Contracting-out social services

Canadian Public Administration

Volumn 41, Issue 1, 1998, Pages 21-50

  Panet, Philip De L ^a   Trebilcock, Michael J ^a  

^a NONE

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[No Author keywords available]

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EID: 0011143917     PISSN: 00084840     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1754-7121.1998.tb01526.x     Document Type: Article

References (113)

1. Donald F. Kettl, Sharing Power: Public Governance and Private Markets (Washington: The Brookings Institution, 1993), p. 175.
2. In a Canadian context, see Michael J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994). One of the most prominent books in this context is the survey of U.S. government practices by David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector From Schoolhouse to State House, City Hall to Pentagon (New York: Plume, 1993). See John D. Donahue, The Privatization Decision: Public Ends, Private Means (New York: Basic Books, 1989); Kettl, Sharing Power; and William Eggers and John O'Leary, Revolution at the Roots: Making Our Government Smaller, Better and Closer to Home (New York: Free Press, 1995).
3. In a Canadian context, see Michael J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994). One of the most prominent books in this context is the survey of U.S. government practices by David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector From Schoolhouse to State House, City Hall to Pentagon (New York: Plume, 1993). See John D. Donahue, The Privatization Decision: Public Ends, Private Means (New York: Basic Books, 1989); Kettl, Sharing Power; and William Eggers and John O'Leary, Revolution at the Roots: Making Our Government Smaller, Better and Closer to Home (New York: Free Press, 1995).
4. In a Canadian context, see Michael J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994). One of the most prominent books in this context is the survey of U.S. government practices by David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector From Schoolhouse to State House, City Hall to Pentagon (New York: Plume, 1993). See John D. Donahue, The Privatization Decision: Public Ends, Private Means (New York: Basic Books, 1989); Kettl, Sharing Power; and William Eggers and John O'Leary, Revolution at the Roots: Making Our Government Smaller, Better and Closer to Home (New York: Free Press, 1995).
5. In a Canadian context, see Michael J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994). One of the most prominent books in this context is the survey of U.S. government practices by David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector From Schoolhouse to State House, City Hall to Pentagon (New York: Plume, 1993). See John D. Donahue, The Privatization Decision: Public Ends, Private Means (New York: Basic Books, 1989); Kettl, Sharing Power; and William Eggers and John O'Leary, Revolution at the Roots: Making Our Government Smaller, Better and Closer to Home (New York: Free Press, 1995).
6. In a Canadian context, see Michael J. Trebilcock, The Prospects for Reinventing Government (Toronto: C.D. Howe Institute, 1994). One of the most prominent books in this context is the survey of U.S. government practices by David Osborne and Ted Gaebler, Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector From Schoolhouse to State House, City Hall to Pentagon (New York: Plume, 1993). See John D. Donahue, The Privatization Decision: Public Ends, Private Means (New York: Basic Books, 1989); Kettl, Sharing Power; and William Eggers and John O'Leary, Revolution at the Roots: Making Our Government Smaller, Better and Closer to Home (New York: Free Press, 1995).
7. Interest in privatization has been strong at both the federal and provincial level. The campaign materials of the Conservatives in the 1995 Ontario election contained proposals to sell off Ontario Hydro, the Liquor Control Board of Ontario, and surplus government land. See Progressive Conservative Party of Ontario, The Common Sense Revolution (Toronto: Party, 1995), p. 17. Recent infrastructure development projects in Canada have also explored public-private partnerships. See Ronald J. Daniels and Michael J. Trebilcock, "Private Provision of Public Infrastructure: An Organizational Analysis of the Next Privatization Frontier," University of Toronto Law Journal 46 (1996), pp. 375-426, at p. 375.
