Lectures 1-6: Political Governance (Steering), Governance Theory, Governance Systems, Normative Model and Outcome-Oriented Control

Question 1

What is Political Governance? (also be called political steering => creates the basis for government)

Answer 1

Steering actions of political authorities to influence socio-economic structures and processes. (Mayntz)

Question 2

Development through history of governance

Answer 2

From Politeia (old Greek city-states, rights of citizens),

• Empire (Leviathan, protect citizens in exchange of loyalty),
• Prussian Constitutionalism (limited political power, Kafka & Weber), -

the Planning State (Communist, rational politicians solving problems efficiently),

• the Cooperative State
• the (Enabling and) Guarantor State.

Question 3

Dimensions of Political Governance

Answer 3

1) Integrating mechanisms => Coordinates functionally different social systems (Willke)
2) Set of measures => Achieve an objective (Mayntz)

Question 4

Political Steering

Answer 4

Obtain an intentional, target-oriented goal. There can however be resistance and other influences (not causally determined).

Question 5

Steering ability (functions) of the state

Answer 5

Functions of orientation (create guidelines), organization (supply activities/ public goods), mediation (between interest groups) and last decision.

Question 6

Conditions on the steering ability of states

Answer 6

• Specific policy field and its governability
• Specific institutional conditions
• Capacity for strategy formulation (preferences of state/ institutions)
• Applied instruments (force, regulation, monopoly, information, cooperation etc.) => Enforceability

Question 7

The Cooperative State

Answer 7

Liberty to people through less state control. Political state acting as one group among many and working on different levels of policy (federal, regional, local)

Question 8

The (Enabling and) Guarantor State

Answer 8

Equal to the welfare state. Provides social benefits and guarantees basic rights. Also enables social mobility. Creates a framework but leaves the rest to organize themselves.

Question 9

Limitation to politics (in context of public governance)

Answer 9

Politics cannot determine states of systems (not even their own). Due to path dependency and institutional inertia/ resilience.

Question 10

Mayntz (2009) text: On Governance

Answer 10

Definitions of governance:

1) “Governance” as a new mode of governing different from hierarchical control (cooperation, even through public-private networks).
2) General meaning of “governance”: Different modes of coordinating individual actions.
3) New sub-types of governance (networks and associations) Text then continues and focuses on how political governance has developed as a concept and the current challenges to governance theory (Europeanization and globalization).

Effect of Europeanization on theory:

• Raises new problems of governance on the national level.
• Requires the extension of governance theory to a supra-national level.

Effect of globalization on theory:

• Expanding communication, both of transport and information exchange.
• The emergence of global markets. => Effect on national and transnational governance.

Question 11

Williamson’s typology

Answer 11

Market ——– Hierarchy

Networks / Associations

Question 12

Mayntz text: Evolution of theory of political governance

Answer 12

60’s/ early 70’s: Prescriptive theories of planning (top-down/ legislator perspective)

70’s: Empirical studies of policy development (focus on context factors, such as executive organization)

80’s: Policy implementation

Question 13

Mayntz text: Extensions of “governance” paradigm

Answer 13

Basic paradigm: Policy development (government) and implementation (public agencies).

First extension: Include bottom-up perspective: Sectoral structure and target group behavior (include object of political control).

Second extension: Include policy-development and implementation in public-private networks (following market-principles) and self-organizing social systems.

Third extension: Include effects of European policy on domestic policy-making .

Fourth extension: Include European-level of policy-making (mutual inter-dependence).

Fifth extension: Include political input processes. => Overall, framework has become broader and more encompassing.

Question 14

What is a system?

Answer 14

Consists of elements (like individuals or companies), linkages, with frequent/ permanent flows (exchanges taking place).

Two assumptions: Elements are complementary and elements comprise of subsystems, which create their own identity. Also, there are boundaries to a system.

Question 15

Different types of Systems Theory

Answer 15

1. Preservation of structures (Parson).
2. Creation of structures by social processes (early Luhmann).
3. Maintenance of structures (late Luhmann) – Autopoiesis and learning ability.
4. Learning ability of systems (Willke) – Contextual Governance.

