Overcoming the Public-Sector Coordination Problem


Ricardo Hausmann at Project Syndicate: “Public-private cooperation or coordination is receiving considerable attention nowadays. A plethora of centers for the study of business and government relations have been created, and researchers have produced a large literature on the design, analysis, and evaluation of public-private partnerships. Even the World Economic Forum has been transformed into “an international organization for public-private cooperation.

Of course, private-private coordination has been the essence of economics for the past 250 years. While Adam Smith started us on the optimistic belief that an invisible hand would take care of most coordination issues, in the intervening period economists discovered all sorts of market failures, informational imperfections, and incentive problems, which have given rise to rules, regulations, and other forms of government and societal intervention. This year’s Nobel Prize in Economic Sciences was granted to Oliver Hart and Bengt Holmström for their contribution to understanding contracts, a fundamental device for private-private coordination.

But much less attention has been devoted to public-public coordination. This is surprising, because anyone who has worked in government knows that coordinating the public and private sectors to address a particular issue, while often complicated, is a cakewalk compared to the problem of herding the cats that constitute the panoply of government agencies.

The reason for this difficulty is the other side of Smith’s invisible hand. In the private sector, the market mechanism provides the elements of a self-organizing system, thanks to three interconnected structures: the price system, the profit motive, and capital markets. In the public sector, this mechanism is either non-existent or significantly different and less efficient.

The price system is a decentralized information system that reveals people’s willingness to buy or sell and the wisdom of buying some inputs in order to produce a certain output at the going market price. The profit motive provides an incentive system to respond to the information that prices contain. And capital markets mobilize resources for activities that are expected to be profitable; those that adequately respond to prices.

By contrast, most public services have no prices, there is not supposed to be a profit motive in their provision, and capital markets are not supposed to choose what to fund: the money funds whatever is in the budget.

…addressing most problems in government involves multiple agencies….

One solution is to create a market-like mechanism within the government. The idea is to assign a portion of the budget, say 3-5%, to a central pool of funds to be requested by one ministry but to be executed by another, as if one was buying services from the other. These resources would allow the demand for public goods to permeate the allocation of budgetary resources across ministries….

The central pool of resources is designed to increase the responsiveness of one ministry’s back end to the demands of society as identified by another ministry’s front end, without these resources competing with the priorities that each ministry has for its “own” budget.

By allocating a small proportion of each year’s budget to priorities identified in this way, we may find that, over time, budgets become more responsive and better reflect society’s evolving needs. And public-private coordination may flourish once the public-public bottlenecks are removed….(More)”

Thinking about Smart Cities: The Travels of a Policy Idea that Promises a Great Deal, but So Far Has Delivered Modest Results


Paper by Amy K. Glasmeier and Molly Nebiolo in Sustainability: “… explores the unique challenge of contemporary urban problems and the technologies that vendors have to solve them. An acknowledged gap exists between widely referenced technologies that city managers utilize to optimize scheduled operations and those that reflect the capability of spontaneity in search of nuance–laden solutions to problems related to the reflexivity of entire systems. With regulation, the first issue type succumbs to rehearsed preparation whereas the second hinges on extemporaneous practice. One is susceptible to ready-made technology applications while the other requires systemic deconstruction and solution-seeking redesign. Research suggests that smart city vendors are expertly configured to address the former, but less adept at and even ill-configured to react to and address the latter. Departures from status quo responses to systemic problems depend on formalizing metrics that enable city monitoring and data collection to assess “smart investments”, regardless of the size of the intervention, and to anticipate the need for designs that preserve the individuality of urban settings as they undergo the transformation to become “smart”….(More)”

Making a success of digital government


New report by the Institute for Government (UK): “Making a Success of Digital Government, says that after five years of getting more services online, government is hitting a wall. But despite some public services still running on last century’s computers, the real barrier to progress is not technology but the lack of political drive from the top.

Filling your tax return should be as easy as doing online banking. The technology exists. But outdated practices and policies mean that, in the case of many government services, we are still filling in and posting off forms to be manually processed. Taking digital government to the next level – which the report says would satisfy citizens and potentially save billions in the process – requires leadership. Civil servants need to improve their skills, old systems need to be overhauled, and policies need to be updated.

