Americans have a love-hate relationship with government. Rejecting bureaucracy—but not the goods and services the welfare state provides—Americans have demanded that government be made to run like a business. Hence today’s privatization revolution.
But as Jon D. Michaels shows, separating the state from its public servants, practices, and institutions does violence to our Constitution, and threatens the health and stability of the Republic. Constitutional Coup puts forward a legal theory that explains the modern welfare state as a worthy successor to the framers’ three-branch government.
What legitimates the welfare state is its recommitment to a rivalrous system of separation of powers, in which political agency heads, career civil servants, and the public writ large reprise and restage the same battles long fought among Congress, the president, and the courts. Privatization now proclaims itself as another worthy successor, this time to an administrative state that Americans have grown weary of. Yet it is a constitutional usurper. Privatization dismantles those commitments to separating and checking state power by sidelining rivalrous civil servants and public participants.
Constitutional Coup cements the constitutionality of the administrative state, recognizing civil servants and public participants as necessary—rather than disposable—components. Casting privatization as an existential constitutional threat, it underscores how the fusion of politics and profits commercializes government—and consolidates state power in ways both the framers and administrative lawyers endeavored to disaggregate. It urges—and sketches the outlines of—a twenty-first-century bureaucratic renaissance.
In the early 1980s the tenant leaders of the New Orleans St. Thomas public housing development and their activist allies were militant, uncompromising defenders of the city’s public housing communities. Yet ten years later these same leaders became actively involved in a planning effort to privatize and downsize their community—an effort that would drastically reduce the number of affordable apartments. What happened? John Arena—a longtime community and labor activist in New Orleans—explores this drastic change in Driven from New Orleans, exposing the social disaster visited on the city’s black urban poor long before the natural disaster of Katrina magnified their plight.
Arena argues that the key to understanding New Orleans’s public housing transformation from public to private is the co-optation of grassroots activists into a government and foundation-funded nonprofit complex. He shows how the nonprofit model created new political allegiances and financial benefits for activists, moving them into a strategy of insider negotiations that put the profit-making agenda of real estate interests above the material needs of black public housing residents. In their turn, white developers and the city’s black political elite embraced this newfound political “realism” because it legitimized the regressive policies of removing poor people and massively downsizing public housing, all in the guise of creating a new racially integrated, “mixed-income” community.
In tracing how this shift occurred, Driven from New Orleans reveals the true nature, and the true cost, of reforms promoted by an alliance of a neoliberal government, nonprofits, community activists, and powerful real estate interests.
Over the past century, Israel has been transformed from an agricultural colony, to a welfare-warfare state, to a globally integrated "market economy" characterised by great income disparities. What lies behind this transformation? In order to understand capitalist development, argue Bichler and Nitzan, we need to break the artificial separation between "economics" and "politics", and think of accumulation itself as "capitalisation of power". Applying this concept to Israel, they reveal the big picture that never makes it to the news. Diverse processes – such as regional conflicts and energy crises, ruling class formation and dominant ideology, militarism and dependency, inflation and recession, the politics of high-technology and the transnationalisation of ownership – are all woven into a single story. The result is a fascinating account of one of the world’s most volatile regions.
The dramatic growth of government over the course of the twentieth century since the New Deal prompts concern among libertarians and conservatives and also among those who worry about government’s costs, efficiency, and quality of service. These concerns, combined with rising confidence in private markets, motivate the widespread shift of federal and state government work to private organizations. This shift typically alters only who performs the work, not who pays or is ultimately responsible for it. “Government by contract” now includes military intelligence, environmental monitoring, prison management, and interrogation of terrorism suspects.
Outsourcing government work raises questions of accountability. What role should costs, quality, and democratic oversight play in contracting out government work? What tools do citizens and consumers need to evaluate the effectiveness of government contracts? How can the work be structured for optimal performance as well as compliance with public values?
Government by Contract explains the phenomenon and scope of government outsourcing and sets an agenda for future research attentive to workforce capacities as well as legal, economic, and political concerns.
In many countries, public sector institutions impose heavy burdens on economic life: heavy and arbitrary taxes retard investment, regulations enrich corrupt bureaucrats, state firms consume national wealth, and the most talented people turn to rent-seeking rather than productive activities. As a consequence of such predatory policies--described in this book as the grabbing hand of the state--entrepreneurship lingers and economies stagnate.
The authors of this collection of essays describe many of these pathologies of a grabbing hand government, and examine their consequences for growth. The essays share a common viewpoint that political control of economic life is central to the many government failures that we observe. Fortunately, a correct diagnosis suggests the cures, including the best strategies of fighting corruption, privatization of state firms, and institutional building in the former socialist economies. Depoliticization of economic life emerges as the crucial theme of the appropriate reforms. The book describes the experiences with the grabbing hand government and its reform in medieval Europe, developing countries, transition economies, as well as today's United States.
