Public choice theory is an area of economics that uses standard economic tools to consider the decisions made by politicians and others within the public sector. In essence the theory applies economic principles to politics. In the article below Simon Caulkin argues that public sector reform and the application of public choice theory has failed and likens the public sector reforms that have been implemented to Soviet central planning.
Labour’s public sector is a Soviet tractor factory Observer (4/5/08)
Questions
| 1. | Explain what is meant by public choice theory. |
| 2. | Describe the principal public-sector reforms that were implemented under the Blair government. |
| 3. | Discuss the extent to which recent public-sector reforms have succeeded in delivering a more responsive and efficient public sector. |