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GOVERNMENT INSTITUTION

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Linkage Master Programmes Double Degree FIA-UNIBRAW and Japanese Universities Universitas Brawijaya 2006

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GOVERNMENT INSTITUTION

  1. 1. THE THEORY OF PUBLIC ADMINISTRATION Linkage Master Programmes g g Double Degree FIA-UNIBRAW and Japanese Universities Universitas Brawijaya Lecturer : Prof. Dr. Ir. Ginandjar Kartasasmita jgkar@cbn.net.id www.ginandjar.com g j Assistant Professor : Dr.Ir. Deddy S. Bratakusumah, BE, MURP, M.Sc. deddys@bappenas.go.id
  2. 2. GOVERNMENT INSTITUTION
  3. 3. INSTITUTION INSTITUTIONS ARE STRUCTURES AND MECHANISMS OF SOCIAL ORDER AND COOPERATION GOVERNING THE BEHAVIOR OF TWO OR MORE INDIVIDUALS. INSTITUTION IS COMMONLY APPLIED TO CUSTOMS AND BEHAVIOR PATTERNS IMPORTANT TO A SOCIETY, AS WELL AS TO PARTICULAR FORMAL ORGANIZATIONS OF GOVERNMENT AND PUBLIC SERVICE SERVICE. (WIKIPEDIA, 2006) 3
  4. 4. INSTITUTION THE ELEMENTS OF INSTITUTION ARE: 1. VALUE, 2. STRUCTURE, , 3. PROCESS 4
  5. 5. ORGANIZATION THE STRUCTURE OF AUTHORITATIVE AND HABITUAL PERSONAL INTERRELATIONS IN AN ADMINISTRATIVE SYSTEM (WALDO, 1955) 5
  6. 6. ORGANIZATION ORGANIZATIONS ARE SOCIAL UNITS (OR HUMAN GROUPINGS) DELIBERATELY CONSTRUCTED AND RECONSTRUCTED TO SEEK SPECIFIC GOALS (ETZIONI, 1961) 6
  7. 7. ORGANIZATION CHARACTERISTICS 1. DIVISIONS OF LABOR, POWER, AND COMMUNICATION RESPONSIBILITIES, DIVISIONS WHICH ARE NOT RANDOM OR TRADITIONALLY PATTERNED, BUT DELIBERATELY PLANNED TO ENHANCE THE REALIZATION OF SPECIFIC GOALS, 2. THE PRESENCE OF ONE OR MORE POWER CENTERS WHICH CONTROL THE CONCERTED EFFORTS OF THE ORGANIZATION AND DIRECT THEM TOWARD ITS GOALS; THESE POWER CENTERS ALSO MUST STRUCTURE, WHERE NECESSARY TO INCREASE ITS EFFICIENCY NECESSARY, EFFICIENCY, 7
  8. 8. ORGANIZATION CHARACTERISTICS 3. SUBSTITUTION OF PERSONNEL, i.e, UNSATISFACTORY PERSONS CAN BE REMOVED AND OTHERS ASSIGN THEIR TASKS. TASKS THE ORGANIZATION CAN ALSO RECOMBINE ITS PERSONNEL THROUGH TRANSFER AND PROMOTION. (ETZIONI, 1961) 8
  9. 9. ORGANIZATION THEORIES 1. THE STRUCTURE OF AN ORGANIZATION AFFECTS ITS BEHAVIOR, 2. THE STRUCTURE OF AN ORGANIZATION AFFECTS THE BEHAVIOR OF ITS WORKERS, C S O O S O S PARTICIPANTS, AND PERHAPS EVEN CASUAL MEMBERS MEMBERS, 3. ORGANIZATIONAL PROCESSES ALSO AFFECT ORGANIZATIONAL AND INDIVIDUAL BEHAVIOR, 9
