Future Themes and Priorities for Government and Public Policy Beyond the Crisis
In his recently published research title, 'Public Policy beyond the Financial Crisis', Philip Haynes concludes on the main features of public policy in the next ten years:
• A reduction in inequality - especially with a reduction in the wealth and income held by the ‘super’ rich.
• The increased importance of small organisations (both in the private and public sectors) that promote more dynamic growth and improving services.
• It will become more important for the governments to support such an economy because many small organisations will not easily have the resources to support the welfare of their workers, for example via pension contributions.
• The government will have to subsidise aspects of this economy, such as reducing tax pressures on employment like National Insurance, and promote training and the entry of young people, and the retention of the sick and older people in the labor market.
• Management systems will be built more on values rather than just financial goals.
• New finance products will become popular. These will be an alternative to the bankrupt large financial institutions. They will offer more stable and ethical investing. Examples are:
o Bonds linked to specific government and private projects that offer a fixed rate of interest over long periods and the guaranteed ability to beat inflation.
o Peer to peer internet lending
o Micro credit organisations, oftentimes community and value based
His analysis based on the methodology of complex systems theory avoids making conclusions based on a few economic indicators but instead considers a synthesis of many influences, including dominant social and economic values. Public values are starting to change because society is losing confidence in the domination of market values over other values. He argues that the increasing scandals in large corporations and the resulting corruption of major political and economic life are being shown to have a huge social and economic cost.
The current austerity policies will change. Cuts will slow to prevent austerity contributing to recession. When the economy starts to grow again increased taxation will follow and it will be more directed at preventing short term credit expansion and consumption, so that growth is encouraged in exports and long term investment. An increasing proportion of public expenditure will be met by raising taxes rather than borrowing and selective cuts.
For further information visit http://www.routledge.com/books/details/9780415674393/
An International Comparative Study
Series: Routledge Critical Studies in Public Management
The economic crisis of 2008-2009 and beyond has provided the greatest challenge to public policy in the developed world since the Second World War, as the use of public monies to support banks and declining tax revenues have resulted in rising government borrowing and national debt.
Published June 11th 2012 by Routledge