Pricing public sector services: The tuition gap

The large gap between the tuition charged by public colleges and universities and private ones is likely to cause severe disruptions to the private sector institutions of higher education. If it continues, private sector institutions may once again become bastions for students who can afford their services, rather than for those who merit them, and these institutions will diminish in size and diversity as well. Public sector institutions will become relatively stronger - not solely for reasons of effectiveness, efficiency, or equity - but because of the competitive advantage that the tuition gap affords them. This paper explores the feasibility and desirability of the three methods of correcting this problem, using real cost and demand data from the University of Massachusetts for illustrative purposes. It concludes the subsidization of students (rather than institutions) and raising public sector tuitions are two possible alternatives to the present tuition gap.     

The provocative public sector: Domestic political protest and public sector growth in the OECD, 1965–1982

The results shown in Tables 1 through 8 above are consistent in that %GG is repeatedly shown to be significant whether making cross-national comparisons of DPP or predicting intra-national variations over time. Therefore, Hypotheses 1a and 1b are confirmed. The confirmation of Hypotheses 2a and 2b shows that, taking into account public sector size, government growth is most provocative in countries where it represents a major socio-economic change (i.e., where the public sector is small). Government growth has a neutral impact where the role of the public sector is long-established (i.e., where the public sector is large).Hypotheses 3a and 3b posited that average and annual rates of economic growth would be inversely associated with domestic protest. These hypotheses, too, were confirmed. The belief that economic growth rates would clearly provide the margin of affordability for public sector growth was not confirmed, as the coefficient of the interaction term (%GG*%GDP) was not statistically significant.     

The Egyptian public sector: The control structure and efficiency considerations

The Egyptian public sector is labouring under a mass of legal controls which are proving an obstacle to its efficient running. A variety of government agencies, as well as the Board of Directors and the General Assembly, are burdening each company with regulations and demands for information. The little latitude thus allowed company managers in deciding upon such essential problems as finance, the size of the labour force and the price of output has had severe effects in decreasing the efficiency of each company and of the sector as a whole. Some dynamic company managers are trying to find a way around the system, but this is having negative efficiency and welfare effects. Examples of the negative effects of the mass of controls on problems such as finance and pricing are given in the article. Attempts at forming joint ventures, in order to escape the oppression of belonging to the state, have been made by some companies, but these have met with union opposition in some cases although the state seems to encourage the reduction in investment outlay which this policy might have. The article develops the analysis of the politico administrative framework of economic activity presented by Ayubi (1982).     

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.     

The meaning of strategy in the public sector

Strategic management remains under-theorised in the public sector, because the issues it raises straddle three distinct but related fields of analysis—the political, the policy-related and the managerial. At the theoretical level, making progress requires teasing out all three potential dimensions of the term. In the practical sense, there is a need to define a roomier organisational 'space' (and time frame) within which strategy can be formulated.
The article argues for a more ambitious conceptualisation of the place of strategic thinking in the public sector, one that combines the agency's need to sustain its position in its bureaucratic and political environment, with the 'strategic conversation' that is needed to link the political and the bureaucratic executives.     

The impacts of public interventions: An examination of the forestry sector

This article measures welfare and distributive effects of public market interventions in forestry. These interventions represent both the demand (Jones Act shipping restrictions and minimum wage restrictions) and supply (state forest practice acts, forest incentives payments, taxes and public land management) sides of the market. The authors evaluate how well these programs promote the three standard economic justifications for market intervention: market failure, distributive justice, and stabilization. Their results indicate that, with the single exception of Timber Mart South (a government-sponsored price-reporting service), all market interventions fail to accomplish their efficiency and distributive objectives. Furthermore, the authors find that targeted regulatory programs (such as State Forest Practice Acts) have small impacts when compared to effects of taxation and public ownership.     

Training and public sector reform: an integrated approach

This article is partly a response to McCourt and Sola ( 1999 ), who raised a number of important observations about the role and limitations of training in promoting public sector reform in Tanzania. In particular, their discussion of the relationship between individual and organizational change is referred to. The article outlines a possible alternative to the straight training approach to capacity building, and suggests it as a possible model for the kind of OD intervention mentioned in McCourt and Sola, The author describes a programme of capacity building for rural district councils in Zimbabwe, which tried to avoid the mistakes of earlier public sector training programmes. In discussing ways of integrating human resource development into programmes of capacity building and public sector reform, the article adds to the debate about process and blueprint approaches as discussed in this journal by Cook, ( 1997 ), Blunt ( 1997 ) and others. The article concludes with an attempt to assess some of the achievements and failures of the training programme after the initial three years. It draws attention to some of the external factors in the programme operating environment which combine with the internal coordination and management aspects, in determining the overall achievement of such a complex programme. Copyright © 2001 John Wiley & Sons, Ltd.     

Internal audit public sector capability: a case study

Internal auditing is an essential part of governance and can be a valuable asset to public sector institutions. However, for public sector internal auditing to effectively support management, the internal audit function (IAF) should be capable. The question arises as to how the capability of public sector IAFs can be measured. The Institute of Internal Auditors Research Foundation published the Internal Audit Capability Model (IA‐CM) in 2009 to provide a capability self‐assessment tool for public sector IAFs. The main objective of the study is to determine whether the IA‐CM can be used successfully to measure internal audit capability levels, and a secondary objective is to determine whether the tool can be successfully adapted for a specific public sector organisation and/or country. To achieve these objectives, the model was applied in a South African public sector organisation by means of a case study, where the IAF of the case was ranked against the key process areas (KPAs) of the model. The ranking was conducted based on a documentary review and interviews with applicable officials within the case. The model was successfully tested in measuring the internal audit capability level of a South African public sector organisation; however, a total of eight potential feasibility hindrances or considerations have been identified that could negatively affect the implementation of seven of the KPAs of the IA‐CM. Copyright © 2015 John Wiley & Sons, Ltd.     

