y:2015:i:2:p:125-147:n:6
    DOI: 10.1515/nispa-2015-0012
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    References listed on IDEAS

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    1. John Bachtler & Carlos Mendez, 2007. "Who Governs EU Cohesion Policy? Deconstructing the Reforms of the Structural Funds," Journal of Common Market Studies, Wiley Blackwell, vol. 45(3), pages 535-564, September.
    2. Bruttel, Oliver, 2005. "Contracting-out and governance mechanisms in the public employment service," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2005-109, WZB Berlin Social Science Center.
    3. Liesbet, Hooghe & Gary, Marks, 2003. "Unraveling the Central State, but How? Types of Multi-level Governance," American Political Science Review, Cambridge University Press, vol. 97(2), pages 233-243, May.
    4. John Bachtler & Carlos Mendez, 2007. "Who Governs EU Cohesion Policy? Deconstructing the Reforms of the Structural Funds," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 535-564, September.
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    Cited by:

    1. Arwan Gunawan & Winwin Yadiati & Harry Suharman & K. Poppy Sofia, 2020. "Linkages to Budgetary Control and Budgetary Absorption Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 304-316.
    2. Nyikos Györgyi & Kondor Zsuzsanna, 2019. "The Hungarian Experiences with Handling Irregularities in the Use of EU Funds," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 12(1), pages 113-134, June.

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