pia 2000 introduction to public affairs
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PIA 2000 Introduction to Public Affairs. Managing Budgets and Money. PIA 2000 Focus. Themes for the Week: Bureaucracies, Budgets and Decision-Making. How Purposeful?. Decision-Making Models and Spending: An Overview of Concepts. Rational- Comprehensive - PowerPoint PPT PresentationTRANSCRIPT
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PIA 2000 Introduction to Public Affairs
Managing Budgets and Money
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PIA 2000 Focus
Themes for the Week:
Bureaucracies, Budgets and Decision-Making
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How Purposeful?
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Decision-Making Models and Spending: An Overview of Concepts
1. Rational- Comprehensive
2. Standard Operating Procedures (SOPs)
3. Bureaucratic Politics
4. Group Think
5. Satisficing/Incrementalism
6. Cybernetic Theories (chaos theory)
7. Decision-Making and Financial Management (The Hub of the Debate)
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Decision-Making and Budgets
Themes and Definitions
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1. Rational Model Comprehensive Approach
Optimal for achieving a goal or solving a problem. Determining optimality for rational behavior
Complete Availability of Information
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Zero Based Budgets
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2. Standard Operating Procedures- SOPs
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Standard Operating Procedures Pre-defined steps and activities of a process
or procedure. An SOP provides employees in an organizational set of actions response to common external practices, activities, or tasks.
Established Procedures
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SOPs- Scientific Origins
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Bureaucratic Politics
Officials are motivated by the need to promote their own organizations special interests in Competition with other Agencies in the decisions that they make
“Defending their Turf”
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Bureaucratic Politics Military Phrase:
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Group Think Group members, fearing to upset the leader,
try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoint
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Group Think?
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Satisficing/Incrementalism Satisficing is a decision-making strategy
that attempts to meet an acceptability threshold (first available option) at a very low level of analysis (Herbert Simon)
Incrementalism is a method of working by adding (or subtracting) to a project using many small (often unplanned) changes
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Satisficing/Incrementalism
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Incrementalism
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Cybernetic Theories vs. Chaos Cybernetic Theories: Causal chains of action that
move from action to sensing to comparison with desired goal, and again to action (Models based on electricity, mechanics, or machines)
Chaos: Small differences in initial conditions (such as those due to rounding errors in numerical computation) yield widely diverging outcomes
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Cybernetics
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Chaos
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Decision-Making and Financial Management
A Review of Themes
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Themesa. Budget: Recurrent vs. Capital (Development) Budgets
b. Financial Management- Incrementalism and Satisficing vs. Zero Based Budgeting (Planning Systems)
c. Accounting- Cost and Benefit vs. profit and loss
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Themesd. Auditing vs. Accountability-
Quantitative vs. Qualitative
e. Evaluating- Assessment vs. Judgement
f. Budgeting: Two themes- Reforming and Decision-making
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Acounting vs. Acountability
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1. Privatization and Contracting Out- Commercialization and intra-governmental competition (E.S. Savas)
2. Economic Bureaucracy, Public Sector Management: An Asian Model? (Chalmers Johnson)
3. End of the Third World? End of
Development Budgets (SAPS) (Nigel Harris)
Decision-Making and Financial Management (Review of Issues and Authors)
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The Asian Model Issue
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Decision-Making and Financial Management 4. Imbalance- Political vs. Bureaucratic Development in the role of financial management (The Corruption Problem) (Ferrel Heady)
5. Values and Education, money and Bricks- Development Management (John Armstrong)
6. International Organizations, NGOs and Development (Contracts vs. Grants) (Paul Nelson)
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Bureaucracy and the Danger of Corruption- World Patterns
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Decision-Making and Financial Management8. Private Sector Development vs. Development Management: The role of public sector financial management (Oversight) (Mark Turner and David Hulme)
9. Public Sector Reform (Guy Peters and Michael Barzelay)
10. (Planning vs. Budgeting) Naomi Caiden and Aaron Wildavsky-
11. Is Budgeting and financial management impacted by Group Think? (Irving Janis)
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Planning, Financial and Budgetary Management Systems in Poor Counties
Five historical periods- From
a development perspective
Caiden and Wildavsky- Planning and Budgeting in Poor Countries
Best Book on realities of Public
Budgeting and Development
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Ten Minute Break
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Historical Periods: Famous Fivei. Until the 1950s- recurrent budgets- law and order.
ii. 1950s-1960s- growth. Domestic development Funds with bilateral technical assistance
=Recurrent vs. Development budgets
iii. 1960s-1970s: Distribution and basic needs. World Bank and Poorest of the poor
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iv. Mid-1970s to mid-1980s: Planning vs. Budgets Planning demanded by technical assistance
Technical assistance- both grants and loans (no private loans to Africa)
Project planning "wins" over national planning and budgeting systems
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v. The Current State of Financial Management: Structural Adjustment
(Since 2001)- Structural Adjustment vs. Social Crisis
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Conditionality- What is the future? Privatization of the economy
a. divestiture
b. contracting out
c. liquidation
d. sell off public private partnership shares
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Privatization Debates
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The Current State of Financial Management1. IMF Stabilization- currency reform, auctions and trade liberalization
2. Decentralized Budgeting- Part of Governance Debate
3. World Bank and UNDP "Management" - Opposing views to SAPs
4. Human Resource Development (Millennium Development Goals)
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The Current State of Financial Management
5. Continued Absence of recurrent budgets and loss of control in Crisis: especially re. “Terror Prone,” Collapsed and Fragile States
6. Activity (economy) driven by technical assistance projects - the only game in town
7. Bridging and sectoral loans and grants- major source of international involvement
8. Crisis in Governance and Human Security
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Somalia- 2008
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INDEPTH: ECONOMYOutsourcing: Contracting out becomes big businessCBC News Online | March 7, 2006
Canadian Broadcasting System Image
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What is the Future?Privatization (Commercialization) of the bureaucracy
vs. IN-SOURCING- Reinventing Government
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The Bureaucracy and Decisions
Another View
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Book Discussion All the Kings Men (Robert Penn Warren)
The Promised Land (Nicholas Lemann)
What these books tell us about Public Policy and Public Affairs?
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Presentations: Next Book Discussion November 8
MPA Group- Daniel Okrent, The Last Call
MPIA Group-Dina Rasor and Robert Bauman, Betraying Our Troops
MID Group- Louis A. Picard, A Fragile Balance
MPPM Group- Janine Wedel, Shadow Elite
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Daniel Okrent- New York Times Born 1948
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Dina Rasor and Robert Bauman Dina Rasor is the Chief
Investigator of the Follow the Money Project
Robert Bauman was Criminal Investigator for the Department of Defense
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Janine Wedel
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Terry Buss (2010) and Louis A. Picard (and Colleagues, 1966)