8. Interest in privatization has been strong at both the federal and provincial level. The campaign materials of the Conservatives in the 1995 Ontario election contained proposals to sell off Ontario Hydro, the Liquor Control Board of Ontario, and surplus government land. See Progressive Conservative Party of Ontario, The Common Sense Revolution (Toronto: Party, 1995), p. 17. Recent infrastructure development projects in Canada have also explored public-private partnerships. See Ronald J. Daniels and Michael J. Trebilcock, "Private Provision of Public Infrastructure: An Organizational Analysis of the Next Privatization Frontier," University of Toronto Law Journal 46 (1996), pp. 375-426, at p. 375.
9. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
10. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
11. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
12. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
13. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
14. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
15. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
16. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
17. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
18. This is not to say that nothing has been written on the subject. See, for example, Josephine Rekart, Public Funds, Private Provision: The Role of the Voluntary Sector (Vancouver: University of British Columbia Press, 1993); Chapter 7 of Kettle, Sharing Power; and Steven Rathgeb Smith and Michael Lipsky, Non-profits for Hire: The Welfare State in the Age of Contracting (Cambridge, Mass.: Harvard University Press, 1993). The non-profit sector has also been attracting increasing attention more generally in the social sciences. See Lester M. Salamon, "The Rise of the Non-profit Sector," Foreign Affairs 73, no. 4 (July/August 1994), pp. 109-22, at p. 109 (discussing the increasing importance of community-building aspects of the non- profit sector); and Chapter 13 in Peter F. Drucker, The New Realities (New York: Harper & Row, 1989). A broader literature has increasingly highlighted the importance of non-state mediating institutions in community-building. See Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York: Free Press, 1995); and the review of the Fukuyama book in Fareed Zakaria, "Bigger than the Family, Smaller than the State," New York Times Book Review 13 August 1995, p. 3. For an excellent collection of academic work on the non-profit sector, see Walter W. Powell, ed., The Non-profit Sector: A Research Handbook (New Haven, Conn.: Yale University Press, 1987); Susan Rose-Ackerman, ed., The Economics of Non-profit Institutions: Studies in Structure & Policy (Don Mills, Ont.: Oxford University Press Canada, 1986); and Smith and Lipsky, Non-profits for Hire.
19. Henry B. Hansmann, "The Role of Non-profit Enterprise," Yale Law Journal 89, no. 5 (April 1980), pp. 835-901, at p. 838. In this context, net earnings mean pure profits, after reasonable compensation for all factor inputs into the organization (other than equity).
20. An excellent survey of alternative service-delivery options can be found in Appendix A of Osborne and Gaebler, Reinventing Government, which lists thirty-six different options and a framework for choosing among options. See also Chapter 2 of Trebilcock, The Prospects for Reinventing Government.
21. An excellent survey of alternative service-delivery options can be found in Appendix A of Osborne and Gaebler, Reinventing Government, which lists thirty-six different options and a framework for choosing among options. See also Chapter 2 of Trebilcock, The Prospects for Reinventing Government.
22. Government emphasis on protecting equity and fairness is an important theme in Smith and Lipsky, Non-profits for Hire.
23. The exercise of compulsion is important in some social-services areas, such as removing children from abusive homes, detaining young offenders, and limiting the freedom of persons with extreme disabilities or difficulties where necessary for treatment.
24. This is a key critique in Osborne and Gaebler, Reinventing Government, particularly with regards to the delivery mechanisms for public services. Although contracting-out is frequently viewed as less costly and more responsive, the evidence appears mixed. See James C. McDavid and Eric G. Clemens, "Contracting out local government services: the B.C. experience," CANADIAN PUBLIC ADMINISTRATION 38, no. 2 (Summer 1995), pp. 177-94; Donahue, The Privatization Decision, p. 78; James Iain Gow, "Managing All Those Contracts: Beyond Current Capacity?" in Mohamed Charih and Arthur Daniels, eds., New Public Management and Public Administration in Canada (Toronto: Institute of Public Administration of Canada and Hull: École nationale d'administration publique [ÉNAP], 1997), pp. 235-61; and Steven Rathgeb Smith and Michael Lipsky, "Privatization and Human Services: A Critique," Journal of Health, Policy and Law 17, no. 2 (Summer 1992), pp. 233-53, p. 237.
