30152 PUBLIC MANAGEMENT: 1st partial summary, Appunti di Management Pubblico

Scarica 30152 PUBLIC MANAGEMENT: 1st partial summary e più Appunti in PDF di Management Pubblico solo su Docsity! 1 Public Management – 1st partial Introduction, Government and Governance Government Levels of government Functions and instruments of government According to the World Bank, the public sector (government) performs a variety of functions… 1. Providing economic infrastructure à institutions and rules necessary to satisfy the modern capitalist system 2. Provision of collective goods and services à some goods are difficult to pay for according to the amount of good used (defense, roads, bridges…) 3. Resolution or adjustment of group conflicts à for example protect the economically weak against the economically strong 4. Maintenance of competition à avoid cartels, price-fixing… 5. Protection of natural resources 6. Minimum access by individuals to goods and services à the market alone would sometimes prevent people from accessing to basic services necessary to survive 7. Stabilization of the economy à help the economy with fluctuations in the business cycle 8. Fostering new industry à sometimes the public sector is more innovative than the private sector …and it does so through different instruments: 1. Provision à Government provides goods or services through its budget (taxes), and it redistributes money from one class of taxpayer to another 2. Subsidies à Government assists companies to provide government-required goods or services, so that the government is mainly involved in monitoring these companies 3. Production à Government produces goods and services for sale in the market through a public enterprise; the use of this instrument has declined with the privatization of public enterprises 4. Regulation à Using the coercive powers of the state to allow or prohibit certain activities in the private economy; it is the most used instrument in OECD countries How should a government be managed? Each model has its way of organizing government's authority (=superstructure), and the activities of its agencies (=microstructure). • The Government-as-Machine Model à Government is viewed as a machine dominated by rules, regulations, and standards of all kinds. Although this model gained popularity earlier in this century, it lacked flexibility and responsiveness to individual initiatives. • The Government-as-Network Model à It suggests government as an intertwined system, a complex network of temporary relationships fashioned to work out problems as they arise and linked by informal channels of communication. • The Performance-Control Model à This model assumes that the overall organization consists of business units, which are assigned performance targets for which their managers are held accountable. • The Virtual-Government Model à to overcome the limitations of machine model and provide better services to the people, virtual government model intends to privatize, contract, and negotiate. The microstructures would no longer exist within government rather all that kind of work would take place in the private sector. • The Normative-Control Model à Compared to other models, this model is more values and norms oriented rather than structure and systems. This model has five important elements such as: 1. Selection: people are chosen by values and attitudes rather than just credentials 2. Socialization: this element ensures a membership dedicated to an integrated social system 3. Guidance: guidance is by accepted principles rather than by imposed plans, by visions rather than by targets 4. Responsibility: all members share responsibility 5. Judgment: performance is judged by experienced people, including recipients of the service, some of whom sit on representative oversight boards. Global level (E.g., UN) Supra-national Level (E.g., EU) National Level (Election-driven, ‘country competitiveness’) Regional Level (High cross-country variance) Local Level (Stances on local issues) 2 Public and private Market failure Governments should intervene in the economy in case of a market failure, if governments would do a better job in those particular circumstances. There are several kinds of market failures: 1. Public goods o Public goods = non-excludable goods, so that if they are provided to one, the good is available for everyone o Private goods = they are enjoyed by whoever paid for them, and other potential users can be excluded o Merit goods = socially desirable goods that markets may not provide optimally (healthcare, education) o Demerit goods = goods whose consumption has negative effects for society (tobacco, alcohol) 2. Externalities à market effects on third parties 3. Natural monopoly 4. Asymmetric information à the government force information to be provided so that markets function better (consumer protection, packaging information…) Public and private: are they different? BUSINESS GOVERNMENT Arbitrary and voluntary Coercive and compulsory Accountable to shareholders Accountable to politicians, parliaments, citizens, businesses… Managers are responsible for performance There is not a single responsible for performance Profit making following market processes Public, political decision making Performance can be evaluated by objective measures Lack of a suitable output measurement (some activities are in the public sector