Transcript Structural Adjustment, Policy and Administrative Reforms

Structural Adjustment and Public
Private Partnerships
The Impact of
International
Reforms on
Domestic Policies
Overview of the Discussion

International: Structural Adjustment
in Practice- From Normative to
Empirical Challenge

Domestic: Public Private Partnerships
in Pittsburgh and the World
Limited Government Assumptions
and Administrative Reforms
 The
Reagan
Revolution
and the New
Orthodoxy
Reminder: The Source of the
Reforms and the Bitterness

Reagan and Thatcher

Neo-Orthodoxy

1983-1991- End of Cold War
and Dismantling of the Soviet
Union
Leftist Slogan- 1975
“Maggie
Thatcher
Milk
Snatcher”
Thatcher had
served as Minister
of Education in
Tory Government
and tried to end
school lunches.
U.S. Reforms

Attack on Keynesian Economics

Rejection of Regulation, Fiscal Policy
and Wage and Price Controls

U.S. Focus on Monetary Policy

Need for Budget Reduction (no
deficit), and Balanced Budgets
Monetary Policy
Control the Flow
of Money into
The economy
(Interest Rates,
Production of
Money, and
regulation of
Reserves for
Loans)
International Policy
Reform: Review
The Current State of Management of
Policy Reform and Structural
Adjustment
a. IMF stabilization and trade
liberalization
b. Currency reform, auctions- end
of subsidies (end urban privileges)
Two Icons of NeoOrthodoxy

IMF

Milton Friedman
Policy Reforms
c. Market prices for agriculture and
industrial goods
d. Deregulate the economy
e. Most Importantly: Free Trade
f. Administrative Reform:
Privatization
Internationally: Privatization Redux
Key:
ConditionalityPrivatization
of the
economy
Bridging and
sectoral loans and
grants (THE
CARROT)
The major source of
international
involvementConditioned on
privatization
Privatization
"Privatization
fights laziness,
privatization fights
poverty,
privatization fights
smuggling, and
privatization fights
unemployment.“
(Swahili)
Policy Reform-Conditionality
Conditionality- World Bank and
UNDP and the "Management"
Team of Resident Ambassadors
SAPs- Focus on Policy and
Administrative Reforms in return
for loan restructuring and
foreign aid
Administrative Reforms

Stabilization and Conditionality
Requirements

Public Sector Reform Targets
World Bank Targets
Administrative Reforms
Reform of the bureaucracy
a. The problem: Need for skills
b. Individual international
Consultants and Contractors work
with investments and the
service/commercial sector
Structural Adjustment Principles and
Conditionality
Structural Adjustment
Problem of debt: Considered a Third
World Problem not a Problem for
Developed Countries
Jamaica- #1 (Signed in 1977)
Impact: Donor monies drive the
system in the degenerated state
Structural Adjustment
Second World as new debtors- Chad
vs. Russia
a. Transitional States-Hungary vs.
Mongolia
b. Rise of Asia and trade blocks
c. Crisis in Asia and their return to
debt management
SAPs and Russian Oligarchy
Policy Reforms- Issues
1.
Controversy: The receivership
committee- The UN Resident Rep.,
theWorld Bank Representative and
the IMF delegate plus resident
ambassador committee
2.
Structural Adjustment State looks
like colonial antecedents.
3.
Mildly Opposing views of many
UNDP Representatives (The role of
the Resident and Country Plans)
The Other World View of SAPS
U.S. (Domestic Policy in the
1990s): David Osborne and an
alternative to Privatization
Reforms (according to
Osborne)
1. Strategic Planning and
Management (not incrementalism)
2. Deregulation
3. Performance Management
4. Merit Recruitment
5. Decentralization and Development
of Local Government
Administrative Reforms
5. End of Corruption
6. “Reinventing Government”- end
to hierarchy and intra-governmental
competition
7. Rewards based on Performance
8. Intra-governmental Competition
U.S. Reforms: From Reinventing Government to PublicPrivate Partnerships
NGOs, Business and a
streamlined state
Beyond Privatization
Public
Private
Partnerships
The Rhetoric
Public Private Partnerships: Domestic
and International Contexts
Defined: Partnerships (formal or
informal) between:
Non-Governmental Organizations
(NGOs), or Non-Profits
 Community Based Organizations
(CBOs),
 Governments,
 Donors (International and
Private),
 Private- Business Sector.

