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Analytic and Managerial Challenges of Collaborative Governance

Analytic and Managerial Challenges of Collaborative Governance. John D. Donahue June 22, 2009. Sequence. Definitions and distinctions Spectrum of public-private delivery models Differentiate by allocation of discretion Generic advantages and risks Examine selected examples

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Analytic and Managerial Challenges of Collaborative Governance

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  1. Analytic and Managerial Challenges of Collaborative Governance John D. Donahue June 22, 2009

  2. Sequence • Definitions and distinctions • Spectrum of public-private delivery models • Differentiate by allocation of discretion • Generic advantages and risks • Examine selected examples • Analytical and management imperatives

  3. Mostly drawn from… • Donahue, The Warping of Government Work (Harvard University Press, 2008) • Donahue and Richard J. Zeckhauser, Leverage: Public Goals, Private Roles (in progress)

  4. Context • Shift toward complicated public missions that invite or require private engagements • Relative erosion in governmental capacity • Financial and (especially) • Personnel • Maturation of institutional and technological infrastructure

  5. Mid-20th Century Model • Dominance of Central State • Direct Governmental Action • Elite Public Service

  6. Diffusion of Governance

  7. Mid-20th Century Model • Dominance of Central State • Direct Governmental Action • Elite Public Service

  8. Emerging 21st-Century Model • Erosion of Central State Relative to Supranational and Sub-national Authority • Shift from Direct to Mediated Governmental Action • Greater Role for Private Agents (both for-profit and not-for-profit) • Chronic Public-Sector Talent Shortages

  9. Narrow the Focus: Public-to-Private Diffusion

  10. Enlarged Role for Private Agents • Relative to Mid-20th Century Model • Return to Historical Norm • Roman Tax Administration • Mercenaries • British East India Company, other hybrids

  11. Rationales for Delegating Public Responsibilities to Private Agents • Limits to making government itself more “business-like” • “Extensive” versus “intensive” accountability

  12. Rationales for Delegating Public Responsibilities to Private Agents • Resources • Competence • Information • Legitimacy

  13. Generic Risks of Delegating Public Responsibilities to Private Agents • Diluted Control • Financial Exploitation • Reputation Vulnerability • Diminished Capacity

  14. Architecture of Agency Relationships: Spectrum of Discretion • Government Holds Most Discretion = Outsourcing, Other Contractual or Quasi-Contractual Relationships • Private Players Hold Most Discretion = Philanthropy, Voluntarism, Corporate Social Responsibility • Shared Discretion = Collaborative Governance

  15. “Collaborative Governance” • Not new, not rare • but under-analyzed relative to importance • Shared discretion as defining feature • middle ground between contract and philanthropy • Broad potential for flexibility, precision • Strategic complexity • Multiple forms of failure

  16. Forms of Discretion • Production Discretion • Main rationale for collaboration (rather than direct delivery or contracting) • Payoff Discretion and Preference Discretion • Costly or risky (from government’s perspective) • Often entangled with production discretion

  17. Generic Challenge of Collaboration • Design delivery models and • Select and motivate collaborators • To maximize gains from production discretion • Net of losses from payoff/preference discretion

  18. Resource-Based Collaboration • Common motive, visible category • Central Example: New York City Parks Partnerships Additional Examples to Discuss if Time and Interest: FDA and Pharmaceutical Industry under PDUFA; Statue of Liberty Foundation

  19. Productivity-Based Collaboration Strongest theoretical case for collaboration Central Example: Charter School Movement Secondary Examples to Discuss if Time and Interest: Vaccine development and production, Space Shuttle operations

  20. Information-Based Collaboration Central Examples: Infrastructure Security Job Training Secondary examples to discuss if time and interest: Securities rating; Management-based regulation

  21. Legitimacy-Based Collaboration Central Example: US Hospital Accreditation Secondary example to discuss if time and interest: Federal Student Loan debate

  22. Public Managerial Tasks of Distributed Governance • Appraisal • Analysis • Assignment • Architecture • Assessment • Adjustment

  23. Note that these functions are: • Fundamentally analytical • Complex and demanding, requiring high-level talent for implementation, not just policy design • Indicators of the convergence of analytics and public management

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