25. This is a key critique in Osborne and Gaebler, Reinventing Government, particularly with regards to the delivery mechanisms for public services. Although contracting-out is frequently viewed as less costly and more responsive, the evidence appears mixed. See James C. McDavid and Eric G. Clemens, "Contracting out local government services: the B.C. experience," CANADIAN PUBLIC ADMINISTRATION 38, no. 2 (Summer 1995), pp. 177-94; Donahue, The Privatization Decision, p. 78; James Iain Gow, "Managing All Those Contracts: Beyond Current Capacity?" in Mohamed Charih and Arthur Daniels, eds., New Public Management and Public Administration in Canada (Toronto: Institute of Public Administration of Canada and Hull: École nationale d'administration publique [ÉNAP], 1997), pp. 235-61; and Steven Rathgeb Smith and Michael Lipsky, "Privatization and Human Services: A Critique," Journal of Health, Policy and Law 17, no. 2 (Summer 1992), pp. 233-53, p. 237.
26. This is a key critique in Osborne and Gaebler, Reinventing Government, particularly with regards to the delivery mechanisms for public services. Although contracting-out is frequently viewed as less costly and more responsive, the evidence appears mixed. See James C. McDavid and Eric G. Clemens, "Contracting out local government services: the B.C. experience," CANADIAN PUBLIC ADMINISTRATION 38, no. 2 (Summer 1995), pp. 177-94; Donahue, The Privatization Decision, p. 78; James Iain Gow, "Managing All Those Contracts: Beyond Current Capacity?" in Mohamed Charih and Arthur Daniels, eds., New Public Management and Public Administration in Canada (Toronto: Institute of Public Administration of Canada and Hull: École nationale d'administration publique [ÉNAP], 1997), pp. 235-61; and Steven Rathgeb Smith and Michael Lipsky, "Privatization and Human Services: A Critique," Journal of Health, Policy and Law 17, no. 2 (Summer 1992), pp. 233-53, p. 237.
27. This is a key critique in Osborne and Gaebler, Reinventing Government, particularly with regards to the delivery mechanisms for public services. Although contracting-out is frequently viewed as less costly and more responsive, the evidence appears mixed. See James C. McDavid and Eric G. Clemens, "Contracting out local government services: the B.C. experience," CANADIAN PUBLIC ADMINISTRATION 38, no. 2 (Summer 1995), pp. 177-94; Donahue, The Privatization Decision, p. 78; James Iain Gow, "Managing All Those Contracts: Beyond Current Capacity?" in Mohamed Charih and Arthur Daniels, eds., New Public Management and Public Administration in Canada (Toronto: Institute of Public Administration of Canada and Hull: École nationale d'administration publique [ÉNAP], 1997), pp. 235-61; and Steven Rathgeb Smith and Michael Lipsky, "Privatization and Human Services: A Critique," Journal of Health, Policy and Law 17, no. 2 (Summer 1992), pp. 233-53, p. 237.
28. This is a key critique in Osborne and Gaebler, Reinventing Government, particularly with regards to the delivery mechanisms for public services. Although contracting-out is frequently viewed as less costly and more responsive, the evidence appears mixed. See James C. McDavid and Eric G. Clemens, "Contracting out local government services: the B.C. experience," CANADIAN PUBLIC ADMINISTRATION 38, no. 2 (Summer 1995), pp. 177-94; Donahue, The Privatization Decision, p. 78; James Iain Gow, "Managing All Those Contracts: Beyond Current Capacity?" in Mohamed Charih and Arthur Daniels, eds., New Public Management and Public Administration in Canada (Toronto: Institute of Public Administration of Canada and Hull: École nationale d'administration publique [ÉNAP], 1997), pp. 235-61; and Steven Rathgeb Smith and Michael Lipsky, "Privatization and Human Services: A Critique," Journal of Health, Policy and Law 17, no. 2 (Summer 1992), pp. 233-53, p. 237.
