Democratic Administration:

Public Administration and Democracy

R.W. Phidd

Department of Political Science

University of Guelph

Lecture presented to:

Ian Greene=s Class

Department of Political Science, York University

September 2002

Democratic Administration in Canada

Summary Overview

S The Public Service and Democracy

S Approaches to Public Sector Management

S The Role of the State in Modern Capitalist Societies

S The Varieties of Representation (Representative Bureaucracy)

S The Public Service and Ethical Imperatives

S Democracy and the Administrative State

S Democratic Values

S The Role of the Public Service in Modern Democratic Societies - Institutional Characteristics

S The Growth of the Administrative State in Canada, 1867-2002 - Number and types of departments and other organizations

S The Performance of Functional Responsibilities - From Hodgetts= Classification to Kim Campbell, 1867-1970, 1993-2002

Public Sector Management, Development, Change and Adaptation

S The Contribution of Organization Theories to Public Sector Management

S The Contribution of the Structural School - To the Design of the Public Sector, Efficiency

S The Contribution of Organization Change Theories - Responding to a Turbulent Environment, Managing Change

S The Contribution of Selected Agenda Documents - Political and Managerial Responses

S The Central Agencies: Roles and Responsibilities

S Selected Case Studies within Functional Areas - Illustrative cases:

a Public Security and External Relations

b Transportation, Communications and Culture

c The Coordination of Government Services

d Conservation and Development Initiatives

e Protection and Development of Human Resources

S The 1993 Classification:

a Public Security

b Canadian Heritage

c Government Services

d National Revenue

e Natural Resources

f Industry and Science

g Human Resources and Labour

h Health

S The Response of Public Sector Organizations to Environmental Challenges

S The Contribution of Selected Public Sector Organizations:

a The Foreign Affairs and International Trade Response

b The Transportation Response

c The Central Management Response - The Treasury Board Secretariat within the Central Management System

d The Industrial Response - Industry Canada

e The Human Resources Development Response

f The Health System Response

g The Performance of Horizontal Roles (setting policy priorities)

h The Accountability Challenge within the Public Sector - the Auditor General and Related Institutions

S Identifying Different State Responsibilities

Some Political and Managerial Issues:

S The Division of Labour and Public Participation

S Bureaucracy and Democracy

S Politics and Administration: Politicians and Bureaucrats - The Canadian Model

S Planning, Corporatism, Managerialism, Pluralism and Democracy: Some Competing Principles in Public Sector Management

Democratic Administration in Canada

The Public Service and Democracy

An interesting topic which arises in the study of public services throughout the world relates to the relationship between the professional public service and the development of democracy. In the Canadian context, the question can be posed: To what extent can we relate the emergence of the contemporary public service (2002) to the functioning of democracy? There has emerged, a specialized literature in the study of public administration which relates the role of the public service to the effective functioning of a democratic society. The topic has been approached from the perspectives of the study of bureaucracy, the administrative state and management (and most recently, from the perspective of new public management). A number of scholars have addressed the topic. Some notable examples are: Eva Etzioni-Halevy, Bureaucracy and Democracy, Douglas Yates, Bureaucratic Democracy, F. Mosher, Democracy in the Public Service, Louis Gawthrop, Public Service and Democracy, and H.T. Wilson, Bureaucratic Representation, Civil Servants and the Future of Capitalist Democracies.

Approaches to Public Sector Management

In the discussion of the professional public service, we are concerned with the changing role of the state. Elsewhere, this author has reviewed at least five perspectives: 1) the administrative state, 2) the public bureaucracy, 3) the management, 4) the public management, and 5) the new public management.

The five perspectives depict shifts in emphasis with respect to the theory and practice of public administration. It is important to note that these developments are also associated with the creation and function of some important institutions and can be captured within the context of the new institutionalism.

A review of the literature on public administration demonstrates that there are some dominant approaches which have been emphasized during the 20^th century:

1 The Administrative State Approach, which emphasizes the growth of public sector organizations and officials who formulate policies and programs which affect the lives of citizens;

2 The Public Bureaucracy Approach, which applies the concept of bureaucracy to the activities of the state. The emphasis is on the politics of bureaucracy and/or expertise. The state is seen as the organization which most clearly reflects the phenomenon labelled bureaucracy;

3 The Management Approach, which evolved out of the scientific management principles and, subsequently, applied to government through the reports of the Brownlow Committee and the Hoover and Glassco Commissions in the United States and Canada - Alet the managers manage@;

4 The Public Management Approach, with relates to the application of management principles to public sector management, is associated with the best use of resources in the pursuit of objectives subject to change. It should be noted that there has been an evolution from scientific management to the contingency theory of management;

5 The New Public Management Approach, which emphasizes the provision of high quality services to citizens, increased autonomy of officials, the assignment of rewards based on performance, the provision of human and technological support mechanisms to facilitate the attainment of performance targets and the encouragement of competition within the public sector as well as between the public and private sectors to enhance performance standards.

The five perspectives depict shifts in emphasis with respect to the theory and practice of public administration. We will review the influence of a variety of theoretical perspectives on the five dominant approaches listed above.

See R.W. Phidd, Public Sector Management in Canada: Development, Change and Adaptation (York University: Captus Press, 2001. See especially Chapter 1 AThe Institutional Setting of Public Sector Management in Canada@, pp. 9-40).

The subject may also be approached from two opposing perspectives. First, reference can be made to R. Bendix, Nation-Building and Citizenship which deals with the issue of citizenship - the impact of industrialization on public participation in western democracies. We should examine the relationship between public service and citizenship. Second, Bendix has also addressed the issue of democracy from the perspective of the role societal managers perform in society. See R. Bendix, Higher Civil Servants in American Society. Here we are concerned with the role of senior public officials in societal management. We are also concerned with the role of two major institutions in society; with political parties and with the public service. See Eva Etzioni-Halevy, Political Manipulation and Administrative Power, H.T. Wilson, Bureaucratic Representation: Civil Servants and the Future of Capitalist Democracies. Because of the very special relationship between politicians and the senior public service, it is most important to examine the interaction between them. This requires more careful examination between political parties and the public service. Brian Chapman considers this to be an important dimension of the Aprofession of government@. Here it is important to examine the relationship between politicians and the higher public service. We are concerned with the role of the Executive in a cabinet parliamentary system of government. In this respect, we can compare and contrast the Canadian system with the American system.

We are also concerned with the role of the public service as an important institution in Canadian society (see, for example, J.E. Hodgetts, The Canadian Public Service: The Physiology of Government).

American public administration dealt with the challenge of administration at an early stage in the nation=s development in the attempt to separate politics from administration. An attempt was made to distinguish the political sphere from the administrative sphere in a system designed by way of the separation of powers (the U.S. tradition).

