Path Dependence and Public Sector Innovation in Regulatory Regimes

The overarching theme of this article is institutional analysis of modernization and innovation in the regulatory state, and in pursuing this, the concepts of ‘path dependence’ and ‘administrative traditions’ are used throughout. Self‐reinforcing or positive feedback processes in political systems represent a basic framework. The empirical point of departure is the EU public procurement directive linked to OECD data concerning use of outsourcing among Member States. The question is asked: What has caused the Nordic countries, traditionally not belonging to the Anglo‐Saxon market‐centred administrative tradition, to be ranked so high as users of the Market‐Type Mechanism (MTM) of outsourcing in the public sector versus inhouse provision of services? The reason may be complex, but might be found in an innovative Scandinavian regulatory approach rooted in a ‘small is beautiful’, small and medium‐seized businesses, and local and regional development planning tradition.     

Public–Private Partnerships and the Public Accountability Question

Public–private partnerships (PPPs) are growing in popularity as a governing model for delivery of public goods and services. PPPs have existed since the Roman Empire, but their expansion into traditional public projects today raises serious questions about public accountability. This article examines public accountability and its application to government and private firms involved in PPPs. An analytical framework is proposed for assessing the extent to which PPPs provide (or will provide) goods and services consistent with public sector goals of effectiveness, efficiency, and equity. Six dimensions—risk, costs and benefits, political and social impacts, expertise, collaboration, and performance measurement—are incorporated into a model that assists public managers in improving partnerships’ public accountability.     

Public Sector Corporate Governance Disclosures: An Examination of Annual Reporting Practices in Queensland

In the public sector, corporate governance is an expression that is yet to be explicitly defined. This paper examines the existing public sector literature in order to derive a set of broad principles of corporate governance in the public sector. These principles are then applied through a content analysis of corporate governance disclosures in a group of government‐owned corporations, state government departments, local governments and statutory bodies. The results indicate the set of principles derived is generally applicable to various forms of public entities. However, due to a lack of an established public sector corporate governance framework, the disclosure of corporate governance is piecemeal. Government‐owned corporations achieved better disclosure practices in most principles than other public sector bodies. The paper aims to stimulate debate on public sector corporate governance and provides a basis for a more extensive survey on corporate governance disclosures.     

Getting the fundamentals wrong: woes of public–private partnerships in solid waste collection in three Ghanaian cities

Until over a decade ago, concerted efforts at involving private agents to deliver solid waste collection services did not feature in local government's (LG's) policies and practices in Ghana. The LGs had over the years directly delivered the services with their labour, materials and equipment. The purpose of entering into partnerships with private contractors was to improve service delivery. This comes at a time when the private sector is generally viewed as more efficient and effective than the public sector. There is abundant literature on potential benefits of private sector participation in public service delivery; yet, figures of efficiency gains are often accepted without challenge. More advantages but fewer disadvantages are cited and anecdotal evidence is used only to illustrate successful applications of the concept of public–private partnerships (PPPs). Using research data from three cities (Accra, Kumasi and Tema) in Ghana, this article exposes the contrast between policy expectations and outcomes of PPPs. The article argues that simply turning over public service delivery to private agents without ensuring that the fundamentals that make them successful are put in place leads to a worse situation than portrayed in literature about the benefit of PPPs. Copyright © 2004 John Wiley & Sons, Ltd.     

New Public Management and ‘Photocopy’ Bargaining in the Australian Public Service

The industrial relations policy of the Federal Coalition Government is to encourage industrial bargaining to occur at the enterprise or individual level, free from ‘outside’ influences. While it encourages devolved bargaining at the agency and individual level within the Public Service (Australian Public Service) this policy creates tensions with its role as a centralized policy maker, economic manager and employer of the APS workforce. It also conflicts with the APS' adoption of New Public Management. In practice, the government retains considerable centralised control over agency bargaining outcomes, which is a de facto method of pattern bargaining. By analysing the substantive outcomes from nine APS agency level certified agreements (hours of work, pay and leave entitlements), the article discusses whether this one size fits all' model is evidence of an appreciation that public sector industrial relations is separate and distinct from private sector industrial relations, or another example of duplicity in the federal coalition government's ideology driven approach to industrial relations.     

Is Private Delivery of Public Services Really Cheaper? Evidence from Public Road Maintenance in Denmark

It is a general finding that cost savings may be obtainedby involving the private sector in publicservice production. This fact should be ofparticular interest to countries with largepublic sectors, such as the Scandinaviancountries, where private involvement has alarge potential. This paper investigatesthis potential by focusing on the Danishroad sector. 275 municipalities areresponsible for the maintenance ofapproximately 60,000 km of Denmark's70,000 km public roads. The analysisconfirms the international evidence:Involving the private sector also seems tomake it possible for the public sector toobtain large cost savings in theScandinavian countries.     