  10. 10. ORGANIZATION THEORIES 4. ORGANIZATIONS CAN BE RATIONALLY (OR SCIENTIFICALLY) DESIGNED STRUCTURALLY ) AND PROCEDURALLY TO ACHIEVE THEIR GOALS IN AN EFFECTIVE AND EFFICIENT MANNER MANNER, 5. ORGANIZATIONS CAN USEFULLY BE CONCEPTUALIZED AS SYSTEMS THAT RESPOND TO AND AFFECT THEIR ENVIRONMENTS AND SEEK TO GAIN INFORMATION ABOUT THE EFFICACY OF THOSE RESPONSES 10
  11. 11. ORGANIZATION THEORIES 6. ORGANIZATIONS MAY HAVE CULTURES THAT PARTIALLY DEFINE HOW THEIR MEMBERS CONCEPTUALIZE ORGANIZATIONAL ACTIVITY AND THE ENVIRONMENT (MARCH, 1965) 11
  12. 12. ORGANIZATION THEORIES IN GENERAL, ORGANIZATIONAL THEORY IS “GENERIC” IN THE SENSE THAT IT DOES NOT MAKE DISTINCTIONS BETWEEN PUBLIC AND PRIVATE ORGANIZATIONS ALL ORGANIZATIONS SHARE SOME CHARACTERISTICS, AND NEARLY ALL SIGNIFICANT ONES ARE REGULATED BY GOVERNMENTS IN ONE WAY OR ANOTHER ( (BOZEMAN, 1987) , ) 12
  13. 13. PUBLIC ORGANIZATION PUBLIC SECTOR (OR GOVERNMENTAL) ORGANIZATIONS FACE LEGAL- CONSTITUTIONAL. POLITICAL. AND MARKET CONDITIONS THAT DISTINGUISH THEM FROM MOST PRIVATE ORGANIZATIONS (ROSENBLOOM & KRAVCHUCK, 2005) KRAVCHUCK 13
  14. 14. ORGANIZATION STRUCTURE Directorate General Directorate/Bureau / Division Section 14
  15. 15. WHAT IS BUREAUCRACY? LITERALLY, LITERALLY RULE BY OFFICIALS; THE ADMINISTRATIVE MACHINERY OF THE STATE OR, MORE BROADLY, A RATIONAL AND RULE-GOVERNED MODE OF ORGANIZATION (HEYWOOD, 2002) 15
  16. 16. BUREAUCRACY CONCEPTS 1. SPECIALIZED JURISDICTIONS, OFFICES, AND TASKS THAT IS, A DIVISION OF TASKS, IS LABOR AND AUTHORITY REGARDING THE ACHIEVEMENT OF THE ORGANIZATION’S GOALS, 2. A HIERARCHY OF AUTHORITY TO COORDINATE THE ACTIVITIES OF THE SPECIALIZED OFFICES AND INTEGRATE THEIR JURISDICTIONAL AUTHORITY 16
  17. 17. BUREAUCRACY CONCEPTS 3. 3 A CAREER STRUCTURE IN WHICH INDIVIDUAL EMPLOYEES OF THE BUREAUCRATIC ORGANIZATION MOVE THROUGH VARIOUS SPECIALIZATIONS AND RANKS. MOVEMENT IS BASED ON MERIT AND/OR SENIORITY 17
  18. 18. BUREAUCRACY CONCEPTS 4. A BUREAUCRATIC STRUCTURE THAT TENDS TO BE PERMANENT. IT REMAIN PERMANENT INTACT REGARDLESS OF THE FLOW OF MEMBERS IN AND OUT OF IT. SOCIETY BECOMES DEPENDENT ON THE BUREAUCRACY’S FUNCTIONING TO THE EXTENT THAT CHAOS RESULTS IF IT IS DESTROYED, 5. 5 BY IMPLICATION, BUREAUCRACIES ARE IMPLICATION LARGE ORGANIZATIONS. ( (WEBER, 1947) , ) 18
  19. 19. BUREAUCRACY FUNCTIONS PROCEDURALLY, BUREAUCRACY IS IMPERSONAL OR DEHUMANIZING FORMALISTIC RULE-BOUND HIGHLY DISCIPLINED (ROSENBLOOM & KRAVCHUCK, 2005) KRAVCHUCK 19
  20. 20. THE POWER POSITION OF BUREAUCRACY BUREAUCRACY IS HIGHLY EFFICIENT POWERFUL EVER-EXPANDING (ROSENBLOOM & KRAVCHUCK, 2005) KRAVCHUCK 20
  21. 21. INTERGOVERNMENTAL RELATIONS
  22. 22. IGR CONCERN INTERGOVERNMENTAL RELATION WERE THUS CONCERNED WITH POLICY, THAT IS, WITH , , CHOOSING COURSES OF ACTION AND ASSESING THEIR PRACTICAL EFFECTS (WRIGHT, 1988) 22
