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PIA 2000 Introduction to Public Affairs
PIA 2000 Focus
Bureaucracies, Budgets and Decision-Making- Managing Money
SOPs Video
Decision-Making and Budgets
Themes and Definitions
A View from the Right
Decision-Making Models and Spending: An Overview
1. Rational- Comprehensive
2. Standard Operating Procedures (SOPs)
3. Bureaucratic Politics
4. Group Think
5. Satisficing/Incrementalism
6. Cybernetic Theories (chaos theory)
How Purposeful?
Themesa. Budget: Recurrent vs. Capital (Development) Budgets
b. Financial Management- Incrementalism and Satisficing vs. Zero Based Budgeting (Planning Systems)
c. Accounting- Cost and Benefit vs. profit and loss
Zero Based Budgets
Themesd. Auditing vs. Accountability-
Quantitative vs. Qualitative
e. Evaluating- Assessment vs. Judgement
f. Budgeting: Two themes- Reforming and Decision-making
1. Savas- Privatization and Contracting Out- Commercialization and intra-governmental competition
2. Johnson- Economic Bureaucracy, Public Sector Management: A Japanese Model?
3. Harris- End of the Third World? End
of Development Budgets?
Decision-Making and Financial Management [Full cites on Request]
The Asian Model Issue
Decision-Making and Financial Management
4. Heady- Imbalance- Political vs. Bureaucratic Development in the role of financial management (The Corruption Problem)
5. Armstrong- Values, money and Development Management
6. Nelson- International Organizations, NGOs and Development (Contracts vs. Grants)
The Nelson View
Decision-Making and Financial Management
8. Turner and Hulme- Private Sector Development vs. Development Management: The role of public sector financial management (Oversight)
9. Peters and Barzelay-Public Sector Reform
10. Caiden and Wildavsky- Planning vs. Budgeting
11. Janis-Is Budgeting and financial management impacted by Group Think?
Group Think?
Planning, Financial and Budgetary Management Systems in Poor Counties
Five historical periods- From
a development perspective
Caiden and Wildavsky
Best Book on realities of Public Budgeting and Development
Historical Periods: Famous Fivei. Until the 1950s- recurrent budgets- law and order.
ii. 1950s-1960s- growth. Domestic development Funds with bilateral technical assistance
=Recurrent vs. Development budgets
iii. 1960s-1970s: Distribution and basic needs. World Bank and Poorest of the poor
iv. Mid-1970s to mid-1980s: Planning vs. Budgets Planning demanded by technical assistance
Technical assistance- both grants and loans (no private loans to Africa)
Project planning "wins" over national planning and budgeting systems
German Foreign Aid
v. The Current State of Financial Management: Structural Adjustment
(Since 2001)- Structural Adjustment vs. Social Crisis vs. security threats
The Middle East
The Current State of Financial Management
1. IMF Stabilization- currency reform, auctions and trade liberalization
2. Decentralized Budgeting- Part of Governance Debate
3. World Bank and UNDP "Management" - Opposing views to SAPs
DecentralizedBudgets
Bottom Up Model
for Health Service
Delivery
The Current State of Financial Management
4. Continued Absence of recurrent budgets and loss of control in Crisis: especially re. “Terror Prone,” Collapsed and Fragile States
5. Activity (economy) driven by technical assistance projects - the only game in town
6. Bridging and sectoral loans and grants- major source of international involvement
Somalia- 2008
Conditionality- What is the future? 1. Privatization of the economy
a. divestiture
b. contracting out
c. liquidation
d. sell off public private partnership shares
INDEPTH: ECONOMYOutsourcing: Contracting out becomes big businessCBC News Online | March 7, 2006
Canadian Broadcasting System Image
What is the Future?2. Privatization (Commercialization) of the bureaucracy
IN-SOURCING- Reinventing Government
Privatization Debates
Commercialization- Negativesa. Individuals work with investments and the service/commercial sector
b. Departments sell their services- eg. statistics in Zaire/DRC
c. Sub-economic salaries- offices and telephones- buying soap and selling chickens
Corruption Patterns
Commercialization- Negativesd. International conditions for "good" bureaucrats, eg. World Bank in Uganda- special salaries for those on contract with the project
e. Goal: Return to the recurrent budgeting process of the 1950s?
Back to the Future?
New Framework:
Subsidiarity and decentralized budgeting?
The Hospital- Two Video
Issue: Budgets, Bureaucracy and Reform: A Developmental Perspective
The Bureaucracy, Reform and International Development (Variations on a Theme?)