New Millennium,New Public Management and the New Zealand Model

Recently the much‐discussed ‘New Zealand model’ of new public management (NPM) has become significantly revised. It now lacks the theoretical coherence and the market‐led focus that it relied on between 1987 and 1996. Labour‐led governments since 1999 have undertaken gradual and pragmatic – yet significant – changes in public management structures and principles, refining and sometimes reversing the model implemented in the late 1980s and early 1990s. This article does a ‘stock‐take’ of public management developments in New Zealand from 1999 to 2008, and argues that New Zealand can no longer be viewed as a leading exponent of market‐led NPM. Some NPM principles have been refined, but others have been quietly abandoned. The new National‐led government appears unwilling to undertake radical reforms, and, while it may seek a greater role for the private sector, looks set to continue with the ‘gradual and pragmatic’ approach adopted since 1999.     

Mandate, Independence and Funding: Resolution of a Protracted Struggle Between Parliament and the Executive Over the Powers of the Australian Auditor-General

This paper examines a political struggle in the Australian federal sphere over parliament's right, exercised through the Office of the Auditor-General, to oversee the accounts and management practices of the executive and entities created by legislation to deliver public services. The period from the early 1970s witnessed a dramatic shift in the method of delivering government services to the community and an increasing attention to economy, efficiency and effectiveness in their administration and delivery. The Australian government has increasingly used private sector organisational models and modern management and accounting practices to deliver a wide range of services. The rise of these 'new public management' practices resulted in an erosion of traditional parliamentary oversight of government management and reporting activities. This historical analysis is based upon Porter's (1981) processual analytical framework. The analysis focuses on the action of groups such as the executive, parliamentary committees and the Office of the Auditor-General as evidenced in documents produced in response to critical events. Models developed by Funnell and Cooper (1998) are used to characterise the transition of public sector audit from a traditional administrative model to a corporatist model.     

An Evaluation of Private Sector Provision of Public Infrastructure in Australian Local Government

Private sector provision of public infrastructure in Australia at all levels of government, including local government, has steadily increased over the past twenty years. Nevertheless, this method of providing public infrastructure remains controversial. This article seeks to provide a critical review of the arguments surrounding private sector provision of infrastructure in Australian local government. It examines both the case for private sector provision of municipal infrastructure in Australia and the major arguments advanced against this approach to infrastructure development. Given the conceptual argumentation and empirical evidence on private municipal infrastructure provision, it is argued that policy makers should employ a nuanced performance evaluation framework to assess the benefits and weaknesses of private provision on the basis of the specific type of infrastructure in question and the kind of services it provides rather than simply endorse carte blanche privatization.     

We’re Not all Happy Yet: Attitudes to Work,Leadership, and High Performance Work Practices among Managers in the Public Sector

This article explores the attitudes of male and female managers in the public sector toward high performance Human Resource Management (HRM) policies and practices, work, and organisational leadership, and compares these attitudes to those of managers in the private sector. It finds that female public sector managers are most positive about high performance HRM policies and practices. Male public sector managers are less positive than female managers in the public sector and male and female managers in the private sector across all the measures. Psychological contract theory suggests either the changes associated with high performance HRM policies and practices, or attempts to decrease the disadvantage felt by women in the public sector may have resulted in a sense of disadvantage among some men in the sector, and created a changed, more transactional psychological contract between these men and their organisation. Strategies are needed to reengage public sector men.     

Experimentation,Behaviour Change and Public Policy

Citizens will need to change their behaviour in pro‐social ways if governments are to address current challenges in public policy. But how best to promote behaviour change? The argument in this article is that a decentralised rather than a top‐down approach is particularly suitable, which can encourage innovation in the public sector and involve citizens in the implementation of policies. As a method of evaluating interventions, randomised controlled trials have a unique role to play in improving the design of policies, particularly if carried out responsively and adaptively. A culture of experimentation would value curiosity, feedback and the continual testing of interventions. The article includes three examples of experimentation: young people's political attitudes, voter turnout and donations for charity. As the popularity of ‘nudge’ interventions grows—shown by the success of the UK government's Behavioural Insights Team—the practice of experimentation in the public sector could become the norm.     

The Public Eye and the Citizen-Voyeur: Photography as a Performance of Power

This paper argues that photography is best grasped not as a medium of visual communication, but as a manifest performance of the power to make visible. As such, photographic practices are central to the experience and demarcation of private/public boundaries in advanced media cultures. In the private domain, photography is both a ritualized domestic activity and provides conventional and definitive representations of the domestic. These functions are ostensibly opposed to photography's role in the public realm: the same visual technology becomes, in the mass media, both the index and agent of publicness itself, with the paparazzi?especially in the aftermath of Princess Diana's death?symbolizing the violation of the private. The paper explores the ways in which photographic performance at the public/private boundary dramatizes power relations through forms of social transparency, voyeurism and memoralization. It also asks whether momentary crises in the dominant scopic regime can provide the basis for alternative ‘uncanny’ visual practices that are tenable and empowering.     