precisely because of measurement problems) Activities can be isolated Activities are interconnected and cannot be isolated Customers Customer or client, citizen, subject However, it is important to go beyond ‘public and private’ by mapping the variety of ‘actors in between’, such as social movements, NGOs, cooperatives, unions, industry associations, and PPPs (Public Private Partnerships). The extent of government in the economy The extent of government in the economy has divided the Right and the Left • 1970s à Shift from a hierarchical to a more cooperative form of government due to the failure of ambitious reform policies that had been pursued after the end of the Second World War and the immediate post-war reconstruction period (*) • 1980-90 à Reagan and Thatcher governments wanted to reduce the extent of the government in the economy through deregulation and privatization (from the state to the market) • 1989 à The break-down of state socialism in Eastern Europe strengthened the belief in market’s superiority • 2000 à The New York terrorist attack, the WorldCom and Enron failures, and the global financial crisis showed that there was the necessity of government in the economy • 2009 à “Tea Party” asked the reduction of taxes through the reduction of government spending Governance Governance approach to government (*) We have witnessed a shift from traditional government (relying on coercive powers) to governance. Governance refers to a non-coercive and nonhierarchical way of governing where private actors (for profit and nonprofit) participate to the formulation and implementation of public policy. It is based on more participation from other stakeholders (citizens, businesses, NGOs, media…) where collective problems can no longer be solved only by public authorities. Governance includes both formal (law) and informal rules (codes of conduct, self-regulation). Prerequisite of governance • Political authorities must be powerful, but not omnipotent • There must be a strong, functionally differentiated, and well-organized civil society, which is a community of citizens who enjoy legal equality and a set of fundamental rights, and whose freedom to pursue their private goals is only restricted by the same right of others and by the duties to the res publica that come with citizenship • There must be corporate actors that represent different functional as well as different socio-economic interests • There must exist among the different social groups and organizations a minimal sense of common identity 5 Lobbying and Nonmarket strategy Lobbying Legitimate exercise of an individual’s or a corporation’s right to petition the government for the passage or defeat of legislation, or of other proposed government actions. • Direct lobbying o Official testimonies at hearings o Private meetings with key stakeholders o Development and circulation to decision-makers of documents, reports, analyses and position papers • Indirect lobbying o Accessing allies o Gathering evidence o Organizing constituents o Working with the media Nonmarket strategy A nonmarket includes all relationships that do not unfold within markets yet nevertheless affect the company’s ability to reach its business objective. Nonmarket strategy recognizes that businesses are social and political beings, not just economic agents. CEOs need to make the jump from thinking about isolated nonbusiness issues and recognize that, together, they form the nonmarket environment of the company. MARKET NONMARKET Money They are an exchange medium Information Superior information about policy alternatives and their costs and benefits, preferences of key players and the functioning of a particular policy process are the keys to success; money can also become an obstacle. Leadership Coalitions Nonmarket has competition, but having allies is the key. Flexibility Rapid responses to market trends are essential. Consistency Even if citizens want companies to contribute more to social and environmental ends, when they do, the public is often skeptical of underlying intentions. Since intentions cannot be seen, consistency is essential. Predictability There is a cause-and-effect relationships. Uncertainty Value Creating value for customers, owners, but also society. Values Creating Nonmarket Strategies: Bach and Allen’s (IA)3-Framework Depending on how the company competes in the market, its plan for creating value, certain nonmarket issues will matter, and others will not. • What is the issue? à A firm’s nonmarket environment is organized around issues. A business should take a position on an issue if the issue’s resolution could significantly affect the firm’s ability to create value. • Who are the actors? à Identifying the actors who care about the issue, which are generally those with an economic or ideological stake in the issue. In politics, what matters most is organization (i.e., organized groups). • What are the actors’ interests? à What do they hope to achieve and how critical is this issue for them? How ‘homogenous’ is the position of a particular actor? Do all members feel the same way about the issue? • In what arena do the actors meet? • What information will move the issue in this arena? à The kind of information that can influence the resolution of an issue varies across arenas • What assets do the actors need to prevail in this arena? à In addition to information, other assets matter as well. A company’s reputation and its perceived trustworthiness are essential if it wants to influence an issue in the public domain. 