Rolling out the Red Carpet

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Friday, August 1, 2008

Public-Private Partnership

In this era of modernization in many aspects of public administration, Pakistan continues to follow century-old concepts and structures. It seriously needs structural adjustment thereby launching legislative and administrative reforms, which stress a reconsideration of the role of the public administration in the conditions of democratization and market-economy. A greater emphasis needs to be placed on effectiveness of the public administration. The practice and legislation of Pakistan should affect patterns of the role of public sector and influence fundamental features of the system of governance. A common goal should be to introduce a more contractual, participative, discretionary style of relationship: between different levels and agencies in administrative apparatus; between the decision-making authorities and operating units; and between administrative agencies and producing units, public or private.

A major reform objective in public sector management should be to increase, within the framework of democratic accountability, cost effectiveness in the public provision of goods and services. Both citizens and public administration accept the need for improved quality in the public sector.

Pakistan needs to hold high the aim of structuring an effective mechanism for achieving policy objectives, determined at central, provincial and local levels for increasing efficiency, effectiveness and accountability in providing public services.

The legality and the efficiency of providing such public services are of great concern. Local authorities have power to do anything, which is calculated to facilitate, or is conductive or incidental to, the discharge of any of their function.

Outsourcing is a way of contracting out one or more functions to specialist companies. This allows the public entity to concentrate on its core activities. There are three primary reasons for the public administration to outsource. The first is to achieve cost-effective provision of services. The second is to provide a choice for the citizens of producing and supplying public services of different qualities and kinds. The third is simply because there is no alternative due to a lack of staff with the requisite skills; need of relaxing the administrative burden, which somebody other could deal with even better and concentrating the attention on the core administrative matters; short deadlines for implementation. This last reason for outsourcing is to meet the needs, which exceed the capability of the public administration staff, because of a shortage of either staff or skills, or which give added flexibility to the administrative organization.

Thus, the outsourcing can be seen as a process through which relationships are managed and adjusted according to arrangements specified and conditions planned by the administrative authority in the contract documentation. The focus here is not on the legal issues of the contract rather than on the quality of contracting as a mechanism for achieving policy objectives determined at all levels of government for increasing efficiency, effectiveness and accountability. From this perspective the outsourcing by public administration can be considered as a joint commitment to partnership between public and private sector operating as a co-operative device for providing public goods and services.

The trend towards greater satisfaction of public needs and consumer empowerment underlies the role of outsourcing by public administration. The outsourcing is encouraged to secure higher quality of public works and services, whereby contracting managers are located closer to the consumer and so are better able to respond to their needs in actual delivery. The role of consumers and end-clients with respect to outsourcing can thus be increased. The strategies of improving responsiveness through outsourcing on the one hand, and hierarchical distribution of the administrative functions on the other, can be combined in a successful model of public service delivery. The administrative authorities - at federal, provincial and local levels – might participate in the specification of services and in the determination of contractual standards and terms of agreement.

As part of administrative reform outsourcing by public administration should be a high priority. The corresponding legislation should be based on three main principles—transparency, non-discrimination involving open selection criteria and open standards, specifications and standards regulated by law; and open competition.

The framework agreements are very important of securing the implementation of the administrative authority intentions and expectations of the outsourced services or works.

The governments, federal, provincial or local, can use outsourcing as a tool for providing public services when discharging their functions. They use outsourcing to get public results, which should be achieved when the governments exercise their administrative powers.

The outsourcing in some way can replace the direct administrative action. Such outsourcing has the compulsory nature same as this of the administrative action which it replaces. The government can use administrative or seek legislative powers to bring about the result it desires, if it is nonetheless outsourcing. A realistic view is that the process of deciding to outsource as well as the very process of outsourcing is a valid exercise of administrative power. The offered and agreed terms of the contract are also exercising of the administrative power. Once the contract signed, however, the particular relationships issued by outsourcing are moved under the regulations of the private law.

The government functioning can be improved by redefining its role: Policy-making instead of operative decision-making. It should stimulate tools for establishment of working, efficient, rational and fair practice, design of efficient allocation of financial and material resources; transparency and control. The government must also realize that developing a training strategy for skills and incentives is badly needed.

The overall proportion of outsourcing in the field of public administration is generally expected to growing. Demand will increase for a variety of reasons.

Successful outsourcing, however, presupposes the existence of an efficient market. In

Pakistan the market for some categories of public goods and services is deficient of professionalism, integrity, and fair play. Such situation is creating conditions for corruption.From another side, outsourcing itself contributes to developing the market. (www.asifjmir.com)

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