2. The Complexity Model

3. Complexity Attributes

5. Figure 1: Nature of Relationship between System and its Environment Environment Morphology Feedback/Stimuli Environment Morphology Feedback/Stimuli System

7. Non-Locality

9. Figure 2: The Flux Nature of a Dynamic System Configuration of Public Administration Living-in- the- Moment Anticipation Butterfly Effect

10. Taoism

15. Table 1: The Qualitative Dimensions of a Complexity Model in Examining Public financing NThemeComplexity Dimension 1Nature of ChangeDynamic systems exhibit temporal behaviors. Change is uncertain, unpredictable, irrational, irreducible, emergent, and transcending. Systems exhibit random, internal changes in response to kicks in the environment. Systems parameters with its environment are fused, allowing through feedback for ongoing relationships and networking. 2Relational OperationsInteractions between a dynamic system and its environment are relational based on feedback. Kicks that take place in the systems environment are stimuli, causing internal disheveling within the systems structural order and processes. The self-organization process within the systems internal dynamics is the systems response to environmental stimuli. These relational operations are irrational, unpredictable, random, and irreducible. 3Non-LocalityReality has fuzz indeterminacy. Something that occurs in region A can have an effect in region B instantaneously regardless of how far apart these two regions happen to be. It runs against the traditional local causation in traveling the space between building blocks. 4Continuous FluxThe nonlocal way of nature is characterized by a continuous flux. A flux system is a dynamic, non- static system. It is always evolving, always changing, and always responding to stimuli from its environment. During such a system one never steps into the same waters twice since these waters are continually moving. 5TaoThe flow of opposite energies determines the nature of dynamic system. All trends eventually reverse themselves shaped by the dynamic interplay of yin and yang, a metaphor referring to the dark and sunny sides of a hill. 6Shifting Objects to Events Truth can now be seen not as an attribute inherent in a system but as the meaning we attribute to that system. This kind of ontological liberation is evident in the paradigm shift from the Newtonian science that includes moving from part to whole, from structure to process, from objective to epistemic science, and from building block to network. 7Kondratev CycleEvolution shows movement from non-equilibrium to equilibrium to equilibrium, and so on. This process is irreversible. Because of the irreversibly of structural change, the specific structures would not be the same. Features within a cycle can spill over to the next cycle. These cycles of non- equilibrium, nonlinearity, instability, and structural change is known as the Kondratev Cycles. This understanding makes complex adaptive systems, such as public financing, elements of evolving complex systems. 8Removing Theory from an Abstract Base The purpose of theory is to make the world stand still when our backs are turned. Complexity shifts theory to an engaging and participatory forum that will change citizens from observers to citizen participant-observers able to cycle theory through practical observation.

16. The Linear Model

18. 1. The Logic of the Finance Process 2. Finance Structure 3. Finance Methods and Practices 5. Finance Classific- ation and Reforms 6. Cost- Benefit Analysis 7. Funding Figure 3: The Linear Model of Examining Public financing

19. NChallenge AreaLinear ApplicationPublic Administrators Function Policymakers Function 1ControlTop-down; One- directional; No room for subjectivity Force-fed; Subordinate; Limited Guru, Authoritarian 2Breaking the Whole into Parts Breaking public financing into separate and isolated units; Observing each unit individually; Composing the separated units once again while in isolation to understand the whole Observing each unit within public financing separately; Applying conceptual elements that explains the separated function of each isolated unit Examining each unit in public financing mechanically as abstract notion and while in isolation/lab-type setting 3One Best Way ApproachOne size fits allApplying the abstract concept of a few standardized applications of outdated models to fit all situations Introducing standardized models inherited through evolutionary process of public policy as the only model for governance and as one-best- way in each application. Emphasis on defusing pluralities of ideas and approaches as sources of confusion and contradictive of instrumental logic. 4Prediction and PlanningProblems, events and issues can be traced and observed through long period of time and plans for resolving or addressing then can be made based on these long-term predictions Making long-term prediction to issues and problems in public policy and administration; Establishing long-term planning based on long-term predictions to issues and problems in public policy and administration The world is really linear and events in the world can be mapped according to a line graph that can be traced for a long time; Planning for processes can be accurately based on such a long-term predictions Table 2: Challenges Inherited from Linearity in Observing Public Financing

