Governance, Privatization, and Systemic Risk in the Disarticulated State

Abstract

With the United States grappling with the greatest economic downturn since the Great Depression, questions are emerging about whether outsourcing contributes to the instability of government service production. In this article, the authors explore systemic risk in privatized service implementation networks. Reliance on networks of private agents for service production contributes to the disarticulated and fragmented state and increases the potential for systemic crisis if shocks to the network occur, putting vulnerable clients at risk. Government must focus on understanding systemic risk in networked governance arrangements and building resilient networks to avoid crises, the authors argue. Finally, potential research on systemic risk in networked governance arrangements is discussed. In public administration as governance, it is essential that we do not diminish our institutions to such an extent that we lose our capacity to support the development of sound public policy, as well as our ability to effectively implement that policy.

Seed for change : the making and implementation of seed policies in Ethiopia

“…Rather, they were working as a technical group to solve problems. This is in line with many observations that horizontal governance structures are not independent, but depend on the vertical governance structure (Agranoff 2006;Carboni and Milward 2012;Resh, Siddiki and McConnell 2014).…”

“…It also helps to create access to political power to influence policy (Cohen and Naor 2013). The need to create access to political power indicates that transition arenas or collaborative governance structures are not independent; rather, they depend on the vertical government structure to attain their vision (Agranoff 2006;Carboni and Milward 2012;Resh, Siddiki and McConnell 2014). The creation of a transition arena establishes a foundation for tactical and operational level management.…”

The increasingly hollow state: challenges and dilemmas for public administration

“…As studies continued to examine examples of service systems that were increasingly hollowed out, a new variant of the hollow state was discovered (Carboni & Milward, 2012). It is called the "substitute state" or "disarticulated state", and perhaps is an answer to the complexity that comes from having many links in the chain between the source and use of government revenue.…”

“…Empirical questions and their normative aspects Several articles have explored the empirical side of the "hollow state" in its various guises as hollow state, state of agents and the substitute state (Carboni & Milward, 2012;Milward & Provan, 1998, 2000Milward et al, 1993;Milward et al, 2010;Provan & Milward, 1995). The most important empirical questions that arise include:…”

“…Not only is governance often unclear, but systemic risk in these networks is not well understood despite a systemic crisis having the potential to jeopardise the provision of publicly mandated goods and services (Carboni & Milward, 2012).…”