Bad governance in Australia and how to mitigate it

Abstract

We argue that new public management (NPM) and other processes have led to adverse selection and agency rent problems within the political elite in Australia. The politicisation of the public service and the rise of careerist politicians have led to the de‐separation of what was once two distinct career paths within the political elite. This has changed the decision premise of the advisory system for policy formation and implementation, leading to worse public policy, even policy disasters. We recommend that some of the principles of the Westminster form of government be updated and re‐instituted for political elites within the structures of the Australian government. We canvass four reforms: return to merit appointments and promotion for public servants; a return to tenure for senior public servants; an enhanced push for descriptive representation within the career public service; and a formal role for staffers with centralised appointments, inability to instruct public servants, and restrictions on political and policy roles once leaving public service. These are designed to end the distrust, perceived corruption, and poor governance in the Australian government. Having separate career paths for non‐elected policy elites and elected elites is vital for information transmission and good governance. Each should operate with separate decision premises and work together in creative tension. NPM practices have weakened the separate career paths of public servants and politicians, leading to adverse selection and agency rent for both. The Westminster system has a logic that has been diluted or weakened within the Australian government, leading to poorer policy and policy disasters. The paper presents four areas for reform.