Challenges of Liberalization, Privatization and Globalization for Public Ahministration

Challenges of Liberalisation, Privatisation and Globalisation for Public Administration 
Liberalisation,  Privatisation, Globalisation  (LPG)

Globalisation 
Refers to global spread of goods, services, technology, ideas and processes so that states get de facto economically, financially and culturally integrated.
Liberalisation 
Refers to a change in approach towards organization of political and economic institutions intended to alter the active power of state and private enterprise.
Privatisation 
Transfer of control of ownership from the public to the private sector, such a transfer being necessarily associated with market liberalisation and deregulation, changing the macro economic context , labour market and competitive environment. 




                                 
   GLOBALISATION -  Undermine Traditional Domestic Political                                              Authority 
                                - Global Economy, Market,  Capital Privatisation 
                                - Hollowing Out of the State
                                - Override the Ability of National Governments
                                  to Solve their Own Problems
                                 - Accountability to the International Market and
                                  Standard
                                  - Traditional Lines of Accountability 


Challenges of LPG
Impact on State
1st View:                 Globalization will cause clash of civilizations
                                 End of history and last man 
                                 Moving back to medievalism 
2nd View:               Formation of global village, global citizenship,                                      global government with global management    
3rd View:                 Theda   Skopcol- Bringing the state back in                                         "Strong State"    
4th View:               Milward - Reduced Legitimacy of state
                                Hollow state, Indifferent state, Shadow state,                                     Contracting state,    Corporate state

Impact on PAPER
1. Changing Role of State
•Emergence of competition. State that encourages public choice initiative, deregulation, Privatisation 
•Primarily hierarchical  Decommodifying agent into primarily market based commodifying agent
•Pro-market and anti-state Philosophy
•Do less
• Reduce or relinquish previous responsibilities 
•Privatise
•Reform its own processes
•"Government by the Market"


But effective economic governancedemands that the state make efforts to provide conducive atmosphere for market institutions to function and at the same time make them socially responsive . Enterprising. E.g. SE Asian countries, Taiwan, Hong Kong -"Governed Market Paradigm ".

2.Respensiveness of State Institutionsand Public Service

Public Administration and Public Institutions can thwart the negative consequences of Globalization through suitable interventions and by providing responsive administrative machinery that has high legitimacy.  Enterprising. E.g.  S.  Korea- Through employment insurance, public works programme , livelihood protection programme,  administration provides appropriate social protection by creating a baseline of competitive and knowledge based  economy.  Therefore , strengthening and revitalizing the public institutions is very important. 

3. Management Orientation 
•AI Gore -"Traditional bureaucratically organised administration is broke and  broken ".
•Administration has to beperformance oriented.
•Government Management has to be derelated. 
•Decentralization, Deregulation, De-bureacratization , Delegation etc.  should be emphasised. 
•Entrepreunial, Participative , Mission Driven and Service required. 
•Flexibility and Innovation required from administration. 


4. State Market Cooperation
The government needs to carry out three kinds of interventions in order for LPG to be successful. 
1.Strategic - Guide the market towards long term goal
2.Institutional - Setting the rules of the game 
3. Functional- Remedy market failures 

The state, in order to facilitate proper market functioning, needs to develop the physical infrastructure as well as create social infrastructure.  State's role has not diminished since it has to reconcile the objectives of LPG and pursuit of national interest and developmental goals. Some economists in India have given the Paradigm of "socially and Responsible Market Economy " that harmonises that roles ofgovernment through skill development, employmentgeneration, insfrastructure development and building of human resources. 


5. Civil Society as a Supplementary Democratic Model
It refers to self organization of citizens in contrast to the state.  Civil society comprises the collective of those social organizations that enjoy autonomy from the state and have the goal to influence the state on behalf of theirmembers. 

•Considered as a growing of communitarianism. 
•Gained prominence due to their participatory , flexible, less bureaucratic, cost effective, and accessible and people friendly characteristics.
•Fostering of civil society is an important task for the state.
•Civil society acts as a mediating link between the state and the market.
•Greater role for service provision by NGOs.


East Asian Economies-" Embedded Autonomy " Significant factor responsible for their growth is the presence of vibrant Civil Society.  Developing a bottom up participatory processes enable the community to have control over their own needs and resources. 





                  
                                

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