Advising Australian Federal Governments: Assessing the Evolving Capacity and Role of the Australian Public Service

Internationally, there have been persistent complaints that the policy capacity of governments has declined. This critique is widely accepted, including in Australia, but for the most part, such claims are assertions, made without reference to empirical evidence and data. This introduction to the Special Issue examining the Policy Advisory Capacity of the Australian Public Service considers these assertions and proposes an approach and methodology to test the discourse of declining policy capacity in Australian federal government. It introduces six case studies from across the spectrum of the Commonwealth government's responsibilities. The Special Issue concludes with an article by Evert Lindquist and Anne Tiernan assessing the ability of the APS to support decision‐making through its policy advising functions and its preparedness to meet the challenges of 21st century governance.     

The Australian Public Service and Policy Advising: Meeting the Challenges of 21st Century Governance

This concluding article summarises the case study findings comprising the Special Issue on ‘Advising Australian Federal Governments: Assessing the Evolving Capacity and Role of the Australian Public Service’, identifies and discusses cross‐cutting issues, and considers strategic implications for future practice and research. It reviews key findings from six case studies – Treasury, Prime Minister and Cabinet, Intergovernmental Relations, Housing, the BER Stimulus program, and Defence – and assesses the policy advising capacity of the Australian Public Service, with a focus on the policy‐political interface between governments and officials. Putting recent experience in historical context, it considers the performance of the Commonwealth's policy advisory system, the impact of prime ministers and centralisation, the link between advising and analytic capacities, the system's resilience and readiness, whether recent dissatisfaction over APS advising reflect lack of capacity or a culture clash, and the responsibility for ensuring high‐quality policy advice. It recommends developing a more systematic approach to assessing policy advising capability, building on recent APS reforms.     

Achilles' heels of governance: Critical capacity deficits and their role in governance failures

This article assesses the usefulness of conceptions of policy capacity for understanding policy and governance outcomes. In order to shed light on this issue, it revisits the concept of governance, derives a model of basic governance types and discusses their capacity pre‐requisites. A model of capacity is developed combining competences over three levels of activities with analysis of resource capabilities at each level. This analysis is then applied to the common modes of governance. While each mode requires all types of capacity if it is to match its theoretically optimal potential, most on‐the‐ground modes do not attain their highest potential. Moreover, each mode has a critical type of capacity which serves as its principle vulnerability; its “Achilles' heel.” Without high levels of the requisite capacity, the governance mode is unlikely to perform as expected. While some hybrid modes can serve to supplement or reinforce each other and bridge capacity gaps, other mixed forms may aggravate single mode issues. Switching between modes or adopting hybrid modes is, therefore, a non‐trivial issue in which considerations of capacity issues in general and Achilles' heel capacities in particular should be a central concern.     

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 more the better? Rule growth and policy impact from a macro perspective

Do more rules improve overall policy performance? To answer this question, we look at rule growth in the area of environmental policy from an aggregate perspective. We argue that impactful growth in rules crucially depends on implementation capacities. If such capacities are limited, countries are at risk of ‘empty’ rule growth where they lack the ability to implement their ever-growing stock of policies. Hence, rules are a necessary, yet not sufficient condition for achieving sectoral policy objectives. We underpin our argument with an analysis of the impact of a new, encompassing measure of environmental rule growth covering 13 countries from 1980 to 2010. These findings call for ‘sustainable statehood’ where the growth in rules should not outpace the expansion in administrative capacities.     

Perspectives on the Capacity of the Australian Public Service and Effective Policy Development and Implementation

It is a long held tradition of the Academy of the Social Sciences in Australia (ASSA) to invite speakers to address the Fellow's Colloquium as part of the annual symposium, with an aim to spark discussion and debate on a controversial and contemporary topic. In 2010 the debate was focused on the question of whether there had been a degradation of the professional capacity of the Australian Public Service (APS) with regard to effective policy development and implementation. The contributions of each of the four panel members are reproduced here, in part, and they reflect the diverse perspectives which informed a robust and compelling debate. Janine O'Flynn, the editor of these contributions, argues that any claim of degradation is based on rumour rather than hard evidence, and she sets out how we might think about policy capacity from a public sector management perspective. Sue Vardon, the former CEO of Centrelink and the architect of a transformation change program which redefined the delivery of public services in Australia, reflects on the strengths of the APS, but points out the current stresses that it now finds itself under. Anna Yeatman, an expert in political theory and its application to citizenship and public policy, argues that in the last twenty years we have witnessed degradation in the work of government and that this has impacted on policy capacity. Lyn Carson, an expert in deliberative democracy, points to the unrealised capacity that could come from increasing citizen involvement. Policy capacity is degraded, she argues, because we have systems that are neither deliberative nor representative. Individually these contributions spark their own controversies; together they ask us to consider the question in different ways.     

