Disinvesting in the administrative capacity for public action

Recurring cutbacks in the public sector have received extensiveattention. Most of the emphasis has been on how to adjust to declinein support for public programs. Cutback Management andcon-tracting-out are examples of this approach. This article focuseson the negative consequence of cutbacks. It suggests that inadequateattention is being given to the decrease in the capacity of agenciesto act. An administrative disinvestment is occurring in much the sameway as it has for roads, bridges and other parts of our public infrastructure. Now, we are disinvesting in another critical social asset--our public bureau-cracies. The nature and implictions ofadminis-trative disinvestment are explord.