Public Private Partnerships:
Origins
a. Domestic Urban Coalitions- Coming
out of Great Society
b. International Donors- Way of
Dealing with Umbrella Grants and
implementation of development
policies
c. Accepting government or donor
money means accepting donor
principles
The 1964 Great Society
Speech
Public Private Partnerships
Public Private Relationships is a concept that
grew out of efforts to “downsize” the role of
government.
They refer to relationships between the
public sector, nonprofit and nongovernmental
sector, and the private sector.
PPPs have also be referred to as: Privatizing
Government, Outsourcing, and Devolving
Government. The most obvious outcome of
PPP movement has the growth in the number
of nonprofit/nongovernmental organizations
that provide a wide range of public services.
Public Private Partnerships:
The Use of Grants
The idea is that by drawing upon the nonpoliticized interests of the nonprofit/
nongovernmental sector and the expertise
and acumen of the private sector, public
services can be provided more costeffectively and efficiently and thus create
better public value for taxpayers.
Thus the desire to create better public value
is the primary objective behind the PPP
movement. The PPP movement joins
together public management, the political
neutrality of nonprofit/nongovernmental
organizations and the ingenuity of free
market forces.
What?
Public Private Partnerships
The underlying rationale for Public
Private Partnerships is the belief that
1. The nonprofit/nongovernmental
sector is closer to the community and
has a better sense of the needs of the
community and thus can more costeffectively apply resources and
2) The private sector is more efficient
at responding to market forces
because of private investment and
than large public bureaucracies.
The Model
Public Private Partnerships
Building PPPs brings the public, the
nonprofit and non-governmental and
the private sector together for a
common purpose.
PPPs involve a set of elements of
political good will management:
Public Private Partnerships
1) building a climate of tolerance, active
support or ongoing operational assistance
for
2) a policy or overall strategy to achieve
specific objectives among those outside
the scope of those who have direct
authority over the domain
3) but whose operational assistance is
necessary to achieve the objective. Not
Competitive at this stage
Public Private
Partnerships
4. Comes out of Domestic Non-Profits
and Block Grants
5. Internationally Moving Beyond
Structural Adjustment and Policy
Reform?
f. Seen by some as an alternative to
Contracting Out- Others as part of it
g. Critics see it as detrimental to a
market approach to economic change
Understanding the Public Sector of
Allegheny County
Allegheny County is made up of 130 townships and
boroughs. Each of these has its own public manager
and council. The city of Pittsburgh is part of this
mix of local government.
Operating Budget for the County for 2003 is $654
million. This budget provides for such services as:
Children and Youth Services
Jail/County Police
Port Authority
District attorney
coroner
Demographics of Allegheny County

Total population 1,281,666

84% White

12% African American

1.7% Asian

1% Hispanic

1/10 of 1% Native American

18% 65+

6% under 5 years old
Public Private Partnerships

Characteristicsa. Targeted at the expansion of Social
Capital and Synergy in the promotion of
Economic and Social Development
b. Seeks a holistic or Integrated Approach
to Economic and Social Development
c. Involves informal processes, cultural
sensitivities as well as legal norms and
contracting principles.
Human Resources Development
Commission, Allegany County
Maryland
Public Private
Partnerships (PPPs)

PPP Supporting Factors in the Domestic and
International Context
1. Democratic Governance- private sector
and NGOs seen as legitimate actors;
transparency, accountability and
responsiveness
2. Rational Government- Merit Principles,
anti-corruption environment, acceptance of
non-state actors as service deliverers.
3. Use of Contracting Out and Controlled
Sub-Grants
Public Private PartnershipsFactors
Factors that Support PPPs
3. Decentralization- Subsidiarity:
Governance devolved to the lowest
levels capable of implementation
and contracting out
4. Legal Frameworks- Acceptance
of Contractual Agreement as the
basic organizational relationship
Public Private PartnershipsFactors
5. Institutional Norms,
Organizational Capacity and
regularized principles of interorganizational interaction.
Requires high levels of capacity
building
6. Social and Economic Stability
7. Organizational flexibility across
all sectors
Public Private
Partnerships- Factors
8. Social and Institutional
Pluralism- win-win rather than
zero sum game across social,
ethnic, religious and racial groups
9. Social Networks exist at Grass
roots, and intermediate as well as
higher levels of government-See
diagram
Reference:
Jennifer M. Brinkerhoff,
Partnership for International Development:
Rhetoric or Results (Boulder, Co.: Lynne Rienner
Publishers, 2002)
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