Status ranking is ubiquitous and nowhere is it more ubiquitous than in the British Civil Service and no doubt many other similar public services elsewhere. It is a perfect example of the institution of rank order on a huge scale, involving at least 24 grades and a quarter of the total working population. And, what's more, it works. At least it works to the satisfaction of most public servants for most of the time, except for strikes which break out in the lowest ranks periodically, usually on matters of pay rather than conditions.

Why does it work so well? Because those who started it -- whether they were fully aware of it or not -- were carrying out a formalised system of rank ordering which is deeply engrained in all primate species and particularly in us. Originally, the Civil Service as we know it today in the UK was brought in because, by the 1850s, what then passed for public servants were simply not professional enough to do their job properly, particularly in a rapidly industrialising and increasingly complex society. By and large their jobs were highly paid sinecures sought after those in the 'genteel' class with good political connections, for their young relatives who were generally fit for nothing else. In the classic Northcote-Trevelyan Report on the problem, Trevelyan wrote of parents and others foisting 'sickly youths' on government departments whose salaries and, after retirement, high pensions, were a lifetime burden on the taxpayers.

So they instituted an examination system of entry. As it happened there were more than enough candidates due to the extraordinarily high birth rates of the preceding decades. In particular, England at that time had a surfeit of extremely talented graduates of Oxford and Cambridge, the sons of successful merchants, industrialists and the professions who did not want to follow into their parents' occupations, who had what passed for a well-rounded education in those days (philosophy, literature, history, classical languages and similar), and who did not want to enter the church either (previously a career path for such). For them the new British Civil Service was a Godsend -- either as administrators at home or in the colonial civil service where, very often, individuals could hold sway over African or Indian territories the size of Wales or Switzerland.

Those administrators who went abroad tended to be neglected by those at home and were often left for years at a time without much guidance, or else they died of malaria or diseases spread by the testse fly or similar. (If they survived and came back home they'd be given a cracking good pension, of course.) But for those at home, it was a beanfeast  of power and status. From about 1870, these able administrators, able to recruit lower ranks in large numbers due to the growing tax-base of a prosperous country, were able to insert themselves (with the help of legislation) into all sorts of home affairs, such as education, pensions, factory regulation, food and health matters, agriculture and so on and so on, multiplhying not only the numbers of their underlings but also offering finer and finer gradations of rank. And what's more, they were able to convince everybody else in the civil service of the excitement of all this by instituting plenty of opportunities for further promotions (after all, there were creating so many extra ranks), thus holding out carrots to almost everybody however ambitious they were for a higher rank.

So, to cut a long story short, a century of all this has produced superb administrative machines which have effective inputs, if not control, over almost every social and economic activity in the country. Not only this, but the British Civil service (together with the French and the German equivalents in particular) were also able to set an example to the rest of the civilised world as to how countries should be run. And, of course, it is the top civil servants (Permanent Secretaries in the case of the UK) who usually do control everything. New governments mandated by a popular vote to bring about new policies which threaten to affect the civil service too radically have a very hard time bringing new practices about.

Because of its size (smallish) and communications (goodish) England is probably the most highly centralised civil service in the world, except for perhaps Russia. However, after that paeon of praise for the efficiency and effectiveness of the British Civil Service in the way it runs its own affairs, it must be said that it isn't anywhere near as efficient and effective in the outside world. Increasingly in the last two or three decades, the British Civil Service has started to fail rather badly. Great departments concerned with education, agriculture, industry, state pensions, health, police, prisons, social services and so on are finding that the policies that they are handing down from on high are becoming increasingly unworkable and sometimes, such as the foot-and-mouth crisis fairly recently and which should not have been a crisis, the mistakes have enormous consequences in terms of livelihoods and penalties paid by the taxpayers.

It is, in fact, in the field of agriculture (excuse the pun!) that Lord Haskins, formerly the chairman of Northern Foods, a very large corporation, was asked to report on the Department for Environment, Food and Rural Affairs (Defra) which consists of scores of thousands of civil servants, at least forty grant-making sub-agencies -- often overlapping on one another -- and of mind-boggling complexity impinging on every aspect of countryside life yet rigidly controlled from the top in London by civil servants, some of whom probably never see the countryside from one month to another. His task was to suggest remedies to this. As expected, he proposed as much devolution as possible and here is his short account of all this.