20. 5Clockwise Movement Time and motion are reversible. A phenomenon is reduced to parts, functions, and building blocks. Observing time and motion linearly and as reversible concepts. Systems do not self- organize but evolve according to a linear trajectory that can be reversed. Emphasizing the reversible linear progress of time and motion; Change must have logical reasons and understood rationally; No room for random, subjective or self- organizing emergence. 6Artificial Engineering If a system decays and unable to respond to environmental changes, it still can be saved through injection of artificial mechanism and resources to prevent its collapse; The longer the system remains alive the better. Observing system as on- going dynamics capable of resisting internal and external change by modifying itself and continue living even beyond its natural life; Whatever feeding-tubes and resource supplies needed to maintain it alive are logically acceptable measures. Death is the end, not a phase for renewal. Collapse is horrible and must be avoided; Resources must be allocated to sustain life at all costs, even if the systems internal structure had lived its natural cycle. Life is linear, not cyclical. NChallenge AreaLinear ApplicationPublic Administrators Function Policymakers Function

21. NChallenge AreaLinear ApplicationPublic Administrators Function Policymakers Function 7Instrumental-ismTools are means to achieve the end, and often they become the ends by themselves. The observation of instrumentalism is vital for logical, empirical inquiry. The inquiry is as good as its instruments. Without valid, reliable and sound instruments there is no observation of a phenomenon. At times, searching and creating the means for these instruments becomes the subject of inquiry itself. Emphasizing one-size-fits all, instrumentalism, and calibration as the logical elements for rational observation. Instruments what separates good policymakers from others; If instruments are not part of the goals in any inquiry, then they ought to be; Without instruments there is no logical or rational way to look at phenomenon; Thus, the instrument becomes the subject of inquiry and takes on life by itself. 8Rationality/ One- Dimensional Subjectivity is false; Reason, checked through group and objective observation that is based on deductive logic, linear analysis of separate pieces are the key for scientific observation of a phenomenon; There is no room for plurality of ideas because they create fuzzy, uncertain and confusing elements of thinking and reflecting; Observation must be one-dimensional, directed and linear. Avoiding subjective views, emphasizing rational thinking and following the dictated one- dimensional approach toward examining public financing and its application; No room for the multiple, either in ideas, perspectives or mapping of interplaying dynamics; Everything must fit within a one-dimensional line of progression. Discouraging public administrators subjective views as naive and lacking. Some subjective perspectives are allowed only within the narrow window of one-dimensional linear interpretation of a policy; Emphasis on rationality and rational thinking; Gravity, inertia, control, prediction and planning are all put together as tools (instruments) of logical and rational thinking.

22. Complexity Solutions

23. Shifting from Control to Influence

24. Figure 4: Participant/Observer and Pattern of Change in Examining a Phenomenon under Complexity Sustainability

25. Networking

26. Figure 5: The Interconnected Dynamic of a Complexity Model in Examining Public Financing (Source: Cowie, 2004)

27. Agent-Based Model

28. Figure 6: Federal, State, Local Governments, and their Environment as Agent-Based Model Environment Federal StateLocal State Federal Local

