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Analysing Democracy in Third‐Party Government: Business Improvement Districts in the US and UK

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  • JONATHAN B. JUSTICE
  • CHRIS SKELCHER

Abstract

Institutional designs for third‐party governance have proliferated in the US and Europe, but there has been little systematic analysis of their democratic performance. A comparative analysis of business improvement districts (BIDs) in the US and UK documents an approach to the democratic analysis of third‐party public governance institutions and finds variation in institutional designs and democratic performance within — as well as between — countries. BIDs accommodate the democratic imperatives for legitimacy, consent and accountability in different ways. In many ways, the democratic aspects of the BID design reflect those found in a private membership organization, but there is also evidence of actual and potential engagement with residents and local governments in BID governance. US BIDs continue a tradition of informally privileging business interests in local governance, but may potentially increase democratic purchase. UK BIDs may have the potential to increase the role of businesses in local governance at the cost of democratic performance. Résumé Les concepts institutionnels répondant à une third‐party governance ont proliféré aux États‐Unis et en Europe, mais rares ont été les analyses systématiques de leur performance démocratique. Une analyse comparative des Business Improvement Districts (BID) aux États‐Unis et au Royaume‐Uni présente une approche de l’analyse, sur le plan démocratique, des institutions de gouvernance publique ‘avec des tiers’, et dévoile des variantes dans les concepts institutionnels et la performance démocratique à l’intérieur des pays, et d’un pays à l’autre. Les BID adaptent de différentes manières les impératifs démocratiques de légitimité, consentement et responsabilité. De bien des façons, les aspects démocratiques du concept de BID correspondent à ceux d’une association privée de membres. Pourtant, dans une gouvernance de BID, se manifeste aussi un engagement réel et potentiel à l’égard des habitants et des gouvernements locaux. Les BID américains perpétuent une tendance informelle à privilégier les intérêts économiques dans une gouvernance locale, mais sont susceptibles d’accroître leur gain démocratique. Les BID anglais disposent éventuellement du potentiel de renforcer le rôle des entreprises dans la gouvernance locale aux dépens de la performance démocratique.

Suggested Citation

  • Jonathan B. Justice & Chris Skelcher, 2009. "Analysing Democracy in Third‐Party Government: Business Improvement Districts in the US and UK," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 738-753, September.
    • Handle: RePEc:bla:ijurrs:v:33:y:2009:i:3:p:738-753
    DOI: 10.1111/j.1468-2427.2009.00855.x
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    2. Lorlene Hoyt, 2005. "Planning Through Compulsory Commercial Clubs: Business Improvement Districts," Economic Affairs, Wiley Blackwell, vol. 25(4), pages 24-27, December.
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    4. Brooks, Leah, 2007. "Unveiling Hidden Districts: Assessing the Adoption Patterns of Business Improvement Districts in California," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(1), pages 5-24, March.
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    2. Grimmer, Louise, 2021. "Drivers and barriers for city shopping: Perspectives from retailers and consumers in regional Australia," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

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