Question 16

Parson Systems Theory

Answer 16

Preservation of structure. Happens through the AGIL paradigm. A = Adaptation, to external environment G = Goal attainment I = Integration, of systemic elements L = Latency, latent structural patterns which act as arbitrators between actors.

Question 17

Early Luhmann Systems Theory

Answer 17

Creation of structures by social processes. How social processes generate certain structures. System has the capacity to change its structure by itself. Objective is to reduce complexity and create order. Develops on the basis of actor expectations.

Question 18

Late Luhmann Systems Theory

Answer 18

Maintenance of structures. According to Luhmann, systems are now self-referential (Autopoiesis) and reproduce based on own elements. Social systems are not about individuals, but about communication. Furthermore, political governance is impossible, since systems control themselves.

Question 19

Autopoiesis

Answer 19

Means that a system is self-referential, essentially closed and reproduces itself based on own elements (term coined by Luhmann).

Question 20

Willke Systems Theory

Answer 20

Idea of a political system is to enforce collectively binding decisions. Systems follow their own legality and logic (self-governance). According to Willke governance of complex systems through hierarchy is impossible (hierarchical causal). Instead changes in the environment (contextual governance) lead to adaptation processes in the system, following its own internal logic. So contextual governance is possible.

Question 21

Willke: Structural Coupling

Answer 21

Different systems are bound together and influence each other/ can cause each other to change (but they each have their own internal logic).

Question 22

Difference between systems and action theory

Answer 22

Systems theory focuses on the aggregate level (individuals are not part), while action theory focuses on the individual.

Question 23

Action Theory

Answer 23

In this theory, governance is intentional and target-oriented change on the dynamics of an object (individual or institution). Practically, all change can be explain by individual actions and the rationality that binds them (homo oeconomicus, homo sociologicus, enlightened human beings).

Question 24

Premises of Action Theory

Answer 24

1) Decision makers have to be individuals. 2) Individuals are taking rational decisions. 3) Individuals develop their individual preferences. 4) Individuals are also taking action in social relations if that serves their own objectives.

Question 25

Action Theory: Resources needed by actors

Answer 25

• Know-how and the capacity to process information. - Capacity for decision-making. - Capacity for the implementation of the decisions.

Question 26

How does Action Theory relate to Political Governance?

Answer 26

Governance happens between actors, but is conditioned by a framework of structures (institutions).

Question 27

Actor Centered Institutionalism (ACI)

Answer 27

Tries to combine systems and actor theory. Focuses on political processes which are made up of the interactions of the individual actors, inside their specific capacities and orientations. Political processes happen inside a institutional context and political environment. Scharpf tries to combine theories of rational choice (actors max benefits) and institutional approaches (integration of actors in structures). Institutions are created by human action, however they develop in a path dependent way and persist over time (resilience). Important: Institutions do not predetermine results, they influence only.

Question 28

Elements of ACI

Answer 28

Problems => Actors => Constellations => Forms of Interaction => Political decisions Institutional context influences actors, constellations and forms of interaction. Political environment is influenced by political decisions and influences problems.

Question 29

ACI: Institutional context

Answer 29

Institutional context (influences actors):

• Framework in which decision making takes place.
• Institutions = Systems with defined rules, which structure processes of action. Also includes informal and social rules.

Anarchy/ Network/ Association/ Organization

Question 30

ACI: Actors

Answer 30

Actors: • Individual or corporative actors which are involved in the political process. • Have certain capabilities, perceptions, and preferences. • Capabilities = Resources with which an actor can influence the political process.

Question 31

ACI: Constellation of actors

Answer 31

Constellations of actors: • Actors cannot determine political decisions solely according to their own perceptions, preferences, and resources. Constellation (aggregate level) creates political decisions. • Constellation = Actors involved, their strategic options, the different possible results and respective preferences.

Question 32

ACI: Forms of interaction

Answer 32

Unilateral action (Non-cooperative)/ Negotiation (cooperative)/ Majority decision/ Hierarchical steering Influence on institutional context: Anarchy=> Network => Corporation => Organization. Bind the minimally acceptable mode of interaction.

Question 33

Political interaction (ACI)

Answer 33

Combination of forms of interaction and institutional context.

