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.     

Institutional Change and Ethnic Parties in South America

The central question of this article is why indigenous social movements formed electorally viable political parties in Latin America in the 1990s. This development represents a new phenomenon in Latin America, where ethnic parties have been both rare and unpopular among voters. Institutional reforms in six South American countries are examined to see if the creation and success of these parties can be correlated with changes in electoral systems, political party registration requirements, or the administrative structure of the state. The study concludes that institutional change is likely to be a necessary but not sufficient condition for the emergence and electoral viability of ethnic parties.     

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.     

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.     

Terrorism and Transportation Policy and Administration: Balancing the Model and Equations for Optimal Security

September 11 was the catalytic event that clearly demonstrated that transportation security was a virtual myth. We had obviously overinvested in efficiency-based mechanisms and procedures while the security and safety standards provided by effectiveness considerations were being increasingly ignored. This article analyzes the increasingly dangerous situation as it unfolded and provides an Emerging Entrepreneurial Management and Public Policy Model designed to provide insights towards rebalancing our transportation security and public policy considerations as we attempt to design, implement, and pay for optimal security systems to deal with the terrorism threats we face in the early twenty-first century. Rebalancing the model and the equations will require increased focus, will, and skills. It will also be a lot more expensive . . . in both the private and the public sectors.     

Continuity and change: the administration of George W. Bush and US policy toward Taiwan

This paper examines recent modifications in American policy toward the Republic of China (ROC or Taiwan). It contends that, while the George W. Bush Administration may have carried out a significant readjustment of US policy, available evidence suggests that it will not endorse any major upgrades in ties with Taipei during the foreseeable future. Like previous administrations, the Bush Administration now recognizes the value of engaging the People's Republic of China (PRC). This development holds important implications for the future trajectory of America's relations with Taiwan and the PRC and for peace and stability in the Western Pacific.