THE TRIUMPH OF ECONOMIC RATIONALISM: THE TREASURY AND THE MARKET ECONOMY

The 1980s have seen the triumph of economic rationalism. Greater efficiency has become a sacred goal. Increased competition and the unlocking of market forces, we are told, are the key means to obtain it. Proponents of economic rationalism insist that the public sector is riddled with inefficiencies. The private sector, by contrast, is self-evidently superior. To the extent that the private sector often operates less than optimally, a major reason is the plethora of perverse governmental regulations which hamper its efficiency. Despite the problems, the public sector needs to model itself wherever possible on the private. And where public sector activities can be or are being done in the private sector, then the public sector should surrender such activities. The inevitable result will be an increase in net economic welfare: the economy will become more dynamic and scarce resources will be allocated more efficiently. Such is the rhetoric of the economic rationalists.     

„Antinomien des demokratischen Friedens“

Both the monadic and the dyadic versions of the theory of the “emocratic peace” borrow their assumptions on causal links from different metatheories: rationalism, constructivism, and institutionalism. A thorough analysis of the causal hypothesis involved reveals that the linkage between democracy and peaceful behaviour is not as cogent as either version would have it. This verdict applies if we remain within each of the metatheories supplying the causal assumptions, and even more so if we analyse the combined assumptions of the metatheories. In either case, hypotheses can logically be deduced that would either predict specific reasons for being aggressive towards non-democracies or the neutralization of the particular war-preventing empathy democracies are supposed to develop towards each other. Both variants of the theory thus produce antinomies that are not recognized by the theory. The theory, it turnes out, is underspecified. A major task would be to theorize about the contextual conditions under which democracy does indeed produce peaceful behaviour, towards other democracies or even erga omnes.     

The interaction problem in policy analysis

A problem little noted in the literature on policy analysis is that analysis can interact with problems to make them different and more difficult to solve than they would be without analysis. Four varieties of interaction can be distinguished. All are rooted in the methods and assumptions of economics, the discipline that now dominates federal analysis, and particularly in its limited capacity to set policy goals. To prevent interaction, analysts would have to be able to set goals with greater independence so that aims were not swayed by the analytic process. They would need either their own theory of ends or closer political guidance.     

Is Anti-Rationalism Rational? The Case of F. A. Hayek*

The theme addressed is the criticism of constructivism and rationalism in politics as presented in the political theory of F. A. Hayek. Hayek's thesis is that goal-directed rationality in politics is counter-final. The main argument of this article is that on closer examination Hayek appears to be a constructivist himself. The purpose of Hayek's anti-rationalism is primarily ideological and instrumental. Hayek wants to induce certain anti-rationalistic beliefs because he believes rationalism has bad consequences. Yet this very project can be considered a case of goal-directed rationality. Furthermore, the argument is that Hayek mixes abstract philosophical doctrine with empirical theory. In his critique of constructivism, Hayek confuses two notions of ‘rationality’. On the one hand he argues against epistemological rationalism associated with Descartes, and on the other he argues against the subjectivistic, action-oriented notion of ‘rationality’ associated with the idea of ‘economic man’. Arguments against Cartesian rationalism do not, however, imply the impossibility of goal-directed rationalism in politics. The so-called information problem cannot be solved at an epistemological level. It is a practical problem, which Hayek has certain ideas how to solve. The argument here, therefore, is that Hayek's thesis of ‘tacit knowledge’ is not an expression of skepticism as is often believed.     

Recommending a scheme of reason: Political theory,policy science,and democracy

It is the task of policy science, as of political theory generally, to recommend a scheme of reason that will presumably result in better public decisions. This may seem profoundly undemocratic, for in a democracy, should not the people be free to think precisely as they please? Yet all political theory intimates an idea of political reason and unreason. The problem then is which ideal of reason to teach in the name of a policy science of democracy. Herein I compare three common schemes of reason: utilitarian calculation, liberal rationalism, and practical reason. My conclusion is that there is no reason to suppose that the capacity for the more public-spirited forms of deliberation is less widely distributed in the population than calculated self-interest, and that either liberal rationalism or practical reason, or some combination of the two, is more compatible with democracy than utilitarian calculation.     

How to argue about the new public management

Hood and Jackson's (1991) distinction between administrative argument and administrative philosophy has been largely overlooked in writings on NPM. This seemingly subtle distinction flows from the more obvious one between “practical argument” and “social scientific explanation.” These terms refer to different scholarly practices. Practical reasoning is a highly-developed form of scholarship in law, public policy, and political theory. Explanation is a highly-developed scholarly activity in political science and related disciplines. The fact that practical argument and explanation are, in principle, complementary scholarly activities in practically-oriented fields such as public management is not a reason to overlook the distinction between them. If scholars writing on NPM made more of this distinction, it might prove easier for their readers to see precisely how social science explanations and practical arguments are interrelated. Discussion of how well claims have been supported would then be facilitated. Also, it would be easier for writers to decide how to engage the NPM literature. Not only would the issues be clearer, but it would also be easier to discuss the merits of alternative approaches to tackling them. If more weight is given to the distinction between practical argumentation and social scientific research by scholars of NPM, an urgent question is: how should the scholarly practice of practical argumentation be characterized?     

