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

Overview Concepts: 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

U.S. Government Performance and Results Act of 1993

Boundary Valuation Problem: The Key to Privatization

Service Delivery Systems and Categories of Service Delivery Issue 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 Delivery Issue 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

Note: Non-Profit Role in Service Delivery

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 Systems Federal 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 Systems Federal Relationships Examples USA Canada Germany Nigeria India Russian Federation Austria Switzerland Malaysia

Alternative Service Delivery Systems Unitary 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 Systems Unitary 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 body Transfer of authority to administrators at lower level within the administrative system Delegation Public Corporations or parastatals Privatization- Ideological Debates

Deconcentration

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 Systems Program 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

IRD Principles

Develop Strategy for Report Backs