![Page 1: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/1.jpg)
The Benefits of a Mixed Economy
- Gary L. Sturgess
IPAA Regional Conference
Wagga Wagga, NSW
15 March 2013
![Page 2: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/2.jpg)
Public services
Craft guild?
![Page 3: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/3.jpg)
Public services
Corporation?
![Page 4: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/4.jpg)
Public services
Mixed
economy?
![Page 5: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/5.jpg)
The public service
sector is an economy
![Page 6: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/6.jpg)
The public service economy
Vincent & Elinor Ostrom
![Page 7: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/7.jpg)
The public service sector is an economy
“A public economy need
not be an exclusive
government monopoly. It
can be a mixed economy
with substantial private
participation in the delivery
of public services.”
- Vincent & Elinor Ostrom
![Page 8: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/8.jpg)
Public service industries
“The water industry, for example, is composed of
a very large number of highly independent
federal, state and local government agencies,
operating side by side with large numbers of
private utility companies, cooperative
associations and individual proprietorships.
“The American educational system can be
conceptualized as an industry composed
predominantly of many independent public
enterprises and non-profit private enterprises. . .”
- Vincent & Elinor Ostrom
![Page 9: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/9.jpg)
Diversity in supply
“Different industries in the public sector are
subject to as great variation in patterns of
organization, in technology, and in
production methods as are industries in the
private sector.”
- Vincent & Elinor Ostrom
![Page 10: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/10.jpg)
Supply side and demand side
“When we begin by assuming the
existence of collective-consumption units,
the conception of governments as
monopoly suppliers is less compelling. . .
. . . we might expect public-service
industries to vary from highly-integrated
monopolies to highly fragmented industry
structures with a multiplicity of suppliers
serving any given service area.”
- Vincent
Ostrom
![Page 11: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/11.jpg)
Different scale & scope
“. . . a small collective consumption
unit might contract with a large
production unit and each might take
advantage of diverse scale
considerations in both the
consumption and production of a
public good or service.
“It may also happen that the collective
consumption unit is large but that
efficient production is realized on a
smaller scale.”
![Page 12: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/12.jpg)
It is a mixed economy
![Page 13: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/13.jpg)
Australia already has a mixed economy
• 90% of residential aged care is
delivered by the private and third
sectors
• 40% of hospital inpatients are treated
in a private hospital
• 40% of secondary students attend a
private school
• 20% of prisoners are managed by a
private provider
![Page 14: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/14.jpg)
It is a significant part of the national
economy
Australia’s public service
sector accounts for 15-20%
of GDP, more than the
mining and manufacturing
sectors combined.
It represents around 25% of
the national workforce.
![Page 15: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/15.jpg)
There are benefits in having
a mixed economy
15
![Page 16: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/16.jpg)
1. Improved Productivity
What evidence we
have from
benchmarking and
competitive tendering
suggests potential
productivity gains of
around 20%
![Page 17: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/17.jpg)
1. Improved Productivity
![Page 18: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/18.jpg)
1. Improved Productivity
![Page 19: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/19.jpg)
2. Increased Accountability
‘Transparency of
management is of no
avail without eyes to
look at it.’ - Jeremy Bentham, 1791
![Page 20: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/20.jpg)
3. Better Quality
In Queensland, prison
contracting was used to improve
the quality of health services and
rehabilitation programmes.
Boggo Road Gaol,
Brisbane
![Page 21: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/21.jpg)
3. Better Quality
In the UK, 10 out of 12 privately
managed prisons achieve lower
reoffending rates than
comparable public sector prisons.
![Page 22: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/22.jpg)
4. Innovation
![Page 23: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/23.jpg)
4. Innovation
In the UK, prison contracting was
accompanied by significant
innovation in design and delivery.
![Page 24: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/24.jpg)
4. Innovation
In the UK, prison contracting was
accompanied by significant
innovation in design and delivery.
![Page 25: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/25.jpg)
• Increases individual and
collective choice
• Makes public services
more adaptable
• Gives us a deeper ‘gene
pool’ from which to fashion
new institutional forms for
an uncertain future
• Allows for innovation in
parallel rather than in serial
5. Increased diversity
![Page 26: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/26.jpg)
6. Spread of Best Practice
As the Australian public service
sector is presently structured, there
is limited spread of best practice
across borders.
Narayana Hospital,
Bangalore: high
quality heart surgery
for a tenth of the
cost.
![Page 27: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/27.jpg)
6. Spread of Best Practice
Education is the nation’s 3rd largest export overall, after
iron ore and coal - in NSW, the 2nd largest.
From 1982 to 2007, education exports grew at an
average annual rate of 14%.
![Page 28: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/28.jpg)
We should embrace the
mixed economy
28
![Page 29: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/29.jpg)
Commissioning
Policymakers worry about the
60% of public services that they
directly control, and fail to
manage the 100%.
![Page 30: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/30.jpg)
Commissioning
30
Objectives
Capabilities
Context
Obstacles
Allies Contracting forces
policymakers to
address issues of
service outcomes,
system design,
performance
measurement,
intervention
regimes and
alternative delivery
models, up front.
![Page 31: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/31.jpg)
System design: C3PO
31
![Page 32: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/32.jpg)
System design: C3PO
![Page 33: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/33.jpg)
System design: C3PO
33
NASA’s Commercial Crew/Cargo Program:
• To implement US Space Exploration policy with an investment
to stimulate commercial enterprises in space;
• To facilitate US private industry demonstration of cargo and
crew space transportation capabilities with the goal of
achieving reliable, cost effective access to low-Earth orbit; and
• To create a market environment in which commercial space
transportation services are available to government and
private sector customers.
![Page 34: The Benefits of a Mixed Economy - Microsoftvs413682.blob.core.windows.net/docs/Regional...Australia already has a mixed economy • 90% of residential aged care is delivered by the](https://reader034.vdocuments.us/reader034/viewer/2022052615/6078ba61f9563954a5585952/html5/thumbnails/34.jpg)
Discussion