WOLF'S MODEL: Government Failure and Public Sector Reform in Advanced Industrial Democracies

Many developed nations have embarked on public sector reform programs based on the New Public Management (NPM) paradigm. This article seeks to evaluate the efficacy of NPM reform strategies as a means of dealing with the problem of “government failure” in public sector hierarchies by examining these strategies through the analytical prism provided by Wolf's theory of nonmarket failure. Drawing on the New Zealand experience, we explore the potential for NPM reform initiatives to mitigate the problems of nonmarket supply. Moreover, we examine how “autonomous policy leadership” and “advocacy coalition networks” can overcome the various obstacles to the successful implementation of reform strategies delineated by Wolf under his “conditions of nonmarket demand”. The article then focusses on the efficacy of NPM in removing, or at least reducing, the various forms of government failure identified in Wolf's taxonomic catalogue of nonmarket failure. We conclude by assessing some of the likely tradeoffs involved in the application of NPM reform programs.     

Answering the Public Choice Challenge: A Neoprogressive Research Agenda

A neoprogressive research agenda is developed to challenge public choice theory's position as the new orthodoxy in both understanding and guiding policy choices about urban service delivery. Such a challenge requires more than accumulating negative empirical tests. Rather, we must accept the new burden of proof laid on proponents of progressive reform institutions by the theories of nonmarket failure and quasimarkets, ideas that undermined the intellectual pillars supporting progressive reform institutions and can only be challenged by new ideas. Public choice theory itself, broadly considered, is proposed as a valid source of such new ideas. Three research programs, in part already underway, are outlined as essential building blocks in the research agenda, focusing, respectively, on blunting the rough edges of the theory of nonmarket failure, coordinating the empirical critiques of quasimarkets in a new theory of quasimarket failure, and developing the new institutionalism so that it can provide the basis for comparing the production outcomes of alternative urban institutions.     

Politicized CSR: How corporate political activity (mis-)uses political CSR

In this article, we posit that corporate political activities (CPA) such as lobbying make use of corporate social responsibility (CSR) to advance instrumental goals. We juxtapose the theoretical foundations of the normative concept of political CSR and the strategic notion of nonmarket strategy to show that they are in opposition conceptually regarding the role of corporations in public policy. Using a systematic theoretical comparison along seven dimensions, we discuss the juxtapositions and identify the common ground of the two theories. Building on examples from the alcohol industry, we describe how CPA uses instrumental CSR to advance goals in public policy—we call this politicized CSR. Hence, we illustrate the shift from political to politicized CSR, a misuse of CSR for purposes of CPA, and discuss consequences for the theory and practice of public affairs and CSR.     

Issues in Higher Education Quality Assurance

This article examines a range of policy issues which concern the quality assurance of higher education by regulatory bodies. There is a widespread consensus that the benefits of at least some forms of external quality assurance of higher education exceed the costs. This is probably a matter of faith more than the outcome of a considered analysis, but public policy in several countries has accepted it nevertheless.
There are important questions regarding the manner in which such quality assurance should be conducted. Issues to do with self-regulation, the use of independent ratings agencies, the role of the courts, the establishment of a government agency, and the public funding of private quality assurance bodies all deserve consideration.
Process matters become important once structural issues have been decided. These include quality assurance principles, internationalisation and national jurisdiction; the role of a quality assurance system in qualifications' design and development; what precisely is to be 'quality assured' in higher education; the standards to be used in quality assurance; linkages between quality assurance and public funding of higher education; compliance costs; and the utility of a National Qualifications Framework (NQF).
This article places considerable emphasis on a discussion of the deficiencies of the NQF approach. It argues that the emphasis placed on the development of an NQF in several systems of educational quality assurance is misplaced: an NQF cannot embrace the complexity of contemporary qualifications systems.
Claims to the effect that an NQF is a valuable addition to the sources of information available to national and international labour markets must be treated with scepticism. There are logical and practical issues to be considered in this regard. An NQF is arguably likely to mislead labour markets seriously under existing circumstances.     

Water quality modeling for environmental management: Lessons from the policy sciences

Models are used in many policy arenas to predict the future consequences of current decisions. A model is typically viewed as a rational, objective means of processing complex information to predict future conditions. With respect to socioeconomic modeling, policy scientists have found that models frequently do not live up to these promises – they often incorporate the modelers' biases, are difficult for decision makers to use, and do a poor job of point predictions. While awareness of these characteristics of socioeconomic models has increased, less attention has been paid to such factors in environmental modeling. This paper explores the implications of policy scientists' observations about socioeconomic models for the use of water quality models environmental decision making. For example, the relatively simple task of modeling for an estuarine waste load allocation decision incorporates judgment in model choice, calibration, and use. More complex watershed models involve even more choices that have implications for decision making. Thus, environmental models are not strictly technical inputs to the policy process. Model users, regulators, and the public should be aware of the judgments and uncertainties involved in surface water quality modeling so that model results are used appropriately in the decision-making process.     

