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