Problems of Controlling Public Sector Agencies: The Case of Norwegian Oil Policy
The problem of the control and accountability of public sector agencies is common in most Western democracies. Though ‘hiving off’ is seen as attractive by policy-makers, it often brings with it quite serious problems. It is important to take account of the role of the self-interest of agencies in designing control systems. This is particularly necessary where failure to control the activity of an agency can have serious consequences in other policy areas or for society as a whole. An examination of Norwegian North Sea oil policy illustrates the difficulty of achieving control in areas involving uncertainty and high technology. The Norwegian case does, however, also illustrate that the ‘natural tendencies' of organizations can be utilized, once recognized, to achieve a greater degree of accountability and control.