Covert Costs of Privatization: Lessons from the Closure of Three Public Chronic Care Hospitals in Massachusetts

This article analyzes the process of applying cost/benefit analysis to decisions about privatizing public services. This process is examined in the context of a decision by the Commonwealth of Massachusetts to save costs by closing three of its seven public chronic hospitals. A postaudit of the outcomes from the closure showed that the realized cost savings were less than those projected in the original proposal. This shortfall could be traced to a failure to include certain relevant costs in the original proposal. Based on the findings, the article concludes with a discussion of policy recommendations for better analyses of similar decisions.     

Policy Failure and Policy Learning: Examining the Conditions of Learning after Disaster

The policy learning literature indicates that governments can and do learn after a policy failure but not always. The purpose of this study is to examine the conditions under which policy failure leads to policy learning. It asks two questions. First, is policy failure associated with policy learning? Second, if policy is associated with policy learning, does the failure initiate different types of learning? Using the policy failure and learning literatures as an organizing framework, this paper analyzes three comparative cases of policy failure revealed by tornados in Greensburg, Kansas (2007); Joplin, Missouri (2011); and Moore, Oklahoma (2013). It finds that failure of the policy process in agenda setting is associated with instrumental policy learning. It also finds that there are two types of failure of decision making: failure to make a timely decision and failure to make any decision. The two types of decision‐making failure are associated with different types of policy learning. In addition, the contextual factors underpinning the link between policy failure and learning are prior experience with the policy problem and capacity to learn.     

Organizations,Policies, and the Roots of Public Value Failure: The Case of For‐Profit Higher Education

While public value theory has emerged to offer important insights into the evaluation of social enterprises, little is known about the origins of public value failure and even less about the role that organizations and public policy play in creating public value failure. Accordingly, this analysis explores the origins of public value failure using examples from for‐profit higher education. A selection of organization and public policy concepts are integrated into a public value mapping framework to develop a theoretical basis for public value “failure drivers.” In addition to advancing public value theory, an understanding of the origins of public value failure and the role of failure drivers has important implications for the design of public value–maximizing strategies and institutions.     

Putting More Public in Policy Analysis

A persistent criticism of policy analysis is that it undermines basic democratic institutions and processes by replacing public participation with expert analysis. Many decision makers shun broader participation because of the complexity of an issue or the cost, uncertainty, and delay often associated with public involvement. This article presents a model for the systematic inclusion of public input into relatively complex public policy decisions. It outlines two determinants of success in public participation efforts: the purpose for public involvement and the nature of the issue; furthermore, it applies the model to two issues in recent Utah history that have involved public participation. Using these principles, decision makers should be able to design and implement public participation strategies that both inform the public about substantive policy questions and improve the quality of the final decision.     

The Kansas Financial Information System (KFIS): Policy Design and Policy Failure

States are reported to have spent large sums of money on information resources management in financial year (FY) 1989. Of concern to several authors is the fact that most states have not attempted to integrate their accounting and budgeting systems. Calls for integrating accounting, budgeting, and personnel systems frequently fail to take into account the design problems associated with such tasks. This article uses a case study of the Kansas Financial Information System (KFIS) to highlight the importance of policy design to successful policy implementation. The results support the theory that design is an integral part of decision making and policy development. Policy design is an important determinant of implementation outcomes.     

The competitive incentives of vertically integrated local exchange carriers: An economic and policy analysis

The U.S. Congress passed sweeping telecommunications reform legislation in 1996 that will enable the Regional Bell Operating Companies (RBOCs) to enter the interLATA long-distance market once certain conditions are met. This legislation empowers the state public service commissions, the Federal Communications Commission and the Justice Department to determine collectively when RBOC entry into interLATA long-distance markets satisfies the public interest. This article reveals that as long as RBOC long-distance market shares remain below certain critical levels, the RBOCs do not have the incentives (despite having the opportunity) to discriminate against their downstream competitors. These findings suggest that a public policy focused exclusively on eliminating the opportunity to discriminate may needlessly delay RBOC entry into interLATA markets and thereby deprive consumers of the benefits of enhanced competition.     