Overview: Stages in the Developmental State1. Faith in the State
2. Basic Human Needs
3. New International Economic Order
4. Structural Adjustment
5. Governance and Capacity Building
The Developmental Challenge
Faith in the State- 1950s Industrialization Stages of economic growth Modernization
From John Maynard Keynes to Walt Rostow
“Faith in the State”
John Maynard Keynes and his wife Lydia Lopokova
Walt Rostow
Basic Human Needs- 1965-1975 Basic Human Needs- growth With Equity
Robert McNamara and the World Bank
Integrated Rural Development
Internal Distribution
Robert McNamara and the World Bank
New International Economic Order Mid 1970s- 19831. Redistribution at the Local Level
2. Empowerment of south
3. Equity
4. Basic Human Needs vs. New International Economic Order (NIEO) part of the North-South dialogue
5. Brandt Commission
NIEO- Late 1970s Jimmy Carter Willy Brandt
Structural Adjustment and neo-orthodoxy: The Dividing Line: 1983-1989
a. "We are the World" leads to Donor Fatigue
b. Illness and then death of Brezhnev in Soviet Union
c. Ronald Reagan and Margaret Thatcher at the height of their power
d. Public Sector Reform
“We Are the World”
Break
Ten Minutes
Governance and Capacity Building- 1989-2006 End of the Cold War
Failure of Structural Adjustment
September 11
Governance and Decentralization
New Public Management: Reinventing Government
Reinventing Government
Focus on Public Sector Reform: The challenges
Cambodia, Nicaragua, Angola, Mozambique were transitional conflicts in 1990
New "Transitional States"- CIS and Eastern Europe (later Bosnia, Kosovo)
End of History and Beginning of History
State Deconstruction
The End of History (or the end of the End) Declared:
7th - 9th October, 2005 Nottingham, UK
Public Sector Reform-2Prologue- End of assumption- Progress is inevitable 1. Robert McNamara resigns from the World Bank,
19812. International institutions abandon basic needs
approach3. International conflict shifts from East-West
Rivalry and cold war to ethnic, regional and internal conflicts
Public Sector Reform:
The Debates
Critics View of Structural Adjustment One Size Fits All
Public Sector Reform- 3
Structural Adjustment with a Human Face
A Role for NGOs International donors as managers
The Issues 1. The state as national planner 2. How large a state: When is the state sector too
big? 3. Issue of state ownership, and unfair competition
(international trade) 4. Vagueness of boundaries between government
and society:
The Time for Civil Society Civil?
The Issues in Developed States
5. Hidden government: subsidies and entitlements. French Wine and Wisconsin cheese
6. Limitations of constitutions and public sectors- Decline in faith in government institutions in the 20th century
7. failure of legislative, executive structures. Loss of
control
8. Anti-bureaucracy- the myth of the neutral bureaucrat
The Issue: French Wine or Wisconsin Cheese
Overall: Reform Meant Attack on HierarchyI. Attacks on the European Mandarins-
European elitist systems of administration
=Permanent Secretary
=Director General
=State Secretary
ReformsII. Privatization of the bureaucracy
a. Savas- The key to efficient and effective goods and services
b. Critique: Nelson: impact of international organizations on NGOs- Distortion? c. Turner and Hulme- Are NGOs and Private sector better than Public Enterprises?
The View from Australia
Reforms-3IV: Civil Service Reform: Picard Case Studies- South Africa,
Botswana, Ghana,South SudanGuinea-Conakry, Eritrea andEthiopia
Reforms- 2III: Deregulation-
a. Deregulation- negative
b. Competition- positive (monopolies vs. utilities)
c. Regulations and Corruption: Klitgaard: Dealing with corruption and culture?
Civil Service ReformsV. Distinction- Public Sector Reform vs.
Administrative reform (Civil Service Reform)
Purists go for PSR rather than CSR- latter not legitimate- oxymoron
Problem-"Bureaucrat bashing"
The Debate about Public Sector Unions
VI. Public Sector Reform Public Enterprises vs. Civil Services
Vs. Public Services
Vs. Local Government
Broad issue of Human Resource Development
Reforming What? Video
Techniques: Public Sector Reform i. Budgetary and Fiscal Reforms
Budgets as plans- Schroeder in Baker (tax vs. spending)
ii. Personnel Reform- records base, motivation,
promotion, review, retrenchment, etc. Problem: Collapsed states have no carrots
iii. Structural Reforms- Excessive centralization,
militarization and politicization
Centralized Authoritarian Government
VIII. Structural Reforms 1. Center-reorganizations- move or abolish 2. Decentralization- Botswana example- Transfer
to local authorities or public corporations a. devolution b. deconcentration c. delegation d. privatization- what does it mean? Sell, Liquidate,
commercialize, partnership or contract out
Reforms: Cutback Management- smaller, or more efficient, more effective
Cut back: percentage of civil service- Cutback the civil service.
Myth of Size- eg. Bureaucracy in Africa small
Turner and Holm: Bureaucracy and Development
Is Downsizing- "right sizing"
Downsizing or Rightsizing
Reforms1. Redefinition- "Reinventing Government" (Osborne and
Gabler)- steering rather than rowing2. Strengthen systems of accountability: Barzelay and
customer approach3. Simplification and deregulation -Technical: Management Information
Systems-Operational Strategy: Policy Success:
4. Frame Plans, projects and programs (Morgan in Baker)
Key: Human Resource Development Training, recruitment, rewards and punishment
(qualifications and salaries)
Personnel flexibility and pay for performance
Reform position classification (rank vs. position) Return to meritocracy
Back to the Future in terms of state functions?
The Flip Chart Syndrom
Afterward- World Bank Mission (2006) GOVERNANCE IN GUINEA-CONAKRY A Small Diversion- Local Governance and Civil Society in
Guinea Conakry
Creation of a Poverty Alleviation Fund- includes Micro-Credit
Design Capacity for Service Delivery
Role For Civil Society
Guinea-Conakry
HRD Dilemma Guinea- Councillors, Illiterate, work in
indigenous language, Self Interested Bureaucracy:
Defined by Law and French
The Dilemma of Merit: (Picard and Garrity)- Command and Control
The Dilemma Political-civil service reforms- relational,
responsiveness of bureaucrats to politicians and Politicians to Bureaucrats
Common interests: privileges in organization
Rise of NGOs and multilateral: can you avoid the politicians?
Miewald: Politics- the critical factor?
Presentations: Next Week’s Discussion November 17
MPA/MPPM Group- Daniel Okrent, The Last Call
MPIA Group-Dina Rasor and Robert Bauman, Betraying Our Troops
MID Group- Louis A. Picard, A Fragile Balance
Daniel Okrent- New York Times Born 1948
Dina Rasor and Robert Bauman Dina Rasor is the Chief
Investigator of the Follow the Money Project
Robert Bauman was Criminal Investigator for the Department of Defense
Terry Buss (2010) and Louis A. Picard (and Colleagues, 1966)