29. William A. Niskanen Jr., Bureaucracy and Representative Government (Chicago: Aldine-Atherton, 1971).
30. For example, eligibility criteria for government programs, such as age or income, generally need to be unambiguous. See Smith and Lipsky, Non-profits for Hire.
31. Although this option at first seems like a radical departure from the existing system, some social services are already organized this way. For example, a great deal of child care (private day cares, nannies, or family-provided care) operates outside the government system.
32. Moral and ethical objections, such as the claim that "no one should profit from human misery," are frequently raised against for-profit delivery of social services. For example, in Times for Action: Principal Report of the Advisory Group on New Social Assistance Legislation (Toronto: Queen's Printer, 1992), a strong emphasis (p. 123) is placed on ensuring that social assistance remains a public system. This criticism seems misplaced; people are profiting by alleviating human misery. Besides, numerous other types of necessities, such as food, clothing, and shelter, are delivered by for-profits, with little comparable objection.
33. The two largest groups to receive social services in Ontario are children and the developmentally handicapped, who will generally be unable to fund the social services they consume.
34. Kettl, Sharing Power, p. 171.
35. Frequent changes in service providers may prove disruptive and interfere with the effectiveness of interventions. For example, in the child-welfare field, avoiding disruption for children in care is an important aspect of child protection.
36. Oliver Williamson, "Franchise Bidding for Natural Monopolies - In General and with Respect to CATV," Bell Journal of Economics 7 (Spring 1976), p. 73.
37. For example, job-training programs that have compensated service providers on the basis of number of persons placed in employment have been criticized on the grounds that service providers provide assistance only to people who have a high likelihood of re-employment. See Osborne and Gaebler, Reinventing Government, p. 155.
38. The problems inherent in managing contracts is reviewed in Gow, "Managing All Those Contracts," in Charih and Daniels, New Public Management.
39. The difficulties of evaluating performance in social-services context are discussed in Smith and Lipsky, Non-profits for Hire, p. 199. Performance evaluation difficulties in the non-profit context more generally are discussed in Rosabeth Moss Kanter and David V. Summers, "Doing Well While Doing Good: Dilemmas of Performance Measurement in Non-profit Organizations and the Need for a Multiple-Constituency Approach," in Powell, The Non- profit Sector, Chapter 9.
40. The difficulties of evaluating performance in social-services context are discussed in Smith and Lipsky, Non-profits for Hire, p. 199. Performance evaluation difficulties in the non-profit context more generally are discussed in Rosabeth Moss Kanter and David V. Summers, "Doing Well While Doing Good: Dilemmas of Performance Measurement in Non-profit Organizations and the Need for a Multiple-Constituency Approach," in Powell, The Non-profit Sector, Chapter 9.
41. Julie White, executive director, Trillium Foundation [interview], 24 August 1995.
42. James Douglas, "Political Theories of Non-profit Organization," in Powell, The Non-profit Sector, Chapter 3, p. 48.
43. This point is made in the context of the devolution of social services to the communities they serve. See Rekart, Public Funds, Private Provision, Preface; and Osborne and Gaebler, Reinventing Government, Chapter 2.
44. This point is made in the context of the devolution of social services to the communities they serve. See Rekart, Public Funds, Private Provision, Preface; and Osborne and Gaebler, Reinventing Government, Chapter 2.
45. The issue of social capital has been a subject of recent interest. See Robert Putnam, Making Democracy Work: Civic Traditions in Modern Italy (Princeton: Princeton University Press, 1993); Fukuyama, Trust; and Marc Bendick Jr., "Privatizing Delivery of Services: An Idea to be Taken Seriously," in Sheila B. Kamerman and Alfred J. Kahn, eds., Privatization and the Welfare State (Princeton: Princeton University Press, 1989).
