THE NEW GOVERNANCE AND THE CHANGING TOOLS OF PUBLIC ACTION Lester M. Salamon Johns Hopkins...

THE NEW GOVERNANCEAND THE

CHANGING TOOLS OF PUBLIC ACTION

Lester M. Salamon

Johns Hopkins University andHigher School of Economics

HSE April Conference, 8 April 2015

• A revolution in the technology of public action

• Proliferation of new tools

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

THE NEW GOVERNANCE

• Direct government• Contracts• Grants• Direct loans• Loan guarantees• Economic regulation• Social regulation• Corrective fees

ILLUSTRATIVE TOOLSTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Tort law• Administrative adjudication• Vouchers• Tax expenditures• Carbon credits• Social impact bonds

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

THE BEAT GOES ONTHE NEW GOVERNANCE

• Common feature: Use of “Third Parties”

• Sharing of discretionary authority

• “Deconstruction” of public action

RISE OF THIRD-PARTY GOVERNMENTTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Public

Private

(1) National

(2) State/local

(1) Nonprofit

(2) For-profit

B

CA

D

Public PrivateDELIVERY

FINANCE

DECONSTRUCTION OF PUBLIC ACTIONTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

DIRECT GOVERNMENT

INDIRECT GOVERNMENTContractingGrantsVouchersTax expendituresLoan guarantees (commitments)GSEs (loans)Deposit insurance (net additions)Regulation

SUBTOTAL, INDIRECT

198.8286.4251.0602.0252.4409.2376.1200.02575.9 71.9%

Amount ($ bns) %

GRAND TOTAL

28.1%

100.0%3581.2

186.8550.4229.738.4

1005.3

Goods and ServicesIncome supportInterestDirect loans (obligations)

SUBTOTAL, DIRECT

SCALE OF U.S. FEDERAL GOVERNMENT ACTIVITY,BY TYPE OF TOOL, FY1999

THE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

FEES53%

GOVERNMENT35%

PHILANTHROPY12%

SOURCES OF CIVIL SOCIETY REVENUE, 34-COUNTRY AVERAGE

THE NEW GOVERNANCE

24%

26%

9%

9%

6%

8%

2%

10%

3%

5%

7%

32%

29%

45%

39%

43%

35%

39%

26%

32%

19%

16%

44%

45%

47%

51%

50%

58%

59%

64%

64%

77%

77%

ALL COUNTRIES 53 %

GOVERNMENT DOMINANTFEES, CHARGES PHILANTHROPYGOVERNMENT

35 % 12%

South Africa

Romania

United Kingdom

Canada

Austria

FranceNetherlands

IsraelGermany

BelgiumIreland

% may not add to 100 due to rounding

SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY

THE NEW GOVERNANCE

• Complexity of problems

• Limits on public resources

• Dissatisfaction with government performance

• Popularity of market ideology

• Producer political power

WHY?THE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• New public management

• Privatization

EXISTING THEORIES LIMITEDTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“Governance”

“New”

collaboration,interdependence

recognition of challenges

NEEDED: A NEW PARADIGMNEW GOVERNANCE

THE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

The New Governance

Program/Agency Tool

New Governance

Classical PublicAdministration

THE NEW GOVERNANCE PARADIGMTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“A tool of public action is anidentifiable method through whichcollective action is structured to address a public problem.”

DEFINITIONTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Good or activity

• Delivery vehicle

• Delivery system

• Rules and procedures

TOOLS AS BUNDLES OF ATTRIBUTESTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Actors

• SOPs

• Skills

• Tasks

• Advantages

POLITICAL ECONOMY OF TOOLSTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

CLASSIFICATION: TOOL DIMENSIONSTHE NEW GOVERNANCE

• Coerciveness

• Directness

• Visibility

• Automaticity

• Consumer side vs. producer sideLester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Tool choices as technical choices

• Tool choices as political choices

NOT JUST TECHNICAL CHOICESTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Hierarchy Network

THE NEW GOVERNANCE PARADIGMTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Program/Agency Tool

New Governance

Classical PublicAdministration

• Principal Agent Theory• Network Theory

Pluriformity Self-referentiality Asymmetric interdependencies Dynamism

HIERARCHYNETWORKTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Public vs. Private

Command & control

Management skills Enablement skills

Negotiation & persuasion

Public + Private

THE NEW GOVERNANCE PARADIGMTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Hierarchy Network

Program/Agency Tool

New Governance

Classical PublicAdministration

• Activation

• Orchestration

• Modulation

NEEDED: NEW ENABLEMENT SKILLSTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Management Challenge

• Accountability Challenge

• Legitimacy Challenge

CHALLENGES: FOR GOVERNMENTSTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Loss of autonomy

• Vendorism & mission drift

• Bureaucratization

CHALLENGES: FOR PARTNERSTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• Tool knowledge

NEEDED: NEW KNOWLEDGETHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

TOOL KNOWLEDGETHE NEW GOVERNANCE

• Tool knowledge

• Design knowledge

• Operational knowledge

NEEDED: NEW KNOWLEDGE

THE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• By partners: for the accountability needs of government

• By governments: for the distinguishing functions of private partners

NEEDED: NEW SENSITIVITIESTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

Service provision Advocacy Expression Community-building / social capital Value guardian / mobilization

SENSITIVITY TO PARTNER CHARACTISTICS: E.G.–MULTIPLE FUNCTIONS OF NONPROFITS

THE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

• “Professional citizens”

• Network managers

NEEDED: NEW PUBLIC SERVICETHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

“It is harder to operate aconstitution than to frame one.”

~Woodrow Wilson

CONCLUSIONTHE NEW GOVERNANCE

Lester M. Salamon, The Tools of Government: A Guide to the New Governance, (New York: Oxford University Press, 2002).

The New Governance/ Oxford University Press