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Is There a Future for Contracting in the Australian Public Sector?
Author(s) -
Davis Glyn,
Wood Terry
Publication year - 1998
Publication title -
australian journal of public administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.524
H-Index - 41
eISSN - 1467-8500
pISSN - 0313-6647
DOI - 10.1111/j.1467-8500.1998.tb01564.x
Subject(s) - scope (computer science) , accountability , business , public sector , government (linguistics) , workforce , service delivery framework , moral hazard , control (management) , settlement (finance) , service provider , public administration , public relations , public economics , finance , service (business) , economics , marketing , incentive , economic growth , market economy , political science , linguistics , philosophy , economy , management , computer science , law , payment , programming language
Contracting has moved from the margins to the centre of public management. Significant sections of the public workforce, from benefits delivery to corporate services, now find their functions open to tender. Governments prefer to concentrate on policy analysis and development, leaving service delivery to the market. As purchasers rather than providers, governments are redefining the role and scope of the state. But are Australian governments ready for this shift to contracting? Do they possess the full array of control and reporting mechanisms necessary if contracting is to deliver its promised benefits? There are significant difficulties finding evidence that answers such questions. Yet on the basis of concerns discussed across Australian jurisdictions, it appears contracting has developed so quickly it outstrips the capacity of government to monitor what is happening, and so learn from mistakes. In time governments will become better at maintaining accountability for contracted functions, because experience reduces the risks of moral hazard.