46. The issue of social capital has been a subject of recent interest. See Robert Putnam, Making Democracy Work: Civic Traditions in Modern Italy (Princeton: Princeton University Press, 1993); Fukuyama, Trust; and Marc Bendick Jr., "Privatizing Delivery of Services: An Idea to be Taken Seriously," in Sheila B. Kamerman and Alfred J. Kahn, eds., Privatization and the Welfare State (Princeton: Princeton University Press, 1989).
47. The issue of social capital has been a subject of recent interest. See Robert Putnam, Making Democracy Work: Civic Traditions in Modern Italy (Princeton: Princeton University Press, 1993); Fukuyama, Trust; and Marc Bendick Jr., "Privatizing Delivery of Services: An Idea to be Taken Seriously," in Sheila B. Kamerman and Alfred J. Kahn, eds., Privatization and the Welfare State (Princeton: Princeton University Press, 1989).
48. This argument is developed in Nathan Glazer, The Limits of Social Policy (Cambridge, Mass.: Harvard University Press, 1988), Chapter 7. Glazer presents several anecdotal examples of the difficulties created when approaches to resolving social problems are institutionalized.
49. This theory of the non-profit sector has been developed in Hansmann, "The Role of Non-profit Enterprise," Yale Law Journal.
50. Empirical evidence seems to support this. One study of the nursing-home industry found that where quality was more difficult to measure, service provision was more likely to be provided by non-profits than by for-profits. See Burton A. Weisbrod and Mark Schlesinger, "Public, Private, Non-profit Ownership and the Response to Asymmetric Information: The Case of Nursing Homes," in Rose-Ackerman, The Economics of Non-profit Institutions, Chapter 7. See also the interchange between Permut and Hansmann in Steven E. Permut, "Consumer Perceptions of Nonprofit Enterprise: A Comment on Hansmann," Yale Law Journal 90, no. 7 (June 1981), pp. 1623-32.
51. Empirical evidence seems to support this. One study of the nursing-home industry found that where quality was more difficult to measure, service provision was more likely to be provided by non-profits than by for-profits. See Burton A. Weisbrod and Mark Schlesinger, "Public, Private, Non-profit Ownership and the Response to Asymmetric Information: The Case of Nursing Homes," in Rose-Ackerman, The Economics of Non-profit Institutions, Chapter 7. See also the interchange between Permut and Hansmann in Steven E. Permut, "Consumer Perceptions of Nonprofit Enterprise: A Comment on Hansmann," Yale Law Journal 90, no. 7 (June 1981), pp. 1623-32.
52. In an interview on 24 August 1995, Julie White was highly sceptical of the ability of the non-profit sector to generate private funding anywhere near the levels currently spent by the Ontario government on social services. This argument is also made in Chapter 3 of Rekart, Public Funds, Private Provision.
53. For example, government funding of non-profits often operates on the basis of matching grants, so that public funding accentuates private funding rather than displacing it. See Susan Rose-Ackerman, "Do Government Grants to Charity Reduce Private Donations?" in Rose-Ackerman, The Economics of Non-profit Institutions, Chapter 18.
54. Economic theory suggests that under free entry conditions, competing non-profits will compete for donations up to the point where the marginal return to investing resources in fundraising equals the marginal return to fundraising. See Susan Rose-Ackerman, "Charitable Giving and 'Excessive' Fundraising," in Rose-Ackerman, Economics of Non-profit Institutions, Chapter 19.
55. This theme is developed at length in Smith and Lipsky, Non-profits for Hire, Chapter 5.
56. A good survey, including anecdotal and quantitative data, on the loss of flexibility experienced by non-profit organizations when contracting with government is contained in Baker, Public Funds, Private Provision, chapters 4 and 5.