The European tradition saw the emergence of the legal-rational model of bureaucracy, the development of law and secular science and the development of institutions such as the monarchy and the rule of law. However, on both continents, the emergence of industrialization led to forms of representation, bureaucratic politics and the politics of expertise. Accordingly, the issue of bureaucratic politics has been one of continuing concern. It is possible to discuss the emergence of democracy as part of the politics of bureaucracy. Douglas Yates, for example, has addressed this issue in his book, Bureaucratic Democracy: The Search For Democracy and Efficiency in American Government. The issue is always present in the delegation of authority and in the design of public organizations - in the variety of organizational forms:

S collective ministerial responsibility; and

S individual ministerial responsibility.

We are concerned with the role of the public service in economic development - industrialization. In so doing, we are concerned with the role of the state in society.

The Role of the State in Modern Capitalist Societies

The study of public administration can be approached from a variety of perspectives. This is especially significant if we approach it from the perspective of democracy. The study of bureaucracy is a rather complex field, and, accordingly, should not be approached in a simplistic way. This is implicit in the title of my review of the literature under the heading, AFrom Bureaucracy to New Public Management@ (R.W. Phidd, Chapters 1-5). The analysis includes a discussion of bureaucracy, scientific management, human relations, organizational change, and management, among other approaches. Accordingly, we have witnessed a variety of conceptualizations of society under headings such as bureaucracy, administrative state, management, and new public management.

Organization Theories Democratic Theories

Bureaucracy Bureaucracy and Democracy

The Administrative State Democracy in the Administrative State

Management Management in a Democratic Environment

New Public Management Citizens as Clients and Citizens in a

Democratic Society

Regardless of the change in terminology with respect to the conceptualization of public administration, there has been a consistent concern with the democratic dimensions. This means that we must clarify the meaning of these concepts if we are going to have an effective discussion of the topic.

By way of illustration, Greg McElligott=s, Beyond Service: State Workers, Public Policy and the Prospects for Democratic Administration, adopts the position Athat government accountability is best delivered through an informed and active citizenry@. The approach de-emphasizes the conservative corporate vision of contemporary auditors. It suggests that resources should be allocated to support an unprecedented degree of participation. Greater access should be given to those who need access to the state=s resources. From this perspective, two of the most significant obstacles are hierarchy and business influence. The study draws on the experience of the Employment and Immigration Commission (1976-1991). The author suggests that the street level participants within the department forced links with their client communities. Frontline workers exercised their discretion in the interest of their clients. At the Employment and Immigration Commission, the union organized coalitions of frontline workers and clients to fight service reductions and cutbacks. Greg McElligott suggests that Athe approach can point toward more inclusive and democratic forms of accountability and service delivery@. His work suggests that Athere is resistence to neo-conservatism and that there is still room to dream of a world beyond degraded public services, passive consumers, and unaccountable managers@. See Greg McElligott, Beyond Service: State Workers, Public Policy and the Prospects for Democratic Administration (Toronto: University of Toronto Press, 2002).

The Varieties of Representation (Representative Bureaucracy)

An important issue which emerges in the study of public administration and democracy relates to bureaucratic representation. Sociologists have captured this in the study of stratification. As industrialization takes place, more and more highly educated citizens are employed in the public service. They become involved in policy-making. The discussion of bureaucracy is part of a complex process related to the establishment of a professional public service as part of the development of capitalism and the process of industrialization.

[Insert data on public employment]

Accordingly, the growth of public employment can be related to increased public participation. Some have referred to this as bureaucratic democracy. The issue of bureaucratic representation can be dealt with in a more dynamic way. This issue is effectively addressed in Tom Wilson=s book, Bureaucratic Representation: Civil Servants and the Future of Capitalist Democracies.

An analysis along this line requires that we pay attention to the role which the public service performs in economic development and in the building of democracy. This requires that we adopt a longitudinal analysis for our comprehending the role of the public service in Canadian society. Here we are concerned with the growth in the number and types of public organizations and with the number of public employees. By way of illustration, it is interesting to discuss the role which the Canadian public service performed in the four decades between the 1930's and the 1960's. See, for example, F. Kaliske, Canadian Economic Policy Since the War, also Doug Owram, The Government Generation, Canadian Intellectuals, and the State.

The subject can be effectively captured from the perspective of democracy. Redford, for example, contrasts the tenets of democracy to the tenets of administration. This requires that we explore the institutional imperatives.

The Public Service, Democracy, Values and Ethical Imperatives

The issue has been picked up recently by Louis C. Gawthrop, Public Service, Democracy, Ethical Imperatives for the 21^st Century.

Democracy and the Administrative State

1 The tenet of individual realization holds that persons are the units of value in social arrangements, emphasizes the need to uphold human values;

2 the tenet of equalitarianism holds that all men deserve social recognition; and

3 the tenet of universal participation holds that liberty exists only through participation either in decision-making or in the control of leaders who make decisions.

Emmette S. Redford considers individual realization equalitarianism and participation as three critical elements of democratic morality. Furthermore, he considers democratic morality as a major component of the political system. He contrasts these features with the institutional features of the administrative state; namely, structural specialization, strategic positions and interaction. He is concerned with individuals within institutions, the performance of official roles, personal stakes, professionalization, and a large group on non-leaders. Overall, Redford is concerned with the manner in which the political system is designed to make decisions and the manner in which it impacts on individuals. From the perspective of democracy, the system functions effectively only if adequate institutional mechanisms exist to protect the rights of individuals.

Louis Gawthrop refers to the Acovenant of democracy@. In the context of public sector organizations, the covenant of democracy is to remind civil servants of the close vigilance required if the intricately devized system of democracy is to function effectively. If public administrators are to move toward the common good, they must be prepared to manage our covenant treasure of democratic values and virtues that infuse our democratic ethos over the years. However, our democratic values have been compressed into simplistic slogans by the passions of political rhetoric. Democratic values require commitment to freedom, equality, justice and responsibility. The system is significantly influenced by professional responsibility. See Louis C. Gawthrop, Public Service, Democracy, Ethical Imperatives for the 21^st Century. (See the appendix in this paper).

Democratic Values

S freedom

S equality

S justice

S responsibility

S professional responsibility

In my own work, I have attempted to look at the role of the Canadian public service in terms of change and adaptation. In so doing, I have drawn on the work of Professor J.E. Hodgetts, The Canadian Public Service. The Physiology of Government. The public service is captured in terms of its performance of functional responsibilities such as public security and external relations, transportation, communications and culture, coordination of services for the public organization, conservation, development and utilization of natural resources and the protection and development of human resources. The public service is seen as a major employer and it contributes to the well-being of Canadian citizens.

1 Public Security and External Relations;

2 Public Works, Transportation and Communication;

3 Coordination and Services to Government;

4 Conservation, Development and Promotion of Physical Resources; and

5 The Protection and Development of Human Resources.

The Role of the Public Service in Modern Democratic Societies

Public employees contribute to the well-being of Canadian society in a variety of ways. We can relate organization theories to public administration. These theories can be related to democratic theories. Accordingly, the study of public administration is a natural part of the study of democracy. The growth of public sector organizations must be associated with the development of specialized skills. As a result, when we list the number of departments and agencies in the public sector, we are also capturing the growth and use of professional expertise. It is hypothesized that the contribution of this professional expertise adds to the dynamics of democracy. As we review the list of public sector organizations, it is important to note that professional public officials perform the following roles, among others:

1 they provide professional expertise;

2 they give continuous attention to problems;

3 they exercise discretion and judgement; and

4 they mobilize constituencies in an endeavour to solve problems.