29. Welcoming Uncertainty

30. Irreversible Time and Motion

31. The Imperative of Collapse

32. Instrumentalism as Integral Part of Observation

33. Welcoming Irrationalism and Pluralism

34. Complexity Solutions in a Nutshell

35. Table 3: Complexity Resolution to Challenges Inherited from Linearity in Observing Public financing NChallenge AreaComplexity ResolutionResulting Public Administrators Function Resulting Policymakers Function 1ControlNo control; Bottom-up; Empowering subjectivity; Emergence of new learning; Influence Autonomous; Interconnected; Self-organizing; Identifying patterns Strange-Attractor; Facilitator; Interactive syllabus; Interactive policies that include administration and citizens choice 2Breaking the Whole into Parts Observing public financing as a dynamic system through the interaction and interconnectedness of its internal elements with their environment; Understanding causality as mutuality of interconnectedness Observing public financing as a dynamic whole while interacting through its environment; Bridging between personal experiences and the holistic dynamics of public administration as an interconnected system Introducing financial policy as a functional whole; Identify the policys internal dynamics and its interactions with the environment; Explain mutual causality, feedback, and interconnectedness 3One Best Way ApproachAgent-Based-Model; There is no one-best-way; It all depends; Emphasize the importance of process and patterns Observe administrative processes on federal, state and local governments as autonomous and interconnected agents with one another and with their environment No one-best-way model; Emphasis it depends and adopting what works for each situation based on needs, conditions, and the interconnected dynamics both within and outside public administration and policy as a dynamic system

36. NChallenge AreaComplexity ResolutionResulting Public Administrators Function Resulting Policymakers Function 4 Prediction and PlanningNo long-term prediction; No long- term planning; The Butterfly-Effect; Anticipation Understanding systemic behavior as a network; Instead of linear, local causality, learn mutual causality, positive and negative feedback and their impact on the systems morphology; Be in the moment Prepare for the day and plan only for the very foreseeable future Emphasize interconnectedness, and the impact of the interplay of internal and external dynamics on changing behavior with a system; Small variations in the initial conditioning can lead to larger changes in the systems longer trajectory; It is useless to make long-term prediction or plan ahead based on such predictions since small variations within the systems interconnected networks and trajectory yield unpredictable behavior 5 Clockwise MovementTime and motions are not irreversible; A phenomenon must be observed as a whole within its interactive networks System self-organize randomly and without planning, control, or prediction; Self-organization has no direction, starting or ending points; Systems exhibit endless and cyclical patterns of phase- shifts, birth, atrophy, decay, collapse, and rebirth. Nothing is static. Life is a continuous state of flux Emphasize chaos and randomness in systems structural changes that exhibit movements from equilibrium/ disequilibrium/ equilibrium; Emphasize flux, fluidity, uncertainty, irreversible time and motion 6 Artificial EngineeringEach structure has a life span that is continuous and changing, going through series of birth and rebirth; Renewal is not possible without collapse; Collapse must occur naturally and must not be delayed because of artificial engineering Changes in the environment provide kicks for systems to change their internal structural order; Older orders must collapse in order for the new to emerge Older models, systems and practices in public policy and administration must be allowed to collapse naturally in order for the new to emerge and better deal with the complex nature of todays globalized environment; This includes laws, regulations, administrative procedures, practices and norms

37. NChallenge AreaComplexity ResolutionResulting Public Administrators Function Resulting Policymakers Function 7InstrumentalismTools are only means within a participatory process of observation. They are never the ends Both citizens and public administrators are participant- observers, their subjective views count and are validated Tools are subordinate to subjective observation, not the other way around. It is the observer-participant who is witnessing changes, not the lifeless tool. Tools are only instruments of supportive means. They can be changed, modified or eliminated by the observer 8Rationality/ One- Dimensional Dynamic system as a composite of interconnected relationships Abort Newtonian concepts of accountability, rationality, control, and objective reality. Instead, emphasize on uncertainty, unpredictability, in-the-moment, networks, interconnectedness, change, collapse, birth and rebirth, randomness and subjectivity. The world of politics and public administration is uncertain and unpredictable; One-dimensional and top-down approaches do not work well in such unclear world; Any attempt to observe this uncertain world and its irrational policies through rational lenses will be pure theoretical and lack validity in the real world; Allow for the multiple to flourish; Allow for pluralism of ideas; Let a thousand flowers bloom

38. Conclusion

39. Reasons to Choose a Complexity Model