  23. 23. CENTRE-PERIPHERY RELATIONSHIPS FEDERAL SYSTEMS UNITARY SYSTEMS 23
  24. 24. FEDERAL STATES CENTRAL / FEDERAL GOVERNMENT CHECKS AND SOVEREIGNITY (SEPARATE ( BALANCES SPHERES OF CONSTITUTIONAL AUTONOMY) PROVINCIAL / STATE GOVERNMENT (ADAPTED FROM HEYWOOD 2002) 24
  25. 25. FEDERALISM A TERRITORIAL DISTRIBUTION OF POWER BASED ON THE SHARING OF SOVEREIGNITY BETWEEN CENTRAL (NATIONAL) AND PERIPHERAL ONES 25
  26. 26. UNITARY STATES SOVEREIGNITY CENTRAL (CONSTITUTIONAL GOVERNMENT SUPREMACY)) DEVOLVED / REGIONAL BODIES LOCAL GOVERNMENT (ADAPTED FROM HEYWOOD 2002) 26
  27. 27. UNITARY THESE VEST SOVERIGN POWER IN A SINGLE, NATIONAL INSTITUTION 27
  28. 28. DECENTRALIZATION AND LOCAL AUTONOMY
  29. 29. WHAT IS DECENTRALIZATION? DECENTRALIZATION IS THE TRANSFER OF AUTHORITY AND RESPONSIBILITY FOR PUBLIC FUNCTIONS FROM THE CENTRAL GOVERNMENT TO SUBORDINATE OR QUASI- INDEPENDENT GOVERNMENT ORGANIZATIONS AND/OR THE PRIVATE SECTOR (WORLD BANK, 2001) 29
  30. 30. WHAT IS DECENTRALIZATION? DECENTRALIZATION IS THE EXPANSION OF LOCAL AUTONOMY THROUGH THE TRANSFER OF POWERS AND RESPONSIBILITIES AWAY FROM NATIONAL BODY (HEYWOOD, (HEYWOOD 2002) 30
  31. 31. THE REASONS ONE OF THE MOST CRUCIAL AND RECURRING DEBATS IN THE DEVELOPING WORLD IS ABOUT THE DEGREE OF CONTROL THAT CENTRAL GOVERNMENTS CAN AND SHOULD HAVE OVER DEVELOPMENT PLANNING AND ADMINISTRATION (CHEEMA AND RONDINELLI, 1984) 31
  32. 32. THE REASONS IMPROVE EFFICIENCY - BASIS FOR REGIONAL AND LOCAL GOVERNMENT ROLE: 1. BETTER MATCH BETWEEN SERVICE PROVISION AND VOTER PREFERENCES 2. BETTER ACCOUNTABILITY THROUGH CLOSER LINKAGES OF BENEFITS WITH COSTS 3. INCREASED MOBILIZATION OF LOCAL REVENUES 4. BETTER PARTICIPATION OF CLIENTS IN SELECTION OF OUTPUT MIX (GERVAIS, (GERVAIS 1999) 32
  33. 33. TYPES OF DECENTRALIZATION DECENTRALIZATION INCLUDE INCLUDE: 1. POLITICAL 2. ADMINISTRATIVE 3. FISCAL 4. MARKET 33
  34. 34. POLITICAL DECENTRALIZATION POLITICAL DECENTRALIZATION AIMS TO GIVE CITIZENS OR THEIR ELECTED REPRESENTATIVES MORE POWER IN PUBLIC DECISION MAKING DECISION-MAKING (WORLD BANK, 2001) 34
  35. 35. FISCAL DECENTRALIZATION FISCAL DECENTRALIZATION INVOLVES SHIFTING SOME RESPONSIBILITIES FOR EXPENDITURES AND/OR REVENUES TO LOWER LEVELS OF GOVERNMENT THE IMPORTANT IS: THE EXTENT TO WHICH LOCAL ENTITIES ARE GIVEN AUTONOMY TO DETERMINE THE ALLOCATION OF THEIR EXPENDITURE (WORLD BANK, 2001) 35
  36. 36. ADMINISTRATIVE DECENTRALIZATION ADMINISTRATIVE DECENTRALIZATION SEEKS TO REDISTRIBUTE AUTHORITY, RESPONSIBILITY AND FINANCIAL RESOURCES FOR PROVIDING PUBLIC SERVICES AMONG DIFFERENT LEVELS OF GOVERNMENT (WORLD BANK, 2001) 36