6 Globalization and non-market strategy Investment in nonmarket strategy is being driven by four factors, all of which are tied to globalization: • Multiple audiences à Many companies now source from or sell to countries around the world and must therefore navigate simultaneously many distinct nonmarket environments that are often characterized by conflicting social and political values. • The globalization of NGOs à NGOs and activists became global, and these nonmarket actors often use modern communication technologies. • New regulatory difficulties à Countries around the world have opened up industries, but at the same time governments have created new regulatory agencies for these sectors. Moreover, newly adopted regulations are often different across markets. • Competition à Globalization has made market competition tougher. Building lasting competitive advantage in the market has become harder, and companies need to look beyond the market to gain an edge. Public Private Partnership (PPP) PPPs are arrangements whereby private parties participate in, or provide support for, the provision of infrastructure, and a PPP project results in a contract for a private entity to deliver public infrastructure-based services. The public sector does not buy an asset, but it purchases a stream of services under specified terms and conditions. PPPs involve many different professional services and pose risks that range from construction to financial ones. The mechanics of the arrangements can take many forms and may incorporate some or all the following features: • The public sector entity transfers land, property or facilities controlled by it to the private sector entity (with or without payment in return) usually for the term of the arrangement. • The private sector entity builds, extends or renovates a facility. • The public sector entity specifies the operating services of the facility. • Services are provided by the private sector entity using the facility for a defined period of time (usually with restrictions on operations standards and pricing); and • The private sector entity agrees to transfer the facility to the public sector (with or without payment) at the end of the arrangement. What are the reasons behind the recourse to PPPs? • In view of the budget constraints, it meets a need for private funding for the public sector. • The desire to benefit more from the know-how and working methods of the private sector. • Part of the changing role of the State in the economy, moving from a role of direct operator (rowing) to one of organizer, regulator and controller (steering) connected to the shift from government to governance. The basic elements of a PPP • The public sector defines the services it requires over a long-term period (typically 15–30 years) by reference to an output specification and closely specified performance criteria, without being too prescriptive about the means of delivery. • No payments are made until the asset is delivered and working, and subsequent payments are subject to reduction if service performance standards are not met. • Design risk is left to the private sector and the assets are effectively owned and operated by the private sector. • The public sector provides no funding during the construction phase, and the risk of cost overruns, delays, etc. rests with the private sector. • The public sector has to devolve control to the private sector over the assets and resources needed to deliver the service to such an extent that the private sector bears the risks and receives the rewards of effective ownership. Policy vs project level partnerships Policy level partnerships coordinate public sector and private sector inputs into decision-making about the design and formulation of policy initiatives. Project level partnerships, by contrast, focus on specific sites or situations, such as the development of a new urban transit terminal, with the aim of drawing private capital and management into the project. 7 General characteristics of PPPs Some countries have a central body dealing with PPPs (e.g., the Netherlands), some do so for particular applications (e.g., the UK), while others leave it to individual states or municipalities (Australia, United States). • Participants à A PPP involves two (or more) parties, and at least one of them has to be a public body. Each, however, needs to be a principal, capable of negotiating and contracting on its own behalf. • Relationship à Partnerships need to be enduring and relational. • Resourcing à Each of the participants must bring something of value to the partnership by transferring resources (money, property, authority, reputation) to the arrangement. • Sharing à PPPs involve a sharing of responsibility and risk for outcomes in a collaborative framework. • Continuity à Its existence enables the parties involved to make decisions without having to start from scratch each time and develop from first principles the rules that govern these interactions. The basic public finance of a PPP PPPs relieve public budgets because they free up resources that can be spent on social programs and avoid financing via taxation. At the same time, PPPs are invisible financial threats since upfront savings are at the expense of lower user fee collection and the intertemporal government budget is very similar under PPP and public provision. Types of PPPs 1. BOT (Build Operate Transfer) à These are contracts where the private sector takes primary responsibility for funding (financing), designing, building and operating the project. Control and formal ownership of the project is then transferred back to the public sector. 