Comparing Accountability in the Public and Private Sectors

Analysis of public accountability tends to concentrate on public sector institutions. However, increasing use of the private sector in the provision of public services suggests the need to compare accountability in the two sectors. While private sector (for-profit) companies are more accountable in terms of their 'bottom line', accountability requirements in the public sector are generally more stringent, particularly with regard to process and general policy.     

Public Officials,Government and the Public Trust: Schizophrenia?

In late 1996 the Queensland government introduced new legislation to govern its public sector, the Public Service Act 1996. For a few short weeks the supposedly draconian legislation was front-page news, as the government was forced to defend its changes to standards of accountability in public sector employment. Was the fuss a storm in a teacup? Were the changes really so significant? In this article the impact of the legislation upon the central core of public sector employment, the public trust, is considered, and the legislation's interrelationship with the Queensland public sector ethics regime is analysed. These unhappy people were proposing schemes for persuading monarchs to choose favourites upon the score of their wisdom, capacity and virtue; of teaching ministers to consult the public good; of rewarding merit, great abilities and eminent services; of instructing princes to know their true interest by placing it on the same foundation with that of their people: of choosing for employment persons qualified to exercise them; with many other wild chimeras, that never entered before into the heart of man to conceive, and confirmed in me the old observation, that there is nothing so extravagant and irrational which some philosophers have not maintained for truth (Jonathan Swift, Gulliver's Travels).     

How Well Does Accrual Accounting Fit the Public Sector?

In this 'controversy' we challenge the unqualified application of full accrual accounting within the Australian public sector. In particular, attention is directed to the recognition and valuation for financial reporting purposes of public sector resources that are of a non-financial nature, such as library and museum collections. Our main contention is that attempting to recognise such resources at monetary values within the financial reports of public sector organisations is a contrived, imprecise and inappropriate practice that threatens to occlude rather than enable the accountability of public sector institutions and their managers. Building from this accountability theme, we present perspectives on promoting accountability for the technical accounting practices which have been imposed within the public sector.     

The Three Exit, Three Voice and Loyalty Framework: A Test with Survey Data on Local Services

The article presents a modified Hirschman framework with three types of exit: moving location; moving from the public to a private sector provider; and moving between public sector providers; and three types of voice: private voice (complaining about private goods); voting; and collective action. Seven hypotheses are generated from this framework. The article then presents evidence from the first round of an online survey examining citizen satisfaction with public services and the relationship between exit and voice opportunities. We find dissatisfied people are more likely to complain privately, vote and engage in other forms of collective participation; but only a weak relationship exists between dissatisfaction and geographical exit. We find some evidence that the exit–voice trade-off might exist as more alert consumers are more likely to move from the public to the private sector and those 'locked in' are more likely to complain than those who have outside options. Overall the results tend to corroborate the hypotheses drawn from the modified Hirschman framework.     

Economic Rationalism and Public Sector Ethics: Conflicts and Catalysts

Given recent focus on unethical activity and failings in corporate governance in the private sector, this paper briefly overviews the application of 'economic rationalism' in public administration and its impacts on the ethics of public sector decisions. It is argued that although 'unethical' decisions in public administration may be influenced by the economic imperatives embodied in 'economic rationalist' policies, it does not follow that the application of economic principles is necessarily inconsistent or injurious to ethical outcomes. In many instances the application of economic principles in public administration adds value by making existing ethical conflicts transparent and enabling more informed decisions.     

Rent seekers who demand government production: Bureaucratic output and the price of complements

Many goods and services produced by government bureaus are sold at prices which do not maximize net revenues (maximize profits or minimize losses). Indeed, bureaucratic institutions typically create incentives to expand production beyond that which would maximize net revenues. Furthermore, many of the products sold by government bureaus are highly complementary to privately produced goods and services. If a bureau's output is not priced to maximize net revenues, then private sellers of various complements may be in a position to extract rents by adjusting their prices. This paper explores the implications of bureaucratically generated rents for privately produced complements. First, rent seeking can materialize when private sector interests apply pressure for expanded bureau production and lower bureau prices. Second, if the bureau does expand its production capacity beyond the net revenue maximizing level, and if a private producer obtains exclusive rights to supply complements, then the extraction of rents will result in an inefficient mix of resources in bureaucratic production. The basis of the inefficiency is not the reason often given, however. Rather, inefficiencies arise because the actual level of use is less than that which the ‘bureaucratic plant’ was constructed to produce due to the relatively high price of the complementary services.     

The Balancing Act: Using Private Money for Public Projects

As public resources become scarcer, private donations for capital projects and public services may become increasingly important. Modern donors, using the new philanthropy philosophy common now in the nonprofit sector, may desire more control over the use of their funding than in the past. This research examines the effects of private donations on capital decision making, and explores the balancing act required by public officials between best practices and private norms in this process. The study uses the city of Omaha, Nebraska case, where corporate and individual donors have made significant financial contributions for the construction of a convention center/arena and a baseball stadium. Findings include both costs and benefits of this approach, and may be beneficial for theory‐building related to this relatively unexplored topic, as well as for practitioners faced with similar needs and demands.