Model Answer
0 min readIntroduction
Public Administration has evolved from a traditional, hierarchical model focused on direct service delivery – often termed ‘Rowing’ – to a more modern approach emphasizing strategic management and market-based solutions, known as ‘Steering’. This shift is significantly influenced by the Public Choice Theory, which applies economic principles to political decision-making. Developed by economists like James Buchanan and Gordon Tullock, Public Choice Theory posits that individuals, including public officials, are motivated by self-interest. This fundamentally alters the understanding of administrative efficiency and effectiveness, questioning the assumptions underlying the ‘Rowing’ approach and advocating for a greater role for ‘Steering’ mechanisms.
Understanding ‘Rowing’ and ‘Steering’
David Osborne and Ted Gaebler, in their seminal work "Reinventing Government" (1992), popularized the concepts of ‘Rowing’ and ‘Steering’.
- Rowing: Represents the traditional public administration model where the government directly provides services – ‘rowing the boat’ itself. This involves direct control over inputs, processes, and outputs. Emphasis is on bureaucratic procedures and adherence to rules.
- Steering: Focuses on setting policy goals and standards, then using market mechanisms, contracts, and other tools to guide others – public, private, or non-profit – to achieve those goals. The government ‘steers’ the boat rather than rowing it. Emphasis is on outcomes and performance.
Public Choice Theory and its Impact
Public Choice Theory challenges the traditional assumptions of public administration by introducing the concept of rational self-interest into the analysis of bureaucratic behavior.
Key tenets of Public Choice Theory:
- Methodological Individualism: Collective decisions are the result of individual choices.
- Rationality: Individuals act rationally to maximize their utility (benefits minus costs).
- Self-Interest: Individuals are primarily motivated by their own self-interest, even in the public sector.
How Public Choice Theory Promotes ‘Steering’
Public Choice Theory suggests that bureaucrats, like individuals in the private sector, are motivated by factors like budget maximization, career advancement, and minimizing effort. This can lead to inefficiencies and rent-seeking behavior within the ‘Rowing’ model.
- Agency Problem: Public Choice highlights the agency problem – the difficulty of ensuring that agents (bureaucrats) act in the best interests of the principal (the public). Direct service provision ('Rowing') exacerbates this problem due to lack of clear accountability and performance metrics.
- Contract Failure & Information Asymmetry: While contracting out (a ‘Steering’ mechanism) isn’t without its challenges, Public Choice acknowledges that competition and market forces can mitigate some of the inefficiencies inherent in bureaucratic ‘Rowing’. However, it also recognizes the potential for contract failure due to information asymmetry and opportunistic behavior.
- Focus on Outcomes: Public Choice encourages a shift towards outcome-based performance measurement. ‘Steering’ allows governments to focus on defining desired outcomes and holding service providers accountable for achieving them, rather than controlling the means of delivery.
Undermining ‘Rowing’
Public Choice Theory directly undermines the rationale for extensive ‘Rowing’ by questioning the efficiency and effectiveness of direct government provision.
| Feature | ‘Rowing’ (Traditional Public Administration) | ‘Steering’ (Market-Based Approach) |
|---|---|---|
| Motivation | Public service, rule-following | Self-interest, competition, performance |
| Accountability | Process-oriented, bureaucratic | Outcome-oriented, market-driven |
| Efficiency | Potentially inefficient due to lack of incentives | Potentially more efficient due to competition |
| Innovation | Slow to innovate | Encourages innovation |
For example, the privatization of waste management services in many cities exemplifies ‘Steering’. Instead of the municipality directly collecting garbage (‘Rowing’), it contracts with private companies to do so, setting performance standards and monitoring outcomes. This leverages the efficiency of the private sector and reduces the scope for bureaucratic inefficiencies.
Conclusion
Public Choice Theory provides a powerful lens for understanding the limitations of the traditional ‘Rowing’ model of public administration. By acknowledging the role of self-interest and advocating for market-based solutions, it promotes the concept of ‘Steering’ as a more efficient and effective approach to governance. However, it’s crucial to recognize that ‘Steering’ is not a panacea and requires careful design, robust monitoring, and effective regulation to prevent market failures and ensure accountability. A balanced approach, combining elements of both ‘Rowing’ and ‘Steering’, is often the most pragmatic solution.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.