However, in an organisation which meets the status aspirations of so many people so very satisfactorily it is doubteful whether more than a few token gestures will be made no matter how strenuously politicians (and the rest of us) may desire it.

Keith Hudson

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GIVE POLICY BACK TO THE PEOPLE

Christopher Haskins

Britain suffers from an over-centralised form of government that is inefficient, lacks accountability and is insufficiently responsive to individual and local needs.

That is the message of two studies with which I have been involved recently: my report, published yesterday, reviewing the delivery arrangements of the Department for Environment, Food and Rural Affairs (Defra); and the King's Fund's recently issued paper on the National Health Service, to which I made a small contribution.

The reports suggest that the lack of transparency between the policy-making and the policy implementation process is the fundamental cause of poor accountability. The dominance of policymakers over those who carry out policy means that regional and local interests are neglected in favour of top-down, one-size-fits-all solutions.

The two studies take a similar approach to the problem: separate, as much as possible, policy development from policy implementation and, to reinforce that separation and increase public credibility, devolve the delivery of policy to regional and local networks. The King's Fund suggests the NHS should be an arm's-length agency from the Department of Health, responsible for arranging implementation of government policy for its 60 million clients, and the Defra review recommends that delivery of agricultural, environmental and other rural policy be regionalised and localised.

Despite the welcome introduction of devolution, Britain is unique among large democracies in maintaining a highly centralised form of government, though this was not always the case. The remarkable progress made in raising the quality of public services in the 19th century was entirely due to the imagination and commitment of local authorities, backed by local business. Corporate responsibility was in a much healthier state in 1880 than it is today.

Since the second world war, however, provision of public services has been increasingly centralised. The creation of the NHS set the trend. Extensive nationalisation of railways, mines and various utilities further weakened local accountability and Westminster reduced the power of local authorities.

It is now generally recognised that centralisation must be reversed. The case for national provision of services is that it achieves consistency across the country. This was a matter of great importance to Aneurin Bevan when he created the NHS in 1948 and it remains an essential priority for today's health service. Other departments, with less justification, pursue the same objective. However, it is a mistake to believe that huge departments such as Health, Education, Defra and Trade and Industry can carry out policy effectively via a stream of targets and e-mails emanating from Whitehall.

The bureaucracies set up for this purpose have become remote and inflexible. There is also plenty of evidence to suggest that taxpayers' money is being frittered away on well-meaning initiatives and funding programmes whose outcomes are inadequately scrutinised.

The case for devolving provision to local authorities and other local networks and partnerships is that local and individual needs will be better understood and dealt with. It is much easier to identify accountability in small, local organisations than it is in vast national bureaucracies. Consistency of provision is very important in the health service, but accountability for the service is even more important; if there is no accountability there cannot possibly be any consistency.

Much needs to be done to restore the high standards of local government that existed 50 years ago and to ensure that they have the competence and capacity to do the work. The same challenge can be directed at the recently created Regional Development Agencies. Our structures of local democracy have been neglected and we must find ways of revitalising them.

Successful large businesses have learnt that, while policy and the funding needed to carry out policy must be the responsibility of the board, at the centre, it is impossible to implement policy through a centralised bureaucracy. Much better to go to the operating subsidiaries, get them to take ownership of the central strategy and give them plenty of discretion as to how they plan to carry it out. Instead of targets being set from the centre, they should be proposed by the subsidiaries and, if acceptable, agreed by the board.

The government machine is now held in generally low regard because it is unable to make convincing contact with the citizens it is meant to serve. The best way to restore credibility is to bring service networks closer to regional and local interests. By encouraging engagement between citizens and the public services we shall improve service quality, economic performance and productivity, and strengthen community solidarity. These are the criteria by which public service departments must be judged.

Lord Haskins is adviser to the government on rural affairs.
Financial Times -- 12 November 2003
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Keith Hudson, Bath, England, <www.evolutionary-economics.org>