By Richard Batley, George A. Larbi
Batley and Larbi study how governments of constructing nations are prepared to carry public providers. The booklet is predicated on comparative foreign reports of 4 carrier sectors: healthcare, city water, enterprise promoting and agricultural advertising and marketing. Governments in all places are being pushed to undertake an "indirect" approach--managing, contracting and regulating public firms or inner most companions, instead of delivering companies at once. It questions how governments are responding and even if this process is suitable to the capacities of constructing international locations.
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Extra resources for The Changing Role of Government: The Reform of Public Services in Developing Countries (The Role of Government in Adjusting Econ)
7. Direct provision of services by government administration. With regard to these roles, the key capacity questions that will be addressed throughout the following chapters are these: • Are the appropriate skills and organization available for the exercise of the activity? • Does the exercise of the role require collaboration and coordination going beyond the particular organization? • Are the mechanisms of accountability of the agent to the principal clear, and can the principal measure and therefore control the performance of the agent?
The crisis in the welfare state and the weaknesses of state bureaucracy led to the search for alternative ways of organizing and managing public services and redeﬁning the role of the state to give more prominence to markets and competition. The shift was in response to a combination of stimuli for change driven by both theoretical arguments and pragmatic rationales. This chapter ﬁrst reviews the theoretical arguments that have inﬂuenced the new trends in public service reforms, including neo-classical and new institutional economic theories.
Reformers therefore argue for the importation of business practices into government. The principles of agency theory have motivated reforms in public sector management with emphasis on performance measurement and incentives. Transactions cost economics draws a distinction between (i) contractual relationships between separate organizations in the market, and (ii) the vertically integrated internal organization of a ﬁrm or bureau (Lane, 2000; Williamson, 1975 and 1985; North, 1990). Each has advantages in terms of efﬁciency.