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Political Science
POLS 2250
Tim Mau

What is Public Administration? Week 1 – Wednesday, 11 Public Administration 1. A field of practice (occupation) 2. Field of study (discipline) Public Bureaucracy – “system of authority, people, offices, and methods that government uses to achieve its objectives” Woodrow Wilson (1887) – Firs to articulate the need for a science of administration - “The study of administration” - Administrative study required for 2 reasons: o Discover what governments can properly do  Appropriate role of the state o Determine how they can do these proper things with the utmost efficiency and least possible cost - Although it was written over a hundred years ago, it is still followed today - Reasoning for the lack of attention to Public Administration o At the time political thinkers were paying more attention to, nature of the state, constitution o Government business could become more business like  Was claiming we should incorporate business more into political science and public administration o “Harder to run a constitution, than have one” Leonard White - Administration is a single process Public vs. Private Administration - Similarities POSDCORB o Plan o Organization o Staffing o Direct activities o Coordinate o Produce reports o Budget - Differences o 1. Public goods/interest vs. profit/ bottom line o 2. Pubic Administration is “Less Efficient”  No Profit Motivation  No need to become more efficient in public services  Provision of unprofitable services  Political Considerations  Elections  Duration of the length and service  Cabinet solidarity o We still have the cabinet as a collective decision making body  Ministerial Interference o Chiefs of staffs and aids that help carry out work o These people can give ‘demands’ public servants which is a negative effect  The need for consistency in program delivery  Need to protect minister  Re-Election o Governments tend to be self-interested o Ministers only think 1, 2 or 4 years into the future  Neutrality o Public servants do not want to be one sided towards one public party o 3. Accountability is more complex in the public sector  In private business, accountability begins and ends with the shareholder value  Greater degree of latitude o 4. HR Constraints o 5. Media Scrutiny  In the public eye, major dailys try to expose things like environmental issues etc.  Much more difficult to operate in that type of environment o 6. Persuasion and Direction  Different groups that want political parties to work in their favor Week 2 – Wednesday, Jan 18 Conceptions of Bureaucracy Bureaucracy and public bureaucracy used interchangeably - Have become synonymous Term coined in 1745 by Vincent De Gournay - Used to be a negative term o ‘Government by officials’ – people who rule countries have a form of legitimacy o 1800’s – a lot of positions here hereditary Rest of bureaucrats were partisan  (slow and entirely self serving)  At the end of the day, you had a bunch of people who did not know how to do their job because they attained it from previous title o Last 200 years (of 300) – bureaucracy ‘modern era’  Many different positions Used Pejoratively 7 Different Modern Concepts of bureaucracy (Martin Albrow) 1. As rational organization a. VERY important of history, and organization of bureaucracy b. On the Rational structure of the government, one “real way of doing the task” 2. As organizational inefficiency a. Everyone is lazy (a bunch of bosses), nothing gets done within the government 3. As rule by officials 4. As public administration a. Pro bureaucracy focused on doing what is right for the public, provide advice to make society better 5. As administration by officials 6. As the organization a. In and of itself, organization b. Body of business (bureaucracy) 7. As modern society a. Society has structure itself to mimic bureaucracy - Negative connotations, but rational and efficient way or organizing o People wish bureaucracy was adaptive but when it changes, they wish it was stable - Citizens First Initiative (1998) o 200 quality service leader o Survey for Canadians to find out what the problem with bureaucracy is, and how it is changed over time o Overall, citizens rate specific government services higher than the private sector in general o Government is highly complicated  Despite the understanding that the private is more difficult, there was an expectation that the government should be better at provided services Classical Organization Theory - Most influential in the 1920’s and 1930’s - Concerned with Formal structure - Rests on 4 Major Tenets o 1. Organizations exist to achieve production and economic goals o 2. One best way – to organize  The greatest efficiency in the enterprise o 3. Specialization