Debates continue to rage over the merits or flaws of public land and whether or not it should be privatized—or at least, radically reconfigured in some way. In Defense of Public Lands offers a comprehensive refutation of the market-oriented arguments. Steven Davis passionately advocates that public land ought to remain firmly in the public’s hands. He reviews empirical data and theoretical arguments from biological, economic, and political perspectives in order to build a case for why our public lands are an invaluable and irreplaceable asset for the American people.
In Defense of Public Lands briefly lays out the history and characteristics of public lands at the local, state, and federal levels while examining the numerous policy prescriptions for their privatization or, in the case of federal lands, transfer. He considers the dimensions of environmental health; markets and valuation of public land, the tensions between collective values and individual preferences, the nature and performance of bureaucratic management, and the legitimacy of interest groups and community decision-making. Offering a fair, good faith overview of the privatizers’ best arguments before refuting them, this timely book contemplates both the immediate and long-term future of our public lands.
In Invoking the Invisible Hand Robert Asen scrutinizes contemporary debates over proposals to privatize Social Security. Asen argues that a rights-based rhetoric employed by Social Security's original supporters enabled advocates of privatization to align their proposals with the widely held belief that Social Security functions simply as a return on a worker's contributions and that it is not, in fact, a social insurance program.
By analyzing major debates over a preeminent American institution, Asen reveals the ways in which language is deployed to identify problems for public policy, craft policy solutions, and promote policies to the populace. He shows how debate participants seek to create favorable contexts for their preferred policies and how they connect these policies to idealized images of the nation.
Filled with the often desperate voices of residents who returned to New Orleans, Markets of Sorrow, Labors of Faith describes the human toll of disaster capitalism and the affect economy it has produced. While for-profit companies delayed delivery of federal resources to returning residents, faith-based and nonprofit groups stepped in to rebuild, compelled by the moral pull of charity and the emotional rewards of volunteer labor. Adams traces the success of charity efforts, even while noting an irony of neoliberalism, which encourages the very same for-profit companies to exploit these charities as another market opportunity. In so doing, the companies profit not once but twice on disaster.
From ancient Maya cities in Mexico and Central America to the Taj Mahal in India, cultural heritage sites around the world are being drawn into the wave of privatization that has already swept through such economic sectors as telecommunications, transportation, and utilities. As nation-states decide they can no longer afford to maintain cultural properties—or find it economically advantageous not to do so in the globalizing economy—private actors are stepping in to excavate, conserve, interpret, and represent archaeological and historical sites. But what are the ramifications when a multinational corporation, or even an indigenous village, owns a piece of national patrimony which holds cultural and perhaps sacred meaning for all the country's people, as well as for visitors from the rest of the world?
In this ambitious book, Lisa Breglia investigates "heritage" as an arena in which a variety of private and public actors compete for the right to benefit, economically and otherwise, from controlling cultural patrimony. She presents ethnographic case studies of two archaeological sites in the Yucatán Peninsula—Chichén Itzá and Chunchucmil and their surrounding modern communities—to demonstrate how indigenous landholders, foreign archaeologists, and the Mexican state use heritage properties to position themselves as legitimate "heirs" and beneficiaries of Mexican national patrimony. Breglia's research masterfully describes the "monumental ambivalence" that results when local residents, excavation laborers, site managers, and state agencies all enact their claims to cultural patrimony. Her findings make it clear that informal and partial privatizations—which go on quietly and continually—are as real a threat to a nation's heritage as the prospect of fast-food restaurants and shopping centers in the ruins of a sacred site.
After the collapse of communism in the Soviet Union and eastern Europe, more than a dozen countries undertook aggressive privatization programs. Proponents of economic reform championed such large-scale efforts as the fastest, most reliable way to make the transition from a state-run to a capitalist economy.
The idea was widely embraced, and in the span of a few years, policymakers across the region repeatedly chose an approach that distributed vast amounts of state property to the private sector essentially for free-despite the absence of any historical precedent for such a radical concept. But privatization was not a panacea. It has, instead, become increasingly synonymous with collusion, corruption, and material deprivation.
Why was privatization so popular in the first place, and what went wrong? In answering this question, Hillary Appel breaks with mainstream empirical studies of postcommunist privatization.
By analyzing the design and development of programs in Russia, the Czech Republic, and across eastern Europe, Appel demonstrates how the transformation of property rights in these countries was first and foremost an ideologically driven process. Looking beyond simple economic calculations or pressure from the international community, she argues that privatization was part and parcel of the foundation of the postcommunist state.
A New Capitalist Order reveals that privatization was designed and implemented by pro-market reformers not only to distribute gains and losses to powerful supporters, but also to advance a decidedly Western, liberal vision of the new postcommunist state. Moreover, specific ideologies-such as anticommunism, liberalism, or nationalism, to name but a few-profoundly influenced the legitimacy, the power, and even the material preferences of key economic actors and groups within the privatization process.