2. BOO (Build Own Operate) àIn these arrangements, the control and the ownership of the projects remain in private hands. With a BOO project, the private sector entity finances, builds, owns and operates an infra structure facility effectively in perpetuity. 3. Leasing à Here part of the risk is transferred to the private sector. In France, most PPPs are performed under concession contracts (essentially BOT-type contracts) or affermage (lease) contracts (which cover design and building, or operation, but do not embrace project financing). 4. Joint ventures (JV) à Take place when the private and public sectors jointly finance, own and operate a facility. 5. Operations or management contracts à In these, the private sector is only partially involved, for example it provides a service or manages the operation. Service or management contracts allow the private sector to provide infrastructure-related services for specified periods of time. 6. Cooperative arrangements à Occur between governments and private entities are more informal. International Organizations and NGOs International organizations International organizations International (governmental) organizations (IGO) = organizations established by an agreement (treaty, etc.) among governments, and as a rule with governmental members only • Few exceptions: e.g., the International Labor Conference, ILO’s Assembly, includes NGOs representing workers and employers; NGOs sit in the UNAIDS Board It is possible to distinguish between: • Agencies (e.g., FAO): they have their own membership, assembly and assessed contributions • Funds and programs (e.g., WFP): they do not have their own membership, assembly and assessed contributions International governance: origins Self-interested actors in an interdependent world make choices which seem rational from a purely individualistic point of view but lead to collective outcomes that are Pareto-inferior to feasible outcomes for all members of the group (“tragedy of the commons”). The result is a failure to avoid joint losses and the inability to secure joint gains • Examples: spirals of arm races or trade wars, free riding behavior undermines efforts to produce public goods such as clean air 10 Non-Governmental Organizations (NGOs) NGOs are mostly intermediaries which connect different institutions with each other and with groups that are poor or socially excluded. Working definition of NGOs • Stable organization (stated goals, structure, selective criteria to become a member, periodic meetings, continuous activities, etc.). Pursuing a public purpose, typically aimed at tackling poverty, social injustice, exclusion and degradation of natural world. • Voluntary (membership and contribution of time and money are not legally required or compulsory). They are a private entity (don’t have political mandate nor the coercive power of government) • Not for profit (don’t have the financial strength of companies). They’re subject to non-distribution constraint (profit may be generated but not distributed, not even indirectly à no $ incentives) • NGOs’ power is based on civic engagement, social mobilization, and reliance on social capital • Organizational outputs are no real guide to achievement • The resources required for their work don’t come from those they serve, either as taxpayers or customers • NGOs work in conditions of instability, conflict, poor infrastructure, and poverty • Values count: managers must allow value-achievement among staff and volunteers • Organizational boundaries are indeterminate because manager’s span of influence goes beyond the organization’s formal limits May be operating at: o Local level (community-based organization, grassroots organization, people’s organization, etc.) o National level (countrywide) o International level (from one country towards other countries) o Global level (from many countries to many countries) e.g., OXFAM International, Human Rights Watch, Amnesty International The historical evolution of NGOs and what they do today Roots in social movements Many civil society organizations have their roots in social movements: • Movement for women’s suffrage • Anti-apartheid movement • Anti-globalization movement • Pro-life vs. pro-choice movement • Movement for gun ownership vs. gun control • Gay rights movement vs. “religious rights” Roots in service delivery organizations Other NGOs were created thanks to the democratic openings of the post-Cold War world, the popularity of non- state actors with donors, and rising discontent with conventional politics. They were created to carry out activities and functions previously developed by public authorities, churches or companies: • NGOs that provide technical assistance • Many NGOs still rely on financial resources provided by governments, churches and businesses 11 Range of NGO activities • Advocacy (e.g., Amnesty International) o Towards the State or some business firms or citizens o No production of services (collection of funds, donations, etc.) o Typically, associations o They address an individual need or the needs of a group • Direct production of public or merit goods (e.g., Red Cross, Food Angels) o They satisfy a collective need by producing services that are not provided by the public nor by the private sector Challenges for NGO Management 1. The goal is social change Firms produce goods to make profits in the marketplace, and governments perform and communicate to be re- elected. NGOs must achieve elements of both these set of goals (efficiency, effectiveness and public support) and use them to transform the worlds of economics, politics, and social relationships. 