PIA 2734 Skills Course Privatization and Contracting Out

PIA 2734: Skills Course 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

The Initial Problem 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 � Under Units cannot take power away from lower units 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 �Austria Federation �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 a. Ministry � 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

Break and Group Sessions Develop Strategy for Report Backs