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This is not a blog which opines on current events. It rather uses incidents, books (old and new), links and papers to muse about our social endeavours.
So old posts are as good as new! And lots of useful links!

The Bucegi mountains - the range I see from the front balcony of my mountain house - are almost 120 kms from Bucharest and cannot normally be seen from the capital but some extraordinary weather conditions allowed this pic to be taken from the top of the Intercontinental Hotel in late Feb 2020

Tuesday, August 20, 2019

How did it Happen? The fashion for reform part II

We take managerialism for granted – even although it didn’t exist in the 1960s. “Managerial” then was only an adjective and, thanks to James Burnham, followed by the word “revolution” (at least in the immediate post-war period) to refer to what he first argued in 1941 was the growing influence of senior managers in America’s larger Corporations vis-à-vis its shareholders. An argument sustained by the likes of Tony Crosland and Andrew Shonfield who persuaded us that the system had now been tamed - although history has demonstrated that this was a brief truce in the struggle between state, corporate and union power. And, further, that shareholders and the importance of "shareholder value" came back with a vengeance in the 1980s....

In 1956, William W Whyte’s classic Organisation Man may have painted a picture of docile managers but change was in the wind - and was prefigured in Alvin Toffler’s Future Shock (1970) which analysed vague social forces, not deliberative organisational change
Even Lyndon Johnson’s War on Poverty didn’t envisage significant social engineering – although the power of the economists and number-crunchers was beginning to be felt in the likes of Robert McNamara

And yet, however slowly, the 1970s saw in Britain the first signs of a new management ethos in both central and local government which, by the late 80s had become a gale-force wind. To most people at the time, public sector reform was a graveyard for reputations….there seemed no mileage in it. There is an important story here which has never been told properly….which resolves into two basic questions –
-       Where did the urge to reform come from?
-       How on earth did managers become the new Gods?

In the late 90s I wrote a little book I wrote for a central European audience - “In Transit – notes on good governance” – which tried to capture the change….

The life-cycle, pragmatism and attention-span of Ministers and local government leaders (in the post-war period) caused  them generally to adopt what might be called a "blunderbuss" approach to change: that is they assume that desirable change is achieved by a mixture of the following approaches -
·       existing programmes being given more money
·       issuing new policy guidelines - ending previous policies and programmes
·       creating new agencies
·       making new appointments

Once such resources, guidelines or agencies have been set running, it was assumed that politicians would move quickly on to the other issues that were queuing up for their attention.
Of course, they needed some sort of guarantee that the policies and people selected will actually enable the resources and structures used to achieve the desired state. But that was seen as a simple implementation issue. Politicians tend to think in simple "command" terms: and therefore find it difficult to realise that the departments might be structured in a way that denies them the relevant information, support, understanding and/or authority to achieve desired outcomes.

Increasingly, however, in the 1970s and 80s people began to realise that large "hierarchic" organisations - such as Ministries - had serious deficiencies which could and did undermine good policies eg
·       their multiplicity of levels seriously interferes with, indeed perverts, information and communications flows - particularly from the consumer or client.
·       they discourage co-operation and initiative - and therefore good staff. And inertia, apathy and cynicism are not the preconditions for effective, let alone creative, work!
·       they are structured around historical missions (such as the provision of education, law and order etc) whose achievement now requires different skills and inter-agency work.

To move, however, to serious administrative reform is to challenge the powerful interests of bureaucracy itself (on which political leaders depend for advice and implementation) demanding an eccentric mixture of policy conviction, single-mindedness and political security which few leaders possess.
Whatever the appearance of unity and coherence at election time, a Government is a collection of individually ambitious politicians whose career path demands making friends and clients rather than the upsetting of established interests which any real organisational reform demands.

The machinery of government consists of a powerful set of "baronies" (Ministries/ Departments), each with their own (and client) interests to protect or favour. And Governments can - and do - always blame other people for "failure": and distract the public with new games - and faces.

What one might call the "constituency of reform" seemed, therefore, simply too small for major reforms even to be worth attempting. For politicians, the name of the game is reputation and survival. 

COMMENT – looking at this now, 20 years later, this analysis smacks of the influence of the public choice ideologues – also evidenced in the 1997 World Bank Development Report on the State in a Changing World .


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