New Institutional Economics, New Public Management and Government Failure

Author(s):  
Joe Wallis ◽  
Brian Dollery
Author(s):  
R. A. W. Rhodes

After explaining the idea of the differentiated polity, the chapter discusses the characteristics of governance with examples; institutional complexity, power-dependence, game playing, self-organizing, and steering. It argues that the shift to governance requires the new language of diplomacy, not marketization. Governments must choose between markets and networks and bureaucracy. It is the mix that matters. Networks are pervasive. Government is picking up the skills of indirect management, but slowly. This chapter aims to hasten that process by providing a language for exploring and managing the mix of governing structures in the differentiated polity. The new public management, whether in the guise of managerialism or institutional economics, is no longer the challenge confronting government. The challenge is diplomacy in governance. The Afterword expands on the ideas of governing structures, unintended consequences, and metagovernance.


Author(s):  
Giacomo Degli Antoni ◽  
Magali Fia ◽  
Lorenzo Sacconi

Abstract New institutional economics (NIE) studies institutions and how they emerge, operate, and evolve. They also include organizational arrangements, intended as modes of governing economic transactions. Universities offer an exciting ground for testing the role of different institutional arrangements (governance forms) in coordinating (academic) transactions. In a context of contractual incompleteness where production is characterized by a highly specialized nature and requires the cooperation among co-essential figures, we argue that shared governance models (versus models with more concentrated authority) foster idiosyncratic investments in human capital and promotes performance. From the evolutionary viewpoint, we explain why institutions based on shared governance have developed within universities. The normative question of how universities should be governed is a debated issue in the literature. Since the 1980s, the new public management paradigm provides a theoretical framework that suggests analyzing university like firms. It is based on the firm's archetypical conception as top-down hierarchical organizations and as a descending sequence of principal–agent problems. We advance a different interpretation of the university–firm analogy leveraging on the NIE and its developments. To empirically analyze our hypothesis, we collected original data from Italian universities in 2015. We find that more shared decision-making processes are correlated with better research performance.


2015 ◽  
Vol 28 (7) ◽  
pp. 566-582 ◽  
Author(s):  
Mohamed Ismail Sabry

Purpose – The purpose of this paper is to explore theoretically and empirically which institutional factors (including good governance ones) help public-private partnerships (PPP) in providing better infrastructural services, which would then in their turn lead to attracting more private investment for the whole economy. Design/methodology/approach – On the theoretical level, while a focus is put on discussing the institutions that should be responsible for PPP success, reconciliation is being attempted between institutional economics from one side and the new public management and networks management perspectives from the other. Empirically, OLS multivariate panel regressions test the suggestions of the theoretical discussion with emphasis on interaction terms between PPP and the studied institutions. Findings – Evidence is found that good governance institutions, and specifically good regulatory quality, bureaucratic efficiency and independence, help PPP in performing well as evident from their positive effect on investment growth. Research limitations/implications – The limitations of this paper are mainly empirical. Further results with great policy implications could have been obtained if better proxies were developed for a number of variables. Certainly this is the case for the proxies used for cronyism and public-private dialogues (PPD). Practical implications – Tackling bureaucratic efficiency and independence and higher regulatory quality should be a top priority if the great positive externalities resulting from PPP in infrastructure are to be realized. Originality/value – The novelty of this research is attributed to constructing a proxy for PPP, as well as testing empirically the effect of the interactions of PPP with other institutional variables on the performance of infrastructural services (as evident from attracting more investment). The synthesis between the literature on PPP, new public management, networks, good governance, and institutional economics is another aspect of this work. The obtained results suggest important policy recommendations, and, the author hopes to, add to the literature on PPP.


2007 ◽  
Vol 37 (148) ◽  
pp. 369-381 ◽  
Author(s):  
Wolfgang Ludwig-Mayerhofer ◽  
Ariadne Sondermann ◽  
Olaf Behrend

The recent reform of the Bundesagentur fijr Arbeit, Germany's Public Employment Service (PES), has introduced elements of New Public Management, including internal controlling and attempts at standardizing assessments ('profiling' of unemployed people) and procedures. Based on qualitative interviews with PES staff, we show that standardization and controlling are perceived as contradicting the 'case-oriented approach' used by PES staff in dealing with unemployed people. It is therefore not surprising that staff members use considerable discretion when (re-)assigning unemployed people to one of the categories pre-defined by PES headquarters. All in all, the new procedures lead to numerous contradictions, which often result in bewilderment and puzzlement on the part of the unemployed.


2001 ◽  
Vol 152 (11) ◽  
pp. 453-459 ◽  
Author(s):  
Georg Iselin ◽  
Albin Schmidhauser

During the past ten years most cantonal forest services have undergone re-organisations. Lucerne's cantonal forest administration initiated a fundamentally new way of providing forestry services by differentiating between sovereign tasks and management tasks. By examining the individual steps of the process we demonstrate how starting with the mandate,goals were developed and implemented over several years. Product managers assumed responsibility for products, as defined in the New Public Management Project, on a cantonal-wide basis. Work within a matrix organisation has led to significant changes. Territorial responsibilities are increasingly assumed by district foresters, who have modern infrastructures at their disposal in the new forestry centres. The re-organisation has led to forest districts being re-drawn and to a reduction in the number of forest regions. To provide greater efficiency,state forest management has been consolidated into a single management unit. The new forest reserve plan removes almost half of the state forest from regular forest management,resulting in a reduction in the volume of work and in the work force. We show how effective the differentiation of sovereignty tasks and management tasks has been in coping with the effects of hurricane Lothar.


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