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Questions and Answers

What primarily drives organizational investment in new skills and knowledge according to the characteristics of institutional change?

  • Stable economic conditions
  • Regulatory frameworks
  • Competition among organizations (correct)
  • Globalization of markets
  • Which of these is NOT one of the three organizational processes that support dynamic capabilities?

  • Organizational learning through social interaction
  • Organizational transformation through capability reconfiguration
  • Organizational coordination and integration
  • Market analysis and trend forecasting (correct)
  • According to Douglass North, how does the institutional framework influence organizations?

  • By limiting competition among entities
  • By enforcing strict regulations on operations
  • By promoting only specific industries
  • By providing the incentive structure for skill development (correct)
  • What was the term used to refer to 'capacity building' before the 1990s?

    <p>Institution building (B)</p> Signup and view all the answers

    Which characteristic emphasizes the importance of perception in institutional change?

    <p>Mental constructs of players (D)</p> Signup and view all the answers

    What concept describes the overwhelmingly incremental and path-dependent nature of institutional change?

    <p>Economies of scope (D)</p> Signup and view all the answers

    Which of these statements best describes capacity building?

    <p>It aims to upgrade performance abilities of entities across various sectors. (C)</p> Signup and view all the answers

    How does competition affect institutional evolution according to North's characteristics?

    <p>It compels organizations to make marginal adjustments. (A)</p> Signup and view all the answers

    What is a key factor in the learning process according to dynamic capabilities?

    <p>Active engagement in social interactions (D)</p> Signup and view all the answers

    What is the primary focus of anticorruption strategies when corruption is rated high and governance quality is poor?

    <p>Establishing rule of law and strengthening accountability institutions (C)</p> Signup and view all the answers

    Which of the following is NOT mentioned as a component of the anticorruption strategies for societies with medium corruption levels?

    <p>Raising public awareness on anti-bribery (B)</p> Signup and view all the answers

    Which successful approach is noted for enhancing service delivery in the public sector of Malaysia during the early 1990s?

    <p>Adoption of a client’s charter specifying service standards (D)</p> Signup and view all the answers

    Which factor is identified as a significant determinant of corruption in the public sector?

    <p>Lack of democratic institutions to promote accountability (A)</p> Signup and view all the answers

    Which of the following countries is highlighted as having had success with an anti-corruption agency?

    <p>Chile (B)</p> Signup and view all the answers

    What characterizes grand corruption?

    <p>The theft or misuse of vast amounts of public resources by state officials. (A)</p> Signup and view all the answers

    What defines state capture?

    <p>Collusion between private actors and public officials for mutual benefit. (A)</p> Signup and view all the answers

    Which of the following factors does NOT contribute to public sector corruption?

    <p>Strong transparency in public sector processes. (D)</p> Signup and view all the answers

    Which of the following is an outcome of corruption being driven by patronage and clientelism?

    <p>Preferential treatment based on shared backgrounds. (D)</p> Signup and view all the answers

    In Principal-Agent Models, what role does the principal typically assume?

    <p>A benevolent dictator aiming for integrity in government. (B)</p> Signup and view all the answers

    Which approach is likely to fail in combating corruption when applied uniformly across different contexts?

    <p>One-size-fits-all policies and tools. (D)</p> Signup and view all the answers

    What is a common misconception about public sector corruption?

    <p>It is solely the result of greedy individual officials. (D)</p> Signup and view all the answers

    Which of the following best describes influence peddling?

    <p>Using social networks to gain preferential treatment from government. (C)</p> Signup and view all the answers

    Which theoretical perspective emphasizes the government's role in motivating officials toward integrity?

    <p>Principal-Agent Models. (B)</p> Signup and view all the answers

    What role does transparency play in combating corruption?

    <p>It enhances public trust and accountability. (A)</p> Signup and view all the answers

    What typically results from the blurred line between public and private interests in corrupt societies?

    <p>Routine abuse of public office for personal gain (A)</p> Signup and view all the answers

    Which of the following is a common symbol of the breakdown of the rule of law in highly corrupt countries?

    <p>Law enforcement acting as lawbreakers (C)</p> Signup and view all the answers

    What is a key factor that contributes to the persistence of public sector corruption?

    <p>Weak commitment of national leaders to combat corruption (A)</p> Signup and view all the answers

    Which institutions typically help control abuses of power in societies with low public sector corruption?

    <p>State-created and independent institutions (A)</p> Signup and view all the answers

    What characterizes the enforcement of law in scenarios where public sector corruption is rampant?

    <p>Enforcement often furthers private interests instead of public good (A)</p> Signup and view all the answers

    What is one of the macro-fiscal costs associated with public sector corruption?

