CLASS : Introduction : PCT

PUBLIC CHOICE APPROACH 

"Public choice approach is the economic study of non-market decesion making or the application of economics to the political process of collective decesion making "

MAIN PROPOSITIONS OR ARGUMENTS OF PUBLIC CHOICE APPROACH 

1)Human Behaviour is dominated by self interest 
Individual who seeks utility maximisation shall remain a utility maximiser under all settings.

2) the govt is a collection of individuals
"the simple view that government's collective decesion making process solves social problems selflessly and in common interest is just romanticism in politico economics theory " JAMES BUCHANAN 

3)The theory of govt failure 
The argument is that the real world govt and real world collective decesion makers may not have self interest in efficiency. On the contrary they may actually have self interest in inefficiency. 
-Vote maximising behaviour 
-Self aggrandising behaviour 
-Wealth maximising behaviour

COMPONENTS OF PCT

-Rent seeking theory by Anne Krueger, Gordon Tullock, James Buchanan 

-Capture Theory by George Stigler 

-Theory of self-seeking behaviour by Anthony Downs


CAPTURE THEORY 
Given by George Stigler 

The core proposition of this theory is that powerful interest groups can influence the enactment of laws n regulations in a self interested n self serving manner. 
For eg :
What kind of excise laws or land laws or SEZ policy, mining laws etc are made, are often a result of the capture influence. 

THEORY OF SELF SEEKING BEHAVIOUR 

This happens bcz of absence of market discipline. To elaborate Bureaucrats are not subjected to market discipline bcz they don't hv any personal stakes in the performance or non performance of public organisations.
As a result neither the success of public organisations greatly helps them nor the failure hurts them.

Downs wrote two imp books --
INSIDE BUREAUCRACY
An Economic Theory of Bureaucracy 

Rent seeking theory 

Argues that certain sections of the public or certain special interest groups have intense preferences for or against particular governmental policies or decesions and therefore they seek to earn benefits to manipulation and exploitation of politico economic envt. 

Such behaviour on the part of these individuals or groups is called Rent seeking behaviour. Infact if anything, rent seeking is a shear wastage from societal point of view bcz no addition to wealth is created and Infact the resources which ought to hv been spent on public cause, go into private pockets.

GORDON TULLOCK in his 1967 paper "The welfare costs of tariffs monopolies and thefts ". Later the term rent seeking was coined in 1974 by ANNE KRUEGER in another influential paper "Political economy of the rent seeking society "

GORDON TULLOCK 's book 
THE POLITICS OF BUREAUCRACY 
RENT SEEKING 

"much of the modern politics can only be interpreted as Rent seeking activities " James Buchanan

When a firm uses its resources to procure an unwarranted monetary gain from external elements without giving anything in return to them or the society, it is termed as rent-seeking.

Definition: When a firm uses its resources to procure an unwarranted monetary gain from external elements, be it directly or indirectly, without giving anything in return to them or the society, it is termed as rent-seeking.

Description: Instead of creating wealth, a firm seeks to obtain financial gains from others through alteration/ manipulation of the environment where economic activities take place. A popular example for rent-seeking is political lobbying by companies. These are primarily done by companies in order to make economic gains through government action.

This might be done by a company to get subsidy from the government for the product which it produces or increasing tariff rates by the government for its services, etc. Such a practice neither leads to creation of new wealth, nor does it benefit the society.

Class : Introduction: Impact of Globalization on Pub Ad

IMPACT OF GLOBALISATION ON PUBLIC ADMINISTRATION 

1) Pre-requisites of international competetion 
-Cost control
- Productivity consciousness 
- Technological upgradation 
-adoption of international best practices 

The points you have Invluded above could be added.

2)Impact of information technology 
-Information dissemination 
-Transparency 
-More accessible administration 
-Speed of service delivery 
-Two way interface of administration 

3) Global administrative theories and models 
Business Process Re-engineering HAMMER AND CHAMPY
Re-inventing Govt OSBORNE AND GAEBLER
Networked Governance DENHARDT N DENHARDT 
Activating State WERNER JANN

CHALLENGES CAUSED BY GLOBALIZATION 

1)The Challenge of context sensitivity
To guard against the possibility of 'global monoculture'. 
-Forcible imposition
-Blind import

"even the global village is culturally plural rather than homogeneous"
CHRISTOPHER HOOD

In other words the challenge of administration is how to think globally yet act locally.

2) Challenge of cultural globalization 
Globalization has brought a focus on specialised tasks which earlier were not seen as the core part of pub adm. 
-Global security and war against terrorism 
-Environment and sustainable development 
-Issue of gender sensitivity

3) Challenge of global accountability 
Tendency of 'global eliticism'

"globalization can promote development but can create poverty. Global justice and accountability is a major issue because there exists a possibility of global governance without global government "
JOSEPH STIGLITZ

Discussion : British Philosophy (Work in Progress....)

