THE NEW GOVERNANCE AND THE CHANGING TOOLS OF PUBLIC ACTION Lester M. Salamon Johns Hopkins University and Higher School of Economics HSE April Conference, 8 April 2015

A revolution in the technology of public action Proliferation of new tools Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002). THE NEW GOVERNANCE

Direct government Contracts Grants Direct loans Loan guarantees Economic regulation Social regulation Corrective fees ILLUSTRATIVE TOOLS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Tort law Administrative adjudication Vouchers Tax expenditures Carbon credits Social impact bonds Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002). THE BEAT GOES ON THE NEW GOVERNANCE

Common feature: Use of “Third Parties” Sharing of discretionary authority “Deconstruction” of public action RISE OF THIRD-PARTY GOVERNMENT THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Public Private (1) National (2) State/local (1) Nonprofit (2) For-profit B CA D PublicPrivate DELIVERY FINANCE DECONSTRUCTION OF PUBLIC ACTION THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

DIRECT GOVERNMENT INDIRECT GOVERNMENT Contracting Grants Vouchers Tax expenditures Loan guarantees (commitments) GSEs (loans) Deposit insurance (net additions) Regulation SUBTOTAL, INDIRECT % Amount ($ bns ) % GRAND TOTAL 28.1% 100.0% Goods and Services Income support Interest Direct loans (obligations) SUBTOTAL, DIRECT SCALE OF U.S. FEDERAL GOVERNMENT ACTIVITY, BY TYPE OF TOOL, FY1999 THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

FEES 53% GOVERNMENT 35% PHILANTHROPY 12% SOURCES OF CIVIL SOCIETY REVENUE, 34-COUNTRY AVERAGE THE NEW GOVERNANCE

24% 26% 9% 6% 8% 2% 10% 3% 5% 7% 32% 29% 45% 39% 43% 35% 39% 26% 32% 19% 16% 44% 45% 47% 51% 50% 58% 59% 64% 77% ALL COUNTRIES 53 % GOVERNMENT DOMINANT FEES, CHARGESPHILANTHROPYGOVERNMENT 35 % 12% South Africa Romania United Kingdom Canada Austria France Netherlands Israel Germany Belgium Ireland % may not add to 100 due to rounding SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY THE NEW GOVERNANCE

Complexity of problems Limits on public resources Dissatisfaction with government performance Popularity of market ideology Producer political power WHY? THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

New public management Privatization EXISTING THEORIES LIMITED THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“Governance” “New” collaboration, interdependence recognition of challenges NEEDED: A NEW PARADIGM NEW GOVERNANCE THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

The New Governance

Program/AgencyTool New Governance Classical Public Administration THE NEW GOVERNANCE PARADIGM THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“A tool of public action is an identifiable method through which collective action i s structured to address a public problem.” DEFINITION THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Good or activity Delivery vehicle Delivery system Rules and procedures TOOLS AS BUNDLES OF ATTRIBUTES THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Actors SOPs Skills Tasks Advantages POLITICAL ECONOMY OF TOOLS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

CLASSIFICATION: TOOL DIMENSIONS THE NEW GOVERNANCE Coerciveness Directness Visibility Automaticity Consumer side vs. producer side Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Tool choices as technical choices Tool choices as political choices NOT JUST TECHNICAL CHOICES THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

HierarchyNetwork THE NEW GOVERNANCE PARADIGM THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002). Program/AgencyTool New Governance Classical Public Administration

Principal Agent Theory Network Theory  Pluriformity  Self-referentiality  Asymmetric interdependencies  Dynamism HIERARCHY  NETWORK THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Public vs. Private Command & control Management skillsEnablement skills Negotiation & persuasion Public + Private THE NEW GOVERNANCE PARADIGM THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002). HierarchyNetwork Program/AgencyTool New Governance Classical Public Administration

Activation Orchestration Modulation NEEDED: NEW ENABLEMENT SKILLS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Management Challenge Accountability Challenge Legitimacy Challenge CHALLENGES: FOR GOVERNMENTS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Loss of autonomy Vendorism & mission drift Bureaucratization CHALLENGES: FOR PARTNERS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Tool knowledge NEEDED: NEW KNOWLEDGE THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

TOOL KNOWLEDGE THE NEW GOVERNANCE

Tool knowledge Design knowledge Operational knowledge NEEDED: NEW KNOWLEDGE THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

By partners: for the accountability needs of government By governments: for the distinguishing functions of private partners NEEDED: NEW SENSITIVITIES THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

 Service provision  Advocacy  Expression  Community-building / social capital  Value guardian / mobilization SENSITIVITY TO PARTNER CHARACTISTICS: E.G.–MULTIPLE FUNCTIONS OF NONPROFITS THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“Professional citizens” Network managers NEEDED: NEW PUBLIC SERVICE THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“It is harder to operate a constitution than to frame one.” ~Woodrow Wilson CONCLUSION THE NEW GOVERNANCE Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

The New Governance/ Oxford University Press