Policy capacity during COVID-19 in Asia: A systematic literature review

COVID-19 has revealed the policy capacity of some governance institutions, both resilience and vulnerability. Hence, this circumstance has demanded public administration scholars and practitioners to rethink the existing governance practices, particularly in making effective crisis-related policies. This paper reviewed primary and secondary studies exploring the application of policy capacity competencies in facilitating COVID-19 handling in Asia. In achieving so, we did a systematic literature review of relevant studies published between January and October 2020. Applying the agreed search term to several databases, we found 2541 studies, while merely 30 were included for review. Findings from the studies are predominantly closely linked to operational capacity (n = 21). Other studies are related to political and analytical capacity (n = 14 and 7, retrospectively). We found that there are some dilemmas and inadequacy of understanding concerning the role of features in certain capacities (such as technology use versus individual privacy, the paradox of trust and legitimacy, or centralisation versus decentralisation), particularly in the time of crisis, which is a calling for future research.     

A Comparative Assessment of Elite Policy Recruits in Canada

Recent case studies and large-N survey evidence has confirmed long-suspected shortages of public sector “policy capacity”. Studies have found that government policy workers in various jurisdictions differ considerably with respect to types of policy work they undertake, and have identified uneven capacity for policy workers to access and apply technical and scientific knowledge to public issues. This suggests considerable difficulties for government’s ability to meet contemporary policy and governance challenges. Despite growing attention to these matters, studies have not examined the “elite” policy workers many governments recruit to address these capacity shortages. Using an established survey instrument, this study of two Canadian recruitment programs provides the first comparative analysis of elite policy recruits, as policy workers. Three research questions anchor the study: (1) What is the profile of these actors? (2) What types of policy work do “elite” policy analysts actually engage in? (3) How does their policy work compare by recruitment program? The article provides fresh comparative data on the nature of elite policy work and policy analytical capacity, but, more importantly, a crucial baseline for future comparative study of how elite recruitment may facilitate “supply-side” capacity gains expected from recruitment programs.     

Craft and Capacity in the Public Service

Over the past 8 years, debates about Australia's public service have evolved from being focused mainly on skills and capacities to being now increasingly concerned about the operating environment for career officials, their ability to fulfil their stewardship obligations, and to practice their ‘craft’. In this article, I track those changes and ask what is the craft of public administration? How should we understand it? Are concerns it is imperilled or has been lost valid or overblown? I draw on the observations of current and former senior officials, and the findings of recent Capability Reviews. My primary focus is on the Australian Public Service, because here is where the debate has been most public and direct. I note that the focus of concern has shifted from public servants towards ministers, who have been largely absent from public sector reform initiatives of the past 40 years.     

Government with a Cast of Dozens: Policy Capacity Risks and Policy Work in the Northern Territory

There are a number challenges to maintaining high‐quality policy capacity in sparsely populated areas such as Australia's Northern Territory (e.g. natural resource dependent economy, prominence of Indigenous issues, provision of local services). Moreover, the Territory government has recently been undergoing a host of public sector changes. This paper utilises survey methodologies of policy workers that were recently developed in Canada and examines nine risk factors to policy work. A survey of 119 policy workers in the Northern Territory was conducted in 2013. The analysis examined four key policy‐work areas (policy activities, barriers, areas for improved policy capacity, nature of change in work environment). The survey findings offer some practical insights for managers. Formal policy‐work training is recognised as critical. Policy capacity may be increased through better inter‐departmental (and potentially inter‐governmental) cooperation and information sharing, more opportunities to engage with non‐governmental stakeholders, and more opportunities for those leaving the full‐time Northern Territory policy workforce to continue to contribute. From a conceptual point of view, the extent to which ‘policy capacity’ as commonly conceived in the literature is applicable to contexts, such as Australia's Northern Territory, warrants further examination.     

EU Cohesion Policy Implementation and Administrative Capacities: Insights from Italian Regions

In this article we explain Italy’s partial persisting difficulties in EU cohesion policy implementation by focusing on one specific variable: regional administrative capacity. In line with research findings based on the national level (Tosun, 2014 Tosun, J. (2014), Absorption of regional funds. A comparative analysis, Journal of Common Market Studies, Vol.52, No.2, pp.371–387. doi: 10.1111/jcms.12088[Crossref], [Web of Science ®] , [Google Scholar]), our working hypothesis is that administrative capacity is the most important explanatory factor of EU cohesion policy implementation also at the regional level. In the article, by adopting a ‘most similar research cases’ design approach, we test the hypothesis with reference to two Italian regions: Campania and Puglia. In addition, we seek to adequately define the concept of ‘administrative capacity’ and operationalize it properly. In the concluding section, we consider the competitive advantage of our definition and operationalization of the notion of administrative capacity also with reference to other policy sectors beyond cohesion policy.     

