Markets, Bureaucracy and Public Management: The Worst of Both Worlds? Public Services without Markets or Bureaucracy

Abstract

In recent years there has been growing support for the idea of developing collaborative network relationships between purchasers and providers in UK public services. Under the new Labour Government this idea found its way into policies aimed at promoting a ‘third way’ between markets and hierarchies in health and local government. This article addresses a number of concerns about these developments. Drawing on the wider management literature, it argues that recent discussions have largely under-stated the problems associated with relational contracting and networks. The author also considers why the option of a return to hierarchy has so far been dismissed and argues for a reversal of this tendency.