Let=s reflect on the performance of these roles as we review the evolution of public organizations during the 20^th century. (Note the list of departments and the functions which they perform).

Government Departments, 1867 and 1997
Government Departments in 1867	Government Departments in 1997
Agriculture Customs Finance Inland Revenue Justice Marine and Fisheries Militia and Defence Post Office Privy Council Office Public Works Receiver General Secretary of State Secretary of State for Provinces	Agriculture and Agri-Food Canadian Heritage Citizenship and Immigration Environment Fisheries and Oceans Foreign Affairs and International Trade Health Human Resources Development Indian Affairs and Northern Development Industry Atlantic Canada Opportunities Agency Federal Office of Regional Development - Quebec Western Economic Diversification Justice Labour National Defence National Revenue Natural Resources Public Works and Government Services Solicitor General Transport Veterans Affairs Central Agencies Finance Privy Council Office Prime Minister=s Office Treasury Board Secretariat

In my analysis of the Canadian public service, I have tried to identify the contribution of major functional sectors such as the foreign service, the transportation regulatory system - public safety, the emergence of human resources and expenditure management, the role of the public sector in influencing industrial development, and in the protection and development of human resources. Public sector management can be captured within major functional areas.

Changes in Governmental Functions (Long Cycles and Short Cycles)

Hodgetts= Typology (1867-1970) Five Functional Areas 1 Public Security and External Relations, e.g. Foreign Affairs and International Trade 2 Public Works, Transportation, Communication, Culture, e.g. Transport 3 Coordination and Services for Public Organizations, e.g. Treasury Board Secretariat 4 Conservation, Development and Promotion of Physical Resources, e.g., Industry 5 Protection and Development of Human Resources, e.g., Health and Welfare

Kim Campbell=s Reforms (1993) Eight Functional Areas 1 Public Security 2 Canadian Heritage 3 Government Services 4 National Revenue 5 Natural Resources 6 Industry and Science 7 Human Resources and Labour 8 Health

Public Sector Mangement: Development, Change and Adaptation - Democratic Dimensions

We must address the following question. What role does the modern public service perform in the contemporary challenge of change and adaptation in the21st century?

R.W. Phidd, Public Sector Management in Canada: Development, Change and Adaptation. This book looks at change and adaptation in the Canadian public sector. In the analysis of public sector management, we adopt the following perspectives, all of which can be associated with a movement toward democratization.

The Contribution of Organization Theories to our Understanding of the Canadian Public Sector

S the contribution of classical theories - bureaucracy and scientific management;

S the contribution of the human relations school;

S the contribution of the decision-making school;

S the contribution of theories of management;

S the contribution of the open systems theory school;

S the focus on the relationship between organizations and their environment;

S the role leaders and leadership plays in managing change.

Organization theories are intricately related to the study of politics. Here we need to look at the contributions of political theories to public administration and public policy.

We can use three theoretical contributors to illustrate this relationship:

1 Peter Self, Administrative Theories and Politics;

2 Robert Denhardt, Theories of Public Organizations; and

3 Desmond Keeling, Management in Government.

They help us to understand the design of government. In addition, they assist with our understanding of how public sector organizations respond to challenges from their environment. In Canada, we can capture this from assessing the impact of Glassco to Results for Canadians.

The Contribution of the Structural School to Our Understanding of the Design and Adaptation of Organizations

S the focus on departments, central agencies and line departments;

S the focus on boards and commissions;

S the focus on alternative delivery systems.

Organizational design influences the performance of the role of the state.

The Contribution of Organizational Change Theories to Our Understanding of Change and Adaptation

S the role of political parties;

S the role of the Prime Minister and Cabinet in public management;

S the role of the cabinet committees in the formulation of policy; and=

S the roles of the above in relation to the private sector.

The adaptation of public sector organizations illustrates the nature of the changes taking place in society.

The Contribution of Selected Agenda Documents in the Formulation and Development of Policy

S the Speech from the Throne;

S the Revenue Budget;

S the Expenditure Plan.

The above listed documents depict the strategies adopted. From this perspective, we can capture the manner in which the Prime Minister and Cabinet respond to environmental challenges.

We examine the application of the above listed agenda documents to selected areas of Canadian public sector management. We can identify an opening-up of the process of decision-making. By way of illustration, we conduct specialized organizational case studies within selected functional areas to demonstrate these changes:

S Foreign Affairs and International Trade;

S Transport Canada;

S The Treasury Board Secretariat, Human Resources Development, Financial Management and Management in Government;

S Industry Canada;

S Human Resources Development;

S Health Canada.

Political leaders and administrators continually define and redefine the public agenda. The case studies demonstrate this.

The above can be presented in a somewhat different way. How did the Canadian political system, and concomitantly, how did the Canadian public service respond to a variety of challenges from the international and domestic environments, especially in the areas of foreign and trade policy, transportation, services to government, industrial development, and in human resources development and health?

In addition, the public sector deals with fiscal policy, human resources management within the public sector and with issues of responsibility, accountability and control. Accordingly, the study explores the following dimensions of public sector management.

The Contribution of Selected Public Sector Organizations to Selected Horizontal Policy Issues (the setting of priorities)

S fiscal policy;

S human resources management within the public sector.

The Accountability Challenge within the Public Sector

S the Chief Electoral Officer;

S the Auditor General.

The last mentioned issues are concerned in a very direct way with the democratic process and with issues of responsibility and accountability. How do we get the system, just described, to operate in a manner consistent with the tenets of democracy? This requires a system of institutional relationships to sustain and support it. Let=s turn our attention to these concerns - to the extent to which the study of democracy permeates the study of public administration.

The Division of Work and Participation - Democracy and the Public Service

It is somewhat surprising that democracy is so closely related to administration; the phenomenon of administrative competition and coordination. However, this becomes obvious when it is recognized that the great bulk of decisions and actions taken by governments are determined, or heavily influenced, by administrative officials, most of whom are appointed, not elected. The decisions are affected by the capabilities, orientation, and training of the officials, among other things. (This leads to a system of bureaucratic democracy).

The division of work into administrative units leads to the representation of a variety of groups associated with the specialized divisions. Accordingly, we are concerned with both expertise and representativeness. The public sector is organized into specialized divisions such as:

S a Department of Agriculture for farmers;

S a Department of Labour for workers;

S a Department of Commerce for business, etc., among others.

There is also the issue of employee participation in decisions which provide another form of representation. Public personnel management can be examined as a continuous process of democratization throughout the 20^th century. Several issues emerge in the discussion of democracy in the public service. Accordingly, Frederick Mosher identifies the following issues, among others:

S education and the public service;

S the changing concept of the civil service during the 20^th century;

S the emergence of government by managers;

S the professional state;

S three systems of merit;

S the growth of collective bargaining in the public service;

S merit, morality and the public service.

