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EOpriv: RE: A NEW WAY TO GOVERN
Mary
I would be delighted for your to undertake such a review. I will send a
pre-publication copy of the 8,953 word booklet to you off line.
I am sharing a copy of this message with my editor, Andrea Westall and my
publisher, Ed Mayo, Executive director of The New Economics Foundation in
London
http://www.neweconomics.org/
Best regards
Shann
At 09:25 AM 22/12/2001, you wrote:
Shann,
Congratulations on your
upcoming publication, A New Way to Govern. If you think that Choice
and Booklist, review publications of the American LIbrary Assoction
used by academic and public libraries. are sufficiently high
profile, I would be happy tor recieve a pre-ublicaton copy and submit
reviews to them for publication.
Mary
- -----Original Message-----
- From: Shann Turnbull
[mailto:sturnbull@mba1963.hbs.edu]
- Sent: Thursday, December 20, 2001 3:31 PM
- To: EOpriv@cog.kent.edu
- Subject: RE: EOpriv: El Salvador and surge in privatization
push
- If COG wants to take up Vic Thorpe's suggestion below that the
problems of privatization be a topic for our conference next October then
I would like to offer a contribution. As I stated at our last
conference, distributed control can be more important than distributed
ownership. My contribution would be to show how distributed control
can be implemented to legitimize distributed ownership as well as showing
how to introduce distributed ownership.
- The UK Prime Minster, Margaret Thatcher, made the UK a role model for
privatization around the world. However, the failure of their
railways has proved that there are serious flaws in this approach.
The World Bank and IMF would appear to be blind to the empirical evidence
that has become so blatantly obvious to UK citizens, academics, treasury
officials and the government. As a result I was commissioned by a
leading UK "think tank", The New Economics foundation, to write
a booklet to suggest an alternative approach for governing social and
public interest activities. I have just completed A NEW WAY TO
GOVERN that will be made public in February that could provide a basis
for a paper and/or discussion at the Washington D.C. conference. I
can send a pre-publication version to anyone that is interested in
writing a review for a suitable high profile publication.
- I have pasted in below the opening four paragraphs and the closing
two paragraphs.
- -----------------------------------------------------------------------------
- This pocket book describes a new way for the State to govern
society. It is based on a new method of governing bureaucracies,
social and regulated enterprises or complex private firms by replacing
command and control hierarchies with network governance. Network
governance by stakeholders introduces economic, social and political
advantages by providing a basis for institutions to become
self-governing.
- Self-governance requires management hierarchies to be transformed
into network organisations governed by the competing interests of
strategic stakeholders. Strategic stakeholders are the employees,
clients and suppliers on whom all organisations depend for their
existence and survival. Financiers of enterprises are not included
as strategic stakeholders. This is because all viable businesses,
must by definition, become self-financing and so become financially
independent in sustaining their existence. This makes it practical
to phase out investors over time.
- Network organisations can be designed to allow economic forces and
market competition to be replaced with social forces and political
competition to improve their economy, efficiency and effectiveness.
It is by this means that the private self-interest of executives can be
harnessed to further the public good. The introduction of social
forces and political competition into government departments, social or
private enterprise to improve their self-regulation and self-governance
would enrich democracy. Inclusive stakeholder constituencies would
replace alienating command and control hierarchies with their ruling
elites. Stakeholder governance also provides an alternative to
either State-run enterprise or the State regulating privatised or other
public interest companies.
- The arguments here complement and develop some of the concepts of
Associative Democracy articulated by Paul Hirst and of The Mutual
State by Ed Mayo and Henrietta Moore (1) a companion pocket
book in this series.
- --------------------------------------------------------------------------
- [Six chapters between these lines]
- ---------------------------------------------------------------------------
- A new way to govern society is also required to enrich democracy to
counter the alienating and colonising forces of globalisation. The
forces of globalisation could then be used to promote self-reliance,
self-regulation and self-governance. The size and cost of
government would be reduced and multinational corporations turned into
nested networks of stakeholder governed organisations accountable to
local citizens as proposed in my book, Democratising the Wealth of
Nations (2).
- The science of governance (3) provides a basis for displacing the
1991 Nobel Prize wining theory that justified privatisation (4). It
is the laws of governance that should determine the underlying
institutional structure and functioning of society rather than costs and
prices that drive markets. The problem is that the role of markets
increases when organisations fail to develop on an ecological basis to
allocate resources on an efficient and sustainable basis. A new way
to govern society is not just required because the old ways are failing
but to allow the institutions of society to become richly connected to
their host environment to nurture and sustain life on the planet.
- --------------------------------------------------------------------------
- Notes
- 1.
<www.themutualstate.org/pdfs/the_mutual_state.pdf>
- 2.
<http://cog.kent.edu/lib/turnbull1/turnbull1.html>.
- 3. Turnbull, S. 2002 (Forthcoming) 'The Science of Governance',
Corporate Governance: An international review, 10: 4, October.
- 4.
<http://almaz.com/nobel/economics/1991a.htlm>
- Regards
- Shann
- At 09:01 PM 20/12/2001, you
wrote:
- So, it's Dirty Business as usual World Bank and IMF style in El
Salvador
- also.
- It is interesting to see in this classic report on the impacts of
'market
- freedom' policies on a developing economy, the mention of education
and
- health services. Now that the first 'privatisation wave' has
effectively
- smashed public ownership of industrial resources and energy
infrastructures,
- property transfers to private hands have now got round to the core
elements
- of human survival (water and health) and civilization
(education). With the
- recent accords coming through the WTO on 'trade in services' such
transfers
- will increase - even in bastions of public intervention in such areas
as
- Europe. The result will be further polarization and
marginalization in
- these essential aspects of human development, as it has been in every
other
- area so far touched by this process. A world of elites and
drones is being
- created amid the rhetoric of 'freedom'.
- There is no way back to centralised state control over production
and
- services for more just human ends. But the distributed
ownership response
- does need promotion as a model that can provide distributed
democratic
- control. The COG needs to develop this argument and sell it to
the movement
- for 'globalization from below' - I strongly reject the term
- 'anti-globalization movement'. It is something that I hope we
can do in the
- coming year's conference.
- Vic Thorpe
Shann Turnbull Ph.D.
P.O. Box 266 Woollahra, Sydney, Australia, 1350
Ph: +612 9328 7466 office; +612 9327 8487 home; Fax: +612 9327 1497;
Life long E-mail: sturnbull@mba1963.hbs.edu
Alternate:sturnbull@optusnet.com.au
with other papers & book at
http://cog.kent.edu/library.html
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