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Public Policy Making Tutorial III

Review of Main Themes Challenges facing Public Policy making in Ireland

Themes

Risk & Uncertainty

Theories of Governance
Political Economy

Celtic Tiger

Developmental Models

Institutional Approach

Governance

Good governance
Network Management Performance Management

Institutions
Institutional Capacity Transaction Costs Institutional Change [Flexibility and Adaptability]

Risk and uncertainty

'We have only risk management. The spinning of the given moment's scenarios. Patter recognition' Words from character in William Giibson SF novel Pattern Recognition.
Risk society

Risk [and crisis] management

Risk and uncertainty

+ Approaches to Development

Market Models

Neo-classical market Dependency theories

Developmental Models [FDS / DWS] Competition State Embedded Autonomy

Irish Political Economy Future Directions

From crisis management to sustainable development Democratic legitimacy Implementation Challenges The EU Crisis [for Ireland]

Crisis Management

Banking
Fiscal Economic [Competitiveness]

Social [Unemployment & Emigration]

Reputational

+ Implementation : Can We Deliver

the resilience of key organisations of the state,

a fragmented regulatory framework, lack of a credible model of multi-level governance

over reliance on strategic planning [lack of an integrated risk management approach]

partnership fatigue [public sector links to private and voluntary sectors]

Reform Environment

Weak regulatory regimes

Over concentration of administrative decision making Failure to keep up with changes in EU

Agentisation
Legacy of incomplete management reforms

Ireland and the EU

Failure to manage changing relations with EU

EUs emergence as regulatory state, Failure to move on Lisbon agenda, Regional/ local links

Crisis of Relations

Loss of input to EU decisions Breakdown of relations with partner states Declining support for EU in Ireland

Full re-assessment of relations with EU [NESC]

Governance

Government in control

institutional capacity [performance] lack of trust [democratic legitimacy]

Strengthened governance

Central government / Oireachtas Centre-periphery balance Agencies Regulatory framework

The role of the state in managing the economy

International / external influences

Mixed economy / Keynesian model Market dominance Anglo Saxon v European influences Membership of EU

Historical and Institutional Factors

Clientist and grant culture Interventionist state [competitive corporatism]

Post recession

Challenges to the welfare state

Economic recession / austerity Role of welfare state

Safety net for disadvantaged [altruism / community]

Political

egalitarianism / redistribution of wealth Democratic compromise with nation state

Economic:

Reduction of uncertainty
Enhancement of aggregate demand Individual empowerment [activation / dependency]

Springboard for growth

Strengthened workforce

Globalisation and the Nation State

Globalisation and economic growth

Challenges to the nation state

domestic economy welfare state democratic legitimacy

Outturns

economic benefits from globalisation re-assert themselves regional economies [behind barriers] rejection of consumer model of economic growth

Impact on Ireland

Economic Policy Making

Implementation of broad market strategy

Chicago School Keynesian

Institutionalist

transaction costs Beviaviouralist economics [Nudge]

Alternative

Prosperity without growth

EU and Ireland

Sovereignty and political legitimacy

Autonomy and economic performance Integration within consolidated EURO / EU spheres

Approaches to policy making in EU

Reactive Flexible / responsive Influential

Local Government

Purpose of local government

Improve economic performance

Decentralised decision making Competition Participation [education and socialisation] Subsidiarity

Strengthen Democracy

Centralised Model

Crisis management
Economies of scale Cost of change Equality of treatment

Regulation

Failure of regulation [banking collapse / building control]

Regulatory Reforms

Liberalisation / de-regulation Consistent and integration regulatory framework Governance issues Resources

Final Readings

Jackson, T [2009]
NESC [122] Skidelsky, R [2009]

Prosperity without Growth

Rethinking Europe Keynes: Return of the Master

Nolan, P [2008]

Dynamics of Regulation in Ireland

Adshead et al [2008] Contesting the State Thaler & Sunstein [2008] Nudge