Public Administration Optional 2017 Paper I

Q6(a): “Liberalisation, privatisation and globalisation have transformed the nature of development administration.” Discuss.

Verified Answer

Liberalisation, privatisation, and globalisation (LPG) policies, widely adopted since the late 20th century, have profoundly transformed the nature of development administration. Traditionally, development administration was characterized by a state-centric approach, where the government played a dominant role as the primary provider of goods and services, and the main driver of economic and social development.

Liberalisation, by reducing government controls and regulations, shifted the focus from state command and control to creating an enabling environment for market forces. This meant development administration had to adapt from direct intervention to a role of facilitator, regulator, and enabler, ensuring fair competition and protecting consumer interests.

Privatisation, involving the transfer of public sector enterprises and services to private ownership, further diminished the state's direct role in production and service delivery. Development administration's task evolved to overseeing private sector operations, ensuring quality standards, and regulating monopolies, rather than managing public enterprises. This introduced principles of efficiency, cost-effectiveness, and market responsiveness into administrative thinking.

Globalisation, with its increased interconnectedness of economies, cultures, and policies, brought new complexities and opportunities. Development administration now operates within a globalized context, dealing with international trade agreements, foreign direct investment, global environmental challenges, and cross-border issues. It requires administrators to be globally aware, adaptable to international norms, and capable of collaborating with international organizations and multinational corporations. This also led to an increased emphasis on 'good governance' principles like transparency, accountability, and rule of law, often influenced by international financial institutions and donor agencies.

In essence, LPG policies have pushed development administration from a 'state as provider' model to a 'state as facilitator, regulator, and partner' model, emphasizing efficiency, market mechanisms, and multi-stakeholder collaboration, while navigating global pressures and opportunities.