bureaucracy eco 362 19/11/2013 dr. watson. what is a bureaucrat? formal systems work for...

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Bureaucracy ECO 362 19/11/2013 Dr. Watson

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Page 1: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

BureaucracyECO 362 19/11/2013Dr. Watson

Page 2: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

What is a bureaucrat? Formal systems Work for government

Universities, large corporation Hierarchical structure Office Insiders

Public servant/civil servant Human resources, management, administration, Police, public school teachers, welfare, fuel

subsidy…

Page 3: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

Fracture: Minister vs. Bureaucrat According to the Minister:

Minister makes decisions Bureaucracy carries it out

According to the Bureau PR – justification to the government, public Bring in the money Advocate – get policies passed

Page 4: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

Civil Service Groups

ManagementManagers

Street-Level

Page 5: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

I like big budgets and I cannot lie Big budget Big building Lot of staff (underlings)

“The bureaucracy is expanding to meet the needs of the expanding bureaucracy”

Appearance vs accomplishment Bureaucracy has real decision-making power Have to spend your budget every year How democracy actually functions

Page 6: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

Budget-maximizing bureaucracy Niskanen (1971)

Produce something, a lot more of it than would be the socially optimal outcome

Labor insider/outsider Thing you’re producing does not have to be results,

but WORK Contracts of awarded (size or number), meeting

with clients, producing paperwork (Gogol’s Dead Souls and The Nose) Spend your budget or lose it:

http://www.washingtonpost.com/politics/the-annual-agency-battle-to-spend-the-rest-of-their-budget/2013/09/28/3121d6d0-289e-11e3-bae5-e0807a60a6aa_graphic.html

Page 7: Bureaucracy ECO 362 19/11/2013 Dr. Watson. What is a bureaucrat?  Formal systems  Work for government  Universities, large corporation  Hierarchical

Lipsky (1980) – Street-Level 1. Come in contact with the public 2. Real world constraints that prevent them from

fulfilling the public service ideal 3. Discretion in how they do their jobs This is the reality of policy

A lot of burnout