URBS 615—Professional Seminar
Tools of Government Ch. 2: Direct Government
Defining the Tool
- Can be
more flexible and responsive than indirect government, since it can
internalize transaction costs.
- Costs
are on-budget
- Best
used when
- Exercise
of legitimate force is involved
- Performance
cannot easily be left to chance
- Equity
is particularly important
- No effective
market exists to supply a good or service (nor is likely to in the
foreseeable future)
- Maintenance
of some government capability is essential.
- Barriers
to direct government are strongest when opposition is well-organized and
support is not. As a result, often
part of program is turned to indirect methods to turn potential opponents
into constituents.
- Managers
are most successful in direct government when
- Mission
is well-focused
- Discretion
available in rules and budgets
- Customer
approach
- Accountability
to superiors is based on regularly measured results (financial
accounting, unfortunately, often displaces managerial accounting)
- Direct
government more effective than indirect when procedural rights impose
excess costs
© 2004 A.J.Filipovitch
Revised 9 February 04