57. Smith and Lipsky, "Privatization and Human Services," Journal of Health Politics, Policy and Law, p. 246.
58. See Douglas, "Political Theories of Non-profit Organization," in Powell, Non-profit Sector, Chapter 3, p. 49; and Lester M. Salamon, "Partners in Public Service: The Scope and Theory of Government-Non-profit Relations," in Powell, Non-profit Sector, Chapter 6, p. 114.
59. See Douglas, "Political Theories of Non-profit Organization," in Powell, Non-profit Sector, Chapter 3, p. 49; and Lester M. Salamon, "Partners in Public Service: The Scope and Theory of Government-Non-profit Relations," in Powell, Non-profit Sector, Chapter 6, p. 114.
60. See Smith and Lipsky, Non-profits for Hire, Chapter 5.
61. See Glazer, Limits of Social Policy, Chapter 7. Glazer offers several anecdotes to argue that the professionalization and institutionalization of social services can be extremely counterproductive.
62. Changes to the role of the executive director are discussed in Smith and Lipsky, Non-profits for Hire.
63. See Glazer, Limits of Social Policy; and Ibid.
64. See Glazer, Limits of Social Policy; and Ibid.
65. Kettl, Sharing Power, p. 171. See also Smith and Lipsky, Non-profits for Hire, p. 193.
66. Kettl, Sharing Power, p. 171. See also Smith and Lipsky, Non-profits for Hire, p. 193.
67. See Table 4.1 in Rekart, Public Funds, Private Provision, p. 95. In a survey of 133 agencies receiving contracts to undertake social services, 62.4 per cent reported having been awarded contracts based on direct offers from the government. Only 47.3 per cent reported having received a contract through a tendering process.
68. Nicole Lafreniere-Davis, director, Children's Services, Ontario Ministry of Community and Social Services [interview], 22 August 1995.
69. These points draw on Smith and Lipsky, Non-profits for Hire, p. 195.
70. This problem is discussed in Osborne and Gaebler, Reinventing Government, Chapter 5. See also Donahue, Privatization Decision, p. 40.
71. This problem is discussed in Osborne and Gaebler, Reinventing Government, Chapter 5. See also Donahue, Privatization Decision, p. 40.
72. Kettl, Sharing Power, p. 173.
73. Ibid., p. 174.
74. An excellent brief overview of performance measurement can be found in Osborne and Gaebler, Reinventing Government, Appendix B.
75. The following information draws heavily on information provided by the Corporate Services division of the Ontario Ministry of Community and Social Services.
76. Note that these financial figures are from May 1995, so they pre-date the election of the Harris Conservative government. Given the radical restructuring and restraint initiatives proposed by the Harris government, these figures may be subject to considerable change.
77. This section draws largely from Clifford J. Willams, Decades of Service, Ministry of Community and Social Services: 1930-1980 (Toronto: MCSS, 1994).
78. In many cases, these persons were in fact kept in jails, under vagrancy laws.
79. For a discussion of the current service philosophy for the developmentally handicapped, see Ontario, Ministry of Community and Commercial Affairs, Challenges and Opportunities: Community Living for People with Developmental Handicaps (Toronto: Queen's Printer, 1990).
80. The current governing statute is the Child and Family Services Act, R.S.O. 1990, c. C-11.
81. For example, CAS agencies contract with the for-profit group homes, which are organized as the Ontario Association of Residences Treating Youth (OARTY).
82. Lynn MacDonald, assistant deputy minister, Corporate Services, Ministry of Community and Social Services [interview], 11 August 1995.
83. An example of such a group is the Ontario Association of Interval and Transition Houses (OAITH), which represents shelters for abused women and children. The OAITH receives its funding as a grant, not a service contract, and the grant contains several conditions. Susan Woodhouse, executive coordinator, Ontario Association of Interval and Transition Houses (OAITH) [interview], 25 August 1995.