2. The nature of incentives As a result of their values base and mission for social change, staff in NGOs are unlikely to respond effectively to conventional command-and-control management hierarchies or incentives based on material rewards. Instead, personal commitment and satisfaction and a shared ideology are more important incentives to performance. 3. Participation and empowerment Managers must allow empowerment of staff to give everyone a say in matters that affect them. This is especially true since there are different types of workers (employees, volunteers, external consultants) that must be integrated. However, this should not impede decision-making creating ‘participation paralysis’, introducing tensions that impede responsiveness and flexibility. 4. Multiple accountabilities and shifting relationships NGOs work in situations where attribution and causality are much more complex and dynamic. 5. Diverse and unpredictable funding sources Sources of funds are volatile, so it is hard to preserve identity and continuity in core programs when income is difficult to predict. There is the risk of mission creep, co-optation, or compromise in values. Managers must keep overheads low while preserving quality, manage phases of expansion and retrenchment to take advantage of fund-raising opportunities without overexposing the organization, and forge team composed of permanent staff, short-term assignments and consultants. 6. NGOs as ‘connectors’ NGOs should develop strong link with the media, the public, churches, labor unions, and NGOs in other movements. This requires human and organizational flexibility and responsiveness. 12 Advocacy, campaigning, and fundraising for public and NGOs Public sector campaigns Public Communication Campaigns Public communication campaigns are an attempt to shape behavior toward desirable social outcomes. Those behaviors might include eating right, drinking less, recycling, getting a mammography, voting, or volunteering. The outcomes of those behaviors may include healthier individuals, families, and communities or specific policy results that lead to better outcomes for individuals, families, or communities. Public communication campaigns use the media, messaging, and an organized set of communication activities to generate specific outcomes in a large number of individuals. However, public communication campaigns do not feature only communications through media channels. They also use other communication channels, some interpersonal and some community-based, to extend the reach and frequency of the campaign’s messages and increase the probability that messages will successfully result in a change. This mix of communication channels is called the “air” (= public media campaign) and “ground” strategies (= community-based communications or grassroots organizing). An example of a ground strategy comes from the Centers for Disease Control’s (CDC) AIDS Community Demonstration Projects. Faced with the challenge of reducing the risk of HIV transmission among ethnically diverse, hard-to-reach, and high-risk populations, this campaign used volunteer networks of peers from the target audiences to relay its messages and small media materials, along with condoms and bleach use kits. A ground strategy can also involve organizing and mobilizing people for policy change that will support the campaign’s main messages. All campaigns are different and use different interventions. Two Types of Campaigns Individual Behavior Change Campaigns Also called public information or public education campaigns Public Will Campaigns Also called public engagement campaign Objective • Influence beliefs and knowledge about a behavior and its consequences • Affect attitudes in support of behavior • Affect perceived social norms about the acceptability of a behavior among one’s peers • Affect intentions to perform the behavior • Produce behavior change (if accompanied by supportive program components) • Increase visibility and importance of an issue • Affect who is seen as responsible • Increase knowledge about solutions based on who is seen as responsible • Motivate public officials to take policy action • Motivate individuals to behave in a way that creates the rationale for policy change • Affect criteria used to judge policies and policymakers Target audience Segments of the population whose behavior needs to change Segments of the general public to be mobilized and policymakers Strategies Social marketing approach, using commercial marketing techniques that focus on the “customer” The agenda-setting process of most public will campaigns include: The media partly influences the public, and the public influences the policy agenda. To arrive to