and division of labor o 4. People and organizations act rationally - Fredrick Taylor, Max Weber, Luther Gulick Max Weber (1864-1920) - German sociologist who was the first to systematically study bureaucracy - Bureaucracy – ‘That form of administrative organization which was capable of attaining the highest level of efficiency - Needs of mass administration and modern, complex society made bureaucracy indispensable - Bureaucracy related to 3 types of authority o Traditional o Charismatic o Rational-Legal- basis for bureaucracy Week 2 – Friday, Jan 20 Current Government Priorities - Budget 2008 – Responsible leadership - Maintain strong fiscal management o Debt Reduction o Delivering on tax back guarantee - $2 Billion in interest savings by 2009-2010 going to personal income tax reductions o Keep Spending focused and disciplined o Focus on core federal responsibilities  Harper does not see a foot role for the federal government (provincial man) o Strengthening Canada’s Tax advantage  Introduction of the tax-free savings account  Support for SMB though R&D Tax incentives o Investing in People  Develop best-educated, most skilled and flexible workforce in the world  Enhancements to grants and loan programs for students  $25 million over 2 years for new Canada graduate scholarships (top Canadian and international phD students)  Establish 20 Canada global excellence research chairs o Investing in knowledge  Money for science and technology o Supporting communities and traditional industries  Attenuate negative effects of economic downturn (e.g forestry, farms, older workers) o Investing in infrastructure  Make gas tax fund permanent ($2 billion / year)  Capital investments in public transit  New crown corporation (PPP CANADA INC) o Leadership at Home  Vulnerable; aboriginals; health and safety of Canada etc  $49 million for Olympics and athlete preparation o Leadership Abroad  Support for Canadian Forces  International assistance (Africa, Afghanistan)  Improve Borders – money to Canada border services agency: high security passport by 2011 Current government priorities - Budget 2009 – Canada’s Economic Action Plan - Context o Global economic recession o G 20 Commitment – 2% of GDP for economics stimulus o Plan – stimulus must be,  TIMELY  Needs to be quicker (too slow right now)  TARGETED  TEMPORARY - Key Priorities o Improving access to financing, strengthening the financial system  Extraordinary financing framework ($200B) – Improve access to credit for individuals and businesses Current Government Priorities - Actions to help Canadians and stimulate spending o Canadian skills and transition strategy (8.3B) extending EI benefits to 50 weeks - Stimulate Housing Construction o Home Reno tax credit up to 1350 tax rebate - Build infrastructure (12B) o In infrastructure stimulus for municipalities - Support for businesses and communities o Support for auto, forestry and manufacturing sectors; funding for clean energy - Budget 2011 – Low Tax plan for jobs and growth o Context  Global economy emerging from crisis  Unprecedented fiscal and monetary stimulus  Canada- Strong economic performance but ongoing risk and uncertainty - On Target to Eliminate Federal Deficit by 2015-16 o 2014-15 when considering savings from strategic and operating review of 2.7 billion projected o Build on success of 2009 stimulus plan - Cornerstone: Eliminating the Deficit - Finance Minister Flaherty revised outlook on elimination of deficit in Nov. 2011 speech o Phase out of quarterly allowances to political parties Week 3 (Monday 23) Ideal-type bureaucracy – a theoretical construct Weberian Ideal-type bureaucracy - Specialization of labor / sphere of competence o Trained individuals in a specific function so they will be more efficient at carrying out that particular task - Hierarchical Structure o Reports information on advice that flows upwards starting from the bottom, maintains control and accountability within organization - Employment and promotion based on merit o They were based on hereditary positions - Full-time employment - Decisions based on impersonal rules o When dealing with the public o You want different treatment from/to the public sector o Not subject to dislikes with the public sector in which we ultimately have to interact o We should be pretty certain in which the outcome should be - Written Records o Because officials are supposed to act in a partial manner o Useful and important for key reasons  Help measure accountability for public sector  Can act as a discipline for officials if they are wrong - Bureaucratic employment is separate from private life o Should not be using organizational purposes for your own benefit - Position of the official o Office holding is a vocation o Enjoys social esteem o Appointed, not elected o