An Impeditive Administrative Culture? The Legacy of Australia's First Auditor‐General on the Australian Audit Office

This historical study provides an account of the Australian Audit Office from its formation in 1901 until the end of the term of Australia's first Auditor-General in 1925. The Audit Office was created to assist the Commonwealth Government in discharging and reporting on its accountability for the economical use of resources. The philosophy upon which the Audit Office was created was one based on small government where a minimalist role for the audit function was envisaged. Accordingly, the initial Audit Act dictated a detailed audit methodology. However, the expansion of Commonwealth activities due to the outbreak of the First World War, the realities of a decentralised Commonwealth administration and the more commercial activities of government created numerous problems for both the Office and government. The Auditor-General was unable, or unwilling, to adapt his audit methodologies to suit the changing circumstances of Australian public administration and the workload of the Audit Office periodically fell into backlog. Relations with the executive became strained over these matters prompting intervention by subsequent governments. This early period is important historically as it provides a window through which to view the development of the public sector audit function and its contribution to an efficient public sector. In addition, the events of this period illustrate the importance of relations between the Audit Office and the government, and the role of the Auditor-General in contributing to an efficient public administration.     

Risk and the Outsourcing of Risk Management Services: The Case of Claims Management

Outsourcing of risk management activities is a well-established practice, involving a range of services from actuarial audits to loss control training to risk financing management to claims administration services. Surprisingly, little work has been done to examine the risks associated with outsourcing risk management activities. This article examines the outsourcing of claims management services by reviewing the research on outsourcing risks and by interviewing leading practitioners. In doing so, the authors draw some provisional observations about risks and risk costs associated with outsourcing claims management services—observations that seem generalizable to all risk management outsourcing.     

Brussels between Bern and Berlin: Comparative Federalism Meets the European Union

In the current debate on the future European order, the European Union (EU) is often described as an "emerging federation." This article claims that federalism is not exclusively useful in deliberating about the future of the EU. Non-statecentric conceptions of federalism provide a better understanding of the current structure and functioning of the European system of multilevel governance than most theories of European integration and international relations do. We combine political and economic perspectives of federalism to analyze the "balancing act" between effective political representation and efficient policy-making in the EU. Drawing on the examples of Germany and Switzerland in particular, we argue that the increasing delegation of powers to the central EU level needs to be paralleled by strengthened patterns of fiscal federalism and an empowered representation of functional interests at the European level. Without such "rebalancing," the current legitimacy problems of the EU are likely to intensify.     

Security, Capacity and Post-Market Reforms: Public Management Change in 2003

Public sector change in 2003 was a product of external demands and internal pressures for improvement. The specific areas addressed are responses to security threats in the international environment; strengthening internal capacity, particularly through whole-of-government approaches; and fine-tuning the public management model in part through readjustments to the centre-agency relationship and greater emphasis on horizontal structures and processes.
This is the ninth year an administrative essay has been published in the journal since 1996. Earlier chronicles include: J. Stewart 55(1) 1996; S. Prasser 56(1) 1997; J. Homeshaw 57(3) 1998; J. Moon 58(2) 1999; J. Curtin 59(1) 2000; C. Broughton and J. Chalmers 60(1) 2001; N. Miragliotta 61(1) 2002; and J. Nettercote 62(1) 2003.
In this issue two chronicles are published — the first, by John Halligan and Jill Adams, focuses on external security and internal capacity building. The second assessment by Scott Prasser takes a different view of compliant management, poor decisions and reactive change.     

National identity and Taiwan's Mainland China policy

Taiwan is a mildly divided society—divided essentially along the lines of national identity. Indeed, there is no doubt that national identity is the dominant factor affecting Taiwan's mainland China policy. Other factors such as business interests and security concerns may enter the picture from time to time, but they often get bogged down in the national identity controversies. As a matter of fact, there is high correlation between people's attitudes toward business and security concerns and their positions on the national identity issue. The key to understanding Taiwan's mainland China policy is thus the distribution of voters on the national identity issue and how it is translated into the political fortunes of various political parties in the electoral game.     

Federal policy mandating safer cigarettes: a hypothetical simulation of the anticipated population health gains or losses.

If manufacturing a safer cigarette is technically possible--an open question--then mandating that tobacco manufacturers improve the safety of cigarettes would likely have both positive and negative implications for the nation's health. On the one hand, removing toxins may reduce the incidence of smoking-related diseases and premature mortality in smokers. On the other hand, smokers might be less inclined to quit, those who have quit might resume the habit, and youth who have never smoked will have one less reason to avoid tobacco use. To assess the expected population health impacts of a legislative or regulatory mandate, we created the Tobacco Policy Model, a system dynamics computer simulation model. The model relies on secondary data and simulates the U.S. population over time spans as long as 50 years. Our simulation results reveal that even if requiring cigarettes to be safer makes smoking more attractive and increases tobacco use, a net gain in population health is still possible.     

The Interactive State: Democratisation from Above?

The work of Robert Putnam has provoked a lively debate on the democratic importance of a robust civil society. Criticism of his work concentrates on the fact that his concept of social capital conceives of the relationship between civil society and government predominantly as a one-way affair – a strong civil society is good for politics. Taking up this line of argument, an appreciation of political factors is promoted to explain varying patterns of civic engagement. Now that Western governments increasingly initiate and stimulate citizens' participation in policy-making, it is becoming even more important to assess the role of the state. Drawing on recent empirical research on local practices in the Netherlands, we examine a Dutch variant of such top-down participatory arrangements – so-called 'interactive policy-making'. We ask whether, and under what conditions, democratic advances can be expected from top-down state initiatives. And we develop a theoretical framework for assessing the democratic effects of top-down participatory initiatives. Squaring the main theoretical criteria with the empirical reality of interactive policy-making, we conclude that an active state does not necessarily corrode civil society.