A Teaching Topic in Strategy and Implementation
Implementing Through Markets
This topic deals with different strategies that governments use to augment their capacity and share risk by entering into partnerships with private sector organizations to achieve public goals. Students learn different reasons that governments may choose to implement through markets, and also learn about the challenges associated with achieving public objectives in this manner. Students are asked to consider how governments can work to ensure that public value is achieved through these partnerships, and that the loss of direct government control is balanced by efficiency gains and service improvements.
Core Concepts associated with this Topic: Alternative Service Delivery; Deregulation; Privatization; Voucher.
Topic Learning Outcome: Upon mastering this topic, students will be able to clearly articulate the possible benefits and risks to governments that are created by partnering with private sector entities to deliver policy and achieve public goals. Students will be able to apply these general lessons to specific case-studies, and will be able to recognize the possible advantages and disadvantages of a market-based implementation approach in specific situations. Students consider the implications for policy effectiveness, democratic accountability, and public finances.
Toronto PPG1007H Putting Policy Into Action: Strategic Implementation of Public Objectives
Blockliger, H. (2008). "Market mechanisms in public service provision". OECD Economics Department Working Paper, , 47.
Donahue, J. D., & Zeckhauser, R. J. (2006). Pp. 496-522. In M. Moran, M. Rein & R. E. Goodwin (Eds.), The oxford handbook of public policy (pp. 496-522). New York: Oxford University Press.
Eggers, W., & Dovey, T. (2006). “Closing the infrastructure gap." In W. Eggers, & R. Campbell (Eds.), States of transition: Tackling Government’s toughest policy and management challenges (pp. 245-75) Deloitte.
Government of Ontario. (2004). Building a Better Tomorrow: An infrastructure planning, financing and procurement framework for ontario’s public sector. http://www/pir.gov.on.ca/english/aboutpir/publications/BBT-Framework_EN.pdf
Government of Ontario. Renew Ontario: Progress Report. http://www.pir.gov.on.ca/english/infrastructure/renew/2007/index.html
Kamarck, E. (2002). Ch. 10 "The End of Government as We Know It." In J. Donahue, & J. Nye (Eds.), Market-based governance (pp. 227-59). Washington, DC.: Brookings Institution.
Kettl, D. F. (2001). Ch. 16 "Managing Indirect Government." In L. M. Salamon (Ed.), The Tools of Government (pp. 490-508).
OECD Directorate for Education. (2005). Chapter 5, "The Use of Market-Type Mechanisms to Provide Government Services." In Modernizing Government: The Way Forward.
Reason Foundation. (2006). Transforming Government Through Privatization.http://www.reason.org/apr2006
Sample Assessment Questions:
1.) One set of risks associated with implementing through markets stems from a loss of direct government control over program delivery. In a short one-page response, explain the nature of these risks. Use examples if they can help illustrate your point.
2.) Governments often choose to implement through markets in an effort to achieve efficiency gains and service improvements. Please describe two examples of market-based implementation strategies that were at least partially successful in these respects.
Page created by Ben Eisen and Sean Goertzen on March 24, 2015