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Governance as Public Management—and Vice Versa Fred Thompson AGSM 653 January 28, 2002.

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Presentation on theme: "Governance as Public Management—and Vice Versa Fred Thompson AGSM 653 January 28, 2002."— Presentation transcript:

1 Governance as Public Management—and Vice Versa Fred Thompson AGSM 653 January 28, 2002

2 2 Course Content 1. Issues 2. Globalization 3. Governance 4. Linkages 5. Values

3 3 Issues Connectivity = Impossibility of isolation –Communications, travel Social, economic interactions –Greater vulnerability of individuals to things happening far away –People more aware of far off events — injustice, brutality –Communication - CNN, internet - quickly breaks down boundaries

4 4 Issues (cont.) Greater power in non-governmental hands –Super-empowered individuals/NGOs –Multinational corporations –Criminal networks Organized crime as multinational organizations Cross-border threats –War –Terrorism –Disease AIDS, TB, Mad cow disease, the coming pandemic –Pollution Global warming –Breakdown of local norms

5 5 Issues (cont.) Expectations that the state will address the adverse consequences of connectedness (Preserve its benefits but avoid its costs)

6 6 Connectedness = Globalization Not hypothetical: emerging reality Not an option: inescapable trend Puzzles –Face of globalization –Governance issues –Implications for economies, citizens

7 7 Benefits and Costs of Globalization Benefits –Faster economic growth –Better living standards –Democratization –Free interchange of ideas, values; new opportunities Costs –Greater risk/variance in outcomes –Greater income inequality –Social dislocation Marketplace doesn't always advance social objectives

8 8 Governance Government v. governance –Government: institutional roles, powers –Governance: how public work gets done Weak states constitute great threats to in a highly connected world –Unable to manage problems on behalf of their people - their problems can get lose –Threat of corruption –Home to organized crime/terrorist groups

9 9 Governance (cont.) More governmental work involves –Multi-national organizations –Non-governmental partners in services –Non-governmental players in politics Globalization paradox –Multilateral system allowed globalization to flourish –Globalization has rendered multilateral system obsolete –National institutions were created for a nation-based world—not a global world

10 10 Linkages and Values Linkages = Complicated forces in loose formation –Domestic and international –Economics and politics –Management and analysis Modernity v. traditional values Democratic states v. state weakness Private v. state power Multinational organizations v. national sovereignty

11 11 The Standard Questions Security a central purpose of government Multinational strategies for foreign policy, national security response Implications for national autonomy –Can nation-states act alone? –Can they act together without sacrificing national values? Balancing –Public with private power –National autonomy with multinational support –Liberty with security

12 From Governance to Public Management Making democratic states strong

13 13 From Governance to Public Management Democracy: popular control over bureaucratic institutions Big issues to solve –Coordination = how to tie complex, interrelated elements together –Errors = Detecting, Correcting, Defining tolerance... for errors –People = Defining needed skills, Recruiting, training, retaining workers, Developing career civil service, Defining relationship with political leaders –Accountability = To whom? For what? How?

14 14 Bureaucracy as instrument Bureaucracy: tool to build capacity thru Search: one “best way” –Administration = rules, SOPs in search of organizational efficiency –Process: budget, personnel, procurement –Structure: organize, reorganize Hierarchy –Basic organizational shape –Defines shape of command Authority –Glue to hold bureaucracy together –Define roles: empowering, limiting

15 15 Critique of bureaucracy  Inflexible  Inefficient  Unresponsive  Inequitable

16 16 Response: impulse for reform Near-universal: global reforms Determine size of government –Privatization Improve government efficiency –Market-driven strategies Increase responsiveness –Citizen-based reforms

17 17 Comparison of New Zealand and American Reform Efforts New Zealand as a model Narrow focus Performance Accountability through competition Decentralization of control Unified financial system

18 18 Narrow Focus Identify responsibilities clearly Focus on outputs Competition among elements Apply to policy and service delivery

19 19 Performance Specify goals Development measurement system –Financial –Non-financial Focus on outputs –Agencies have control over outputs

20 20 Accountability through competition Competitive tendering –No presumption that services ought to be provide by private versus public agencies Explicit written contracts Provide incentives Hire agency chief executives through contracts, limited terms, compensation

21 21 Decentralization of control Match authority with accountability Sweep away central control agency rules to give chief executives autonomy –Civil service –Purchasing

22 22 Unified financial system Transparency Government –Owner of assets –Purchaser of services Accrual accounting

23 23 Issues Outputs versus outcomes –Outputs: managers can control –Outcomes: what elected officials, citizens care about Markets –Are there real markets to price services? Public service –If it’s not in the contract, it’s not my job

24 24 Issues, cont’d Exit option –Do contracts provide one? Discretion –Are improvements due to discretion rather than formal contracts, incentives Contracting is costly

25 25 Should others copy NZ reforms? Need real, competitive public sector –Developing nations often build on informal systems –Informal systems often introduce corruption, inefficiencies Need public sector where employees have internalized rules –Informality rules Discretion for front-line operators without engaging in transformation => problems!

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