They represent different aspects of modernization of human resources management in the public service during the 20^th century.

The above listed issues are indicative of some major concerns in any meaningful examination of democracy and the public service. The evolution of the public service demonstrates a grappling with such issues. (See, for example, Patricia Wallace Ingraham, The Foundation of Merit: Public Service in America.

Bureaucracy and Democracy

Eva Etzioni-Halevy has presented the other side of the democratic process. She has examined the role of elites in the democratic process. The author has referred to the holding of elections as a measure of democracy. However, there are contradictory views with respect to the holding of elections as a measure of democratic participation. Therefore, the author deals with the issue of political manipulation of material inducements in Britain, the United States, Australia and Israel. The study shows how political parties have used the power of appointments to maintain support (the appointment of party supporters to influential positions). This development occurs simultaneously with the growth of a career public service. This has led to competing claims with respect to who should exercise power in the state.

The above leads Eva Etzioni-Halevy to develop an analysis of Bureaucracy and Democracy: A Political Dilemma, in which she argues that bureaucracy is supportive of a democratic system of government.

Francis Rourke in Bureaucracy, Politics and Public Policy provides another explanation for the ways in which bureaucracy supports democracy through the following:

S the existence of a bureaucratic policy system;

S the mobilization of political support by bureaucracies (constituencies);

S the organization and utilization of skills;

S the differentiation in (organizational) agency power.

The organization of systems allows bureaucrats to utilize their expertise, give continuous attention to problems, mobilize constituencies and effectively formulate public policy. The bureaucracy is a power elite. It is constantly affected by reorganization. The various reorganizations can be seen as a measure of bureaucratic responsiveness.

Politics and Administration: Politicians and Bureaucrats

This leads to an analysis of the relationship between politics and administration and between policy and administration. We are concerned with the role politicians and bureaucrats perform in the formulation and management of public policy. During the 1990's, the then Clerk of the Privy Council, Jocelyne Bourgon, outlined the Canadian model of public service reform. She insisted that it involves complementary relationships between politicians and public servants. The Canadian model included the following characteristics.

[Insert Characteristics of the Canadian Model}

Emette Redford, Democracy in the Administrative State, addresses the issue of the potentials for democracy from the perspective of where decisions are made and carried out through administrative institutions. The author suggests that we are affected intimately and extensively by decisions in numerous organizations, public and private, allocating advantages and disadvantages to us. Many of these organizations are created by the political system. The central elements in the administered society may be summarized as follows:

S organized society business, labour, social, public

S public organization legislative, executive, judicial

S public administration departments, bureaus, commissions

These organizations operate within a system of delegated constitutional and legal authority pattern. Democratic morality rests on three tenets: individual realization, equality of man in their claims for attention, and participation - either directly or through control of leaders - as the instrument of implementation of substantive values.

In the administrative state, policies are made by the interaction of men occupying strategic positions in specialized institutions - official roles, personal stakes and professional orientation. The relationship can be identified in terms of both macro and micro institutional relationships. Within the system individuals are accorded certain rights: the right to know, the right to access, and the right to a fair forum.

The essential characteristics of the new Canadian system can be summarized as follows:

System=s Goals

S The importance of well-performing government institutions;

S The importance of well-performing professional public service; and

S The importance of complementarity in the roles of the elected politicians and the professional non-partisan public service.

System=s Objectives

S Giving priority to the public interest;

S Invest in strengthening the policy capacity of government;

S Develop a strategy for improving the relationship between government and citizens;

S Establishing the goal of putting people first, meeting the human resources challenges for 2000 and beyond; and

S Develop a strategic plan for outlining a strategy for the Canadian Public Service, as outlined in La Releve.

New Managerial Challenges

S Focusing on the need to improve the horizontal dimensions of management (borderless institutions); and

S Establishing a strategy for emphasizing effective leadership in the Public Service of Canada

The above represents the Canadian strategy for 2000 and beyond.

Organizational leaders may adopt certain strategies: authoritarianism, guildism, human relations, and/or liberal constitutionalism. We should discuss these approaches.

Douglas Yates, in chapters 2, 3 and 4 of Bureaucratic Democracy, presents a comprehensive analysis of the rise of bureaucratic democracy in the United States. He asserts, AI believe that the best way to understand the design of American government institutions is to pay attention to two other normative concepts, other than equality and liberty: pluralist democracy and administrative efficiency@, p. 9. Accordingly, he elaborates on the pluralist democratic model and the administrative efficiency model (pp. 10-23). The characteristics of these two models influenced the structure of government: merit appointments, expertise and professionalism, bureaucratic organization, planning and fiscal management, and the strengthening of the Chief Executive. The two models are drawn from public and private management. The pluralist model is a political one. The administrative efficiency is derived from business.

The author further asserts that the conflict between the models of pluralist democracy and administrative efficiency is a conflict not only between two institutional designs, but between two historical traditions which address the issue of how best to organize a politico-administrative system (see pp. 31-61).

The bureaucracy lies at the centre of the politico-administrative system - bureaucratic democracy. Bureaucracies are seen as embodying: interest groups, mobilizing constituencies, associated with fragmentation, and to embody characteristics of conflict and competition (pp. 66-81). Elements of bureaucratic functioning include: valuative decisions, silent politics, power conservation, loose administrative control, and expansion and proliferation of policy-making (pp. 81-100) Overall, Yates enumerates eight basic features of bureaucracy:

S bureaucracies as interest groups;

S fragmentation;

S conflict and competition;

S valuative decision;

S silent politics;

S power conservation;

S loose administrative control;

S expansion of bureaucratic policy-making.

While the administrative efficiency model leads to segmented pluralism (pp. 105-115), the focus on the Chief Executive leads to an emphasis on the setting of a national agenda and the balancing of priorities for reasons of both democracy and efficiency (pp. 180-205).

Planning, Corporatism, the Managerial Influence, Pluralism, and Democracy: Some Competing Principles in Public Sector Management

The need to engage in rational decision-making has led to a trend toward centralization. We are all aware of the early influence of scientific management principles on organizations, POSDCORB, planning, organizing, staffing, directing, coordinating, reporting and budgeting. These principles have reappeared in a variety of forms such as PPBS. This leads to a discussion of the clash between efficiency and participatory democracy (pluralism). There is also the debate between planning and pluralism. All this is reminiscent of discussions in the 1960's (the planning debate). Yet it is re-emerging in the discussion of business planning (refer N. Chamberlain, Private Versus Public Planning, Amitai Etzioni, The Active Society).

We can discuss these alternatives from the perspective of top-down versus bottom-up policymaking.

