Materi 3 Pengantar Ekonomi Sektor Publik Adna Fisipol

Summary

This video discusses government failure, focusing on its causes such as limited information, inadequate supervision, and bureaucratic inefficiencies. It explains how government intervention, intended to address market failure and improve public welfare, often leads to unintended consequences. The video also explores the role of bureaucracy in public administration, emphasizing its organizational structure and functions. Additionally, it highlights bureaucratic challenges in Indonesia, such as corruption, inefficiency, and poor public services, while stressing the importance of reforming the bureaucracy for better governance and improved public service delivery.

Takeaways

• 😀 Government failure occurs when government intervention in the economy does not lead to improved public welfare, despite efforts to address market failure.
• 😀 Limited information is one of the causes of government failure, as it makes it difficult to calculate the full impact of policies in advance.
• 😀 Government policies can lead to unintended reactions in the private sector, such as when fuel subsidy cuts result in an increased demand for diesel cars.
• 😀 Bureaucratic inefficiency is a factor in government failure, as government policies are often implemented by different levels of bureaucrats with varying perceptions and interests.
• 😀 Political processes in democratic countries can hinder government decision-making, as policies often require approval from multiple branches of government.
• 😀 Bureaucracy is defined as a hierarchical organizational structure with strict procedures and impersonal relationships, often necessary for effective governance.
• 😀 Max Weber's definition of bureaucracy emphasizes rational authority, where work is organized by regulations to achieve organizational goals.
• 😀 Bureaucratic functions include administration, service provision, regulation, and information collection, all aimed at ensuring the efficient operation of government.
• 😀 The role of bureaucracy in government includes implementing laws, providing public services, and coordinating development efforts in a fair and professional manner.
• 😀 The six bureaucratic diseases in Indonesia, such as high corruption and inefficiency, need to be addressed for better governance and improved public services.

Q & A

What is government failure, and why does it occur?

Government failure occurs when government intervention in the economy does not lead to improved public welfare, despite its intention. It happens due to inefficiencies in the allocation of resources, limited information, inadequate supervision of private sector reactions, limited oversight of bureaucratic behavior, and obstacles in the political process.

What are the causes of government failure mentioned in the lecture?

The causes of government failure include limited information, limited supervision of private sector reactions, limited supervision of bureaucratic behavior, and obstacles in the political decision-making process.

How does limited information contribute to government failure?

Limited information leads to government policies whose impacts are difficult to predict. For example, the effects of removing subsidies or making changes to policies are complicated and challenging to calculate accurately beforehand, which can result in unintended negative outcomes.

What example is given to illustrate limited supervision of private sector reactions?

The lecture mentions the reduction of fuel subsidies as an example. When fuel subsidies are reduced, consumers may switch from gasoline-powered cars to diesel vehicles, increasing demand for diesel fuel and raising its price. The government cannot control this private sector reaction effectively.

What challenges arise from limited supervision of bureaucratic behavior?

Limited supervision of bureaucratic behavior means that government policies may not be implemented as intended, as bureaucrats in different levels of government may have varying perceptions and interests. This can lead to inconsistencies in policy implementation across regions.

What is the role of bureaucracy in government?

Bureaucracy is essential in organizing and implementing government policies. It provides a hierarchical structure for decision-making, ensuring that laws and regulations are applied uniformly and services are provided to the public in an orderly and efficient manner.

According to Max Weber, what is the definition of bureaucracy?

Max Weber defines bureaucracy as a system of authority that is rationally organized by various regulations to manage and coordinate large-scale work and activities, ensuring efficiency and effectiveness in administrative processes.

What are the four main functions of bureaucracy in government?

The four main functions of bureaucracy are: 1) Administration – implementing laws and policies; 2) Service – providing public services; 3) Regulation – creating and enforcing regulations to ensure public welfare; and 4) Information collection – gathering data to evaluate the effectiveness of government policies.

What are the six bureaucratic diseases identified in Indonesia, and how do they affect governance?

The six bureaucratic diseases in Indonesia include: 1) Excessive internal spending over public service needs; 2) Corruption, including bribery and kickbacks; 3) Inefficiency and ineffectiveness in development management; 4) Suboptimal quality of civil servants; 5) Oversized government organizations; and 6) Poor public services that do not meet citizens' needs.

How can bureaucracy contribute to the improvement of public services despite its challenges?

Bureaucracy contributes to public service improvement by ensuring that administrative processes are standardized, organized, and efficient. It allows for better coordination, implementation of government programs, and provides a structure for managing and evaluating public services effectively.