research sheet

Public Institutions Why do governments need to reconcile autonomy and accountability in the operation of pub- lic institutions?

Governance is the formation and stewardship of the formal and informal rules that regulate the public realm, including its political, economic, and social dimensions. Good governance enables the development of public value through institutions and processes that promote accountabil- ity, transparency, predictability, participation, and capacity. (ComSec 2009)

Public institutions are discrete organizations in the public, private, and civil sectors that are cre- ated for public purpose, mandated under government authority, funded from public monies, partnered for co-production/co-delivery, and held accountable for results. Private entities and civil society organizations are deemed public institutions when they receive more than half their income from government to deliver programs and services in the public interest.

The idealized model espouses four organizational forms: ministries, agencies, corporations, and third parties. One size does not fit all. They are a function of autonomy and accountability. (WB 2005) Autonomy creates organizational space for government to govern. Public institutions today value service, not bureaucracy. They champion citizen focus, clear mandates, financial flexibility, and managerial discretion in support of good governance. Accountability obligates institutions to report evidence of the results achieved in return for the responsibility, authority, resources, and trust conferred. It checks the political executive, minimizes abuse of power, and ensures that government performs effectively and efficiently.

By example, the range of institutional models in the Government of Canada comprises 240 fed- eral institutions scheduled under the Financial Administration Act. More than half of the public service works outside conventional departments. There are another 200-plus independent fed- eral partnership and funding arrangements. Third parties represent two-thirds of the Budget and a growing proportion of public programming. Each model has legal, policy, and organiza- tional features that shape autonomy and accountability. (TBS 2005)

There are strong pressures within government for conformity, compliance, and centralized con- trol. These are often attributed to a risk-averse culture and no tolerance for mistakes or failure. Oversight blends clear management authority and accountability through transparent systems, rigorous management controls, and robust measurement, monitoring, audit, and evaluation processes. In Tanzania, central government oversight is “eyes on, hands off”. (ComSec 2011)

Different institutional models seek to balance autonomy and accountability in operations. While standards of accountability remain constant across models, means of enforcement vary with degree of independence. Ministerial departments are governed via accountability regimes that are internal to government. The more independent an organization, the more accountabil- ity relies on governance and oversight that are internal to the institution. (TBS 2005)

Symbiosis between autonomy and accountability avoids power extremes, disharmony, and zer- o-sum solutions. It promotes the search for alternatives, equilibrium, and situational leadership where the whole is greater than the sum of the parts. Institutionalization is a more realistic strategy for good governance than restructuring. (ComSec 2011)

Professor John Wilkins: Course Director PPAS 3190 Public Administration

Public Institutions Bibliography

Commonwealth Secretariat (ComSec). 2011. Alternative Service Delivery Revisited. Discussion Paper 10. Number 10. March 2011.

Commonwealth Secretariat (ComSec). 2009. A governance framework for the Commonwealth: organizing to deliver. Governance and Institutional Development Division.

Dunn, Christopher. Editor. 2018. The Handbook of Canadian Public Administration. Third Edi- tion. Oxford University Press Canada.

Treasury Board of Canada Secretariat (TBS). 2005. Review of Federal Institutional Governance. Governance Directorate.

World Bank (WB). 2005. Alternative Service Delivery Mechanisms. Public Sector Group. Admin- istrative & Civil Service Reform.

Professor John Wilkins: Course Director PPAS 3190 Public Administration