TERMS Privatization Contracting- out Governance
Mar 26, 2015
TERMSPrivatizationContracting-outGovernance
LEFT, LIBERAL AND RIGHT
Strong government: Policy focus
Weak government:Less governmentInstitutional focus
WHAT’S AN INSTITUTION? Rules by which we govern
ourselves Means of enforcing them Examples: Parliament, the
courts, city council, mayoralty But also: Rule of law, civil
liberties, one-person-one-vote
PUBLIC CHOICE
Anything the market can do, it can do better
Why?ChoiceCompetition
Exception: externalities
REINVENT GOVERNMENTPrivatize if possibleSteer, don’t row
Put jobs out to tender
Competition within government
SUMMARY: DON’T LOOK TO GOVERNMENT
Strengthen private enterprise
Enhance individual choice Solve our own problems,
or Initiate community action
AGREEMENT & DISAGREEMENT WITHIN THE RIGHT WING
Social welfare measuresCommon ground. Local
government should stick to: Hard services Support for economic development Fiscal prudence Public order
WINNIPEG EXAMPLESGarbage collectionCharleswood
BridgeWater park
MORE THEORY Small, specialized units of government
Weak government More representative Competition within government
Two ways to be small Small jurisdictions Fragmentation
STILL MORE THEORY
Different kinds and levels of services: Choice
Voting with your feet
CRITIQUECheap labourCollusion in bidding
Danger in garbage contracts?Mobility is for privileged peopleFlim-flam: Taking a ride on
business prestige Charleswood Bridge?
WHAT’S GOOD ABOUT PUBLIC CHOICE?Department-by-department
accountingContracting some jobs out, with
departments allowed to bid, provided good wages are ensuredRequire unionized workforceLiving wage provisions
RIGHT WING CONSTITUENCY
Supporters of economic growth, including Business people Homeowners Anyone who considers business people good
managers
Varieties of conservatives Boosters Fiscal conservatives
RIGHT WING ISSUESEconomic developmentInfrastructure developmentPublic orderKeep public expenditures and
taxes downResisting public sector unions