A revolution in Whitehall? Changes in British central government since 1979

Since the Conservatives came to power in 1979 there have been important changes in British central government which have their intellectual origins in managerialist thinking of the 1960s, but owe their recent implementation to the commitment of the Prime Minister to reform the civil service along lines advocated by ‘new right’ or ‘public choice’ theorists. While most institutional reforms of departments were for political reasons, changes in the processes of the civil service can be seen as an extension of developments beginning with the Rayner Scrutinies, and moving through the Financial Management Initiative and the Efficiency Strategy to Executive Agencies. The British unified civil service is challenged by pressures for fragmentation, but limits to the changes are set by the dominance of the concepts of ministerial responsibility to Parliament, parliamentary audit, and of Treasury control.     

Testing the Policy Capacities of Budgetary Agencies: Lessons from Finance

The Commonwealth Department of Finance, together with the Treasury from which it was hived off in 1976, constitutes the central budgetary agency at the Australian federal level. For the purposes of this article, I identify Finance as a convenient working model of central budgetary agencies, at least in their traditional Australian incarnation. I accept that Finance is unlikely to be fully representative of all such Australian agencies, and I acknowledge that the federal government's annual budget is officially introduced into parliament by the Treasurer, and that the Treasury is deservedly regarded as the core budgetary agency. But my focus here is on Finance's special responsibility for the public management framework, and Finance's role in providing policy advice to government organisations on how to make the best use of budget funding. This article then presents the findings of a recent evaluation of selected policy-advising activities with the department.     

THE ROLE OF THE PUBLIC SERVICE IN A CHANGING ENVIRONMENT*

I was invited to give an address on the topic “The Changing Role of the Public Service”. With the agreement of the organizers I have changed my title to “The Role of the Public Service in a Changing Environment”. That is a small change—but it is a significant one. Our role has not really changed. It is easy in the public service, as elsewhere, to be preoccupied with contemporary challenges, and to imagine that these are new and different. But that says more about the way memory discounts the past than anything else—the latest problem or challenge is always the worst. When I joined the Treasury in 1952 the economy had just come through the Korean War boom and was in the process of adjusting to Fadden's so-called “horror” budget. The world financial system was in disarray owing to the “shortage” of US dollars. The Arbitration Court in the two or three previous years had made some awards of great concern as to their inflationary consequences. I found the Treasury was a hive of frantic activity. Looking back from the perspective of today I merely note, as the French put it, that the more things change the more things stay the same.     

Economic policy advice and political preferences

This essay argues that public choice offers an appropriate approach for thinking about economic policy advice. First I discuss the nature of the policy advice that is proffered by economists. Then I specifically suggest that one of the most common modeling features in the public choice literature (viz., the assumption that individuals have political preferences) may be useful in helping us understand the nature of this advice. Finally, I also carry out a tentative exploration of the implications of accepting the perspective that is provided when the suggested modeling feature is used in this context.     

What the Secretary Said Next: ‘Public Rhetorical Leadership’ in the Australian Public Service

Every year, senior departmental secretaries in Australia deliver keynote speeches to a range of audiences. What are these secretaries talking about, and to whom are they directing their comments? This article will examine keynote addresses by the secretaries of the two key central agencies in Australia – the Department of Prime Minister and Cabinet and The Treasury – over the calendar years 2009 and 2010. I argue that ‘public rhetorical leadership’ by secretaries poses challenges for traditional understandings of Westminster governance. Utilising the concepts of public value theory, the significance of this ‘public rhetorical leadership’ is assessed in terms of its impacts on policy implementation and questions of accountability.     

Treasury and Economic Policy – Beyond the Dismal Science

‘Treasury advises and assists the Treasurer, and through him the Government, in the discharge of his and its responsibilities in relation to economic, fiscal and monetary matters. The Department's main responsibilities lie in the field of general economic management’, Treasury, Annual Report 1983. ‘The Treasury's mission is to improve the wellbeing of the Australian people by providing sound and timely advice to the Government, based on objective and thorough analysis of options, and by assisting Treasury ministers in the administration of their responsibilities and the implementation of government decisions’, Treasury, Annual Report 2010a . ‘You can't really evaluate the performance of Treasury in terms of “outputs and outcomes” in any formal or public way because most of the time we are dissuading Treasurers and governments from doing stupid things’, Senior Treasury Official 2000. ‘We once had a “Treasury line”, but now we are more pluralistic’, Senior Treasury Official 2010. ‘Treasury's executive board hunts as a pack, they trust each other and they’ve known each other for long times’, Senior Treasury Official 2010.     

The Purse Strings and the Policy Process: Bureaucratic Shaping of Industry Policy Capacity after 1945

Much literature in public administration debates the role of the public servant in the policy-making process. Some literature acknowledges an integral role of the public servant in the process. However, this role often remains obscure, due to being couched in abstract terms. The hierarchical structuring of responsibilities and power within bureaucracies imparts the capacity for differential influence. This paper provides a case study of the role of the Public Service Board (power over staffing) and the Australian federal Treasury (power over the purse) in the shaping of the bureaucratic structure. The case study centres on the industry policy bureaucracy in the volatile decade after World War II. In shaping the bureaucratic capacity, the Board and the Treasury exerted a discretionary influence on the policy process itself.     

