1. CITIZENS, THE PUBLIC SECTOR AND DEMOCRACY The Challenge of Diversity Steve Maharey Vice-Chancello r 6 September 2013

2. NEW TIMES NEW STATE −There will be a public sector in 2050 but … −Rolled back, downsized, privatised, outsourced, marketised, politicised −What’s the alternative?

3. THE CASE FOR THE PUBLIC SECTOR Equity, Service, Professionalism, Consistency

4. THE CASE FOR THE PUBLIC SECTOR 2  State house  Family benefit  Full employment  Health care  Roads  Education

5. IN THE BEGINNING − Private markets − Public sector developed to administer rights developed via the democratic process − Assume homogeneous population − Settlement

6.  Affluence  Youth  Feminism  Environmentalism  Anti-war  Maori  Pacific Islands DIVERSITY

7. FAILURE TO CHANGE  No change  Homogeneity, standardisation, scale  Markets  Exit and voice (private health insurance)  Springbok Tour

8. QUIET REVOLUTION  Public choice theory – self interest and competition  New public management – organise like the market

9. REINVENTING GOVERNMENT  Steer don’t row - facilitate  Better public services

10. WHAT HAVE WE LEARNED? −Loss of values/rights −Markets don’t form −Imperfect information −Reduced to customers – you get what you can afford −Inequality −Politicised −Undermines collective effort −Privatisation −Saving money −Transaction costs (contracts) −Targets −Constant restructuring leads to under-performance and fragmentation −Many services little co-operation −Failure of services −Trust/accountability −The loss of the public service ethos −Undermines democracy

11. WHAT HAVE WE LEARNED? −The original public principles were sound −The public sector does not have to do everything −Must meet expectations of service −Must deal with politicised environment −Must be responsive to different needs/communities

12. DEVELOPMENT STATE −The role of the state in the 21 st century −From A to B −Public Sector (distinct, induction, training) −Public servants (special, service, soft skills, politically astute) −Intelligent (active, solve problems) −Engaged (refined preferences, democracy)

13. COME TOGETHER  …the attempt to combine the equality of civil and political rights, which is the essence of democracy, with the inequality or economic and social opportunity, is still in its first youth.” Tawney, Preface to 1938 Edition of Equality)  I believe that the only way to keep the American Dream alive for all Americans is to have both a strong, effective private sector and a strong, effective government that work together… ” President Bill Clinton Back to Work: Why we need a smart Government for a strong economy 2011.

14. TAKE HOME  Have confidence in the value of the public sector  But be prepared to change it to fit the context of the 21 st century: Diversity −Citizens, the public sector and democracy