Position is normally for life o Fixed compensation o Care Weber’s explanation of the evolution of bureaucracy - Creation of a money economy - Emergence of capitalist economy o 16 -19 century o Distinguished by calculation of RISK AND PROFITS  Respect to market processes - Trend towards rationality in western society - Democracy o As a form of political regime o Opposed the traditional rule of nobles  Qualifications - Growth of European population o Expansion throughout the world - Emergence of complex administrative problems - Modern forms of communication o Dealing with the problems of modern complex society Henri Fayol (1841-1925) - French mining engineer - Functions of Management o 1. To forecast and Plan o 2. To organize o 3. To command o 4. To co-ordinate (unify of all activity) o 5. To Control - Not very useful for assisting managers in their work for analyzing what they do, but part of lexicon of management - General Principles of management o Division of Work o Authority and responsibility  Your track record, charisma etc  Do not separate authority and responsibility  They have to go hand in hand in an organizational setting o Discipline o Unity of Command  An individual should only be receiving orders from one person o Unity of Direction  One head, one plan  Cannot exist from unity of command, but does not work off of it o Remuneration of personnel  ‘Time rate of pay’ – hourly o Centralization  To what extent should you centralize authority  Ultimately have to find a balance Frederick Taylor (1856) - Scientific management or ‘taylorism’ - Best management is a true science - One best way to perform tasks - Discovered through scientific research and applied by others - Time and motion studies – shoveling coal (best employees) see how much coal they could move in an 8 hour shift (21lbs ideal load – get other workers to match that for productivity) - New role for managers – design and conduct experiments, train and supervise in techniques Luther Gulick & Lyndall Urwick (1937) POSDCORB Planning – Organizing – Staffing – Directing – Co-coordinating – Reporting – Budgeting Principles of Management - Principle of correspondence – authority and responsibility go hand in hand - Principle of responsibility – responsible for acts of subordinates - Scalar principle – line of authority from top to the bottom - Principle of span of control – no one should be in control of more then 5 or 6 employees - Principle of specialization – tasks need to be done by one person who is a speacialist in it so they can be more efficient - Principle of co-ordination – bigger the company more co-ordination needed - Principle of definition – individual jobs are created and are clearly set out what you do, what you need to get the job and your pay grade Division of Work 1) Purpose – establish and create organization that serves a purpose (purpose of education) ministry of education 2) Process 3) Persons or Things – veterans affairs Canada, base it around a certain persons or things and 4) Place – regional offices to provide more direct ground level services (everything cant just come out of Ottawa), eases co-ordination and services to a certain area with specific needs Application of Classical Organization Theory to the Canadian Public Service - Modern state evolved as an amalgamation of complex organizations based on bureaucratic principles - Early emergence of a professionalized public service o Civil Service act (1868) – ‘Inside’ vs ‘outside’ service (inside = Ottawa, outside = other places in Canada) Civil service board (limited authority) not very effective limited jurisdiction o Civil service act (1882) – Board of examiners created ministers still able to appoint from a list of approved candidates o Civil service amendment act (1908) – civil service commission replaces board competitive exams for ‘Inside’ service o Civil service act (1918) – Entire service under civil service commission o Classification exercise of 1919 – hired American firm because they didn’t have the knowledge - Public bureaucracy one of the theories of public administration (bureaucratize government, based on merit, specialization of labour) Neo-Classical Organization Theory - Gained prominence in mid-1940s TO 1950s - But never replaced classical organization theory - Criticized classical theorists Chester Barnard (1886-1961) - De-emphasized authoritarian top-down model - Stressed instead: o The importance of co-operation in organizations o Group over the individual o Morality and leadership - Incentives are needed to motivate employees Robert K. Merton (1910-2003) - Bureaucracies can become dysfunctional - “trained incapacity” – ‘actions based on training and skills which have been successfully applied in the past may result in inappropriate responses under changed