  37. 37. ECONOMIC OR MARKET DECENTRALIZATION ECONOMIC OR MARKET DECENTRALIZATION WILL INCLUDE PRIVATIZATION AND DEREGULATION THEY SHIFT RESPONSIBILITY DEREGULATION. FOR FUNCTIONS FROM THE PUBLIC TO THE PRIVATE SECTOR (WORLD BANK, 2001) 37
  38. 38. FORMS OF DECENTRALIZATION FORMS OF DECENTRALIZATION INCLUDE: 1. 1 DECONCENTRATION 2. DELEGATION TO SEMI- AUTONOMOUS AGENCIES 3. DEVOLUTION TO LOCAL GOVERNMENT 4. 4 TRANSFER OF FUNCTIONS FROM PUBLIC TO NONGOVERNMENT INSTITUITION (CHEEMA & RONDINELLI, 1984) 38
  39. 39. DECONCENTRATION DECONCENTRATION INVOLVES THE REDISTRIBUTION OF ADMINISTRATIVE RESPONSIBILITIES ONLY WITHIN THE CENTRAL GOVERNMENT (CHEEMA & RONDINELLI 1984) RONDINELLI, 39
  40. 40. DELEGATION TO SEMI-AUTONOMOUS AGENCIES ANOTHER FORM OF DECENTRALIZATION IS THE DELEGATION OF DECISION-MAKING AND MANAGEMENT AUTHORITY FOR SPECIFIC FUNCTIONS TO ORGANIZATIONS THAT ARE NOT UNDER THE DIRECT CONTROL OF CENTRAL GOVERNMENT MINISTRIES (CHEEMA & RONDINELLI, 1984) 40
  41. 41. DEVOLUTION TO LOCAL GOVERNMENT ANOTHER FORM OF DECENTRALIZATION SEEKS TO CREATE OR STRENGTHEN INDEPENDENT LEVELS OR UNITS OF GOVERNMENT THROUGH DEVOLUTION OF FUNCTION AND AUTHORITY (CHEEMA & RONDINELLI, 1984) 41
  42. 42. TRANSFER OF FUNCTIONS FROM PUBLIC TO NON-GOVERNMENT INSTITUITION DECENTRALIZATION TAKES PLACE IN MANY COUNTRIES THROUGH THE TRANSFER OF SOME PLANNING AND ADMINISTRATIVE RESPONSIBILITY, RESPONSIBILITY OR OF PUBLIC FUNCTIONS, FROM GOVERNMENT TO VOLUNTARY, PRIVATE, OR NON- NON GOVERNMENT INSTITUTIONS (C (CHEEMA & RONDINELLI, 1984) O , 98 ) 42
  43. 43. WHAT IS LOCAL AUTONOMY? LOCAL GOVERNMENT CAN BE SAID TO BE AUTONOMOUS IF THEY ENJOY A SUBSTANTIAL DEGREE OF INDEPENDENCE, ALTHOUGH INDEPENDENCE AUTONOMY IN THIS CONNECTION IS SOMETIMES TAKEN TO IMPLY A HIGH MEASURE OF SELF-GOVERNMENT, RATHER THAN SOVEREIGN INDEPENDENCE (ADAPTED FROM HEYWOOD, 2002) 43
  44. 44. FISCAL DECENTRALIZATION
  45. 45. DECENTRALIZATION OF SPENDING EFFICIENCY IN ALLOCATION OF RESOURCES IS BEST SERVED BY ASSIGNING RESPONSIBILITY FOR EACH TYPE OF PUBLIC EXPENDITURE TO THE LEVEL OF GOVERNMENT THAT MOST CLOSELY REPRESENTS THE BENEFICIARIES OF THESE OUTLAYS (TER-MINASSIAN, 1997) 45
  46. 46. CENTRALIZED PROVISION FOR CENTRALIZED PROVISION CAN BE MADE –AT LEAST ON ALLOCATIVE GROUNDS- ONLY FOR NATIONAL PUBLIC GOODS THAT IS, GOODS, IS GOODS WHOSE BENEFITS EXTEND NATION WIDE OR WHOSE PROVISION IS SUBJECT TO SUBSTANTIAL ECONOMIES OF SCALE (TER-MINASSIAN, 1997) 46