公共物品供给的交易费用多维度分析

制度分析学派通过不同制度的交易费用状况的比较,对各种制度的特征进行了较充分的分析.但是,对于公共物品的供给制度来说,由于公共物品的公共性价值特征导致的交易费用的复杂性,不能在单一维度的视角下笼统地仅考虑费用的数量大小,由此来评判制度安排和公共决策的好坏.因为除了信息不对称因素所产生的交易费用以外,有相当一部分被视为诱发交易费用的行为实际上是在体现和保证物品的公共性,这些费用表现为公共协商的成本和对损失方补偿的费用.试图从多种维度对公共物品供给中的交易费用进行分析,不仅对信息不对称如何产生交易费用进行了描述,还对公共协商和对损失方补偿产生的费用所表现出的公共性价值进行了解析;并借用了公共选择学派的广义宪政经济学理论,探讨了交易费用的最优解;最后倡导建立具有公共性特征的公共物品供给的交易费用现.     

Assumptions within Policy: A Case Study of Information Communications and Technology Policy

The deeply embedded nature of dominant assumptions creates an accepted language and way of thinking about ICT, leaving little space for alternative perspectives and ideologies. Policy directions link information technology, the information economy, innovation, competition and global markets. Innovation and information and communications technology constructs a particular application of innovation and directs funding accordingly. Given that policy is about how we categorise, about naming and naming shapes action, the question is what lenses do policy makers use to make choices in their synthesis of social, political and economic life? Using the Australian Information Communications and Technology (ICT) policy as a case study, this article will argue that policy reflects the economic, social and political ideologies of the decision makers. Despite opportunities for input into policy multiple perspectives are limited. Specifically the article looks at claims around consultation, the assumption that the information economy will benefit all Australians, the development of framework conditions for the information economy and the role of government.     

Tradable Permits for Common‐Pool Resources: An Assessment

Scholars often attribute deterioration in common‐pool resources (CPRs) to ill‐defined property rights and suggest privatization and tradable permit markets as a solution to the commons problem. CPRs are heterogeneous, differing in physical characteristics and use patterns. Regulating their use requires tailored policy solutions that cohere with these characteristics. This paper examines factors that contribute to a well‐performing tradable permit market. While the literature offers rich empirical analyses of individual tradable permit markets, it has not provided an analytical framework enabling comparative analysis of these markets. This paper develops and employs an analytical framework for comparing across markets. The comparative analysis of market performance suggests that markets are not successful in all environmental problems and all demand situations. Further, it shows that even some markets frequently cited as exemplary successes have been that for nonmarket‐related reasons. On the other hand, this comparative analysis identifies sources of success for markets that partial analytical frameworks would have predicted to fail.     

Comparing blunders in government

Much attention has been paid to government ‘blunders’ and ‘policy disasters’. National political and administrative systems have been frequently blamed for being disproportionately prone to generating mishaps. However, little systematic evidence exists on the record of failures of policies and major public projects in other political systems. Based on a comparative perspective on blunders in government, this article suggests that constitutional features do not play a prominent role. In order to establish this finding, this article (a) develops theory‐driven expectations as to the factors that are said to encourage blunders, (b) devises a systematic framework for the assessment of policy processes and outcomes, and (c) uses fuzzy‐set qualitative comparative analysis to identify sets of causal conditions associated with particular outcomes (i.e., blunders). The article applies this novel approach to a set of particular policy domains, finding that constitutional features are not a contributory factor to blunders in contrast to instrument choice, administrative capacity and hyper‐excited politics.     

Political context,policy networks and policy change: the complexity of transition in Hong Kong

Abstract

Central to the debates on the transition of Hong Kong to Chinese sovereignty is how this process has affected change in the policy process and policy outputs. Many see policy change as a result of the evolving political environment in Hong Kong following the political transition. This article, however, adopts the notion of policy networks and argues that the analysis of policy change cannot be reduced to a simple contextual stimulus – the policy alteration model. A case study – ‘the development of civic education’ – demonstrates the importance of policy networks, as a particular structure of government and group relations in decision making, in explaining the course of policy change. It is apparent that the relationship between regime change and political liberalization, on the one hand, and established networks, on the other, tends to be complex and dialectical in Hong Kong. Despite the importance of sovereignty transition and political restructuring, the effect of contextual factors on public policy greatly depends on the nature of the network involved.     

Everything for Sale? Neoliberalism and the Limits of Michael Sandel’s Philosophical Critique of Markets

Contesting the central tenets of mainstream economic theory, Michael Sandel’s work on markets argues that the marketization of certain goods risks corrupting the value of those goods, and that a reinvigorated public discourse is needed to establish the appropriate use of markets. This article assesses Sandel’s work on markets, arguing that although it provides a convincing critique of liberal defenses of the market, it does not do enough to challenge marketization itself. To illuminate the flaws of Sandel’s argument, the article contrasts it with Marxist critiques of neoliberalism, arguing that the latter oppose the expansion of markets and market thinking in more comprehensive and productive ways. Specifically, it is argued that Sandel ignores the one market that underpins all other markets, namely the labor market; erroneously suggests that marketization is caused by the dominance of market thinking; and fails to appreciate the class interests that are served by growing marketization.