conditions’ - Esprirt De Corps – Bureaucrats defend own interests - Impersonality can lead to conflicts with public/clientele Herbet Simon (1916-2001) - Work was a response to both Fayol and Gulick and Urwick - Didn’t just criticize classical theory, he attacked it - No general ‘principles of management’ – inconsistent, conflicting, and inapplicable - ‘Proverbs of administration’ principles of management had equally plausible yet contradictory principle - E.g narrow span of control – efficiency but resulted in hierarchy (inefficient) Philip Selznick (1919- ) - Many non-rational aspects to an organization - Organizations are co-operative systems – “individuals interacting as wholes in relation to a formal system of coordination’ - Control requires consent - Formal and informal aspects of an organization Human Relations/Organizational Behavior - Main contributors from the 1960’s to 1980’s - Theory based on 4 key Assumptions o 1. Organizations serve human needs o 2. Organizations and people need each other o 3. Poor fit, then one or both suffer - Hawthorne Experiments o Helping to further prove scientific management Hawthorn Experiments (1924-1930) - Frederick Roethlisberger and Elton Mayo - Most important contribution to human relations school - No ‘on best way to work’ = studied impact of environmental changes (lighting, humidity, temperature) on worker productivity - Hawthorne Effect – employees respond favorably when they believed people were trying to help them - 3 Key Conclusions: o Level of production is set by social norms o Importance of non-economic rewards/sanctions o Workers often act or react as members of groups Abraham Maslow’s Hierarchy of Needs - People are motivated by more than simple monetary rewards - Developed a theory of motivation based on 5 needs o 1. Physiological – Food, Clothing, Shelter, Sexual o 2. Safety – Free from physical and emotional harm o 3. Love/Belonging – affection and relations with others o 4. Esteem – self-esteem and esteem of others o 5. Self-actualization – reach potential - Hierarchy is not fixed - Needs to not have to be completely satisfied o Also when going ‘up the chain’ - Needs may be unconscious - Not all behavior determined by basic needs Douglas McGregor - ‘Theory X’ o Conventional conception of management o Individuals are fundamentally lazy o Without the efforts of managements, people will have to be controlled, persuaded, rewarded and punished to do their job o Trying to find ‘short cuts’ o Dislike responsibility and prefer to be led o Self-centered o Resistant to change o Gullible, not very bright - Theory Y o Work is a s natural as play or rest o Direction and control are no longer needed to motivate people o Humans also seek responsibility o People are imaginative and creative  If you treat people as fitting in certain theories, they will perform that way Week 4 – Jan 30 – Monday Criticisms of Human Relations - School was criticized from both sides o Production conscious managers o Employees  Too kind to employees, too much emphasis on satisfaction - Evolved into participatory management - Provide employees with real decision making authority o Enhance communication within the organization  Can take advantage of resources and opportunities better  Management will learn and benefit - Peter Drucker o Key contributor o Hierarchy and specialization-problematic o Communication and decentralized decision-making o Key Benefits o Criticisms  Opportunities to consult more broadly  Heightens expectations Organizational Development (OD) - Bring people, structures and technology into harmony - Planned, Goal-oriented change - 1. Unfreezing, 2. Changing, 3. Refreezing - Involves a 4-step process o Diagnosis strategic o Planning; o Education; o Evaluation  Made change, frozen to the new status quo  Collect data to make sure if change has been a good thing - Key Premises o Personal growth arises from honest, caring, non-manipulative relationships o Positive change if group feels a common identity o People more likely to change if understand reasons and ways to achieve it o Participation in decision-making increases co-operation o Increased participation = satisfaction and satisfaction = increased work effort Total Quality Management (TQM) - Evolved in the 1980s and early 1990s - W. Edwards Demin – leading proponent - Based on Japanese system of management - Emphasis on quality – ‘get it right from the first time’ - Focus on customers/clients - Continuous process Systems Theory - Dominant organization theory in the 1960s - Daniel Katz and Robert Kahn – Concept of the ‘open’ system (vs closed system) - Focus is on the external environment of the organization - System – ‘ An organized collection of parts united by prescribed interactions and designed for the accomplishment of specific