Explain the challenges of expansion and foundational challenges for new democracy .
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Answers
Public choice theory believes in competition and envisages governance based on choice, Client orientation and deconstruction of state centrality;
Rowing refers the Monopoly of State institutions in service delivery with Public interest as the motive; While Steering refers to the art of Directing, Facilitating the non-state actors to provide the service delivery.
PCT promotes Steering and Undermines Rowing by –
Acknowledging the inefficiencies of State owned and operated institutions, in the Niskanen thought.
Promoting Principal agent theory – where non-core services are contracted out to the third party – eg. IRCTC for Indian Railways.
Promoting competition among service providers; eg. Maharatna, Navaratna of Indian Govt; Promoting entrepreneurial attitudes, eg. ONGC Videsh;
Minimum Government and Maximum governance approach.
Constitutional Contractionist Approach – By Signing MoUs for better accountability of contracted services;
Allowing non-state actors like Voluntary institutions in participative administration – eg. Akshayapatra runs Mid day meal scheme in villages.
The role of Government is changed from doer and solver to facilitator and from implementer to collaborator.