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PIA 2528. Governance, Local Government and Civil Society. Reminder- Paper Requirements. Individual research paper and Panel Presentation - 30% of Grade; Basis of Paper- Individual Work Plans but may be supplemented by other reading

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pia 2528
PIA 2528

Governance, Local Government

and Civil Society

reminder paper requirements
Reminder- Paper Requirements
  • Individual research paper and Panel Presentation - 30% of Grade;
  • Basis of Paper- Individual Work Plans but may be supplemented by other reading
  • Next week- Be able to present and turn in a 1-2 paragraph paper proposal
privatization and contracting out

Privatization and Contracting Out

A Survey of the Literature-

Continued (Review and Reminder)

governance local government and civil society
Governance, Local Government and Civil Society

Mega Themes:

local government and civil society the problem
Local Government and Civil Society: THE PROBLEM

Review of Systems Factors

  • Models of Social Services Systems:
  • The Context of Privatization and Contracting
overview new public management principles
Overview: New Public Management Principles-
  • Focus on Service Delivery
  • Privatization
  • Contracting Out
new public management principles continued
New Public Management Principles- Continued
  • Subsidiarity
  • Anti-Corruption Measures
  • Re-inventing Government
  • Privatization- ThePrivate Provision of Services
  • Contracting Out- The Means of Delivery
  • Madsen Pirie, Dismantling the State: The Theory and Practice of Privatization (Dallas, TX: National Center for Policy Analysis, 1986).
  • E.S. Savas, Privatization: The Key to Better Government (Chatham, NJ: Chatham House, 1987).
  • Gabriel Roth, The Private Provision of Public Services in Developing Countries (Washington, D.C.: World Bank and Oxford University Press, 1987).
private provision contracting choices gabriel roth
Private Provision—Contracting Choices: Gabriel Roth
  • Private Sector Controversies
    • Indigenous vs. Foreign (or Pariah)
  • Contracting vs. Grants
    • Sub-contracting and sub-grants: Blurring the lines
  • Making the Choice
private provision contracting choices continued
Private Provision—Contracting Choices- Continued
  • Contracting and Non-profits
    • Issues of privilege and subsidies
  • Debates about transaction costs

and profits

  • Cost recovery vs. subsidies
reasons given for privatization
Reasons Given for Privatization

a. High Production costs

b. Low levels of efficiency

c. Featherbedded labor costs

d. Pork Barrel Capital Allocations (The Bridge to Nowhere)

reasons given for privatization 2
Reasons Given for Privatization-2

e. Low level consumer input

f. Poor Maintenance and loss of service

g. Inability of political leaders to impose cost control

h. Free Riders Problem

criticism of privatization
Criticism of Privatization

a. Private sector and NGOs are not necessarily more effective and efficient than government agencies (Paul Nelson)

b. Loss of Coverage for social services (Rule of Structural Adjustment)

criticisms of privatization
Criticisms of Privatization

c. Can replicate private sector within government

(This is the core of Reinventing Government argument-Osborne and Gabler)

d. Need to deal with Corruption

coffee break
Coffee Break
  • Fifteen Minutes
  • Robert Klitgaard, Controlling Corruption (Berkeley: University of California Press, 1988).
  • David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector (New York: Plume Books, 1992).
reinventing government david osborne and ted gaebler
Reinventing Government: David Osborne and Ted Gaebler

1. Steering Rather Than Rowing (limited contracting)- Weberian Bureaucracy: Bankrupt?

2. Customer Driven Government

3. Competition within Government and between units and Entrepreneurial Government

reinventing government cont
Reinventing Government, Cont.

4. Earning as well as spending--charging fees and selling goods and services

5. Key is decentralization not privatization

6. Third sector vs. Private sector Use of Non-governmental organizations rather than Privatization

reinventing government david osborne and ted gaebler cont
Reinventing Government: David Osborne and Ted Gaebler, Cont.

7. Community Based Government

  • Subsidiarity

8. People as citizens or consumers

  • Is there a difference?
  • TQM—add on to consumers

9. Government agencies compete with themselves

reinventing government david osborne and ted gaebler cont22
Reinventing Government: David Osborne and Ted Gaebler, Cont.

10. Mission vs. Rules based government:

  • NASA and the Moon—Output based government

11. Incremental vs. Zero Based (or targeted) budgets

12. Decentralization

  • The Circle Rounds
corruption debates
Corruption Debates

Privatization enhances corruption. Enhanced by cultural differences

(Gifts vs. Kickbacks; corruption as lobbying the Executive- Robert Klitgaard)

corruption the real problem robert klitgaard
Corruption—the Real Problem?Robert Klitgaard
  • Corruption as functional and cultural?
  • Causes of corruption
    • Poverty vs. ethnicity
corruption cont
Corruption, Cont.
  • The Ethical Issues in a society of poverty
    • Obligation to family vs. obligation to society
      • The starving children problem
  • Are there benefits from corruption?
    • Getting things done means paying for it
corruption the real problem robert klitgaard26
Corruption—the Real Problem?Robert Klitgaard
  • “Rent Seeking”
    • Charges higher than market price
  • Corruption
    • Too much government or too much privatization
corruption the real problem robert klitgaard27
Corruption—the Real Problem?Robert Klitgaard
  • Corruption:
    • Graft
    • Bribery
    • Nepotism
    • Kickbacks
    • Insider bidding (wired)
  • Can and should corruption be controlled?
group discussions africa
Group Discussions: Africa

Bastian and Luckham- Governance Structures

Manning- The Francophone Touch

Berger- On Africa

Picard Stuff

discussion caribbean and latin america
Discussion- Caribbean and Latin America
  • Nickson- Local Governance
  • Wunch and Olowu- The decline of the State
  • Clayton- Service Delivery Issues
  • Picard Stuff
discussion east and south asia
Discussion- East and South Asia
  • Cheema and Rondinelli
  • Richard Reeves- Peshawar and 9/11
  • Goodwin and Nacht
  • Picard Stuff
discussion east and south east asia
Discussion- East and South East Asia
  • Stanley Karnow: Vietnam and the Philippines
  • Bhatt, Decentralization
  • Harrison and Huntington- Culture
  • Picard Stuff
summary discussion
Summary Discussion
  • Where are we now?
  • What don’t we know?