goals o Inputs, outputs, Katz and Kahn’s open system - 9 common characteristics o Importation of energy  Every company needs to collect energy, interact with the environment(external) to gain and utilize this energy o Throughput  Process of conversion to take the energy and to get things done, train people etc (inputs) o Output  Take that energy, and are now putting a product back into the environment (bridge, road etc, whatever) o Cycle of Events  When product is exported, it provides to sources of energy so the process can be repeated, to access new labor and resources o Negative Entropy  A system will rundown without an active input  You can avoid this by squirreling resources in time of economic downturn etc (build up reserves) o Information Input, Negative Feedback, Coding  Can build up a good will – can help ensure an organization can not decline  Get info from environment, gives us clues for what we should o Steady State, Dynamic Homeostasis  Self-regulating  Find themselves in a constant status o Differentiation  Social organizations aim towards special differentials and specializations o Equnfinality  The system can reach its object in many different ways External Environment for Government - Administrative/ Legal - Technological - Political o Decisions based on resource indications as well as the public demand - Economic o Scare resources, creates a huge debt problem (intl trade) - Social/Cultural o National, local, and regional impacts o Services are provides on a regional basis o Globalization (or Americanization)  Promoting, and preserving Canadian culture and value - Stakeholder o Government calls upon stakeholders in fiscal crisis Organizing to Govern - Governments have many options at their disposal o Government can choose a plan to that problem, or they usually choose not too (scarce resources and debt involved) - Design Options o Organization structure o Crown Corporation  More commercial oriented (not private, not profitable) o Regulatory Agency o Separate Agency o Special operating Agency o Accountability relationships o Personnel o Fiscal Resources o Support services o Operational Plan - Complex undertaking - Structure of government is confusing – 42 different labels - Line/operating department most common Government Departments - Most stringent accountability o Minister – Political Head  Elected  Individual and Collective Ministerial Responsibility  Minister assumes responsibility for that department o Deputy Minister – Career public servant; administrative head - Legal Definitions provided in financial administration act and public service employment act - J.E. Hodgetts – ‘an administrative unit comprising one or more organizational components over which the minister has direct management and control - Power and prime minister – public service rearrangement and transfer of duties act (1918) - Major reorganizations in 1930’s, 40s 60’s and 90’s Creation of a government organization - Can occur in 4 ways o 1. A specific act – department of agriculture and agri-food act; department of Canadian heritage act  Enabling legislation  Usually small/ short (2-3 pages)  Legislature does not want to be too specific o 2. Omnibus Act- Government organization Act of 1969  Changes are related to at least one department o 3. Ministries and Minister of state act – used in 1970’s and 1980’s o 4. The Inquiries Act – Only need an order in council; no legislative approval required Classification of government departments J.E. Hodgetts – Five Functional Categories - Public Security and External relations - Public works, communications and transportation - Co-ordination and services for public organization - Conservation, development and promotion of physical resources - Protection and development of human resources Bruce Doern – Threefold typology - Horizontal Policy Co-ordinative – small in size and budget but not power (PCO, treasure board secretariat o Policy matters - Administrative Co-ordinative – least influential; support functions - Vertical Constituency - Direct service providers; visible; large budgets (Health Canada, DND) Monday, Feb. 6, week 5 Managing the Department - Minister o Policy Role – Politics is the art of the possible o Lack of interest/experience  People who have only run a small business are now keeping track of millions (if not billions) of dollars  Ministers will make a mistake thinking their job to run day to day management  Minister is ultimately the person who works on the policy  Not their job to hire staff  2 key roles:  Explain department roles to the public  To interpret to public officials to the public of governmental policies o Cabinet Shuffle  To present a new team or a new face to the electorate  Ultimately to keep the government in the headlines o Ministerial responsibility  Emergences