[Insert chart - Top-Down and Bottom-Up]

Modern Capitalism and the New Public Management - The Public Service and Democracy

Characteristics

The Polity The Economy

From Glassco to Results for Canadians: The 1960's to 2002 and Beyond

The evolution of the system between the 1960's and 2000 - From Glassco to Results for Canadians - demonstrated a shift to the strengthening of the central agencies, the Prime Minister=s Office (PMO), the Privy Council Office (PCO), the Office of the Treasury Board Secretariat (TBS), and the Department of Finance; essentially to the performance of managerial roles. This should be contrasted against the bottom-up approach, the role of departments and agencies. We should discuss the implications of these approaches for democracy.

The dichotomy between politics and administration leads inevitably to an examination of the relationship between political parties and to the public service - to a discussion of democracy and the public service. There has been a tendency for different academic groups to investigate and evaluate the roles of these two institutional dimensions of the political system. This investigation is even more important because of the emphasis placed on institutionalism. It is suggested that we should critically review the roles of these two institutions whenever we examine public sector reforms in Canada and abroad. The study of public sector organizations suggests that we do so. What are the likely implications of doing so? Such an analysis would lead to an improved understanding of the roles of these two institutions in the development of democratic societies.

In the late 1990's, the characteristics of the Canadian system of public sector management were enumerated by the then Clerk of the Privy Council. They included:

S the importance of well-performing government institutions;

S the importance of a well-performing professional public service; and

S the importance of complementarity in the roles of the elected politicians and the professional non-partisan public service.

The Canadian system was set to address a number of challenges:

S giving priority to the public interest;

S investing in strengthening the policy capacity of government;

S developing a strategy for modernizing the delivery of service to Canadians;

S developing a strategy for improving the relationship between government and citizens;

S establishing the goal of putting people first, by meeting the human resources challenges for 2000 and beyond; and

S developing a strategic plan for outlining a strategy for the Canadian public service - as outlined in La Releve.

A number of managerial challenges were simultaneously outlines:

S the importance of focussing on the need to improve the horizontal dimensions of management (addressing the challenge of borderless institutions); and

S the importance of establishing a strategy for emphasizing effective leadership in the Public Service of Canada.

The above listed concerns are all related to the development of a public service in the new global environment. They represent some interesting institutional challenges:

S the building of democratic institutions;

S the role of politicians in that institutional building process;

S the role of the Public Service in modern capitalist societies;

S capitalism and public service reform; and

S public-private sector relationships. These impinge on the relationship between business and politics in democratic societies. Several of these issues emerged from the PS2000 Task Force.

We have already referred to the fact that a number of scholars have addressed this issue (democracy and the public service). Bendix, Nation-Building and Citizenship: Higher Civil Servants in American Society; Andrew Shonfield, Modern Capitalism; Robert Heilbroner, 21^st Century Capitalism; and H. Tom Wilson, Bureaucratic Representation, Civil Servants and the Future of Capitalist Democracies, to name a few.

By way of illustration, Tom Wilson has observed:

Bureaucratic representation promises a more direct, expert and continuous representation of public and social interests if it is focussed on implementation processes as its major setting and arena. It is in these circumstances, in contrast to advisory, office or organizational settings, that direct relationships between public servants and citizens can be an effective counter balance to ideologies and practices which presently serve neo-conservative interests. An example would be the way that shibboleths like the policy-administration and formulation-implementation dichotomies are employed by the private, corporate sector and its supporters (pp 90-91).

Wilson goes on to develop a general analysis of bureaucratic representation (chapters 5, 6, 7 and 8). See Haile K. Asmeron and Elisa P. Reis, eds., Democratization and Bureaucratic Neutrality (New York: St. Martin=s Press, 1996); Brian Cook, Bureaucracy and Self Government: Rediscovering the Role of Public Administration in American Politics (Baltimore: Johns Hopkins University Press, 1997).

Let=s discuss some of the most salient issues involved in the discussion of the public service and democracy.

Modern Capitalism and the New Public Management: The Public Service and Democracy

Organizations and institutions go through periods of change and adaptation. Some organizational analysts have identified a continuous process of change and adaptation. R. Bennis, Changing Organizations. They have identified a process of continuous democratization - the process of debureaucratization, and, the role of markets, the relationship between bureaucracy and markets. This represents one trend. However, we have also identified the managerial dimension which emphasizes decision-making from the top down. We have also reviewed the evolution of the management influence in public administration (in both Canada and the United States).

Public sector management can be conceptualized in a manner which captures the public sector, the private sector and the voluntary sector. This approach draws on the work of analysts such as Neil Chamberlain, Private and Public Planning; Amitai Etzioni, The Active Society. This analysis is consistent with the new institutionalism. We are concerned with the relationship between the public and the private sectors. We can identify the development of key institutions within this process. Let=s look at these relationships. It is important to understand the dynamics between these sectors. We capture this relationship in the form of a diagram.

[Insert Pie-Diagram]

The identification of the roles of these sectors. It is analagous to understanding the dynamics between sectors of the economy which used to be called primary, secondary and tertiary. It is important that the dynamics between the sectors and the interaction between them can assist us in understanding the changing role of the state in society and the challenges of modern capitalism. Andrew Shonfield once described these institutional relationships as Modern Capitalism: The Changing Balance Between Private and Public Power.

These institutional relationships are important in explaining the evolution and operation of the modern public service. It is also important to capture the role of political parties in this process. See Joseph Schumpeter, Capitalism, Socialism and Democracy. See also his essay on Imperialism and Social Classes. It is interesting to note the shift in perspective which emerged with the introduction of behaviouralism. This should be contrasted with the new institutionalism.

Richard Lehne, an American analyst, has captured the evolution of the American system along the following lines (p. 20):

Overview of Developments in Law, Business, and Government
	Legal Doctrine	Business Organization	Role of Government
Colonial Times to Civil War	Property rights, contracts, and corporations	Agrarian economy, trading, and small firms	Create political framework; promote economy
Civil War to Great Depression	Transition from rural to industrial society	Emergence of industrial economy with large corporations	Promote selected industries; expand government regulation
Great Depression To 2000	Acceptance of regulation and activist government	Multinational firms; diversification; information technologies	Growth of government role in sustaining welfare and economy

See Richard Lehne, Government and Business: American Political Economy in Comparative Perspective.

Governmental Expenditures and Employment, 1929-97
Calendar Year	Total Government Expenditures*	Federal Government Expenditures*	Federal Civilian Employment
1929 1939 1949 1959 1969 1979 1989 1997	10 19 23 27 30 31 32 32	3 10 16 18 19 21 22 20	580,000 950,000 2,100,000 2,400,000 3,100,000 2,900,000 3,100,000 2,800,000
SOURCES: U.S. Advisory Commission in Intergovernmental Relations, Significant Features of Fiscal Federalism, December 1987; U.S. Department of Commerce, Statistical Abstract of the United States, 1998; and Organisation for Economic Co-operation and Development Economic Outlook 64, December 1998. * As percentage of gross domestic product.