Question 34

Scharpf (1997) text: Games Real Actors Play

Answer 34

Explains the ACI framework. Based on three basic assumptions: 1) Rules are understandable 2) Institutions make rules predictable and create a range of options for actors. 3) However, rules can be violated. If institutional change happens, it can happen in two ways: 1) Purposive design 2) Mutual adaptation. However, it is subject to lock-in effects, which create path dependency. = Change is costly.

Question 35

Term “public governance”

Answer 35

Consists of two elements: Good governance (normative model, better governance) and public governance (rational public actions).

Question 36

Definition of “governance” (not to be confused with public or political governance)

Answer 36

New model of overlapping actors from politics, administration, economy and society. Cooperation happens between vertical and horizontal networks, based on common norms and rules.

Question 37

Difference between government and governance

Answer 37

Government = Hierarchical steering and the enforcement of legitimate political power. Governance = Combination of different types of steering, non-hierarchical, happens within networks.

Question 38

Drivers within the rise of regions (in CH)

Answer 38

Bottom-up: Cities and communities push problems upwards, because of better problem-solving capacity and to attain productivity gains. Top-down: Federal level is delegating implementation powers.

Question 39

Definition of “regional governance”

Answer 39

Model of overlapping cooperation between different actors for regional development. All share the same norms and rules. Happens between vertical, horizontal and lateral intertwined networks. Important: Has a territorially delimited frame of reference.

Question 40

Limits of regional governance

Answer 40

• Deficiencies in legitimization. • High coordination costs. • Non-binding character without any possibilities for sanctions. • Low effectiveness. • Change of mentality as a PREREQUSITE!

Question 41

Life-cycle of regional governance

Answer 41

Starts with a governance structure (which sets goals and acts between the territorial and functional areas). Then develops into an umbrella organization (territorial area) with multiple projects (functional area), both are responsible for implementation.

Question 42

Functions of public administration

Answer 42

– Create public value and fulfill a public task – Politically defined – With state power as a core competence

Question 43

Difference between private and public organizations

Answer 43

• Division of power - Organizational aspects (mainly hierarchy, public law, bureaucratic and formal institutions) - Laws create legitimization - Supply of public goods - Basis for input is politics not markets - Members: Civil service. Have a special patter in recruitment, training, career and salary.

Question 44

Principles of formal bureaucracy

Answer 44

• Formal management and control by political leaders • Administration is a function of policy implementation • Bounded by rules and procedures • Secrecy of office • Hierarchy • Specialized civil servants

Question 45

Features of traditional public administration

Answer 45

• Steering happens through legal framework (constitution/ laws) • Control primarily over inputs (budget) and detailed regulation and procedures • Centralistic, rigid organizational structures • Growing spectrum of tasks („Welfare State“) • Little performance orientation

Question 46

Features of New Public Management

Answer 46

• Professional management • Explicit standards and measures of performance • Greater emphasis on output controls • Shift to disaggregation of units (decentralization) • Shift to greater competition • Stress on private-sector styles of management practice • Stress on greater discipline in resource use

Question 47

Scientific sources of NPM

Answer 47

Based on managerialism (internal perspective) and new institutional economics (external perspective)

Question 48

Managerialism

Answer 48

• Delegation of responsibility - Accountability structures - Motivation theory - Organization theory - Accrual Accounting

Question 49

New Institutional Economics

Answer 49

* Public Choice Theory * Principal-Agent Theory * Transaction Cost Analysis * Incomplete Contracting Theory

Question 50

Control process under NPM

Answer 50

Slide 5

Question 51

Appraisal criteria

Answer 51

• Efficiency (resources)
• Effectiveness (outcomes)
• Quality
• Economical (benchmarking of costs)
• Financial objectives
• Legal objectives

Question 52

Definition of an output

Answer 52

An output is the smallest self-standing service delivery unit.

Question 53

Definition of an output group

Answer 53

An output group is a strategic unit that consists of a series of outputs, each with a clear task. Together, in the output group, they cover an entire issue area.

Question 54

Levels of control under NPM

Answer 54

Normative level: Law-making

Medium-term planning: Integrated tasks and finance plan (ITFP)

Annual control: Annual performance budget

Question 55

Hierarchy of products

Answer 55

Policy area (also called Development Plan, highest level)

Main tasks (ITFP)

Output groups

Output (lowest level)

Question 56

ITFP and principles behind

Answer 56

Integrated Tasks and Finance Plan

Principle is to show costs, outputs, outcomes structrued by tasks. Ensure rolling planning.

