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TERMS Privatization Contracting- out Governance

TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

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Page 1: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

TERMSPrivatizationContracting-outGovernance

Page 2: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

LEFT, LIBERAL AND RIGHT

Strong government: Policy focus

Weak government:Less governmentInstitutional focus

Page 3: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

WHAT’S AN INSTITUTION? Rules by which we govern

ourselves Means of enforcing them Examples: Parliament, the

courts, city council, mayoralty But also: Rule of law, civil

liberties, one-person-one-vote

Page 4: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

PUBLIC CHOICE

Anything the market can do, it can do better

Why?ChoiceCompetition

Exception: externalities

Page 5: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

REINVENT GOVERNMENTPrivatize if possibleSteer, don’t row

Put jobs out to tender

Competition within government

Page 6: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

SUMMARY: DON’T LOOK TO GOVERNMENT

Strengthen private enterprise

Enhance individual choice Solve our own problems,

or Initiate community action

Page 7: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

AGREEMENT & DISAGREEMENT WITHIN THE RIGHT WING

Social welfare measuresCommon ground. Local

government should stick to: Hard services Support for economic development Fiscal prudence Public order

Page 8: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

WINNIPEG EXAMPLESGarbage collectionCharleswood

BridgeWater park

Page 9: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

MORE THEORY Small, specialized units of government

Weak government More representative Competition within government

Two ways to be small Small jurisdictions Fragmentation

Page 10: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional
Page 11: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

STILL MORE THEORY

Different kinds and levels of services: Choice

Voting with your feet

Page 12: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

CRITIQUECheap labourCollusion in bidding

Danger in garbage contracts?Mobility is for privileged peopleFlim-flam: Taking a ride on

business prestige Charleswood Bridge?

Page 13: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

WHAT’S GOOD ABOUT PUBLIC CHOICE?Department-by-department

accountingContracting some jobs out, with

departments allowed to bid, provided good wages are ensuredRequire unionized workforceLiving wage provisions

Page 14: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

RIGHT WING CONSTITUENCY

Supporters of economic growth, including Business people Homeowners Anyone who considers business people good

managers

Varieties of conservatives Boosters Fiscal conservatives

Page 15: TERMS Privatization Contracting-out Governance. LEFT, LIBERAL AND RIGHT Strong government: Policy focus Weak government: Less government Institutional

RIGHT WING ISSUESEconomic developmentInfrastructure developmentPublic orderKeep public expenditures and

taxes downResisting public sector unions