British Philosophy of Public Administration

1. Fusion of Politics and Administration.

2. Adoption of the merit system.

3. Nonpartisan Civil Service.

4. Pragmatism between Science and Ethics (Values maybe).

5. Communication : Embracing both formal and informal communication.

Some points to brainstorm

1. What were the guiding factors which shaped British Philosophy of Public Administration?

2. What are the differences between British and American Philosophy?

3. Which elements of British Philosophy are present in Indian Administration?

4. Is the British Philosophy capable of facing the challenges posed by climate change and globalisation? [LOL, just kidding]

@ main pioneer in British philosophy :
1. wallas
2.haldane
3.beveridge
4.sheldon 
5. urvic
6.stamp
7.Beatrice Webb
8.harold j laski

graham wallas: first model of creative process:

the creative process:
1.conscious vs. unconscious wanders
2.voluntary vs. involuntary thinking
3.deliberate vs. serendipitous chains of ideas

--in 1926 wallas, defined this process in 4 stages
prepartion--incubation--illumination--verification

1--investigate the problem from all direction
--fully conscious stage
--brainstrom, researc, planning
--relevant state of mind

2.-->unconscious stage
-- here "combination play" works [einstein]
--two or more idea combined effectively
--result in creative thinking
-->"negative fact" 
-during incubation , no conscious deliberation of problem
-->"positive fact"
--series of unconscious, involuntary mental events.
3. illumination
--"sudden illumination"
--flash of insight cannot be controlled by conscious itself
--connection b/w the seemingly unconnected are true secret of genius
4.verification
--conscious and deliberate effort
--testing the validity of idea
--reducing idea to exact form

Discussion : Self Regulation (based on 13th Report of ARC)

Summary of SRO

Advantages of SRO

1. Efficient regulation since the new organisation will be less bureaucratic.

2. The organisation will be manned by experts from the industry so they have more knowledge of how to regulate the industry.

3. The revenue generated by their functioning (for example issuing certificate for films) will be used for the welfare of industry only.

4. Will increase the overall confidence of investors but cutting red tape and lead to enhanced FDI and private investment.

5. It will build a culture of trust and will eventually lead to a right step in development of civic political culture in India from the current mix of subject-participant culture.

Challenges of SRO

1. Self regulation (SR) concept is not very prevalent world over perhaps because of the inherent conflict of interest. Issues will always remain of alleged bias because often times a substantial source of revenue is 

membership fees. 

2. If SRO is not empowered enough to enforce its penal actions then it is virtually ineffective. One way Self regulation can work is if non compliance by penalized orgn. results in exclusion from the sector/business. But India has a long way to go before adopting this governance measure.

3. Sometimes the area in which SRO is operating may overlap with other sectors so co-ordination with other regulators become essential. SRO cannot have that much coordination with state regulators. For example, Micro Finance Institutions may be self regulated but they may also gave operations in capital markets and insurance sector. So, the SRO overseeing MFI may not cooperate as much with SEBI, IRDA as desired.

Examples of SRO

India : NBA for news, SRO for Microfinance (Please add name)

US : MPAA (Films)

Conclusion

We will need to have the transition to SR in a smooth and endogenous manner. It has to be bottom up an indigenous development and not imposed from above or imported from outside. In short the transition has to be sustainable.

How can self regulation be made effective?

• Authority: Legislative or delegated regulatory authority to create and enforce its own policies and rules, subject to formal government oversight.

• Governance: Strong governance mechanisms, including focus on independent boards (that, among other things, counterbalance the influence of “regulatory capture”), transparency, and adherence to a defined process for obtaining public input on rule-making initiatives.

• Conflict management: Effective and consistent management of inherent conflicts of interest, including transparent mechanisms for their resolution.

• Supervision: Defined and transparent processes and procedures for overseeing and regulating the activities of its members, including the establishment of clear standards of conduct and correlated and consistent application of consequences for violations.

• Enforcement: Adequately funded enforcement program that works to help regulation, in conjunction with governmental authorities, while keeping up with market activities and trends, and that applies the law and its own process in a consistent manner while providing due process protections to those subject to its investigations.

• Regulatory database: Maintenance of a current database of information about regulated persons that is accessible to public and that includes all relevant customer complaints, disciplinary history, and legal and regulatory actions taken against such persons.

• Innovation: Development of policies and rulemakings that draws on the specialized expertise of those within the self-regulatory organization and allows for the ability to regulate “ahead of the curve” while encouraging and supporting fair, efficient, and orderly markets.

