EIRP Proceedings, Vol 7 (2012)

Abstract

The two great challenges for any authority are to what extent and how to intervene in the functioning of the society. These challenges originate both in the world of ideologies, defining the type of state or authority based on its propensity for regulation, and in the technical expertise of technocratic management that can identify the “good practice” and “good governance” features. Both policy sources are necessary and legitimate. The ideological sources help support a representative mandate obtained by an elected power, being validated by citizens’ vote, while the technical ones contribute to optimising the efficiency of the public option by managing it in an appropriate manner. To set a simple example, if the ideological option is in favour of maintaining a company under state ownership, then the technical option may be to ensure a competency-based management controlled solely according to performance criteria. If the ideological option promotes the privatisation of a state-owned company, then the technical option may seek to ensure a privatisation procedure that should maximise the public benefit (through price, other contractual terms, enhanced market competition, clauses or measures to protect consumers, etc.)