Searching for Efficiency in the Public Sector: Interim Evaluation of Performance Budgeting in New Zealand

In this article I examine the efforts to promote performance measurement in the public sector with particular reference to New Zealand. In section two I examine the State Sector Act of 1988 and the Public Finance Act of 1989, which together brought about changes in the New Zealand public sector. In section three I examine the problems of implementing the reform. In section four I discuss the experience of developing statements of performance measurement required under the Financial Administration Act of 1989 and in section five I develop an alternative scheme on the basis that a uniform approach is less likely to be applicable to a range of public sector agencies. The final section contains a brief conclusion.     

Measuring the boundaries of America's permanent campaign

This research measures the boundaries of the “permanent campaign” practiced by spokespeople for the United States government. Scholars have accused modern White House communications staff of conducting a permanent campaign by prioritizing presidential public opinion ratings over good governance. However, researchers have not previously measured whether this campaign is conducted exclusively from the White House, or if government agencies are also involved—dramatically increasing the potential scale and scope of the campaign. The researcher conducted a rare set of interviews with public affairs officers who worked for the Treasury Department during the administrations of Presidents Obama and George W. Bush to find out whether they utilize public opinion ratings in their work and whether they attempt to play to the emotions, rather than the reason, of the American people. This study finds that the Treasury is not conducting a permanent campaign. The results demonstrate that the campaign is not practiced in a cabinet agency critical to presidential political fortunes and reelection prospects, suggesting that it is likely confined to the White House.     

Do differences in presidential economic advisers matter?

Using data on members on the Council of Economic Advisors as well as US Treasury secretaries and OMB directors from 1952 through 2005, I investigate the effect of economic advisors’ educational and employment backgrounds on the time series performance of several policy variables. Ivy League advisors appear to raise non-defense government spending, although the size of the impact differs by president. While voter preferences appear to matter for a wider variety of policy variables (changes in federal regulation and marginal tax rates), the share of Ivy League advisors is at least as important as voter preferences in explaining non-defense spending.     

A Comparative Analysis and Evaluation of Specialist PPP Units’ Methodologies for Conducting Value for Money Appraisals

Governments throughout the world are turning to public?private partnerships (PPPs) as a means of providing new infrastructure. The decision to adopt a PPP over conventional government procurement is usually based on a value for money (VfM) appraisal, but this analysis is conducted differently in different countries. This article describes the correct way to conduct VfM analysis if the goal is to minimize the present value of the costs to the Treasury and if the goal is to maximize social welfare. It then compares the documented methodologies of nine specialist PPP units. It identifies four ways in which these methodologies depart from either of the correct approaches, and shows how each departure favors the PPP option. Finally, it shows how the UK approach might be augmented to determine the best value to society.     

CURRENT DEVELOPMENTS IN CANADIAN PUBLIC ADMINISTRATION

Little more than a decade ago the basic structure of the Canadian public service was radically reformed. In accordance with recommendations of the Glassco Royal Commission on Government Organisation the central agencies were restructured and their relations with departments reconstructed to shift as much as possible the location of responsibility for financial and personnel management to the departments. The Treasury Board, a statutory committee of Ministers, separated from the Department of Finance which handles economic and revenue policy, became the Government's management agency responsible for budgeting as well as financial and personnel administration. It was also cast in the role of "employer" for purposes of collective bargaining, which was introduced into the Service at the same time and thereby aligned labour relations in the Service with the system which had prevailed in the private sector since the Second World War. Responsibility for recruitment and promotion of staff according to "merit" was vested in the Public Service Commission, an independent agency reporting directly to Parliament, which also has some advisory functions in respect of training. These legislatively-based changes were accompanied, especially after Mr. Trudeau became Prime Minister in 1968, by construction of an elaborate Cabinet committee system and more policy coordination at the administrative level by an expanded Privy Council Office. Structural change was reinforced by changes in methods of operation. Over the next few years new techniques in budgeting, which was placed on a program basis, policy evaluation and performance measurement were introduced. Under the guiding hand of the Planning Branch in the Treasury Board Secretariat, increasing emphasis was given to planning and research in central agencies and departments.     

Historical Estimates of Total Taxable Resources for U.S. States, 1981-2000

Analysts have historically relied on slate personal income (SPI)as the benchmark for comparing state spending on public goodsand services and levels of state taxes. This occurs despitethe widely acknowledged shortcomings of using SPI as a measureof fiscal capacity, a state's ability to raise revenues fromits own sources. The U.S. Department of the Treasury has developeda more comprehensive measure of fiscal capacity, Total TaxableResources (TTR). Treasury has generated official estimates ofTTR since 1992 and has used two distinct methodologies to doso. The lack of a time series using a single methodology andcurrent estimates of income and production in the United Statesrepresents a significant barrier to the widespread use of TTRfor analytical purposes. This research note generates a timeseries (1981–2000) using Treasury's current methodologyfor estimating TTR and the latest estimates for income andproductionin the United States.     