Political instability in Africa: A rent-seeking approach

The foregoing analysis developed the paradigm of self-interest motivated revolutionary activities. In effect, the construct presented differs from the by-product theory developed by Tullock only in its specific modeling of government-created rents as the engine which drives the violent political behavior. The empirical test of the positive relationship between rent creation by the government and the amount of destabilizing political activity yields strong support for the structuring of politically destabilizing activities as rent-seeking in nature. It is the authors' hope that further empirical investigation and a more general and rigorous modeling of revolution as a rent-seeking activity will become an important part of the literature in public choice.Finally, some policy implications should be discussed. The policy emphasis for the governments of Africa countries should be on opening the economy to competition. Instituting programs to make the economic system more accessible to all segments of society would result in reduced opportunities for rent-seeking. Reducing rent-seeking should result in increased political stability. A reduction in government market intervention would also reduce the costs of government regulations on individual entrepreneurs inducing them to increase their participation in economically productive activities. Taken together the result would be increased political stability and higher rates of economic growth.     

The Struggle For Jurisdiction: Regionalism Versus Rationalism

Territory, national versus regional, has been at the basis ofclaims to power in most federations, and Canada is no exception.But regionalism has had to contend with another perspectiveon political power in Canada: economic rationalism or entrepreneurism,which views its own conduct and that of government as the maximizationof economic profit. As advocated by the federal government,most particularly under Trudeau, economic rationalism conceivedof a division of powers that is efficient, least costly, flexible,hierarchical, systematic, and rational. This pursuit of omnicompetenceand unrestricted jurisdiction has resulted in unilateral federalisminitiated by Ottawa and rejoindered by provinces. It constitutesa major challenge to cooperative relations and an abdicationby the national government of its brokerage role between theinterests of the extensive and intensive communities in Canada.     

The Policy Cycle: Democratic Process or Rational Paradigm Revisited?

Discussion on policy-making and of effective policy-making mechanisms is once again emerging in the policy literature. Much of the debate in the past focused on whether the method applied in the physical sciences was appropriate for policy and policy-making. Current debate appears to be reverting to some form of rationalism in so far as good policy processes are seen to yield the most effective results. This article discusses what appears to be a revival of rationalism — the process-oriented policy cycle. The article argues that there is little doubt that effective policy-making requires good process but it is erroneous to suggest that the content of policy, particularly in the case of contentious decisions, is derived from the policy cycle itself. It is argued further that the policy cycle is not a substitute for the actual making of decisions but an administrative and bureaucratic mechanism for effectively setting in place a process once the difficult decisions have been made.     

Unilateral jurisdiction: Universal jurisdiction <Emphasis Type="Italic">à l’Américaine</Emphasis> in the age of post-realist power

Conclusion The United States is using the theme of rights to build its unilateralism. In order to transform this unilateralism into a convincing universalism, it needs to reinforce its “soft power,” appeal to its partners and convince them of the necessity of its initiatives. Aggressive or offensive rights and crude unilateral military interventions are dangerous per se; they might also endanger American power in the long run. Culturally, this challenge is rooted in America’s origins and in its enthusiastic desire to reform the world. In that respect, the shaping of a so-called “world community,” America is challenging continental Europe and its hierarchical universal power rooted in Catholic verticality. On the contrary, the U.S. conception of power is based on a horizontal dynamic, inspired by the structure of the reformation movement. American coercive rights are defying a universal powerless law; Luther is certainly taking its revenge against Rome. Indeed, as for now, America’s universal competence turns out to be more effective than the ICC. However, if the United States does not take into account its own aspirations to define universal norms, it will be more and more difficult for the United States to justify the necessity of its military decisions. any step back to crude realism could be a fatal regression. It will be a mistake for the pursuit of America’s own interests; it would also most probably endanger the stability of the international system, as it would foster rivalries and hostile reactions.     

Auctioned oil import licenses

Three times in recent years American Presidents have tried to levy a tax on imported oil in order to decrease the quantity. Three times, the U.S. Congress has blocked the policy, demonstrating that a tax is politically infeasible. As an alternative, we propose an auctioned import license policy, in which the President would have discretion over the quantity of petroleum sold each month. The quantity might be chosen to maintain a certain differential between the domestic and international prices of oil. Under this strategy, licenses would have economic characteristics very similar to those of a tax. The political characteristics, however, would be quite different. Sections of the public would be less likely to perceive licenses as transferring revenues from households to the government and more likely to perceive them as effective in reducing imports. Alternatively, oil import licenses could be used to negotiate with OPEC and other importing nations.The authors wish to thank William Dunn, Robert Walters, Richard Nehring and Charles Phelps for their helpful comments. The usual caveat applies.     