The nature of managerial work in the public sector: An African perspective

It has been asserted too often that the development of non-western countries—those of Africa, in particular—is highly dependent upon their assimilation of western management techniques. Yet, the applicability of western management techniques to a non-western cultural milieu remains the subject of debate in the public administration and management literature. Much of the management development literature since the mid 70s has dealt with the replicability of Mintzberg's partition of the nature and contents of the manager's activities in diverse western work settings, in the US primarily. Few attempts have been undertaken to test Mintzberg's findings in non-western settings. In this article, the authors attempt to partially fill this gap in the literature. More specifically, the authors investigate the degrees to which the management roles identified in the US can be applied generically to the public sector in the African context. The findings indicate that perceptions of management roles at the macro level are highly consistent across cultural boundaries. Significant differences, derived primarily from the historic experience of colonial administration and the contingent micro level impact are also noted. The implications of these findings for the design and implementation of management training programmes in Africa are explored.     

Controllership in the public sector.

Ineffective or incompetent controllership is, perhaps, the most common managerial failure found in the public sector. This failure affects outcomes and achievements in every area of public policy--often profoundly. Controllers design and operate management control systems. The effectiveness of alternative control system designs depends upon the cost and production behavior of the good or service in question. But control strategies are seldom consciously or effectively matched to circumstances. As a consequence, public programs are too often simultaneously overcontrolled and out of control.     

Public sector unions and public spending

This study examines the influence of public sector unions on the expansion of the public sector. Based on public goods theory, our paper models how unions influence the supply of and demand for public sector activities. On the demand side, public sector unions are special interests which advocate public sector expansion to policy makers; on the supply side, they exert pressure to maintain and expand monopoly powers. Empirical evidence supports the hypothesis that a positive relationship exists between public sector unionism and public spending.     

The rise of public sector innovation labs: experiments in design thinking for policy

Governments are increasingly turning to public sector innovation (PSI) labs to take new approaches to policy and service design. This turn towards PSI labs, which has accelerated in more recent years, has been linked to a number of trends. These include growing interest in evidence-based policymaking and the application of ‘design thinking’ to policymaking, although these trends sit uncomfortably together. According to their proponents, PSI labs are helping to create a new era of experimental government and rapid experimentation in policy design. But what do these PSI labs do? How do they differ from other public sector change agents and policy actors? What approaches do they bring to addressing contemporary policymaking? And how do they relate to other developments in policy design such as the growing interest in evidence-based policy and design experiments? The rise of PSI labs has thus far received little attention from policy scientists. Focusing on the problems associated with conceptualising PSI labs and clearly situating them in the policy process, this paper provides an analysis of some of the most prominent PSI labs. It examines whether labs can be classified into distinct types, their relationship to government and other policy actors and the principal methodological practices and commitments underpinning their approach to policymaking. Throughout, the paper considers how the rise of PSI labs may challenge positivist framings of policymaking as an empirically driven decision process.     

The effects of fiscal contraction on innovation in the public sector

Beginning in the mid-1970s, fiscal limitation laws, shrinking revenue bases in older cities, and reductions in state and federal grants all have reduced the resources available to carry out the functions of local government. What do these changes portend for the amount of innovation in local government, the types of innovations that are introduced, and the processes of introduction? This paper examines these questions by reviewing the literature on factors related to innovation in public service agencies and reorienting its implications in the new fiscal environment. We conclude that on the whole the innovative process in the public sector has fallen on hard times. Yet, we identify those factors that a creative, innovative administrator can use to advantage in a period of fiscal constraints to bring about innovation. We also identify types of innovations that are likely to succeed.     

Explaining the size of the public sector

This paper aims at providing an explanation for the size of the public sector based on the idea of “social insurance”. The main assumption made is that the public sector is less efficient but also less volatile than the private sector. The “demand-driven” level of the public sector that is derived as the one that maximizes the utility of the representative employed consumer depends positively on the variance of private output. An increase in the size of the public sector has a positive effect on expected employment and a negative effect on expected consumption. The size of the public sector set by the government which maximizes the probability of being re-elected will be higher than the “demand-driven” level if voters' preferences for employment is higher than the consumption loss associated with public employment.     

Public employees and public sector reform implementation

Conventional wisdom says that reforms that aim at improving the productivity of the public sector face opposition from public sector employees, and for this reason, tend to be poorly implemented. These claims are not backed by much hard evidence. This paper seeks to fill some of that gap by investigating why an educational reform containing explicit accountability elements is poorly implemented across Norwegian municipalities about four years after the reform has passed the parliament. The empirical analyses provide evidence that municipalities with a large share of public employees are less likely to implement the reform. The relationship seems to be causal. A reduced-form approach is applied, which prevents conclusions about the mechanisms through which the public employees exercise their influence. However, some preliminary analyses indicate that school leaders hold more negative attitudes towards the reform in municipalities with a large share of public employees, potentially indicating that regulatory capture is an issue: school leaders tend to sympathize more strongly with teachers in such environments.