How Governance can still be successful

1
How Governance can still be successful

• Nicolai Dose Chair of Political Science
  Technical University Munich

2
Outline

• Shortcomings of Steering Approaches
• My Argument
• Governance Definition
• Ambivalence of goals
• Solving problems instead of curing symptoms
• Analytical problem categories
• Linking problem categories to instruments

3
Outline (continued)

• Analyzing the prospective settlement costs
• Criteria for assessment
• Summing up
• Conclusions

4
Shortcomings of Steering Approaches

• Neglect of denationalization processes
• No analyses of societal problems
• No idea how to cope with uncertainty
• Missing integration of settlement costs into
  steering concepts

5
My Argument

• Successful governance needs systematic
  information
• on the analytical type of problem,
• on the prospective settlement costs,
• on the instruments of goverance, and
• (on the institutional setting)

6
Governance Definition

• Governance is the attendance of matters being
  perceived as public with the aim to increase
  common weal irrespective of the steering
  actors(see Zürn 1996 and Mayntz 2004).

7
Ambivalence of goals

• Contradictory goals are absolutely normal
• Goals must be determined politically
• Science can help by indicating the consequences
  of certain decisions

8
Solving problems instead of curing symptoms

• Analytical problem categories
• Linking problem categories to instruments

9
societal and ecological problems, e.g.
health hazardous micro dust caused by automobile
traffic
insufficient training sides for apprentices
no or slow environmental innovation
lack of housing
10
analytical problem categories
societal and ecological problems, e.g.
health hazardous micro dust caused by automobile
traffic
negative externalities
positive externalities
insufficient training sides for apprentices
indivisibilities and irreversibilities
no or slow environmental innovation
lack of information
lack of housing
rigidities
11
analytical problem categories
instruments of governance with specific problem
solving capacities
societal and ecological problems, e.g.
health hazardous micro dust caused by automobile
traffic
negative externalities
mandatory regulation
negative financial incentives
positive externalities
positive financial incentives
insufficient training sides for apprentices
indivisibilities and irreversibilities
negotiated agreements
no or slow environmental innovation
lack of information
persuasion
information
lack of housing
rigidities
institution building
12
Analytical problem categories (selection)

• externalities
• imperfect information

13
Externalities

• Type I positive or negative side effects are
  generated without any compen-sation gt see
  environment
• Type II regional spill-over effects a problem
  is generated in a region and affects a
  neighboring region
• Type III intertemporal externalities, e.g. costs
  are shifted to future generations

14
Imperfect information

• ignorance the actors do not possess the
  necessary information although this information
  does exist
• substantive uncertainty not all necessary
  information is available
• strategic uncertainty it is not possible to
  predict the decisions and actions of the other
  relevant actors

15
Linking problem categories to instruments

• Look for the instruments with a potential to
  lessen the analytical problem, i.e.
• externalities should be overcome in the direction
  of internalization, and
• imperfect information should be reduced.

16
(No Transcript)
17
(No Transcript)
18
Then choose the instrument that fits best by

• considering the prerequisites for success,
• taking into account the prospective settlement
  costs, and by
• referring to the criteria for assessment

19
Prerequisites for success

• The instruments of governance have quite
  different prerequisites for success, e.g.

• substantive rules and negative financial
  incentives need a functioning civil service
• information and counseling need some information
  about the preference structure of the target
  group

20
Analyzing the prospective settlement costs
Make the policy categories of Theodore J. Lowi
workable by taking a certain point of view

• Take the perception of the persons concerned
• Look at the isolated measure
• Look at the possible impact

21
Analyzing the prospective settlement costs
(continued)

• Distributive policiesMoney, goods, services, or
  legal positions are distributed without being
  aware that perceived rights of other persons are
  affected.
• Regulative policiesNothing is distributed any
  longer. Instead restrictions are imposed for the
  future.

22
Analyzing the prospective settlement costs
(continued)

• Redistributive policiesAn actor is clearly and
  perceivably taken away a legal position or
  additional costs have to be incurred. In general,
  what is taken away is given to another actor or
  group of actors.

23
(No Transcript)
24
Criteria for assessment

• principle of averting dangers
• cost efficiency
• dynamic efficiency
• accuracy

25
Criteria for assessment (continued)

• financial burden
• compatibility with parallel steering activities
• administrative costs
• soundness of the overall concept
• necessary steering knowledge

26
Summing up
27
societal and environmental problems
analytical problem categories
instruments - instruments - instruments
prerequisites for success
prospective settlement costs
criteria for assessment
chosen mix of instruments
28
societal and environmental problems
analytical problem categories
instruments - instruments - instruments
prerequisites for success
prospective settlement costs
criteria for assessment
the analytical tools of the New Governance are
open to all participants
decision taken in open discourse
chosen mix of instruments
29
Conclusions
Governance can be successful

• if the societal and ecological problems are
  analyzed thoroughly,
• if the full range of instruments is considered,
• if the prerequisites of success are taken care of,

30
Conclusions (continued)
Governance can be successful

• if the settlement costs are integrated in the
  governance concept, and
• if the instruments are chosen considering the
  criteria for assessment.

31
Advantages of the New Governance Approach

• The public discourse will be de-emotionalized
• We have an analytical tool at hand that is
  powerful
• for policy design, just as for
• policy analysis.