Averch describes and analyzes common strategies for solving problems in public policy. The strategies discussed include the use of markets, bureaus, regulation, planning and budgeting, benefit-cost, systems analysis, and evaluation. He examines the historical development of each strategy; describes how each strategy would ideally work; explains the necessary or sufficient conditions that permit each strategy to work; lists the potential failures of each strategy; and provides a judgment or appraisal of each strategy.
The increasing reliance on private security services raises questions about the effects of privatization on the quality of public police forces, particularly in high-crime, low-income areas. In an effective pro-and-con format, two experts on policing offer two strikingly different perspectives on this trend towards privatization. In the process, they provide an unusually thoughtful discussion of the origins of both the public police and the private security sectors, the forces behind the recent growth of private security operations, and the risks to public safety posed by privatization.
In his critique of privatization, Peter K. Manning focuses on issues of free market theory and management practices such as Total Quality Management that he believes are harmful to the traditional police mandate to control crime. He questions the appropriateness of strategies that emphasize service to consumers. For Brian Forst, the free market paradigm and economic incentives do not carry the same stigma. He argues that neither public nor private policing should have a monopoly on law enforcement activities, and he predicts an even more varied mix of public and private police activities than are currently available.
Following the two main sections of the book, each author assesses the other's contribution, reflecting on not just their points of departure but also on the areas in which they agree. The breadth and depth of the discussion makes this book essential for both scholars and practitioners interested in policing generally and privatization in particular.
Privatizing Health Services in Africa analyzes the disappearance of public health in the form of state services in Africa, and the growth of a private market in health care that will serve primarily an urban elite. Meredeth Turshen considers the implications of introducing private insurance in countries with growing unemployment, a shrinking formal job sector, and a lack of social security programs or other safety nets. She debates the pros and cons of shifting the delivery of health services to the nongovernmental sector in the context of new concepts of the role of the state. Many of the schemes to privatize the purchase and sale of pharmaceuticals reverse decades of United Nations work challenging the power of the multinational drug industry. Turshen weighs these policy changes in light of the World Bank’s eclipse of the World Health Organization as the premier UN health policy agency. Until now, no book has disputed the World Bank’s plans to privatize health care in Africa. This is the first book-length analysis of policy changes in light of monetarism and globalization.
Throughout the book, Turshen examines the implications of privatization for gender equity. She also provides a case study of Zimbabwe and comparative material from Malawi, Mozambique, and Zambia. Her study makes a contribution to current debates on the impact of structural adjustment policies on health and the design of health services in the Third World.
In the 1980s and ’90s many countries turned to the private sector to provide infrastructure and utilities, such as gas, telephones, and highways—with the idea that market-based incentives would control costs and improve the quality of essential services. But subsequent debacles including the collapse of California’s wholesale electricity market and the bankruptcy of Britain’s largest railroad company have raised troubling questions about privatization. This book addresses one of the most vexing of these: how can government fairly and effectively regulate “natural monopolies”—those infrastructure and utility services whose technologies make competition impractical?
Rather than sticking to economics, José Gómez-Ibáñez draws on history, politics, and a wealth of examples to provide a road map for various approaches to regulation. He makes a strong case for favoring market-oriented and contractual approaches—including private contracts between infrastructure providers and customers as well as concession contracts with the government acting as an intermediary—over those that grant government regulators substantial discretion. Contracts can provide stronger protection for infrastructure customers and suppliers—and greater opportunities to tailor services to their mutual advantage. In some cases, however, the requirements of the firms and their customers are too unpredictable for contracts to work, and alternative schemes may be needed.
This trenchant study analyzes the rise and decline in the quality and format of science in America since World War II.
During the Cold War, the U.S. government amply funded basic research in science and medicine. Starting in the 1980s, however, this support began to decline and for-profit corporations became the largest funders of research. Philip Mirowski argues that a powerful neoliberal ideology promoted a radically different view of knowledge and discovery: the fruits of scientific investigation are not a public good that should be freely available to all, but are commodities that could be monetized.
Consequently, patent and intellectual property laws were greatly strengthened, universities demanded patents on the discoveries of their faculty, information sharing among researchers was impeded, and the line between universities and corporations began to blur. At the same time, corporations shed their in-house research laboratories, contracting with independent firms both in the States and abroad to supply new products. Among such firms were AT&T and IBM, whose outstanding research laboratories during much of the twentieth century produced Nobel Prize–winning work in chemistry and physics, ranging from the transistor to superconductivity.
Science-Mart offers a provocative, learned, and timely critique, of interest to anyone concerned that American science—once the envy of the world—must be more than just another way to make money.
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