What Use is a Policy Cycle? Plenty,if the Aim is Clear

What use is a policy cycle? Plenty, if the aim is to help public servants make sense of the policy task. Setting out a sequence of steps to turn ideas into Cabinet recommendations can provide structure in the otherwise dizzying world of policy‐making. It would be a mistake, though, to see a policy cycle as other than a first step, a guide amid complexity. To read the policy cycle as rationalism revived is to misjudge both form and intent. Debate is a wonderful thing, and we are pleased the policy cycle described in The Australian Policy Handbook (Bridgman and Davis 2000) has stimulated a response. Although we believe a critique in the June issue of the Australian Journal of Public Administration (Everett 2003) is misguided, it invites reflection on the purpose ‐ and limitations ‐ of a policy cycle approach.     

THE POLITICS OF MICROECONOMIC REFORM: STRUCTURING A GENERAL MODEL1

Abstract: This paper examines the current endeavours to render the Australian economy more economically efficient. While the case for microeconomic reform is clear in economic theory, Australian public policy analysts are less sanguine about the possibilities for its long-term success. This paper seeks to develop the parameters of a simple general model to explain both why microeconomic reform proposals are dominant today on the Australian policy agenda and, more importantly, what the conditions are for their success or failure. This general model provides a framework that will allow further elaboration in case studies of particular episodes of microeconomic reform.
The paper concludes pessimistically; micro-economic reform has been subsumed into the normal political agenda contests of Australian party politics. The pressures of such "politics" inclines Australian reforming towards incrementalism, rather than the Simon-style rationalism implicit from micro-economics. This mode of policy implementation will inhibit microeconomic reform in the longer term.     

The Western Australian Regional Forest Agreement: Economic Rationalism and the Normalisation of Political Closure

This article explores the constraints imposed by economic rationalism on environmental policy‐making in light of Western Australia's (WA) Regional Forest Agreement (RFA) experience. Data derived from interviews with WA RFA stakeholders shed light on their perceptions of the RFA process and its outcomes. The extent to which involvement of science and the public RFA management enabled is analysed. The findings point to a pervasive constrainedness of WA's RFA owing to a closing of the process by the administrative decision‐making structures. A dominant economic rationality is seen to have normalised and legitimised political closure, effectively excluding rationalities dissenting from an implicit economic orthodoxy. This article argues for the explication of invisible, economic constraints affecting environmental policy and for the public‐cum‐political negotiation of the points of closure within political processes.     

寻求人文与科学之间的平衡一现代新儒家科学观述评

儒学与中国现代化的关系问题是20世纪中国哲学与文化极为重要的问题。如何做到科学理性与人文主义的有机结合,对于现代新儒家乃至整个人类文化都是一个富有挑战性的问题。新儒家在哲学视域下思考如何在人文理性的指引下充分发挥科学理性的重要作用,提出应凸显道德人文精神对于科学理性的导引价值,以寻求人文与科学之间的平衡。这对于解决当今科技异化问题无疑具有一定的启示意义。     

Wheat from chaff: Third‐party monitoring and FEC enforcement actions

Regulatory theory suggests that providing agencies with multiple sanctioning options allows them to dispose promptly of less serious matters and thereby conserve resources to pursue serious offenders. However, agencies dependent on third‐party monitoring may have their enforcement agendas skewed toward more trivial violations. We consider these competing expectations by analyzing enforcement actions at the US Federal Election Commission (FEC) from 1999 to 2004 . The FEC – an agency heavily dependent on third‐party monitoring – expanded its enforcement options in 2000 by creating two new programs to pursue low‐level offenders, while leaving its monitoring strategy unchanged. We hypothesized that more sanctioning options would allow the FEC to allocate its resources more efficiently, and thus deal more effectively with the skew created by third‐party monitoring. We found instead that although the FEC disposed more promptly of low‐level infractions, it was no more effective at focusing on serious violations. Our results suggest that for many agencies, expanding enforcement options without addressing monitoring has limited ability to resolve enforcement problems.     

Class Divisions Today—the Inclusive Democracy Approach

The aim of this article is to show that the collapse of the socialist project and the consequent abandonment of 'grand narratives' should not be followed by the rejection of every type of class analysis and politics, or, even more so, by the abandonment of every attempt to develop a universal project for human emancipation. Instead, class divisions have to be redefined to extend beyond the original conception of them which was restricted to the economic sphere, and a new class model should be developed, which would embrace the politics of 'difference' and 'identity' and would be appropriate to the era of an internationalised market economy. In the first part of the article, the historical development of economic class divisions is examined and the inadequacies of the Marxist class categories are assessed. In the second part, a new model of class divisions based on the unequal distribution of power in all its forms is developed, whereas in the final part an attempt is made to define the subject of emancipatory politics today.     

Toward a post-industrial planning theory

Post-industrial tendencies indicate changes in the composition of the labor force and changes in world-view. Increasingly, next to highly intellectual work and rational ways of thinking can be found work with affective content and existentially based ways of understanding. Rationalism loses effectiveness as a guide to social action because it leads to fragmentation of the experienced world. Existentialism holds out the promise of synthesizing experience into a coherent image. Because planning involves the translation of knowledge into action, these changes in cultural values and ways of understanding call for innovations in planning theory. Challenges to rationalism require creating a new constitution for planning. Synthesis of rationalism and existentialism requires articulation of an existental planning theory. Embracing existing social conflicts is necessary for accomplishing both tasks.