Activities of Departments and Agencies
Government Agency	Activities
Department of Agriculture	Price supports; the forest service; food inspection programs
Department of Commerce	Trade programs; tourism; technical and statistical services
Department of Defense	Massive procurement expenditures; research projects
Department of Energy	Energy sales; energy technology nuclear energy
Environmental Protection Agency	Numerous air, water, solid waste, toxic substance regulations
Export-Import Bank	Financing and insurance for exports
Federal Communications Commission	Regulates competition in telecommunications, broadcasting, cable industries
Federal Reserve Board	Regulates money supply, interest rates, banks
Federal Trade Commission	Regulates commercial practices
General Services Administration	Government procurement and construction
Department of Health and Human Services	Health care financing; Food and Drug Administration; health research
Department of Housing and Urban Development	Housing finance and construction
Department of the Interior	Public lands; minerals; mining
Department of Justice	Antitrust; commercial litigation
Department of Labor	Occupational safety; pension supervision
National Labor Relations Board	Administers labor laws
Department of Transportation	Construction; auto safety; rail, air maritime
Department of the Treasury	Tax policy; regulates financial institutions; public debt

The Public and Politicians Want High-Quality Public Services and Better Performance by Public Sector Organizations, What U.S. Vice-President Al Gore Calls AGovernment that works better and costs less@

S providing high-quality services that citizens value;

S demanding, measuring, and rewarding improved organizational and individual performance;

S advocating managerial autonomy, particularly by reducing central agency controls;

S recognizing the importance of providing the human and technological resources manaers need to meet their performance targets; and

S maintaining receptiveness to competition and open-mindedness about which public purposes should be performed by public servants as opposed to the private sector or non-governmental organizations (Borins 1995: 5-11).

The New Public Management can be interpreted as an agreement between the public and their elected representatives on the one hand, and the public service on the other. The public and politicians want high-quality public services and better performance by public sector organizations, what U.S. Vice President Al Gore calls Agovernment that works better and costs less@ (Gore 1993). To get it, they are willing to give public servants more managerial autonomy, as well as the human and technological resources to meet their goals. (The latter would include training and supportive information technology.) In addition, the public and politicians are willing to reward strong performance B for example, through performance pay. The last component of NPM is a way of enforcing the agreement. If public servants do not improve performance, politicians and the public are willing to introduce competition within the public sector, or move activities to the private sector or non-governmental organizations.

Under the Established Model, Public Servants Were Expected to Give Politicians Unbiased and Professional Policy Advice and to Implement the Decisions Taken by Them. In return, they could expect to work in anonymity, with security of tenure

This new agreement between the public, their elected representatives, and the public service marks a significant shift from the traditional agreement. Under the established model, public servants were expected to give politicians unbiased and professional policy advice and to implement the decisions taken by them. In return, they could expect to work in anonymity, with security of tenure. While security of tenure explicitly referred to changes of government, it was implicitly taken to mean lifetime employment. The new agreement, while recognizing the value of a professional public service, puts more emphasis on improving the quality and reducing the cost of public services. It is silent about lifetime employment. Indeed, the combined impact of budget cuts needed to restore fiscal balance and the application of information technology is expected to reduce the size of the public service for a number of years, until a new, lower equilibrium is reached. Thus, NPM can be understood as a general agreement between society and the public service. The authors went on to outline the specifics of the agreement in each of the four countries they considered.

Summary Overview - Democracy and the Public Service

S the public service as an institution;

S democracy - its institutional context;

S bureaucracy;

S the modern capitalist state (bureaucracy and the state);

S the administrative state;

S the managerial state;

S characteristics of bureaucracy - the legal rational model;

S characteristics of the administrative state;

S characteristics of management;

S characteristics of democracy;

S nation-building and citizenship;

S industrialization, social mobility and citizenship;

S capitalism;

S bureaucracy and capitalism - characteristics of legal-rational bureaucracy;

S the phenomenon of merit and professionalism;

S political parties and democracy;

S the public service and democracy;

S the idea of a professional public service;

S the European tradition;

S the American tradition;

S the issue of bureaucratic representation;

S the work of R. Bendix:

S the higher civil service in American society;

S work and authority in government and industry;

S nation-building and citizenship;

S bureaucracy and democracy:

S F. Mosher, The Public Service and Democracy

S E. Redford, Democracy in the Administrative State

S Douglas Yates, Bureaucratic Democracy

S Eva Etzioni-Halevy, Bureaucracy and Democracy

S T. Wilson, Bureaucratic Representation, Civil Servants and the Future of Capitalist Democracies

S Louis C. Gawthrop, Public Service and Democracy: Ethical Imperatives for the 21^st Century

S the cabinet parliamentary system of government;

S executive dominance;

S top-down policy-making;

S bottom-up policy making

S the issue of bureaucratic representation;

S the public service and economic development;

S the growth of public sector organizations and their contribution to democracy;

S bureaucracy and markets;

S the continuum of organizational types between government and business;

S the democratization of the public service during the 20^th century, the rights of public servants;

S the clash between management and democracy:

S political management

S economic management

S management within government

S the challenge from new public management, viewing citizens as clients;

S the prospects for democracy and new public management in the 21^st century;

S some illustrative areas of Canadian public service development - impact on democracy:

S Foreign Affairs and International Trade

S Transport

S The Treasury Board Secretariat

S Industry - industrial development from Trade and Commerce to Industry Canada, 1892-2002

S Human Resources Development Canada

S Health Canada

S fiscal and monetary policy, role of capital and its distribution:

S Department of Finance

S The Bank of Canada

S Financial institutions and economic development

S human resources development within the public service of Canada, 1908-2002, the democratization of public employment - efficiency, merit, job security;

S responsibility, accountability and control. The role of parliament and parliamentary agencies:

S Auditor General

S The roles of parliamentary committees, parliamentary reform.

Identifying and Building Democratic Institutions

S the Constitution (outlines system of government);

S written constitution

S conventions

S the legislative branch

S the executive branch

S the judiciary

S the Governor General

S unique prime ministerial powers

S the rule of law;

S respecting conventions (a unique characteristics of the British system);

S the royal prerogative (an unpredictable tradition);

S discretionary power;

S delegated legislation;

S political parties (not specified in the Constitution);

S the public service (the politics of expertise) - democracy;

S the Chief Electoral Officer (controlling political parties);

S elections;

S election financing (protecting the system from wealth);

S responsible government;

S the cabinet-parliamentary system (the difficulties of exporting the system);

S collective ministerial responsibility;

S administrative law (principles of administrative justice);

S principles of administrative justice - the significance of the principles:

S departments

S boards

S commissions

S regulatory agencies

S continuum of government and business - politics and markets and performance;

S some special parliamentary institutions;

S the Auditor General;

S the Public Service Commission;

S the Human Rights Commission - democracy and human rights.

The big challenge - bureaucracy and democracy (business and politics).

S the role of the judiciary, the courts, the justice system;

S knowledge, information, participation and citizenship - the civic culture.