Testing the Discourse of Declining Policy Capacity: Rail Policy and the Department of Transport

It has been observed that countries that implemented new public management (NPM) reforms are currently witnessing growing complaints about a decline in the policy capacity of their public services. Australia is a part of this trend with public sector leaders increasingly voicing concern about policy capacity decline within the Australian Public Service (APS). This article sets out to examine whether there is an empirical basis for this discourse and to assess allegations that NPM reforms have contributed to any related shifts. It draws on rail policy and the Department of Transport as its case study. It finds that the reforms transformed role of the department in a way that enhanced strategic policy capacity. However, the reforms also introduced a number of structural impediments that make it difficult for the new role to be effectively executed .     

The Advantages of Proximity: Comparing Higher Education Policy in Scotland and Catalonia

The article claims that, following devolution, increased proximity will increase policy capacity by changing the form of policymaking and providing greater scope for policy tailoring. The hypothesis is tested against devolution of higher education responsibility in Scotland and Catalonia. Results show that devolution did not entail the development of the same form of policymaking in the two regions, but it nonetheless permitted the implementation of policies and tools that were both in contrast with global trends in higher education policy.     

Uneven institutional configurations and sectoral variation in China's socialist market economy: a comparative study of three pillar industries

By comparing three Chinese pillar industries, automobile, petroleum, and machinery, this paper analyzes how the development of uneven institutional configurations bred sectoral variation in transitional China. In 1994, at the dawn of the Chinese socialist market economy, the State Council issued guidelines for national industrial policy and proposed the enactment of similar growth-promoting policies for all pillar industries. The level of policy enactment and the resulting outcomes, however, vary significantly across the industries. Previous literature on China's rapid industrialization has sought to build a single model encompassing China as a whole, and has emphasized either the state's institutional capacity or China's unique governance mechanisms. This study investigates China's industrialization by taking account of the uneven development of institutional capacity amid macro institutional reforms. Every idea and institution evolved at a different pace in these reforms, and the incremental nature of the reforms further deepened the gaps between sectors. This paper argues that, due to this uneven development, the Chinese state was not strong enough to be considered a developmental state until at least the early 2000s.     

Governed interdependence: Rethinking the government‐business relationship in East Asia

Analyses of East Asia's high‐performance economies have highlighted the advantages of a coordinated approach to market failures. With states dominating the process, both public and private agencies are increasingly involved. The recent literature sees public‐private cooperation as a limit to state capacity and thus a challenge to statism. Within an institutionalist framework, this paper proposes a fresh view of the government‐business relationship which avoids the statist premise of domination, but without relying on ‘weak state’ arguments. Through an examination of key organizational features of state and industry in Korea, Taiwan, and Japan, the paper proposes a theory of ‘governed interdependence’ in which both state and capital are taken seriously; where both strong state and strong industry go hand‐in‐hand; and where the capacities of both are mutually enhanced. The article identifies four principal types of government‐industry cooperation in the East Asian experience — some apparently ‘state‐led’, others apparently ‘business‐led’ — all of which can be accommodated by the theory.     

Social Policy by Other Means: Theorizing Unconventional Forms of Welfare Production

Abstract

The goal of this special issue is to highlight the importance of unconventional social policies, theorize their development in comparison with traditional welfare state accounts and outline a new research agenda. In this introduction to the special issue, the editors present the concept of social policy by other means as encompassing two kinds of unconventional social policy (from the point of view of mainstream comparative research): First, functional equivalents to formal systems of social protection and, second, non-state provision of benefits. The concept builds upon a sizeable, but fragmented literature in comparative welfare state research. While numerous examples demonstrate that social policy by other means is more pervasive in both OECD and non-OECD countries than often acknowledged, a brief survey of the top 20 articles in the field reveals that this fact is not sufficiently reflected in the academic literature. With reference to both existing studies and the contributions to this special issue, the editors go on to explore (1) the different forms of social policy by other means, (2) explanatory theories and (3) their effectiveness in terms of social outcomes. They close by outlining a research agenda.     