when government is more complex than it is today  Ministers were deemed responsible for everything that goes on in their department  Let managers manage / make them manage o Minister’s Political Staff  Not merit appointments - Deputy Minister o Role – Link between politicians and public service  All policy advice and money bills going up to the minister have to go through the deputy ministers hands  Department’s general manager o Keep minister out of trouble o Complex Accountability – PM, Clark of the Privy Council, Central Agencies, Officers of Parliament (auditor general) Central Agencies - Either created or increased in power under Trudeau (1968) o Mistrust of Advice from operating departments o Increased size and strength of agencies – PMO and PCO in particular – continued under Mulroney  Mulroney was concerned with the public service o Generally agreement that 4 organizations are central agencies – PMO, PCO, TBS, and Finance Privy Council Office (PCO) - Reports to the PM and Cabinet - Headed by the Clerk of the Privy Council - Staffed with career civil servants - Provides Expert, NON-PARTISAN, policy advice and administrative support to the PM, cabinet and cabinet committees - Prepares agendas and organized cabinet committee meetings; prepares informational material and analytical briefing notes to ministers; takes and circulates minutes of meetings; disseminates both cabinet and committee decisions - Typically 150-175 employees (super bureaucrats) Clerk of the Privy Council - 3 Key roles o Prime minister’s deputy minister o Secretary to cabinet o Head of the public service - Provides an array of strategic and management advice to the PM - Advises and supports PM in certain key areas o Appointments, mandate and organization o Support to cabinet and cabinet committees o Government policy direction  Clerk takes a pre-eminent role  Mulroney – 11 cabinet committees, was reduced to 4 under Kim Campbell  Power of the PM Prime Ministers Office (PMO) - Staffed with political appointments (Critical distinction) - Varies in Size – Typically 100-120 people o Dependent on the goals and objectives of the PM - Certain key positions – chief of staff; senior policy advisor; research director; director of operations; director of communications - No Statutory Authority – Power derives from its closeness to the PM - Prepares the Throne Speech o Delivered by the Governor General o Will outline the governments priorities for that meeting o Good indication of where the government is heading and trying to accomplish - Provides technical, political, and policy advice to the PM (Political Switchboard – Paul Thomas) - Monitors political developments for impact on PM Treasury Board Secretariat - Treasury Board o Cabinet committee o Only one enshrined in legislation (financial administration act) o President not minister o President of treasury board, minister of finance and 4 other ministers appointed by PM o Only one with large bureaucracy (secretariat) reporting to It o Cabinet’s committee on expenditure budget and management (guardian) - Treasury Board Secretariat o Central Agency o Headed by the Secretary to the Treasury Board: Also serves as the comptroller general of Canada (financial controls) Department of Finance - Analysis and advice on board economic and financial affair - Key responsibilities o Preparing the budget o Developing tax and tariff legislation o Manage federal borrowing o Administering major federal transfers o Regulatory Policy for financial sector o Represent Canada in international financial institutions - Monitors and Researches the performance of the Canadian economy - Co-ordination role - More consultative In Recent Years Crown Corporations and Regulatory Agencies - Other two historic organizational forms in government - Both have a greater degree of autonomy than government department o Operate at ‘Arm’s Length’  Still report to a minister but less political interference  Greater HR flexibility – hiring and compensating - Different organizational structures o Boards of directors/panels o Different accountability  Figure 9.1 – Management of a Crown Corporations Crown Corporations - Also known as ‘public enterprise’ or ‘state enterprise’ - Formal definitions o Legal entity with corporate form o Canada business corporations act (Ontario business corporations act) or special act of parliament/legislature o Dimension of ownership  Wholly owned (parent corporation – Agency or proprietary corporations)  Subsidiaries or sub-subsidiaries  Entities owned in whole or part by one or more parent corporations  Government appointment of the board of directors - Functional Definitions o Corporations that provide goods or services to the public on a commercial or quasi-commercial basis o Some provide advice – standards