    <p>Loss of revenues from taxes and fees (D)</p> Signup and view all the answers

    Which of the following best describes the judiciary in highly corrupt countries?

    <p>Often manipulated by political functions (A)</p> Signup and view all the answers

    How do weak institutions of participation and accountability affect a corrupt society?

    <p>They highlight the lack of government oversight. (A)</p> Signup and view all the answers

    What may be a consequence of public officials facing minimal accountability?

    <p>Widespread tolerance for corrupt practices (C)</p> Signup and view all the answers

    Which factor is least likely to contribute to public sector corruption in a society?

    <p>Strong enforcement of electoral laws (C)</p> Signup and view all the answers

    What is a key characteristic of institutions in society?

    <p>They govern behavior with social order. (B)</p> Signup and view all the answers

    Which of the following best describes the dual nature of institutions?

    <p>They are both social rules and organizations enforcing them. (B)</p> Signup and view all the answers

    According to Douglass North, what do institutions provide in terms of societal behavior?

    <p>They provide a framework for incentives and constraints. (D)</p> Signup and view all the answers

    What role do institutions play in shaping individual identity according to the content?

    <p>They enable certain behaviors and assign responsibilities. (A)</p> Signup and view all the answers

    How does the concept of institutions relate to economic transactions?

    <p>Institutions create a predictable framework for economic activity. (A)</p> Signup and view all the answers

    What is one of the two types of game rules identified by Douglass North?

    <p>Informal norms and customs. (C)</p> Signup and view all the answers

    What is meant by institutions being described as 'self-sustaining'?

    <p>They persist through shared beliefs and repeated behaviors. (C)</p> Signup and view all the answers

    Flashcards

    Institutions

    Structures and mechanisms of social order and cooperation that govern individual behavior within a society.

    Social rules

    Part of an institution, encompassing the customs and behavior patterns crucial to a society.

    Formal organizations of the public sector

    A category of institutions comprised of government bodies and agencies.

    Incentive structure of a society

    The framework outlined by the rules that motivate individuals and organizations to act in specific ways.

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    Formal Rules

    Constitutional, property, and contract rules.

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    Informal Rules

    Norms and Customs.

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    Institutions as Rules of the Game

    Institutions are the fundamental rules of a society, also known as 'humanly devised constraints'.

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    Incremental Institutional Change

    Institutions evolve slowly through small, gradual adjustments over time.

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    Douglass North's Five Characteristics of Institutional Change

    1. Continuous interaction between institutions and organizations, driven by scarcity and competition.
    2. Competition forces organizations to adapt, leading to incremental institutional change.
    3. Incentive structures shape the skills and knowledge prioritized by organizations.
    4. Perceptions of these incentives are shaped by mental models.
    5. Economies of scope, complementarities, and network externalities make institutional change gradual and path-dependent.
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    Dynamic Capabilities

    The ability of organizations to change their routines and resources to improve effectiveness.

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    Three Organizational Processes for Dynamic Capabilities

    1. Organizational coordination and integration: Building coherence in design and execution.
    2. Organizational learning: Learning through repetition, experimentation, and social interaction.
    3. Organizational transformation: Reconfiguring capabilities to adapt and change.
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    Institutional Capacity Building

    Helping entities develop necessary skills, competencies, and performance capabilities to enhance their effectiveness.

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    Capacity Building in Government

    Using capacity building to transform community and industry approaches to social and environmental problems.

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    Historical Evolution of Capacity Building

    The term 'capacity building' evolved from 'institution building' in the 1970s. It initially focused on strengthening national organizations in areas like civil aviation, meteorology, agriculture, health, and nutrition.

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    What is the core concept of Douglass North's view on institutional change?

    Institutions change incrementally and gradually through marginal adjustments due to the continuous interaction between institutions and organizations in a competitive environment.

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    How does competition influence institutional change?

    Competition forces organizations to invest in new skills and knowledge, leading to incremental changes that impact institutional frameworks over time.

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    Grand Corruption

    The theft or misuse of large amounts of public resources by high-ranking officials, often from the political or administrative elite.

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    State Capture

    When private actors work with public officials or politicians for their own private benefit, essentially controlling the government's actions.

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    Patronage

    Officials using their positions to help clients or colleagues with similar backgrounds, giving them privileged treatment in public services.

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    What drives corruption?

    Corruption is influenced by various factors specific to each country, making a one-size-fits-all approach ineffective.

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    Key factors influencing corruption

    Factors like the quality of public management, government-citizen accountability, legal frameworks, and transparency all contribute to corruption levels.

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    Principal-Agent Model

    This model assumes a 'benevolent dictator' (principal) who aims to inspire government officials (agents) to act honestly with public resources.