Appendix

Some Institutional Features of Modern Capitalism Identified by Andrew Shonfield in the 1960's - The Argument in Brief

Andrew Shonfield listed the following characteristics of capitalism:

First, economic growth has been much steadier than in the past. It has not been completely even, but the recessions, when they have come, have been very mild and shallow by historical standards. In several countries they have resulted in nothing more than the temporary slowing down of a continuing advance. There has been no halt or reversal. In others, where production has fallen back in recessions, these interruptions have been short-lived and have had relatively little effect on the level of employment.

Secondly, the growth of production over the period has been extremely rapid. It is true that in the United States there have been periods in the past, notably from 1900 to 1913, when the average rate of economic growth was even higher than in the 1950s. But the American case was exceptional in the postwar Western world. It was accompanied by many features which had no parallel elsewhere B notably a rising level of unemployment and a declining level of business investment, measured as a proportion of the national product. In Western Europe the pace of economic advance after the middle of the century was much faster, as well as being less interrupted, than in any known comparable period of peacetime history.

Thirdly, the benefits of the new prosperity were very widely diffused. In the conditions of full employment and rising demand for labour established in almost all areas of Western Europe during the 1950s, average wage earnings rose as fast as, or faster than, the national product. In the United States too consumption rose fairly steadily and the upward trend was barely interrupted even by business recessions. What distinguished Western Europe was the deliberate effort to widen the spread of consumer benefits, by means of welfare services and pension schemes, to those members of society who cannot rely on automatic gains as a result of the rise in wage-earnings.

Shonfield also indicated that:

Two powerful economic forces have played a major part in raising the tempo of economic growth in the West. They are: (1) the sustained expansion of international trade, and (2) the great building boom of the 1950s. Some economists, among whom Simon Kuznets and Arthur Lewis are outstanding, maintain that these are transient phenomena; both residential building and international trade in manufactured goods are believed to have been subjected to a species of forced growth, which will be matched by a markedly slower rate of expansion later on.

Outstanding Features of Modern Capitalism in the 1960s

Some of its outstanding features may be usefully listed at this stage:

1 There is the vastly increased influence of the public authorities on the management of the economic system. This operates through different mechanisms in different countries: in one the control of the banking system is decisive, in another it is the existence of a wide sector of publicly controlled enterprise. In all of them the government=s expenditure has been enormously enlarged and determines directly a large segment of each nation=s economic activities.

2 The preoccupation with social welfare leads to the use of public funds on a rising scale, most notably to support people who do not earn, either because they are young and being educated or old and retired. Public welfare policies, of course, have a long history in several European countries; what is, however, characteristic of the postwar period is the steady advance of social welfare measures over wide areas of the Western world. This is most obviously reflected in the fact that education and pensions together have been absorbing an increasing proportion of the national income of the advanced capitalist countries. (Again a proviso must be made about the United States in the 1950s).

3 In the private sector the violence of the market has been tamed. Competition, although it continues to be active in a number of areas, tends to be increasingly regulated and controlled. The effort to secure an enlarged area of predictability for business management, in a period in which technological change is very rapid and individual business investments are both larger in size and take longer to mature, has encouraged long-range collaboration between firms. Governments in their anxiety to increase the area of the predictable for purposes of economic planning have encouraged firms within an industry to evolve agreed policies on the basis of their common long-range interests. The classical market of the textbooks in which firms struggle with one another and disregard any possible effect that their actions may have on the market as a whole has become more remote than ever.

4 It has now come to be taken for granted, both by governments and by the average person in the Western capitalist countries, that each year should bring a noticeable increase in the real income per head of the population. The accepted procedure of annual wage claims in most countries reflects this expectation. It is, in fact, capable of being fulfilled, at any rate for a long time to come, as a result of the accelerated pace of technological innovation in industry. But to secure the full benefits of the enlarged industrial potential requires new forms of organizations, (a) in the sphere of research and development, and (b) for the training of workers and generally for the more efficient deployment of scarce resources of skilled manpower. A conscious effort has begun to be applied in both fields since the late 1950s. The purpose of (a) is to reduce the time span from the inception of novel ideas to their development into usable models ready to be absorbed into the process of production; while (b) aims to reduce the bottlenecks caused by the shortage of trained labour capable of responding to new technology. There is increasing realization that in a full employment economy, rapid technical progress can be sustained only if there is an active public policy designed to speed up the transfer of people from jobs in which they are established to new forms of employment.

5 The characteristic attitude in large-scale economic management, both inside government and in the private sector, which has made itself increasingly felt during the postwar period, is the pursuit of intellectual coherence. Its most obvious manifestation is in long-range national planning. Lengthening the time horizon used in making economic decisions also means extending the range of data that have to be studied in the present; more current facts become relevant. Thus the framework of systematic analysis has to be extended in two dimensions. Techniques and institutions, different in the various countries and varying in efficiency, have been developed to meet the demand for both explicitness and coherence in those economic decisions which have a significant impact on national production or public welfare. Once again the motive is at least partly the desire, in the face of greatly accelerated change, to try to reduce the area of the unpredictable to a manageable series of clear alternatives.

Finally, it remains to consider how far the methods being adopted for the efficient management of the new capitalism are compatible with the ideas and practice of traditional parliamentary democracy. There are two main questions. In what ways are the national democratic styles in different countries being modified? How much of the original objective of government by popular consent can be sustained in a system in which the sphere of active government has been greatly enlarged, and is likely to become more so?

The above developments in the 1960's should be contrasted with those of the 2000 and beyond period.

Is 21^st Century Capitalism Compatible with Democracy?

An important issue which has emerged since the 1960's relates to the compatibility of efficient management of the new form of capitalism with the traditional ideas of democracy. Stated differently: Is active government compatible with traditional democracy? There is also the competing claims of managerial principles with democratic participatory principles.

Institutionalism and Modern Capitalism in the 21^st Century

The idea of alternatives and choice have suggested that purposeful collective action, politics, can make a difference. It is suggested that people have the capacity to design and reorganize their capitalist economic systems in line with their collective preferences within a framework of meaningful alternatives. There is also the view that national capacity exists to shape the institutional setting.

Colin Crouch, et al., suggests that the advanced capitalist societies, have varied their systems with respect to how they treat two core institutions of capitalism - competitive markets and property rights - based on organizational hierarchies. Markets and hierarchies were found to differ between countries in a variety of ways in their scope, reach and mode of operation.

States are involved in the maintenance public order and in the enforcement of contracts.

States are involved in the management of capitalist economies - in setting different rules and outcomes of economic action.

Formal associations are involved in the organization of cooperative activities between competitors and negotiated collective rules of exchange between groups with opposing interests, thereby modifying the functioning of markets. Informal communities and networks control a significant share of certain economic transactions.

During the 1970's and the 1980's, it was asserted that certain institutional settings gave some countries a competitive advantage over economies operated by free markets and unfettered hierarchies.

However, the deep recession of the German and Japanese economies in the early 1990's caused a change in the perception, and perhaps indicated a change in the reality of the economics of capitalist diversity. With the U.S.A. and the U.K. expanding at a time when there was decline in Germany and Japan, old claims concerning the deficiencies associated with the lack of competitiveness were made once again.