Question 57

Management cycle in NPM

Answer 57

Long term strategy (development plan) => Mid-term planning (ITFP) => Operative implementation => Reporting: Annual report with financial statement => Strategy review (parliamentarian intervention, repeat cycle)

Question 58

Elements and use of contract management

Answer 58

• Target agreement for a period of time
• One-line budget and performance agreement (elements)
• Use:
  
  • Between the political and administrative level
  • Between administrative units
  • Between internal & external organizations

Question 59

Output-oriented control: Reasoning and drawbacks

Answer 59

Main idea is to strengthen government and parliament decision-making

Government is able to set priorities, based on performance objectives.

Drawback: Parliament feels loss of co-determination (government and administration are empowered).

Question 60

Weber (1978) text: The Types of Legitimate Domination

Answer 60

Weber speaks about different types of authority and how they build legitimacy.

Basic assumption of Weber is that the function of the state is to guarantee property rights.

Administrative staff may be bound to superios by: 1) Custom 2) Affectual ties 3) Material interests 4) Ideals

Domination is defined as the probability that a command is followed, together with an element of self-interest (based on either rational calculation/ authority/ legitimacy).

Legal/ rational authority is bureaucratic.

Question 61

Weber’s typology of authority

Answer 61

1) Rational grounds. Based on laws which define the powers of office, outside the leader has no power (legal authority).
2) Traditional grounds
3) Charismatic grounds

Question 62

Characteristics of a good bureaucracy according to Weber

Answer 62

1) Civil servants are only subject to authority in their official obligations
2) Hierarchy of offices
3) Defined spheres of competence
4) Office is filled under a free contractual relationship
5) Meritocratic selection
6) Fixed salaries
7) Civil service is the primary occupation of employees
8) Civil service is a career
9) Seperation of ownership between private and public means
10) There is strict and systematic discipline

Question 63

Consequences of bureaucracy according to Weber

Answer 63

1) Level recruitment, to acquire best technical competences
2) Plutocracy emerges, based on technical training
3) Formalistic impersonality (which Weber views as good) becomes prevalent
4) Officials take a utilitarian viewpoint on welfare

Question 64

Corruption formula (as a contrast to good public management)

Answer 64

Corruption = Monopoly (sole decision maker) + Discretion (Maneuverability in rules) - Accountability (Need to defend own actions)

Question 65

UN Model of Good Governance

Answer 65

1) Participation
2) Rule of law
3) Transparency
4) Responsiveness
5) Consensus oriented
6) Equitable and inclusive
7) Effiicient and effective
8) Accountable

Question 66

Peters & Pierre text (1998): Governance without government? Rethinking public administration

Answer 66

Authors examine the debate on governance and contrast it with NPM. Generally, governance is more prevalent and being debated in Europe, but is also beginning in USA.

Governance can be defined as an alternative to government. It is the replacement of direct control by influence. It comprises of networks, blending public-private resources and partnerships.

Differences: Both view elected officials as only setting goals and the dichotomy between private-public as obsolete. NPM focuses heavily on competition, since otherwise there is little point in management reforms. Governance on the other hand is worried about blending resources. Governance thus takes an external view on increasing government influence, while NPM is strictly intraorganizational.

Critique of authors: Accontability is lacking. Is not solved through “stakeholderism” and consumer choice. 1) Is it reasonable to hold politicians resposibility if they have so little control? 2) If partnerships are financed by collective resources, then influence should also be given to those who are not currently consumers or stakeholders.

Governance in Europe: 1) Looking at governance in state-society relationships, two opposing forces are present. One is the inclusion of organized interests into public policy (e.g. labor unions). The other is the welfare state and its impact on public administration. 2) Due to the Rechtstaat, states hold strict quality control over services. Thus operative changes have been made, but not legal or normative.

Governance in USA: Lacks the strong state and central governments of Europe. Thus there is a more politicized and legalistic control at the federal level over bureaucracy. Contrarily, on the local/ state level, governance and NPM have been broadly implemented.

Point of authors: Governance has always been part of the state, while NPM is newer and ideologically driven. Governance is about process, while NPM is about outcomes.