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much more difficult task but one that focuses on the ultimate goal of ser-
vice provision.


NOTES
1 Typical privatization surveys include International City/County Management
Association ( Municipal Yearbooks, 1988, 1992, 1997) and Chi and Jasper ( 1998).
2 Even as we write this, we find examples that don't fit neatly. Chang and Jones
( 1992) describe a type of privatization much like corporatization, but which creates
a nonprofit rather than for-profit entity. It shares many characteristics with joint
ventures and self-help modes of privatization.
3 Osborne and Gaebler ( 1992) described the emergence of this phenomena,
describing it as government managers learning to steer rather than row.
4 See Laffont and Tirole ( 1991). For overviews of agency theory, see Eisenhardt
( 1989) and Grossman and Hart ( 1978).
5 The city's competition program web page (www.indygov.org/mayor/comp/
pt1/chp1/ cfp.html) goes into considerable detail on both the philosophy and prac-
tice of "shopping" for services rather than simply providing them.
6 Witness the long-running efforts by ICMA and Government Accounting Stan-
dards Board (GASB) to move local governments to better use of performance mea-
sures. Governing magazine tracks this issue regularly; see, for example, Kittower
( 1998, 1999) and Walters ( 1998). The ICMA performance measurement project is
at www.icma.org/abouticma/programs/performance/〉 .
7 The Office of Management and Budget (OMB) ( 1996) recommends simulta-
neous development of performance measures and monitoring plans as a best practice.

REFERENCES

Bale, Malcolm, and Tony Dale. 1998. Public sector reform in New Zealand and its
relevance to developing countries. World Bank Research Observer 13(1):
103-121.

Behn, Robert D., and Peter A. Kant. 1999. Strategies for avoiding the pitfalls of per-
formance contracting. Public Productivity and Management Review22(4):
470-489.

Chang, Stanley Y., and Roberta Ann Jones. 1992. Approaches to privatization:
Established models and a U.S. innovation. Government Finance Review 8(4):
17-39.

Chi, Keon S., and Cindy Jasper. 1998. Private practices: A review of privatization in
state government. Lexington, KY: Council of State Governments.

Eggers, William D. 1997a. Performance-based contracting: Designing state-of-the-
art contract administration and monitoring systems (How-To Guide #17).
Los Angeles: Reason Public Policy Institute.

Eggers, William D. 1997b. Cutting local government costs through competition and
privatization. Sacramento: California Chamber of Commerce.

Eisenhardt K. 1989. Agency theory: An assessment and review. Academy of Man-
agement Review 14: 57-74.

-34-

Questia, a part of Gale, Cengage Learning. www.questia.com

Publication Information: Book Title: Local Government Innovation: Issues and Trends in Privatization and Managed Competition. Contributors: Robin A. Johnson - editor, Norman Walzer - editor. Publisher: Quorum Books. Place of Publication: Westport, CT. Publication Year: 2000. Page Number: 34.
    
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