Depoliticisation - Strategies of Modern Economic Management

What were the views of the govt pre-1970?

Overloaded, not perceived a legitimate and a govt not capable of governing well.

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The aim of the government (in order to be re-elected etc - statecraft) is to?

1. To create the appearance of governing competence. 2. Install confidence in the market. 3. Allow room to implement policy.

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What do depoliticising strategies allow the govt to do?

1. Offload responsibility for unpopular policies. 2. Allows the govt to retain arms length control - bde. 3. Insulates the govt from electorally damaging consequences. 4 Can change market expectations while maintaining policy credibility

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Some aims of depoliticisation?

1. The reassignment of tasks from the government party to a number of non-political bodies. 2. Increase accoutability transparency + external validity of policy. 3. Acceptance of binding rules that limits govt manoeuvre.

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Characteristics of a depoliticised mode of management?

1. Relaxation of direct controls. 2. Decentralisation of policy-making 3. Independent central banks given more responsibility (aka BofE with interest rates). 4. Public/private initiatives - NPM. Highly rules-based.

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Name and explain 3 forms of depoliticisation

1. Institutional. 2. Rule based. 3. Preference-shaping.

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1st Govt. strategy - The Exchange Rate Mechanism

A monetary system to maintain exchange rates within agreed boundaries and centrally-defined parities. It was an IMR with fixed rules - Policy disaster - Britain on the verge of recession when it joined - had to withdraw in 1992.

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2nd Govt. strategy - Operational Independence of the BofE

Independence between Treasury and BofE - BofE assesses inflation prospects, decides the timing and sets interest rates - to meet inflation targets.

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3rd Govt. strategy - Golden rules for the code of fiscal stability

Gordon Brown announced code to regulate fiscal policy bound to set rules. No. of key principles e.g. transparency + responsibility, and rules e.g. Golden and Sustainable Investment rule. Idea of open, explicit commitment to enhance govt credibility.

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4th. Govt. strategy - Office of Budgetary Responsibility (OBR)

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5th. Govt. strategy - New Public Management

Shifting tasks away from being main govt priority - increasing role of private sector, competition and privatisation of services. Creation of independent bodies to deal with distribution. Govt still decide policy wise but with a cost-saving attitude.

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6th Govt. strategy - Preference Shaping

Ideological, discursive claims to construct a narrative. E.g. Globalisation - need to embrace related policies and neo-liberal one - it is a process currently happening. Crisis - a narrative to enable enforcing of austerity measures.

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Main contradictions and challenges?

Through increased diverging of responsibilities the govt may become fragmented. However, state is still the main actor and credibility of the govt is maintained by displaced responsibility eg. int system

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Depoliticisation - Strategies of Modern Economic Management

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