S.M. BRUCE, IMPERIAL RELATIONS AND WAR FINANCE, 1939–1943

Abstract: This article deals with bargaining between Australia and the United Kingdom over some main aspects of wartime finance. Australian politicians and administrators took advantage of the wartime emergency to persuade the British to provide cheap loans with which the Australian government met its overseas military spending. The British Treasury also had to guarantee the preservation of Australia's sterling balances in the context of lend-lease arrangements between the UK and America. A number of bureaucracies, public and private institutions were involved, including the Australian High Commission, the Commonwealth Bank, the British Treasury, the Bank of England and the underwriting firm, Nivison & Co. It is argued that the wartime emergency enhanced the bargaining power of the Australians so that they were able to extract substantial concessions from the British.     

The Investment Approach to Public Service Provision

The investment approach to public service provision is now receiving considerable attention worldwide. By promoting data‐intensive assessments of baseline conditions and how government action can improve on them, the approach holds the potential to transform policy development, service implementation, and program evaluation. Recently, variations on the investment approach have been applied in Australia to explore the effectiveness of specific programs in employment training, criminal justice, and infrastructure development. This article reviews the investment approach, presents a Public Investment Checklist to guide such work, and discusses three examples. It concludes by considering the implications of investment thinking for the work of policy designers and public managers.     

‘Spending Wisely: Principles for a Good Spending Review': The First Report of the Fabian Commission on Future Spending Choices

This article examines the work of the Fabian Society Commission on Future Spending Choices published in June 2013. The Commission is undoubtedly the most detailed and ambitious attempt by a centre‐left think‐tank to analyse the structure of UK public spending since Labour's 2010 defeat. The Commission makes an eloquent case for a strategic approach to UK public spending, filling the substantial void in thinking on the centre‐left since Labour's 2010 defeat. Inevitably, the proposals raise fundamental questions about the capacity of the British state and the constitutional framework of the UK political system to accommodate a long‐term, future‐orientated approach to public expenditure, which deserve to be properly aired and debated.     

The twin faces of public sector design

Design thinking has become a popular approach for governments around the world seeking to address complex governance challenges. It offers novel techniques and speaks to broader questions of who governs, how they govern, and the limits of rational instrumentalism in policy making. Juxtaposing design thinking with an older tradition of policy design, this article offers the first critical analysis of the application of design thinking to policy making. It argues that design thinking does not sufficiently account for the political and organizational contexts of policy work. Design thinking also errs in universally privileging one particular policy style over others, and fails to account for the reality of policy mixes. Despite these deficiencies, it is argued that design thinking can inform and enrich governance by helping policy designers produce more adaptable designs, better appreciate the behavioral dynamics of public sector design, and leverage networked approaches to social problem solving.     

Promiscuously Partisan? Public Service Impartiality and Responsiveness in Westminster Systems

Public servants in Westminster countries are being drawn into the limelight by demands from their political masters that they publicly defend policies. Critics suggest these conditions undermine the capacity and willingness of senior public servants to manage the enduring Westminster tension between serving elected governments and remaining nonpartisan. Interviews with senior officials from Australia, Canada, and the United Kingdom challenge this pessimistic view, showing that officials consistently stress the importance of not “crossing the line” when dealing with their elected masters. Two exploratory case studies are presented—one of an Australian ministerial department (Treasury) and another of a Canadian quasi‐autonomous agency (Statistics Canada)—in which public servants faced pressure to defend controversial government policies. These cases show how contemporary public servants actively interpret, establish, and defend the line between appropriate responsiveness and inappropriate partisanship in Westminster systems.     

The Politics of Immigration and Public Health

The Conservative party's recent proposal to introduce compulsory medical examinations for immigrants should it win the upcoming election marks a departure in the politics of immigration and public health. For many years, the public health impact of immigration was kept out of party competition and successive governments pursued a voluntaristic approach to health checks. In this article, I outline the political history of immigration and public health, and consider the implications of attempts to raise the subject onto the public agenda. I argue that recent developments militate against a calm and balanced approach to the genuine public health concerns associated with immigration, which threatens not only to stigmatise immigrants and stoke anti-immigrant popular opinion, but also prevent the development of effective policies. In particular, the introduction of compulsory examinations may create perverse incentives for migrants to circumvent legal channels and thereby actually increase public health risks.     

Which government officials leak unauthorized information to the press in Washington?

Every modern president of the United States has been bedeviled by unauthorized leaks of government information to the press. Who is responsible for such leaks? Presidents of the United States have accused civil servants of attempting to undermine them. However, journalists have suggested that the presidents' own political appointees leak more. Using interviews conducted in 2013 with both presidential political appointees and civil servants who worked in public affairs for the U.S. Treasury Department during the administrations of Presidents Barack Obama and George W. Bush, as well as interviews with reporters with whom the Treasury officials interacted frequently, this case study finds that political appointees and civil servants leak unauthorized information that does not serve the president's interests to the press with roughly the same frequency. The findings shed light on behavior that is typically shrouded in secrecy and call into question the effort by modern U.S. presidents to gain greater control of the federal government by hiring record numbers of political appointees. Copyright © 2015 John Wiley & Sons, Ltd.