• Dispute resolution: A customer dispute resolution process that employs consistent use of fair and transparent policies and procedures that balance efficiency with investor protections while also protecting the civil rights of the accused.

PS : The SRO concept is most popularly used in the capital market. But the points mentioned above can be applied across the board.

Discussion : Case Studies for Public Administration

Comparative Public Administration - Smart cities in collaboration with different countries for energy, sewage, water, IT

New Public Administration [Relevance, Value, Equity, Change, Client Focus] - Replacing Planning Commission with NITI Ayog to make it more :
Relevant : Realizing the changing scenario due to LPG
Change Oriented : Instead of old planning methodology, bring new ideas.
Client Focussed : Designing schemes with focus on ground realities which are different for different states.

Management Information Systems (MIS) for regular and real time online monitoring of progress in respect of skill development and enhancing livelihood opportunities for urban poor under Deeendayal Antyodaya
Yojana (DAY). 

MIS enables stakeholders like Training Providers, Certification Agencies, Banks, Resource Orgnisations etc., to feed required information directly which can be accessed by urban local bodies, states and Ministry of HUPA for monitoring and other purposes.

The above example can be applied in new techniques of administration, Policy monitoring and evaluation, citizen and administration, better coordination techniques and last but not the least to make administration efficient and effective as a whole. 

A study by IIPA pointed out that Women Panchayat's are more likely to focus on soft issues like education, health, sanitation, behaviour change etc. While Men Panchayat's go for infrastructure related developments.

This brings out the fact that in an organisation there is always gender around (a statement of Gouldner on this topic was asked last year in mains). Thus organisations need to be designed while keeping gender in perspective. 

We can also relate it with Feminist perspective of development administration and also to how we might need different motivators in a scenario in which women participation is increasing drastically in all organisations.

Once we know what drives women/men we can use our human resources efficiently.

Discussion : Interesting One liners for Public Administration

'Conflict is inevitable but combat is optional' — Max Lucade

'As permanent as a government job' - Arundhati Roy

Class : Introduction : Dichotomy Models

 DICHOTOMY Models

DELMER DUNN and JEROME LEGGE
Classified Dichotomy into three parts or models--
1) Orthodox dichotomy model
2) Modified Dichotomy Model 
3) Partnership Model

ORTHODOX DICHOTOMY MODEL 

-Wilson and Goodnow earliest propounders 
-"administrative questions are not political questions" -- Wilson 
-" administration has only to do with execution of the political will" -- Goodnow

The arguments on dichotomy in the orthodox era revolved around the logic of --
-Political neutrality 
-Specialised functioning in the specific sphere
-Capability of the knowledgeable elite to play a role in public service 
-Making way for scientific efficiency 

This model was challenged for the first tym in a major way by F M Marx in 1946 in his book "Elements of Public Administration"
He quote, " apparently neutral administrative decesions are often laden with political preferences"

1950s J M Gaus completely denied the orthodox dichotomy model.
"a theory of administration in our times is also a theory of politics"

MODIFIED DICHOTOMY APPROACH 

Many thinkers have recommended flexibility in appreciating the dichotomy theory. Infact Goodnow himself did not propose a rigid dichotomy. 
In his book he observed "the actual political necessity requires that there shall be harmony between expression of state will and its implementation "

To attain this harmony independence of either politics or administration has to be sacrificed. 

Goodnow also argued that there shud be some political control over administration. For example the budget sanctioned for a particular programme can be curtailed at political will.

The most prominent explanation of modified dichotomy has come from MONTJOY N WATSON who interpreted dichotomy as 'professional standard' ie they argued that the eventual test of dichotomy li

PARTNERSHIP MODEL

The ultimate governing yardstick for deciding the extent of dichotomy is the yardstick of publicness. 

To illustrate --
If the civil servants overlap in the policy making role and this overlap is conducive for enhancement of public interest then such an overlap is welcomed. On the contrary if this overlap is in the nature of self-aggrandizement then such encroachment must be stopped. In other words in the name of dichotomy dilution the civil servants shud not be allowed to usurp the rightful policy making discretion belonging to the political executive. 

Similarly if the political executive overlaps in the implementation function with a view to improve the implementation such overlap shud be welcomed. Because it enhances the publicness. However if the overlap is politically motivated and seeks to favour certain favourites or vote banks then it must be stopped.

Dimock n Dimock 
"no administrator can sit quietly outside the ring and watch the pulling n hauling, rather he must become kind of a ringmaster and the strategist combined into one who must not only direct his programme but also try to win support for his programme from the political executive or the legislature "