Management 2000

Public Management 2000 will need to do much more if it is to perform more effectively in an increasingly difficult and challenging environment likely to emerge in the next decade. To make any appreciable difference, it must prepare itself now by internationalizing public service attitudes, adapting to the changing role of the state in society and assimilating the new public managerialism which is beginning to take hold in Western countries. Furthermore, it needs to be much less tolerant of public maladministration, it must improve its public relations image, and it should strengthen its commitment to public service. Above all, public managers must take their own professional commitments more seriously and their professional associations must play a bigger role in promoting better performance. But integrating science and practice will be worthless without professional integrity. Otherwise, Public Management 2000 will just follow Business Management 2000 and remain the poor relative doing an inferior job.

Public managers will look back on the 1980s with some nostalgia. Compared with the numerous challenges that will confront them long before the year 2000, the past decade will appear in retrospect to be a rather peaceful period of adjustment. True, they had to cope with a severe crisis in the downturn of public resources, the quest for external funds and internal economies, the demand for privatization and the divestment of state monopolies, and pressure for improved public sector productivity. In some parts of the world they had acute problems of political instability, civil war, insurrection, economic paralysis, foreign intervention and institutionalized corruption.

Those who look to the 1990s for relief have not had much cause for optimism. The new decade did not begin well. Two specific events stood out. One was the collapse of bureaucratic centralism and the disinte-gration of the East Bloc, presenting an ideological challenge to the Left when the ground was virtually cut from under its feet. The other was yet another Middle East crisis threatening world energy reserves, military confrontation and international intervention that changed the rules of the former world order.

Another ominous trend was the corruption revealed in the transaction of public affairs all around the world, ranging from the stock market scandals in the United States and Japan to illegal international trade in narcotics and armaments, from the collapse of unworthy banking houses to the kleptocracy of dictators. These undermined public confidence in public institu0tions and revealed how government and public admini-stration could not be trusted to protect public interests. Managerialism cannot do much against greed. As Scott and Hart conclude⁽³⁾:

Greed appears to be the hallmark of our times, when corporate raiders loot perfectly sound companies or raid government programs for no other reason than that they are there to be looted and raided. ⁽³⁾

All these problems crowd in on public management and make managing the public's business much more difficult and uncertain.

The 1990s will be volatile and no doubt there are more startling events in store as the world heads into the 21st century. Nothing can be taken for granted any more; there are few givens. Only brave or foolish persons can claim to predict the future, and they are likely to be wrong. Like everyone else, they will be caught off guard by any number of surprising and unexpected happenings, beyond current imagination. The only certainty is that the future will not resemble the present; it will not be a mere continuation of the past. Public sector managers more so than their private sector counterparts will just have to be ready for anything, particularly the hidden twists and turns and cope the best they can in the circumstances. But there is a world of difference between facing the future blind and ignorant or aware and wise (or at least clued-in) and perhaps prepared. If they do not start preparing themselves now, they will certainly be unprepared by the year 2000. One thing is clear -- unless public managers take themselves more seriously, their future will be determined largely by others and that usually means following the business route.     

‘In the mirror of the past’: The use of history in the justification of terrorism

This article takes the form of a content analysis of the propaganda of Lehi ‐ the smallest and most extreme of the underground movements that fought against the British in Palestine. It suggests that the propaganda was based on a number of projective narratives, namely, stories that are not only designed to recall the past, but also to show how to behave in the present. Particular emphasis was placed on the lessons to be learnt from Jewish history in general and past examples of Jewish valor in particular. Attention was also paid, however, to other struggles for national liberation. In both cases, the struggle for legitimacy took place on two fronts ‐ the reconstruction of the past and its reenactment in the present. Only Lehi, it was argued, understood history and acted in accordance with it. And therein lay the terrorists’ claim to legitimacy. They, and they alone, are the true heirs of the past.     

Affordability and mortgage design: Permanent buydowns and buyups

Abstract

A simulation model that mirrors the actual practices of lenders in setting qualification requirements for mortgage loans is used to assess the impact of permanent buydowns and buyups on the maximum sale price that buyers can afford. Buydowns are reductions in the coupon rate traded off against higher discount points; buyups are the reverse. Although buydowns have little effect on afford ability, buyups can have significant effects. Their potential is largely unrealized, however, because of the call risk to lenders of loans carrying premiums. The authors propose a “discount recovery” provision, which would be similar to a prepayment penalty except that the payment upon prepayment would be tied to the amount of the discount foregone by the lender. This would protect lenders against call risk, giving them every reason to offer buyups as a way of expanding demand.     

Making Government Accountable: Lessons from a Federal Job Training Program

This article describes the evolution of a performance measurement system in a government job training program. In this program, a federal agency establishes performance measures and standards for substate agencies. The performance measurement system's evolution is at least partly explained as a process of trial and error characterized by a feedback loop: The federal agency establishes performance measures, the local managers learn how to game them, the federal agency learns about gaming and reformulates the performance measures, possibly leading to new gaming, and so on. The dynamics suggest that implementing a performance measurement system in government is not a one-time challenge but benefits from careful monitoring and perhaps frequent revision.