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    New Public Management (NPM)

    A perspective that encourages market-oriented approaches in public sector management, often criticized for its potential to increase corruption.

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    Neo-Institutional Economics

    This framework focuses on how rules and institutions influence economic behavior, including corruption.

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    Corruption as a symptom

    Corruption is often a symptom of failed governance, meaning deeper problems exist beyond just individual acts of bribery or misuse of power.

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    One-size-fits-all solutions

    General solutions are less effective for combatting corruption because the causes are unique to each country.

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    Corruption and Governance

    The relationship between the level of corruption in a society and the quality of its governance. Higher corruption often coincides with poorer governance, and vice versa.

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    Anti-corruption Strategies: High Corruption

    When corruption is high, focus on strengthening the rule of law, improving accountability, and establishing mechanisms for citizen participation.

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    Anti-corruption Strategies: Medium Corruption

    For moderate levels of corruption, prioritize decentralization, economic policy reform, and accountability for results.

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    Anti-corruption Strategies: Low Corruption

    In low-corruption societies, focus on strengthening existing anti-corruption agencies, promoting financial transparency, and raising awareness.

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    Success of Anti-Corruption Agencies

    While effective in countries with established governance, anti-corruption agencies may be less effective in countries with endemic corruption.

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    Clienteles

    Groups of people linked to officeholders by shared ethnicity, geography, or interests, who benefit from their connections.

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    Blurred Lines

    When the distinction between personal gain and public responsibility becomes unclear, leading to corruption.

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    Rule of Law Breakdown

    When the law is applied selectively, favoring certain individuals or groups, and used for personal gain instead of public good.

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    Police as Lawbreakers

    A sign of a corrupt system where police abuse their power for personal gain, like extorting bribes.

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    Compromised Judiciary

    When courts lack independence and are influenced by political pressure, leading to unfair judgments.

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    Weak Participation & Accountability

    When institutions that promote citizen involvement and hold officials accountable are ineffective, corruption flourishes.

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    National Leaders' Role

    When national leaders lack the will or ability to combat corruption, it becomes entrenched in society.

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    Macro-fiscal Costs

    The financial losses caused by corruption, like lost tax revenue, bribes, and embezzlement.

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    Corruption's Impact

    Corruption harms societies by undermining trust, hindering development, and creating inequality.

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    Public Sector Corruption

    Illegal and unethical behavior by officials in government, like bribery, embezzlement, and abuse of power.

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    Study Notes

    Governance, Institutions and Public Sector Reform (GaDS 3035)

    • This course covers governance, institutions and public sector reform, specifically focusing on the concepts, definitions, types and dynamic governance.

    Chapter One: Institutions – An Introduction

    • Institutions are structures and mechanisms of social order and cooperation governing the behavior of individuals within a human collectivity.
    • Institutions are identified with social purpose and permanence.
    • The term "institution" is commonly applied to customs, behavior patterns, and formal organizations of government and public service.
    • Institutions are a core topic of study in sociology, political science, and economics.
    • Institutions are defined by the social rules and legal framework governing activities in society, and by organizations coordinating and enforcing these rules.
    • Institutions shape individual identity and behavior, making certain behaviors possible or impossible.
    • Institutions assign responsibility, demand accountability, and provide the standards for judging success.
    • Institutions are the rules of the game in a society, or the constraints imposed by humans.
    • Institutions are the incentive structures of a society (Douglass C. North, 1993).
    • Formal rules include constitutional/property rights rules, and contracts; informal rules include norms and customs.
    • Institutions incentivize people and organizations to invest their knowledge and assets to address societal problems.

    1.2 Types of Institutions

    • Institutions are manifest in objectively real, formal organizations (e.g., US Congress, Roman Catholic Church).
    • They are also in informal social order and organization, reflecting human psychology, culture, habits and customs.
    • Institutions can be categorized as social, economic, or political.
    • A social organization, or social institution, is a group of social positions linked by social relations performing a social role. (e.g., education, government, families, economic systems and any social interactions).
    • These institutions are interconnected.

    1.3 Dynamic Institutions and Governance

    • In an uncertain and changing world, current achievements are not guaranteed for future success.
    • Static efficiency and governance practices can eventually lead to stagnation and decay.
    • No amount of careful planning assures continuous relevance & effectiveness in a volatile global environment.
    • Governments are often not regarded as dynamic, entrepreneurial organizations and instead appear as slow/stodgy bureaucracies.
    • Dynamic institutions enhance country development and prosperity by adjusting to socio-economic changes.

    1.3.1 The Need for Dynamic Government

    • Government institutions significantly impact a country's economic competitiveness/social development.
    • Governments shape the interaction between society and business, potentially facilitating or impeding development.
    • Governments influence business environments and are important for attracting foreign investment.

