Discuss how the Public Choice Theory promotes the concept of 'Steering' and visualising efficient and effective administration.
Paper 1: Introduction | 2015
Public Choice Theory (PCT) is one school of thought in New Right Philosophy. PCT is defined by Dennis Mueller as the economic study of nonmarket decision making - Economic theory of Politics.
Promotion of ‘steering’ by PCT:
The concept of ‘steering’ is an important aspect of New Public Management (NPM). One of the important reasons for the emergence of NPM was the reform movements in the 1980s due to Public Choice Theory.
The concept of rowing to steering is the application of Market principles, especially business management practices in government. The aim is to make it entrepreneurial, enterprising, and efficient. This is advocated by PCT.
Visualization of Efficient and Effective Administration:
An administration to be efficient should be based on organizational competitiveness, democratization, and decentralization.
PCT prescribed competition through institutional pluralism with overlapping jurisdiction.
This brings Democratisation and decentralization, by transferring the control to the market.
Thus there is an inclusive approach to decision-making by transfer of control to several micro spaces.
This process eventually brings efficiency and effectiveness to administration.
So according to PCA, there are few parameters of the market when implemented by the state, it could be as successful as the market.
Do you think any examples can be linked to this?
Kindly share it with us!
Aptly decoded.👍..can you please let me know how do you address what's the demand of the question..like what's hidden behind the framed sentences and what's expected.