Translating theoretical ideas into modern state reform - Economics-inspired reforms and competing models of governance

Reform ideas inspired by the new institutional economics have swept the world. This article examines three perspectives on organizing government and civil service. The individual-economic model draws on market theories. It emphasizes institutional arrangements designed to harness individual self-interest to achieve overall efficiency. The collectivist model stresses a centralized state, collective goals, and cultural integration. The pluralist model celebrates a vital group life and sees heterogeneous interests as properly reflected in a public sector characterized by institutional variety. We analyze the three as guides to reform, with emphasis on the individual-economic model, and argue that each applies best under certain conditions.