Daniel Thornton, report author, said:

“Tinkering around the edges of digital government has taken us only so far – now we need a fundamental change in the government’s approach. The starting point is recognising that digital is not just for geeks anymore – everyone in government must work to make it a success. There are huge potential savings to be made if the Government gets this right – which makes it all the more disappointing that the PM and Chancellor have not been as explicit about their commitment to digital government as their predecessors.”…(More)”

The People’s Code – Now on Code.gov


Tony Scott at the White House: “Today we’re launching Code.gov so that our Nation can continue to unlock the tremendous potential of the Federal Government’s software.

Over the past few years, we’ve taken unprecedented action to help Americans engage with their Government in new and meaningful ways.

Using Vote.gov, citizens can now quickly navigate their state’s voter registration process through an easy-to-use site. Veterans can go to Vets.gov to discover, apply for, track and manage their benefits in one, user-friendly place. And for the first time ever, citizens can send a note to President Obama simply by messaging the White House on Facebook.

By harnessing 21st Century technology and innovation, we’re improving the Federal Government’s ability to provide better citizen-centered services and are making the Federal Government smarter, savvier, and more effective for the American people. At the same time, we’re building many of these new digital tools, such as We the People, the White House Facebook bot, and Data.gov, in the open so that as the Government uses technology to re-imagine and improve the way people interact with it, others can too.

The code for these platforms is, after all, the People’s Code – and today we’re excited to announce that it’ll be accessible from one place, Code.gov, for the American people to explore, improve, and innovate.

The launch of Code.gov comes on the heels of the release of the Federal Source Code Policy, which seeks to further improve access to the Federal Government’s custom-developed software. It’s a step we took to help Federal agencies avoid duplicative custom software purchases and promote innovation and cross-agency collaboration. And it’s a step we took to enable the brightest minds inside and outside of government to work together to ensure that Federal code is reliable and effective.

Built in the open, the newly-launched Code.gov already boasts access to nearly 50 open source projects from over 10 agencies – and we expect this number to grow over the coming months as agencies work to implement the Federal Source Code Policy. Further, Code.gov will provide useful tools and best practices to help agencies implement the new policy. For example, starting today agencies can begin populating their enterprise code inventories using the metadata schema on Code.gov, discover various methods on how to build successful open source projects, and much more….(More)”

The Age of Sharing


The Age of Sharing
Book by Nicholas A. John: “Sharing is central to how we live today: it is what we do online; it is a model of economic behavior; and it is also a type of therapeutic talk. Sharing embodies positive values such as empathy, communication, fairness, openness and equality. The Age of Sharing shows how and when sharing became caring, and explains how its meaningshave changed in the digital age.

But the word ‘sharing’ also camouflages commercial or even exploitative relations.Websites say they share data with advertisers, although in reality they sell it, while parts of the sharing economy look a great deal like rental services. Ultimately, it is argued, practices described as sharing and critiques of those practices have common roots. Consequently, the metaphor of sharing now constructs significant swathes of our social practices and provides the grounds for critiquing them; it is a mode of participation in the capitalist order as well as a way of resisting it.

Drawing on nineteenth-century literature, Alcoholics Anonymous, the American counterculture, reality TV, hackers, Airbnb, Facebook and more, The Age of Sharing offers a rich account of a complex contemporary keyword. It will appeal to students and scholars of the Internet, digital culture and linguistics….(More)”

Explore Philanthropy’s Role in U.S. Democracy


Foundation Funding for U.S. Democracy is a data visualization platform for funders, nonprofits, journalists, and anyone interested in understanding philanthropy’s role in U.S. democracy

Data visualization platform

Why Is This Tool Unique?

  • Only source of information on how foundations are supporting U.S. democracy
  • Uses a common framework for understanding what activities foundations are funding
  • Provides direct access to available funding data
  • Delivers fresh and timely data every week

How Can You Use It?

