Title: StateBuilding: The Missing Dimensions of Stateness
1State-BuildingThe Missing Dimensions of
Stateness
- Francis Fukuyama
- Johns Hopkins University
- School of Advanced International Studies
2The Scope of State Functions
Addressing externalities Education,
environmentRegulating MonopolyOvercoming
imperfect education Insurance, financial
regulationSocial Insurance
Providing pure public goods Defense, Law and
order Property rights Macroeconomic
management Public healthImproving equity
Protecting the poor
Intermediate Functions
Industrial policyWealth redistribution
Minimal Functions
Activist Functions
X-axis
3Two Dimensions of Stateness
Strength of State Institutions
Scope of State Functions
4Stateness and Efficiency
Quadrant I
Quadrant II
Strength of State Institutions
Quadrant III
Quadrant IV
Scope of State Functions
5The Stateness Matrix
France
Japan
United States
Strength of State Institutions
USSR
Turkey
Brazil
Sierra Leone
Scope of State Functions
6Change over Time
New Zealand 1995
USSR 1980
Strength of State Institutions
New Zealand 1981
China 1978
China 2000
Russia 2000
Scope of State Functions
7Reform Paths
Path I
Path IV
Strength of State Institutions
Path III
Path II
Scope of State Functions
8Tax Extraction Rates v. Per Capita GDP
9Components of Institutional Capacity
10Weak States and the Black Hole of Public
Administration
- Central issue of all organizational theory is
delegated discretion - Underlying issue in socialism debate (Hayek),
corporate structure (Chandler), federalism - Contemporary approach brings this under a
principal-agent framework
11Domains of Organizational Uncertainty
- Ambiguity of goals
- Impossibility of erecting formal system of
monitoring and incentives - Inability to determine appropriate degree of
delegation ex ante
12Public Sector Outputs
Quadrant I
Quadrant II
Low Specificity High
Quadrant III
Quadrant IV
Low Transaction volume
High
13Monitorability of Public Sector Outputs
Aircraft maintenance
Telecoms
Central banking
Railroads
Highway maintenance
Low Specificity High
Foreign affairs
Court systems
Primary school teaching
University education
Preventative medicine
Guidance counseling
Low Transaction volume
High
14Consequences of Organizational Ambiguity
- Need to understand better where different public
sector activities fall in the matrix - Seek to fix problems that are actually solvable
- New approaches to activities for which there are
no best practices - Need to teach development differently
15What follows if public administration is not a
science?
- Need for metis (Scott)
- Does not necessarily imply leaving local
institutions in place - Requires rather contextual judgment about
applicability of foreign models - Need to think about the structure of
decision-making rather than content of decisions
16Some Historical Examples
- Japan MacArthurs decision to keep the Emperor
- versus the clean break in Germany
- Iraq disbanding the Iraqi Army
17Making Things Worse
- IFIs and donor community complicit in destruction
of institutional capacity - Contradiction between objectives of
capacity-building and provision of services - Need to rethink aims and emphasis of Phase II
nation-building
18Application to Failed States
- Inevitable conflict between need to provide
governance and early local ownership - Recent cases of authoritarian state building
- High representative in Bosnia, CPA in Iraq
- Need to tolerate loss of control in the interests
of local buy-in