privatization and contracting out. methodology step one: mini-lecture- an overview of issues step...
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Privatization and Contracting Out
Methodology
Step One: Mini-Lecture- An Overview of Issues
Step Two: Work Group Identification of Major findings from the Readings
Step Three: Presentation of Brief Findings from Each Group (Two-Three Groups)
Discussion: Review of Syllabus
Overview
The Knowledge and Skills Base for
Domestic Service Delivery, International Assistance and Security
Models of Social Services Systems: The Context of Privatization and Contracting
OverviewConcepts: New Public Management Principles
Social Services- Delivery
Re-inventing Government- Customer vs. Citizen
Subsidiarity- Decentralization
Privatization: Private or Non-Profit Sector
Contracting Out- Extending Governance out of Government
Boundary Valuation Problem: The Key to Privatization
Service Delivery Systems and Categories of Service DeliveryIssue of “size”: hard services or soft with
capital or recurrent costs
Macro--Physical Services Highways, Sewerage Main Lines, Electricity Deconcentrated or Privatized
Micro--Physical Services Devolved or Delegated
Focus of Stimulus Spending-Jobs
Service Delivery Systems and Categories of Service DeliveryIssue of “size”: hard services or soft with capital
or recurrent costs
Social Services--Health, Education or Community Development (such as Social Funds)
Delegated or Contracted
Grants and Sub-Grants to Non-Profits
Investment or Production
Privatized
Public Private Partnerships
Service Delivery Systems and Categories of Service Delivery
Private Provision
Use of conventional Markets
Contracts with public agencies
Monopoly Franchises
Management Contracts
Vouchers
Consumer Cooperatives
Monopoly Franchises
Alternative Service Delivery Systems: Decentralization
Confederation- Lower level Units Dominate: European Union and other regional associations
Federal Relationship
Some power lies with National Unit
Some power lies with lower units
Alternative Service Delivery SystemsFederal Relationship
Key distinction:
Lower units cannot break away from National Unit
National Units cannot take power away from lower units
Under Federalism: One can transfer additional authority back to sub-units but not take power from federated governments
Alternative Service Delivery SystemsFederal Relationships
ExamplesUSACanadaGermany NigeriaIndiaRussian FederationAustriaSwitzerlandMalaysia
Alternative Service Delivery SystemsUnitary Systems and Sub-regional units
All power ultimately lies at national level
Local level power is given by national level
Power that national unit has given to local level can also be taken from it
Unitary Systems
Alternative Service Delivery SystemsUnitary Systems and Sub-regional units
Examples
United Kingdom
France
Kenya
Ivory Coast
South Africa?
Japan
Forms of Decentralized Service Delivery in Unitary Systems
Concept:
Transfer of authority to a lower level of government
Primary Unit of Government:
Lowest level that carries a bureaucracy with it
Forms of Decentralized Service Delivery in Unitary Systems
“Devolution”: Transfer to non-Federal political body
Budget and personal authority to district and town councils
Key--power lies with lower level politicians
Future Devolution?
Forms of Decentralized Service Delivery in Unitary Systems
De-concentration: Transfer to non-Federal political bodyTransfer of authority to administrators at lower
level within the administrative system
DelegationPublic Corporations or parastatals
Privatization- Ideological Debates
Forms of Decentralized Service Delivery in Unitary Systems
Program and Project Decentralization:
Sectoral - By regular line or agency within aMinistry
e.g. Focused activity - seed production (Green Revolution)
agricultural experiments and extension
Forms of Decentralized Service Delivery in Unitary SystemsProgram and Project Decentralization:
Deconcentration or Devolution of authority to central level special unit
e.g. Water, health, emergency or education activities or projects to subordinate administrative or council structures
Port authorities
Forms of Decentralized Service Delivery in Unitary Systems
Program and Project Decentralization:
Inter-Ministerial Committees or Units
Planning supervision
Overlapping memberships, e.g. Land Use Planning
Forms of Decentralized Service Delivery in Unitary Systems
Program and Project Decentralization:
Creation of field level Special Project Units with semi-autonomous status
Range Management project
Integrated Rural Development
Integrated Rural Development- IRD
Most well-known type of special project:
Special designated geographical areas
Multitude of project activity in different sectors that may overlap or compliment
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