
One of the myths that remains a prevalent affect of the Thatcher era is that the solution to all problems can be found in management. This is a corollary of privatisation and free-market liberalism—that private business management is better because such managers are keen to make a profit.
The Thatcher government pressed a vigorous policy of privatisation in which large swathes of public services were sold off to private enterprise: telephones, utilities, the rail network, etc. Astonishingly, when New Labour came in, it revealed an inexplicable fascination with this project, and extended it further, to education and the health service. The clear belief has been that the only way any institution can work is by application of principles of management based on the profit motive.
The recent shake-up of senior management in a number of rather prominent banks on both sides of the Atlantic—with billions of dollars/pounds lost in the mother-of-all-gambling games—should be a wake-up call to someone that private sector management is capable of making much bigger mistakes than public sector management has opportunity to make. And, that, when given free-market rein to spend other people’s money, these managers will over-reach themselves on unimaginable scales.
Let me be clear that I am most aware that good management is essential to the healthy functioning of any institution that involves more than one person. My point of contention is with the ideology that management is the solution to all problems, which follows from the prior faith in the open market.
This story, in my own home town, (here ) shows where such practice leads. There was great public support for the large increases in budget given to health and education over the past decade of Labour management. But, with the passing of time, it has become clear that the funds have not gone where most needed—to health workers and teachers. Instead, the money went to bring in managers, who—we were assured—needed to have salaries incumbent with those they would receive in the private sector. (more)
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