    1. Thinking Ahead

    • Exploring future trends/developments impacting policies is crucial.
    • Perceiving how these developments affect current goals and strategies.
    • Strategizing options for addressing emerging threats and exploiting opportunities.
    • Influencing decision-makers and stakeholders on emerging issues.

    2. Thinking Again

    • Confronting current realities regarding strategies, policies, and programs to achieve better outcomes.
    • Considering the present situation in an inside-out perspective.
    • Utilizing data, measurements, and feedback to surface problems and look beyond the past to improve policies/programs. - Even with expertise, political will and resources may be lacking.

    3. Thinking Across

    • Learning from the experiences of others to adapt good ideas and customize them to the local context.
    • Adapting rules and practices that have worked elsewhere while taking into account cultural/historical needs.
    • Introducing new ideas/innovation to society to better meet the challenges of today.

    1.3.2 Governance, Institutions and Capabilities

    • Governance encompasses the processes/systems through which a society makes policy decisions and accomplishes objectives.
    • Government refers to structures and functions of public institutions.
    • Governance is the way a government runs.
    • The World Bank defines governance as the traditions/institutions by which authority in a country is exercised.
    • Process by which governments are selected, monitored and replaced.
    • Capacity of government to effectively formulate and implement sound policies.
    • Respect of citizens by the government.
    • Six dimensions include Voice/accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption.

    2.1 Concepts and Definitions: Corruption

    • Corruption is defined as the misuse of public power for private benefit, abuse of public office for private gains, or the exercise of official powers against public interest.
    • Public power is exercised by elected officials and appointed bureaucrats.
    • Types include bribery, embezzlement, fraud, extortion, abuse of power, conflict of interest, insider trading, and favoritism.
    • Corruption is as old as government itself, concerns and issues mount in tandem with development, it slows GDP, affects public services and reduces effectiveness of development assistance.

    2.3 Forms of Corruption

    • Corruption is not limited to a single form.
    • Petty corruption involves isolated transactions by individual officials (bribes, kickbacks, favors).
    • Grand corruption includes vast amounts of public resource theft or misuse by high officials.

    3. New Public Management (NPM)

    • Focuses on the centrality of citizens/customers and accountability for results.
    • Borrows management approaches from private sector (e.g., competition).
    • Emphasizes efficiency through private sector-style management.
    • Public sector responsibilities are often restructured to improve efficiency/customer satisfaction.

    3.4 Organizational Mechanisms for PSR

    • Inter-organizational mechanisms (such as decentralization, contracting out, and partnerships with civil society) are needed to improve public service delivery.

    5. Challenges of Public Sector Management Reforms

    • Africa's economic recovery/development struggles are partly because of significant weaknesses in public sector institutions.
    • These institutions often suffer from problems like corruption, nepotism, inefficiency, poor coordination, weak/non-existent salary policies and political interference.

    6. Strategies for Improving Public Sector Performance

    • Strategies for improving public sector performance involve total quality management,performance-oriented civil service, customer-oriented government and quality standards.

    5.4 Access to ICTs

    • Access to ICTs is a significant barrier in many African countries preventing efficient service delivery.
    • This can be addressed by creating a more efficient telecommunication infrastructure and developing related skills.

    6.3 Training and Human Resource Capacity Building

    • Training/development is key to reshaping attitudes/behaviors of public officials and developing the capacity of public servants, improving services and increasing efficiency.
    • Such training should emphasize attitude changes along with acquiring needed skills.

    5.2 Multiple Accountability

    • Public servants should be accountable to multiple actors including citizens, the government, and the judicial system.

    5.3 Declining Public Service Ethics

    • Traditional public service values, such as equity, probity and integrity, help maintain trust in the public service/government.
    • Strengthening personal values (integrity, honesty) can help improve the public service.

    Declining Social Values

    • A societal lack of traditional ethics such as integrity/honesty hinders the effectiveness of public service reform efforts.
    • This weakens the systems meant to ensure accountability.

    Declining Civil Service Morale

    • Low morale in the civil service is related to low pay, inappropriate performance measures/inconsistent management practices and inappropriate working conditions
    • Improving morale will likely improve the efficiency of the service.

    Corruption

    • Corruption undermines the effectiveness of public services in Africa and increases income inequalities and poverty.
    • It reduces the effectiveness of development aid and increases income inequality.
    • Corruption in the public service is typically “behind the screen”, rendering it often undetected.

    Requirements for Better Human Resource Capacity Building

    • Effective human resource development requires adequate budgetary allocations and funding for training and educational institutions.

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