The above has led to a need to examine more carefully the economic capacity of institutions. It requires that we re-examine state-society relationships. A major concern in this area is the impact of globalization on economic performance.

Some analysts have argued that the demise of national state capacity under globalization is likely to:

1 destroy a range of governance mechanisms in institutional economies whose performance depends indirectly on the support of a strong state and public power;

2 the emergence of a tendency for reduced state intervention to favour those national capitalisms that have in the past done, with comparatively little state intervention, over those institutional economies that required a high level of state-mediated political organization, thereby affecting the relative competitiveness of alternative performance patterns; and

3 a tendency for stronger convergence among states to the extent that national politics was an important source of capitalist diversity to promote convergence of capitalist economies on an institutional monoculture of deregulated markets and hierarchies, thereby reducing the overall diversity of available governance arrangements and potentially causing a net loss in overall performance capacity. Colin Crouch, et al., ed. Political Economy of Modern Capitalism, pp. 12-13.

The debate continues with respect to the relative power of nation-states to influence economic performance relative to the influence of the world system. Susan Strange addresses this issue (see pp. 182-191).

Susan Strange looks at the issues from the perspective of global systems. Thus, she asserts:

As an international political economist, I am more interested in the webs of structural power operating throughout the world system than in the comparative analysis of discrete parts of it bounded by territorial frontiers dividing states. (P. 183).

The global system is dominated by the United States. According to Susan Strange, this limits the ability to use the institutionalist approach. The comparativists greatly overstate the role of national institutions and national policies for three reasons:

1 the decline in the ability of governments to manage their national economies as they would like;

2 the growth in transnational regulation of capitalists behavior by means of which national regulation is steadily supplanted and national differences eroded; and

3 the de-nationalization of firms - the loss of identity between the location of the firm=s headquarters and its behavior in the world economy.

She provides four explanatory reasons for questioning the extent to which national institutions and national policies influence economic policies and performance:

First, the unquestioned role of the government for the wealth of the nation has been challenged by the acknowledgment of the vulnerability of state policies to world market forces.

Second, the combination of American structural power, military, financial and commercial, has led to greater asymmetry of the regulatory power among capitalist states - extending the global reach of the American government.

Third, the institutional approach is considered to be too limited to recognize the widening of the gulf between national governments and transnational business. This trend is denationalizing the firm.

Fourth, there is a growing tendency for firms to finance their spending with borrowed money rather than with tax revenues.

The foregoing suggests that there is a need to look at the more global role which the professional public service performs - that we should address the issue of the role which professional public services perform in the global setting.

Robert Gilpin sees a significant challenge for the United States in this regard. He suggests that a possible decline in the rate of growth of the United States economy, a continuing substantial American trade/payments deficit, and an elevated rate of unemployment, could trigger a powerful protectionist reaction in the United States, and that such a development could seriously damage the global economy. An open and successful international economy based on free markets is dependent on a secure and hospitable political foundation - a system of governance. The political prerequisites for an open and stable international economy are threefold, Aone or more nations must provide economic and political leadership, and leaders must provide a stable international currency, promote free trade, and establish fair and impartial rules to govern international commerce@ (see Robert Gilpin, The Challenge of Global Capitalism: The World Economy in the 21^st Century, Princeton, 2000, p. xv. These issues are critical, given the fact that governance is, above all, about the exercise of power to achieve political, social and other objectives (p. xxviii).

The Rule of Law

One logical way to begin is to consider the historical roots of the term Ahypocrisy@ that stem from the Greek hupokrisis (Apretense@) and hupokrinesthai (Ato pretend@). Thus, we should not be surprised to learn that our current usage of the word Ahypocrite@ derives from the classical Greek hupocrites (Aactor@) and hupokrinein (Ato play a part@). The hypocrite, then, is an actor, one who plays a part; who pretends by adopting an attitude that is at variance with his or her own convictions; who articulates one thing but, in fact, means something quite different.

Just how well we fit into these parameters of hypocrisy can be judged by the manner in which we still embrace the democratic rhetoric of Jefferson while continuing to act in a pragmatic manner befitting Madison. Moreover, we, as a society, continue to sanctify the virtue of union B unity through diversity B but, by the same token, we are forever loath to forgo the vigor of Arugged@ individualism as the categorical imperative of freedom. For public administrators who must operate in this convoluted system of democratic values and who must, at the same time, recognize the intrinsic values of bureaucracy and its attendant canons of management, the art of pretense, the methods of acting or of playing a role B indeed, of wearing a mask B become virtual prerequisites for a successful career.

Interestingly, however, there is another Hellenistic imprint reflected in the terms hupokrisis (Apretense@) and hupocrites (Aactor@). In the days of Homer, the original verb, krinesthai, meant Ato interpret (e.g., dreams).@ In Attic Greek it was given a slight shift of meaning in the direction of Aanswer,@ and it was only in the later Greek that the interpretation became identified with an actor=s performance on the stage. Thus, the original meaning of the work in the Greek world was defined in terms of reciting, interpreting, and answering.

Needless to say, to recite, to interpret, to answer are not incidental functions of public servants. In both the early Greek and Jewish traditions, there were particular individuals who served the important function of transmitting sacred knowledge from its divine source to the people. This task fell to those who had wisdom and understanding. In Greece, it was the poets who interpreted the dictates of its gods. For the Israelites, this task was assumed by the prophets, who received their instructions directly from God. In the New Testament, however, the terms Ahypocrite@ and Ahypocrisy@ were more pointedly defined to mean an ability to render fine-tuned legal distinctions, to interpret God=s law with hairsplitting scrupulosity. This connotation of hypocrisy is revealed most emphatically in the Gospel writings of Matthew. Indeed, at no other point in the entire Bible is the word Ahypocrite@ used with such focused vehemence as that reflected in the torrent of anger leveled by Jesus at a group of God=s servants. In what is commonly referred to as the ASeven Woes@ passage, the phrase AWoe unto you, scribes [i.e., lawyers] and Pharisees, hypocrites!@ is repeated six times (with one other AWoe to you, blind guides@ passage included), and each is followed by a stinging denunciation of the manner in which they apply the Law with absolute, minute precision.

When viewed in this context, the notion of hypocrisy suggests not only the acting out of a part through the answering of questions or the recitation and interpretation of the law, but also the indefatigable commitment to a scrupulosity that assumes all human behavior is ultimately capable of being subject to legislation.

The linkage that is forged between the notions of hypocrisy and legalism raises several basic questions that challenge us still. Indeed, most of the contemporary thinking on public-sector ethics, for example, is virtually uniform in its support of the notion that the scrupulous avoidance of the wrong is tantamount to fulfilling the right, and that the qualitative values of democratic responsibility can be satisfied by adhering to the mechanistic minutiae procedure. Is there more to public service than the assiduous implementation of statutory directives? Is there more to justice than the scrupulous adherence to the law?