Transcript Public Policy

A Mixed Economy?
• Clearly since WWII, the state took control of the
economy—nationalization of companies for both
security and economic reasons (coal, electricity,
gas, transport, iron, steel, communications,
broadcasting)
• Keynesian rationale (state intervention to
guarantee the demand and a virtuous economic
cycle)
– Accounted for 10% of the GDP in 1979
Margareth Thatcher—privatizations (reduction to the 6%
of the GDP & 750,000 workers fired)
-Rationale (Hayek & Friedman): expenditure generates
inflation—Restriction of the money supply and antiinflationary
(measureshttp://www.pbs.org/wgbh/commandingheights
/shared/video/real/mini_p01_13_220.html)
The British Welfare State
• Comprehensive Welfare State
(Health, education, social services).
• “From craddle to grave”
• The 1942 Beveridge Report
• Reduced by the Conservatives
(Thatcher, Major) and Tony Blair’s
“New Labour”
Education System
Free compulsory education for children 5 to 16.
Regional Differences
Schools: Public – Private – Private with state subsidies
Four Levels:
•
Nursery (3-4)
•
Primary (5-11)
•
Secondary (11-18)
•
Post-Secondary Education (college and university)
Central Gvt (legislative framework) (increasing power since the 1980s,
introducing a shift towards the market)
Local Gvt. (structure and organization)
9 geographic areas (divided into districts, each one in charge of a
different inspector)
Funding: Central govt (80%). The rest is provided by local gvts, private
foundations, and parents.
Education System
• Early 19th century: the church
• 1856 creation of the State education department
• 1870 First Education Act (state funding for primary
education)/School boards with power to collect taxes/Fees
• 1902 Education Act: creation of LEAs (Local Education
Authorities) with responsibility for education and power to
subsidize private (churches) schools
• 1918 Fisher Act (standards for elementary schools)
• The 1942 Beveridge Report (warned against the “giant” of
ignorance). The Labour Party proposed state universal
provision of education.The Conservatives emphasized on
individual freedom to choose in matter of education.
• 1944 Butler Act: Universal education system aiming to
incorporate the children of the working class. Creation of the
Ministry of Education (control), abolition of all old elementary
schools, provision of free and compulsory education until age
15 (extended until age 16 in 1973). Grammar, technical, and
secondary schools (class biased placement)
• 1970s Comprehensive schools
Education From Thatcher to Blair
• -1970 Margaret Thatcher, minister of education.
• 1978 Legislation introduced parental intervention in governing and
controlling schools and in school selection.
• 1981 Thatcher’s minister of education Keith Joseph proposed cuts in
education
•
(Pilot plan for a national voucher system). Schools had to
compete for “clients.”
•
Weakening of LEAs and introduction of LMS (Local
Management of Schools) to make schools responsive to consumer
needs—Similar policy followed with secondary schools and colleges.
•
Introduction of tests at 6, 11, 14, and 16 to guarantee national
standards
• 1990s Extension of the reach of the market into education—League
tables of performance of primary schools, introduction of a voucher
system for nursery places.
• 1997 “New” Labour party’s policies continued the Conservatives’.
Blair’s “Zero Tolerance” to school underperformance.
• Introduction of fees at universities and abolition of grants provided by
LEAs (now loans)
British Public Health
• Universal Access to Health Care for all citizens
• 80% paid through general taxation (plus
individuals’ regular contributions plus copayments)
• NHS, internal market made up of purchasers and
providers. State central control
• DHAs buy services from public, private, or semiprivate providers
• 2002 Integrated care, groups practitioners in local
community groups
• Health gap (mostly geographical)
British Public Health
• The Poor Laws (workhouses/poorhouses)
• 1911 National Health Insurance (all manual workers
over 16 earning small salaries). Weekly payment
• Until 1948, administered through voluntary
associations and a few public facilities (medicine was
mostly private)
• WWII and post-War: expansion of the system
• 1942 Beveridge Report: recommended the creation of a
comprehensive national health system
• 1946 National Health Service Act (NHS): nationalization
of all hospitals, creation of health centers,
redistribution of physicians across the country,
teaching facilities, physicians could have private
practice. Funded through taxes.
British Public Health
• 1974 Attempt to integrate the national with the
regional with the local levels. Creation of Regional
Health Authorities (RHA) and District Health
Authorities (DHA)
• 1980 NHS becomes more autonomous and
specialized. More power for RHAs
• 1982 Elimination of RHAs. DHAs become fully
responsible for the administration of health
• 1979 Margareth Thatcher (inspired by Milton Friedman
and von Hayek) believed that privatization would
improve the performance of the system
– 1983 Griffith Report, recommended to move to an
insurance-based health system. Did not work
Health: The 1990s and New Labour
• 1989 the NHS in crisis
• 1990 National Health Service and
Community Act (encourages competition
within the health industry)
• Since 1997 New Labour has maintained
the system
• 1990s—the State imposed a Market into
the state-administered system
British Public Health
• The Poor Laws (workhouses/poorhouses)
• 1911 National Health Insurance (all manual workers
over 16 earning small salaries). Weekly payment
• Until 1948, administered through voluntary
associations and a few public facilities (medicine was
mostly private)
• WWII and post-War: expansion of the system
• 1942 Beveridge Report: recommended the creation of a
comprehensive national health system
• 1946 National Health Service Act (NHS): nationalization
of all hospitals, creation of health centers,
redistribution of physicians across the country,
teaching facilities, physicians could have private
practice. Funded through taxes.
British Public Health
• 1974 Attempt to integrate the national with the
regional with the local levels. Creation of Regional
Health Authorities (RHA) and District Health
Authorities (DHA)
• 1980 NHS become more autonomous and specialized.
More power for RHAs
• 1982 Elimination of RHAs. DHAs become fully
responsible for the administration of health
• 1979 Margareth Thatcher (inspired by Milton Friedman
and von Hayek) believed that privatization would
improve the performance of the system
– 1983 Griffith Report, recommended to move to an
insurance-based health system. Did not work
The Health System
• Universal Access to Health Care for all citizens
• 80% paid through general taxation (plus
individuals’ regular contributions and copayments)
• NHS, internal market made up of purchasers and
providers. State central control
• DHAs buy services from public, private, or semiprivate providers
• 2002 Integrated care, groups practitioners in local
community groups
• Health gap (mostly geographical)
Health: The 1990s and New Labour
• 1989 the NHS in crisis
• 1990 National Health Service and
Community Act (encourages competition
within the health industry)
• Since 1997 New Labour has maintained
the system
• 1990s—the State imposed a Market into
the state-administered system
Social Security
• National Insurance Plan (contributions of
employers and workers with Gvt. Support,
10%)
• Largest area of Gvt. Spending
• Covers unemployment (1 year), sickness,
maternity, retirement, work accidents, and
death. Also child allowances, school
meals, housing subsidies, widower
support.
• Social security spending = 9% GNP
• Great Britain evolved from a monarchy to a
parliament dominated by an oligarchic elite
to a democracy.
• Impressive stability (geography? political
culture? ability to accommodate change?)
• Which kind of explanations does Lane’s
book provide us with? Which one do you
find more convincing?