RISING WITH THE TIDE WITHOUT FLIPPING THE BOAT — ANALYZING THE SUCCESSES AND CHALLENGES OF FISCAL CAPACITY BUILDING IN CHINA

While many developing countries experience a short period of economic boom and then spiral quickly into periods of deficit, currency fluctuation, and indebtedness, China has been able to sustain rapid economic growth and maintain solid fiscal capacity for the past 30 years, even during the Asian financial crisis in the late 1990s and the global recession in the beginning of the 21st century. This article examines three key strategies behind China's fiscal success — its flexibility in adapting tax policies to the changing economic and social conditions, its success in realigning the intergovernmental fiscal relationship in 1994 and forcing subnational governments to become more entrepreneurial in revenue generation, and its pursuit of institutional reforms since the mid‐1990s to improve the government's capacity in budgeting and financial management. The article evaluates the implications of the Chinese experience for other developing countries and discusses the future challenges of fiscal reforms in China. Copyright © 2012 John Wiley & Sons, Ltd.     

Actively Cultivating Policy Similarity. A Regional Strategy in Education Policy in France and Germany

Regionalization processes across Western Europe have triggered analyses of regional policy divergence. Yet, in a number of cases, regional governments appear to have deliberately strived to achieve policy conformity. Previous research tends to emphasize exogenous explanations of regional policy convergence. In contrast, this paper addresses the issue of regional policy convergence by focusing on endogenous explanatory factors. Its objective is to carry out an investigation of when, how, and with what effect a ‘desire for conformity’ arises, and contends that regional governments may actively cultivate policy similarity as a strategy to develop or secure their policy capacity. Specifically, the paper argues that the adoption of this strategy is contingent upon two requirements that may or may not be met, and that its outcome is the convergence on targeted dimensions of regional policies. The two requirements are: (i) a countrywide public preference for policy uniformity in the policy area of concern, and (ii) the presence of a threat posed to regional policy capacity by various political entrepreneurs, including the central state, who blame regions for providing divergent policies on particular dimensions. This paper is based on the comparison of two case studies where regional governments deliberately pursued policy conformity on targeted dimensions of their education policy: school-building policy in France and curricula policy in Germany. The two case studies also present dissimilar features that make it possible to investigate the effects of institutional setting and policy distribution on the adoption and operation of the active-cultivation-of-policy-similarity strategy.     

Renewable energy and East Asia's new developmentalism: towards a low carbon future?

Abstract

East Asia's renewable energy (RE) sector has grown faster than any other region's since the mid-2000s. It is argued that renewables formed an integral part of the region's new industrial policies and new developmentalism, which are founded on new configured forms of state capacity shaped in response to various challenges, primarily climate change, energy security, globalisation and global neo-liberalism. By studying the recent progress of East Asia's RE sector, we gain useful insights into these key developments in East Asia's political economy and the region's prospects for transition towards low carbon development. This analysis considers how and why different approaches to RE policy emerged in East Asia, to what extent the promotion and expansion of East Asia's RE sector is part of a new industrial policy paradigm and new developmentalism, and what the study of East Asian policies on promoting renewable energy can tell us about the region's broader approach to low carbon development. Although the promotion of renewable energy has been a fundamental part of East Asia's recent macro-development plans and new developmentalism generally, these same plans suggest that East Asian states will simultaneously continue to significantly promote high carbon and ecologically damaging industrial activities, thus undermining the low carbon credentials of East Asia's new developmentalism. The path to meaningful low carbon development will be very long and will take many decades to achieve. However, it is contended that by maintaining and improving their various forms of state capacity over time, the East Asian states will be well positioned to sustain the significant growth of their renewable energy sectors and thereby further strengthen the low carbon development orientation of their new industrial policies, macro-development plans and strategic economic thinking.     

No Home for Housing: The Situation of the Commonwealth's Housing Policy Advisory Function

The Commonwealth's policy capacity with regard to housing policy and provision has been erratic and patchy. Partly this is because housing was not traditionally a formal Commonwealth responsibility but something in which Commonwealth governments episodically intervened, and partly it was because Commonwealth ministers often did not exercise demand for policy advice in this area. When policy capacity was exercised it tended to define housing narrowly as a welfare initiative, thereby limiting its conception and excluding other important questions and problems involved with housing as a policy domain. This trajectory meant that the advisory deficiencies of the Commonwealth were often exposed at exactly those times when they were most needed. It also meant that the Commonwealth lacked the detailed knowledge and understanding of housing issues when it was called upon to deliver various programs. The article argues that the Commonwealth needs to adopt a more strategic housing policy that addresses longer term needs as well as the economic, social and environmental consequences of its housing policy.