  47. 47. REVENUE-RAISING REVENUE RAISING RESPONSIBILITY BY SEPARATING SPENDING AUTHORITY FROM REVENUE-RAISING RESPONSIBILITIES, THESE ARRANGEMENTS OBSCURE THE LINK BETWEEN THE BENEFITS OF PUBLIC EXPENDITURES AND THEIR PRICE, NAMELY, THE TAXES LEVIED TO FINACE THEM. THUS THEY DO NOT PROMOTE FISCAL RESPONSIBILITY IN SUBNATIONAL POLITICIANS AND THEIR ELECTORATE (TER-MINASSIAN, 1997) 47
  48. 48. CENTRAL GOVERNMENT TAX ASSIGNMENT CENTRAL GOVERNMENT SHOULD BE ASSIGNED TAXES THAT HAVE CERTAIN CHARACTERISTICS: 1. THEY ARE LEVIED ON THE MOBILE TAXE BASE, 2. THEY ARE MORE SENSITIVE TO CHANGES IN INCOME THAT IS, THEY HAVE HIGHER INCOME, IS INCOME ELASTICITY, 3. 3 THEY ARE LEVIED ON TAX BASES THAT ARE DISTRIBUTED UNEVENLY ACROSS REGION (TER-MINASSIAN, 1997) 48
  49. 49. SUBNATIONAL TAX SUBNATIONAL TAX CHARACTERISTICS 1. 1 THE TAX BASE SHOULD BE RELATIVELY IMMOBILE, TO ALLOW LOCAL AUTHORITIES SOME LEEWAY IN VARYING RATES WITHOUT LOSING MOST OF THEIR TAX BASE BASE, 2. THE TAX YIELD SHOULD BE ADEQUATE TO MEET LOCAL NEEDS AND SUFFICIENTLY BOUYANT OVER TIME (THAT IS, IT SHOULD EXPAND AT LEAST AS FAST AS EXPENDITURES) 3. THE TAX YIELD SHOULD BE RELATIVELY STABLE AND PREDICTABLE OVER TIME 49
  50. 50. SUBNATIONAL TAX 4. IT SHOULD NOT BE POSSIBLE TO EXPORT MUCH, IF ANY, OF THE TAX BURDEN TO NON- RESIDENTS 5. THE TAX BASE SHOULD BE VISIBLE, TO ENSURE ACCOUNTABILITY 6. THE TAX SHOULD BE PERCEIVED TO BE REASONABLY FAIR BY TAXPAYERS 7. THE TAX SHOULD BE RELATIVELY EASY TO ADMINISTER EFFICIENTLY AND EFFECTIVELY (BIRD & VAILLANCOURT, 1998) 50
  51. 51. INTERGOVERNMENTAL TRANSFER SINCE MOST MAJOR TAXES ARE TYPICALLY ASSIGNED TO THE CENTRAL GOVERNMENT, WHILE SUBSTANTIAL AND GROWING EXPENDITURE RESPONSIBILITIES ARE DEVOLVED TO REGIONAL AND LOCAL GOVERNMENTS, SIZEABLE VERTICAL , IMBALANCES EMERGE AT THE SUBNATIONAL GOVERNMENT LEVEL 51
  52. 52. INTERGOVERNMENTAL TRANSFER THERE ARE ALSO HORIZONTAL IMBALANCES IMBALANCES, BECAUSE THE CAPACITY TO RAISE OWN REVENUES DIFFERS ACROSS JURISDICTIONS, , DEPENDING ON THE DISTRIBUTION OF THEIR ASSIGNED TAX BASES, AND ALSO BECAUSE DIFFERENT REGIONS MAY FACE DIFFERENT COSTS AND DEMAND PRESSURES IN MEETING THEIR ASSIGNED EXPENDITURE RESPONSIBILITIES 52
  53. 53. INTERGOVERNMENTAL TRANSFER THESE IMBALANCES MUST BE ADDRESSED THROUGH INTERGOVERNMENTAL TRANSFERS, OR BORROWING BY DEFICIT JURISDICTIONS, , OR A COMBINATION OF THE TWO (TER-MINASSIAN, 1997) 53
  54. 54. LOCAL FINANCE IN INDONESIA SOURCES LOCAL REVENUES EQUITY FUND OTHERS LOCAL TAXES SHARING REVENUES GIFT RETRIBUTIONS GENERAL EMERGENCY FUND ALLOCATED FUND REVENUES FROM LOCAL ASSETS LOAN SPECIAL ALLOCATED FUND OTHERS 54
  55. 55. THANK YOU 55

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