  • Understand who is funding what, where
  • Analyze funder and nonprofit networks
  • Compare foundation funding for issues you care about
  • Support your knowledge about the field
  • Discover new philanthropic partners…(More)”

Even in Era of Disillusionment, Many Around the World Say Ordinary Citizens Can Influence Government


Survey by Pew Global: “Signs of political discontent are increasingly common in many Western nations, with anti-establishment parties and candidates drawing significant attention and support across the European Union and in the United States. Meanwhile, as previous Pew Research Center surveys have shown, in emerging and developing economies there is widespread dissatisfaction with the way the political system is working.

As a new nine-country Pew Research Center survey on the strengths and limitations of civic engagement illustrates, there is a common perception that government is run for the benefit of the few, rather than the many in both emerging democracies and more mature democracies that have faced economic challenges in recent years. In eight of nine nations surveyed, more than half say government is run for the benefit of only a few groups in society, not for all people.1

However, this skeptical outlook on government does not mean people have given up on democracy or the ability of average citizens to have an impact on how the country is run. Roughly half or more in eight nations – Kenya, Nigeria, South Africa, the U.S., India, Greece, Italy and Poland – say ordinary citizens can have a lot of influence on government. Hungary, where 61% say there is little citizens can do, is the lone nation where pessimism clearly outweighs optimism on this front.

Many people in these nine nations say they could potentially be motivated to become politically engaged on a variety of issues, especially poor health care, poverty and poor-quality schools. When asked what types of issues could get them to take political action, such as contacting an elected official or taking part in a protest, poor health care is the top choice among the six issues tested in six of eight countries. Health care, poverty and education constitute the top three motivators in all nations except India and Poland….(More)

What We Should Mean When We Talk About Citizen Engagement


Eric Gordon in Governing: “…But here’s the problem: The institutional language of engagement has been defined by its measurement. Chief engagement officers in corporations are measuring milliseconds on web pages, and clicks on ads, and not relations among people. This is disproportionately influencing the values of democracy and the responsibility of public institutions to protect them.

Too often, when government talks about engagement, it is talking those things that are measurable, but it is providing mandates to employees imbued with ambiguity. For example, the executive order issued by Mayor Murray in Seattle is a bold directive for the “timely implementation by all City departments of equitable outreach and engagement practices that reaffirm the City’s commitment to inclusive participation.”

This extraordinary mayoral mandate reflects clear democratic values, but it lacks clarity of methods. It reflects a need to use digital technology to enhance process, but it doesn’t explain why. This in no way is meant as a criticism of Seattle’s effort; rather, it is simply meant to illustrate the complexity of engagement in practice. Departments are rewarded for quantifiable efficiency, not relationships. Just because something is called engagement, this fundamental truth won’t change.

Government needs to be much more clear about what it really means when it talks about engagement. In 2015, Living Cities and the Citi Foundation launched the City Accelerator on Public Engagement, which was an effort to source and support effective practices of public engagement in city government. This 18-month project, based on a cohort of five cities throughout the United States, is just now coming to an end. Out of it came several lasting insights, one of which I will share here. City governments are institutions in transition that need to ask why people should care.

After the election, who is going to care about government? How do you get people to care about the services that government provides? How do you get people to care about the health outcomes in their neighborhoods? How do you get people to care about ensuring accessible, high-quality public education?

I want to propose that when government talks about civic engagement, it is really talking about caring. When you care about something, you make a decision to be attentive to that thing. But “caring about” is one end of what I’ll call a spectrum of caring. On the other end, there is “caring for,” when, as described by philosopher Nel Noddings, “what we do depends not upon rules, or at least not wholly on rules — not upon a prior determination of what is fair or equitable — but upon a constellation of conditions that is viewed through both the eyes of the one-caring and the eyes of the cared-for.”

In short, caring-for is relational. When one cares for another, the outcomes of an encounter are not predetermined, but arise through relation….(More)”.

A Practical Guide for Harnessing the Power of Data


How does it do that? In a word: data.

Using a series of surveys and evaluations, Repair learned that once people participate in two volunteer opportunities, they’re more likely to continue volunteering regularly. Repair has used that and other findings to inform its operations and strategy, and to accelerate its work to encourage individuals to make an enduring commitment to public service.

Many purpose-driven organizations like Repair the World are committing more brainpower, time, and money to gathering data, and nonprofit and foundation professionals alike are recognizing the importance of that effort.