council of Canada o Perform regulatory functions – atomic energy of Canada ltd. o Stabilize commodity prices – Canadian dairy commission o Lambert Comission (1979) 6 ELEMENTS  Constituent Act / Letters of incorporation  Tasks akin to private sector entrepreneurial ventures  Wholly owned  Board of directors  Separate employer  Minister may give direction Forms of Public Enterprise - Mixed enterprise o Shares are partly owned by government through minister o Remaining shares owned by private sector entity (IES) o Benefit – Access to private capital skills o Concern – accountability o E.G none in 2010 but petro Canada prior to privatization in 2004 - Joint Enterprise o Shares partly owned by government through minister o Remaining shares owned by another level of government o E.g. Lower Churchill development CORP; northern portage development corp. - Shared Governance Corporations o No share capital for government o But government, directly or through crown corp, has the right to appoint or nominate one or members to governing board o E.G.Greater Toronto airports authority; CFI; Coaching association of Canada; Canadian sports centre - International Organizations o Corporate entities created pursuant to international agreements o Can either appoint board members or own shares o E.G. IMF, World Bank, World Anti-Doping Agency; Asian development Bank Crown Corporations – Rationale 1. Nation Building 2. Economic Protection a. Helping changing economic conditions b. Can have a large impact on the workers Principle of Public Ownership - Natural Monopolies - argument that gov has responsibility for correcting economic failure (distribution problems etc) unpredictable things happen - have to deal with it with things like grants and subsidies Nationalist argument - Canadian identity or Canadian Political culture - notion that Canada is much more collectivist, much more willing to intervene in the economy, gov control over economic life to protect the public Political Ideologies - may expect right centre wing would be much less willing to intervene, where as left leaning like NDP would be much more willing Develop Relations with Private sector - CC used to encourage behaviour among other private sectors, set example (CBC, provide wide range of Canadian broadcasting) air more Canadian content (by contract is another way to develop private sector) - market action - air canada was a crown corporation, first to use seat sales other companys followed suit Advantages over other gov departments - way to avoid direct political control, state doesnt want to be perceived as having to much political influence Accountability Issues Designed to be autonomous, arms-length Weakened ministerial Responsibility - Orange (helicopter company) - CEO’s make waaaay to much money - trying to regain control in this CC, justifying how money was spent (many designed to make a profit - accountability for short or long term?) Policy direction - power to use directives - ministers could escape responsibility - govs will determine what purpose the CC is supposed to serve, provide good service, charge and earn profit Appointment/removal of directors - full time appointments are picked by premier or P.M, person has some autonomy in the position, appointments would run 5-7 years typically, officials get independence in running their areas Funding issues - annual corporate plan, objectives for the year, expected revenues, has to be approved Scrutiny of corporate plans and annual reports Criticisms of Crown Corporations Proliferation - too many of them 2009 - Employ almost 93, 000 people (up from 83,000 in 2004) 2009-10 appropriation = $6.666 Billion (nearly 60% of which funds the CBC and CMHC) Inefficient - pressure on them to privatize Unfair competition - with respect to competitors in private industry because of public treasury - corporate entity Accountability issues - selling 407 wasnt used to pay off debt but to balance budget New Public Management “New?” - originated as a product of the neo-conservative agenda of marget thatcher in the UK (1979) Global reform movement - Scandinavian countries, New Zealand, Australia, Canada, US - Even Mongolia 4 Key factors driving NPM Economic Crisis & need to reduce government spending (govs out of control spending way to much money) Lack of COnfidence in Politicians and public demand for better and more cost- effective service delivery Globalization - states no longer unable to make decisions on their own without understanding whats going on in their countries and others like Euro Union, U.S etc) - means decisions of individual govs impact other parts of the world, economically competitive to attract investments and capital from other parts of the world Political/ideologica
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