84. Mary McConville, executive director, Ontario Association of Children's Aid Societies (OACAS) [interview], 28 September 1995.
85. Lafreniere-Davis, interview.
86. Sue Herbert, assistant deputy minister, Program Management, Ministry of Community and Social Services [interview], 25 August 1995.
87. Bryce Harper, manager, Research and Program Evaluation, Ministry of Community and Social Services [interview], 18 August 1995.
88. Lafreniere-Davis, interview.
89. Harper, interview.
90. MacDonald, interview.
91. For example, family members of clients may participate as volunteers for agencies providing social services.
92. MacDonald, interview.
93. MacDonald, interview.
94. Lafreniere-Davis, interview. Social-service delivery in British Columbia appears to follow a similar informal approach to monitoring. See F. Leslie Seidle, "Responsiveness and Accountability: The Drivers of Alternative Service Delivery," in Robin Ford and David Zussman, eds., Alternative Service Delivery: Sharing Governance in Canada (Toronto: KPMG Centre for Government Foundation and Institute of Public Administration of Canada, 1997), pp. 88-103, at p. 97.
95. Lafreniere-Davis, interview. Social-service delivery in British Columbia appears to follow a similar informal approach to monitoring. See F. Leslie Seidle, "Responsiveness and Accountability: The Drivers of Alternative Service Delivery," in Robin Ford and David Zussman, eds., Alternative Service Delivery: Sharing Governance in Canada (Toronto: KPMG Centre for Government Foundation and Institute of Public Administration of Canada, 1997), pp. 88-103, at p. 97.
96. MacDonald, interview.
97. This approach of relying on local communities to supervise social-service delivery also appears to have been used in British Columbia. See Ibid.
98. MacDonald, interview.
99. MacDonald, interview.
100. For a review of the alternative service delivery (ASD) literature on the subject of outcome-based performance evaluation, see Osborne and Gaebler, Reinventing Government, Chapter 5 and Appendix B.
101. Harper, interview. An example of the types of outcome measures used by the MCSS can be drawn from Children's Services, which has identified three general outcome measures: client safety, public safety, and enhanced functioning, each of which is evaluated along a scale. For example, for young offenders, client safety is evaluated in terms of secure custody, as well as developmental indicators related to skill development. Public safety is evaluated based on escapes, and enhanced functioning is a general residual category measuring administrative effectiveness.
102. Lafreniere-Davis, interview.
103. Lafreniere-Davis, interview. Woodhouse, interview.
104. Lafreniere-Davis, interview. Woodhouse, interview.
105. Woodhouse, interview.
106. The trend towards outcome-based performance measures is widespread in government and is an important theme in Osborne and Gaebler, Reinventing Government. For examples of outcomes research in the health-care field, see Institute for Clinical Evaluative Sciences in Ontario, Patterns of Health Care in Ontario: The ICES Practice Atlas, vol. 1 (1994).
107. The trend towards outcome-based performance measures is widespread in government and is an important theme in Osborne and Gaebler, Reinventing Government. For examples of outcomes research in the health-care field, see Institute for Clinical Evaluative Sciences in Ontario, Patterns of Health Care in Ontario: The ICES Practice Atlas, vol. 1 (1994).
108. For example, one interviewee noted that there is little or no knowledge of whether urban youth are better assisted by providing counselling or by providing recreational facilities and activities (such as midnight basketball leagues). Gillian Kerr, director of allocations, United Way [interview], 30 August 1995.
109. Kerr, interview. Nathan Gilbert, executive director, Laidlaw Foundation [interview], 18 August 1995.
110. Kerr, interview. Nathan Gilbert, executive director, Laidlaw Foundation [interview], 18 August 1995.
111. Kerr, interview.
112. Herbert, interview.
113. For a review of the practical difficulties of contracting-out, particularly in environments with weak performance measures, see Gow, "Managing All Those Contracts," in Charih and Daniels, New Public Management.