Analysis, critique, synthesis, and conclusion Major themes found in the readings The concept of market failure is one of the major themes that the readings identify. Zerbe and McCurdy identify the theme and notes that the government falsify the concept of market failure to spearhead its initiatives but a closer analysis shows that such initiatives are not based on market failure, a concept that is not real (Zerbe and McCurdy, 1999)…
Another theme in the readings, developed through March and Olsen is institutionalism, which the authors define as a study of political entities and their relationships, through theoretical concepts and formulated hypotheses (2005). Institutionalization establishes constraints within which actors in an economic system (Ingram and Silverman, 2002). Closely related to these themes is the theme of susceptible governance whose remedy is an extensive network through “collaboration” and “performance management systems” (Imperial, 2004, p. 4). The theme is evident among practitioners as they seek to achieve better governance in an environment that experience forces from both public and private sectors. Significance of relationships between members of the networks through mutual benefit is another theme that the readings establish through Stephenson’s article (n.d.) and Milward support through his proposed guide to manager’s selection and application of collaborative networks (2006). Virtual networks through technology promote the networking (Alstyne 1997). The theme of economic governance is also significant in the readings and is developed through Mintzberg’s article (1996). ...
The concept of market failure is a tool to government’s intervention in the economy but its validity and application is questioned. While the market failure concept initially guided government’s point of intervention to regulate the economy, its role diversified to determination of intervention strategies while little attention has been paid to the concept’s validity and empirical and theoretical background into the concept do not exist. Existence of discrepancies, contrary to expectations under mixed market in which forced interact to ensure efficient resource allocation, shows that the market failure concept has failed. Government’s efforts to use the concepts towards resource allocation and optimization of social benefits have also failed and this discredits validity of the concept as applied by the government. Regulations towards environmental conservation such as taxes to curtail excessive pollution have for instance failed to identify inadequacy of the market failure concept (Vogel, 2009). Existence of externalities also challenges applicability of the market failure concept because it induces the need for a wider perspective to determining market failure (Tragakes, 2011). These challenges to the market failure concept therefore supports the proposal that the concept is ineffective and are consistent with Zerbe and McCurdy’s perspective that the government misuses the concept to justify its intervention in the economy. The theme of unreasonable use of the market failure concept is also evident in the readings and while it offers a basis for criticizing governance, it does not disqualify the need for government intervention in the economy. This position is informed because the society expects government intervention to ensure fair ...
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