the policy agenda, you can either influence what is on the media’s agenda and how issues get reported (e.g., using media advocacy), or communicate to the public directly. Examples Anti-smoking, condom usage, drunk driving, seat belt usage, parenting, recycling Support for quality childcare, after school programming, health care policy Media Public Policy agenda 15 Develop your list of company targets Exclusionary Criteria An exclusionary criterion is one that automatically prevents the organization from accepting any form of support from a company, foundation or individual. These pertain to activities that present a reputational risk for the organization and for which clear thresholds can be identified and objectively measured. Example: The exclusionary criteria establish thresholds with regards to the degree of involvement in: • The manufacture or sale of weapons, including any direct or indirect involvement in the manufacture or sale of illegal or controversial weapons • The manufacture of products that are widely recognized as deleterious to health • Socially sensitive industries, including gambling and pornography • International crimes: this encompasses international crimes as defined in treaty and customary law, which include serious violations of International Human Rights Law (IHRL), such as crimes against humanity, genocide, torture, piracy, transnational organized crime, human trafficking, financing of terrorism, amongst others Cautionary Criteria Require a particularly careful assessment of the partner’s fit with the organization mission. Corporate partners are screened on a one-by-one basis. Example: The cautionary criteria cover where a company: • Has been involved in past controversies • Is potentially exposed to future controversies • Does not respect internationally recognized human rights and fundamental labor standards • Does not respect materially the local or national laws and regulations of the countries where it operates • Through its business practices, materially contributes to armed conflicts or natural disasters Moreover, consider these criteria: • Similar targets à Look for companies targeting the same "market" as your campaign. • Growth à Consider companies that are expanding their markets • Track record à Identify companies that have a pattern of being socially responsible. • Competition à Your campaign might help a company differentiate a product or service that is facing stiff competition. • Association à Go to your public relations and accounting firms and see if they will open doors with any of their business clients. Recruit a company To recruit a company, you will want to secure a meeting with the CEO or another top decision maker in a company. Having a board member present for the first meeting proved vital for attracting companies that had no prior relationship with the NGO. Involving the Public Sector As with companies, the public sector can provide you with vehicles and opportunities to reach hundreds of people. Government units also can directly support your campaign by making donations of cash or in-kind contributions and hosting promotional events. Each NGO needs to consider, given its political climate, whether and how best to involve public sector units and officials. 16 MANAGING AN EMPLOYEE CAMPAIGN We now focus on the elements and steps needed to conduct a successful campaign inside the companies that have agreed to promote the campaign among their employees. This type of partnership offers employee experience opportunities to complement corporate values, advance aspirations, and ultimately, achieve maximum impact for children through pro-bono work, corporate volunteering, employee giving, fundraising events, field visits, and other creative initiatives. The success of a company-based campaign will depend greatly on whether or not the company communicates its commitment to its employees. Collecting contributions Collecting from employees • Collect donations during a particular week or day or give employees a wider time frame in which to donate. • Collect through payroll deduction àconvenient for issuing receipts if local tax laws allow for charitable deductions Collecting from individuals • Collection boxes at schools, restaurants, banks, and other locations • Collection envelopes on airline flights and at events • Charges against their credit cards or telephone bills REPORTING CAMPAIGN RESULTS AND LOOKING TO THE FUTURE Acknowledge and Thank • Depending on who you wish to acknowledge you may do it individually or collectively. • The message should reflect the audience. • Company presidents probably will expect a personalized form of acknowledgement and some form of public recognition. You might send them a personalized letter of thanks or pay the company a visit. Report on How Funds Were Spent You are accountable to your donors. You should report to them what you have done and how lives were improved with their money, so they will feel comfortable enough to support you again. Leverage Results Once you have created a strong identity for the campaign, you may decide to repeat it for several more years or make it an annual event. Even if you do not repeat the campaign, you want the benefits to be long lasting. You can achieve longer-term benefits if you consciously build on the relationships, good feelings, and partnerships created as a result of the campaign.