And yet there is a difference between just having data and using it well. Recent surveys have found that 94 percent of nonprofit professionals felt they were not using data effectively, and that 75 percent of foundation professionals felt that evaluations conducted by and submitted to grant makers did not provide any meaningful insights.

To remedy this, the Charles and Lynn Schusterman Family Foundation (one of Repair the World’s donors) developed the Data Playbook, a new tool to help more organizations harness the power of data to make smarter decisions, gain insights, and accelerate progress….

In the purpose-driven sector, our work is critically important for shaping lives and strengthening communities. Now is the time for all of us to commit to using the data at our fingertips to advance the broad range of causes we work on — education, health care, leadership development, social-justice work, and much more…

We are in this together. Let’s get started. (More)”

The case against democracy


 in the New Yorker: “Roughly a third of American voters think that the Marxist slogan “From each according to his ability to each according to his need” appears in the Constitution. About as many are incapable of naming even one of the three branches of the United States government. Fewer than a quarter know who their senators are, and only half are aware that their state has two of them.

Democracy is other people, and the ignorance of the many has long galled the few, especially the few who consider themselves intellectuals. Plato, one of the earliest to see democracy as a problem, saw its typical citizen as shiftless and flighty:

Sometimes he drinks heavily while listening to the flute; at other times, he drinks only water and is on a diet; sometimes he goes in for physical training; at other times, he’s idle and neglects everything; and sometimes he even occupies himself with what he takes to be philosophy.

It would be much safer, Plato thought, to entrust power to carefully educated guardians. To keep their minds pure of distractions—such as family, money, and the inherent pleasures of naughtiness—he proposed housing them in a eugenically supervised free-love compound where they could be taught to fear the touch of gold and prevented from reading any literature in which the characters have speaking parts, which might lead them to forget themselves. The scheme was so byzantine and cockamamie that many suspect Plato couldn’t have been serious; Hobbes, for one, called the idea “useless.”

A more practical suggestion came from J. S. Mill, in the nineteenth century: give extra votes to citizens with university degrees or intellectually demanding jobs. (In fact, in Mill’s day, select universities had had their own constituencies for centuries, allowing someone with a degree from, say, Oxford to vote both in his university constituency and wherever he lived. The system wasn’t abolished until 1950.) Mill’s larger project—at a time when no more than nine per cent of British adults could vote—was for the franchise to expand and to include women. But he worried that new voters would lack knowledge and judgment, and fixed on supplementary votes as a defense against ignorance.

In the United States, élites who feared the ignorance of poor immigrants tried to restrict ballots. In 1855, Connecticut introduced the first literacy test for American voters. Although a New York Democrat protested, in 1868, that “if a man is ignorant, he needs the ballot for his protection all the more,” in the next half century the tests spread to almost all parts of the country. They helped racists in the South circumvent the Fifteenth Amendment and disenfranchise blacks, and even in immigrant-rich New York a 1921 law required new voters to take a test if they couldn’t prove that they had an eighth-grade education. About fifteen per cent flunked. Voter literacy tests weren’t permanently outlawed by Congress until 1975, years after the civil-rights movement had discredited them.

Worry about voters’ intelligence lingers, however. …In a new book, “Against Democracy” (Princeton), Jason Brennan, a political philosopher at Georgetown, has turned Estlund’s hedging inside out to create an uninhibited argument for epistocracy. Against Estlund’s claim that universal suffrage is the default, Brennan argues that it’s entirely justifiable to limit the political power that the irrational, the ignorant, and the incompetent have over others. To counter Estlund’s concern for fairness, Brennan asserts that the public’s welfare is more important than anyone’s hurt feelings; after all, he writes, few would consider it unfair to disqualify jurors who are morally or cognitively incompetent. As for Estlund’s worry about demographic bias, Brennan waves it off. Empirical research shows that people rarely vote for their narrow self-interest; seniors favor Social Security no more strongly than the young do. Brennan suggests that since voters in an epistocracy would be more enlightened about crime and policing, “excluding the bottom 80 percent of white voters from voting might be just what poor blacks need.”…(More)”