Of late we are seeing a movement to make local government more efficient. While at first glance this seems like a logical idea to better local government, there are many questions that need to be answered before embarking on such an endeavor and several concerns and cautions that need to be recognized. Asking the right questions, seeking the right information, using realistic performance criteria, and considering all possible outcomes are essential to ensure the efforts of the local governmental body do not end up as nothing more than a report collecting dust on a shelf or, worse yet, the results of the efforts prove not only disappointing but may even worsen the situation. One of the most common comments heard when local governments begin considering efficiency efforts is “We need to run our county/city/village like a business!” While on the surface this would appear to be a positive idea, there are issues that must be considered before embarking on such a quest.
First, government provides services that cannot be offered in a manner similar to a for profit business. If all government services could be provided by private business at a profit, private business would certainly be providing those services. The fact that most government services cannot be provided in a profitable or even self sustaining manner means that government cannot be run like a business. All one has to do is try to envision police or fire departments being operated in a for-profit business manner to see why this concept is unworkable.
Second, private businesses are not subject to the public scrutiny, regulations, or management options that local governments are. A business can write off a group of difficult customers; government cannot. All citizens, no matter how disagreeable or problematic are entitled to services.
Third, government does not have a monopoly on inefficiency. Businesses have the ability to cover mistakes and inefficiencies while increasing prices to cover the costs of mistakes. Local government does not have this luxury as everything it does is subject to public scrutiny.
First, government provides services that cannot be offered in a manner similar to a for profit business. If all government services could be provided by private business at a profit, private business would certainly be providing those services. The fact that most government services cannot be provided in a profitable or even self sustaining manner means that government cannot be run like a business. All one has to do is try to envision police or fire departments being operated in a for-profit business manner to see why this concept is unworkable.
Second, private businesses are not subject to the public scrutiny, regulations, or management options that local governments are. A business can write off a group of difficult customers; government cannot. All citizens, no matter how disagreeable or problematic are entitled to services.
Third, government does not have a monopoly on inefficiency. Businesses have the ability to cover mistakes and inefficiencies while increasing prices to cover the costs of mistakes. Local government does not have this luxury as everything it does is subject to public scrutiny.
No comments:
Post a Comment