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remoteFOCUS
           Having your Say:
 Innovations in Governance in Remote
                Australia
                        Presentation to
            Desert Knowledge Virtual Meeting Place
   Desert Innovation Festival – Australian Innovation Festival

                                                          Dr Bruce Walker
                                                           Project Director
                                                      remoteFOCUS Project
                                                                 May 2012
Remote Australia




                   2
Characteristics of Remote Australia

 Geography


Demography


  Economy


   Social
                                      3
Characteristics of Remote Australia
                  Variable Climate
 Geography             •Extremes of weather
                       •Unpredictability

                  Patchy Resources
                      •Low soil fertility
Demography            •Unreliable water
                      •Natural resource enclaves

                  Under-capitalised Infrastructure
                      •Skewed investments link to global
  Economy             economy

                  Settlement Pattern
                       •Determined for a past era
                       •Impacted by technology and
                       government policy
   Social
                                                           4
Characteristics of Remote Australia
                  Sparse mobile population
                      •Great distance to economic and
 Geography             political centres
                      •Government has prominent role
                  FIFO
                      •Change to resource sector business
                       model
Demography            •Tourism competes with mining
                      •Increasing expatriate outlook
                      •Not tuned to local diversity
                  Small Business Sector
                      •Significant contribution to local
  Economy              employment
                  Outmigration of Young People

                  Long Term Resident Population of
                  Aboriginal People
                      •Current policy changes causing
   Social              change and movement

                                                            5
Characteristics of Remote Australia
                  • Historically minerals, cattle, tourism
 Geography          create wealth
                  • Wealth production not matched by
                    investment in local labour or
                    communities
                  • Productivity is lower
Demography        • Chronic underinvestment in public
                    services
                  • Benefits accrue in larger urban centres
                    like Perth

                  Remote Australia is on the periphery of
  Economy          Australian democracy.

                  It is characterised by a dual economy and
                   absence of a market that might deliver
                   outcomes without government
   Social          interventions.

                                                              6
Characteristics of Remote Australia

 Geography        • local institutions are being
                   overwhelmed

                  • many are unsuited to the
Demography         tasks they confront

                  • they are unable to create
                   durable and equitable
  Economy          arrangements to manage
                   conflict, deliver services or
                   sponsor entrepreneurial
                   activity
   Social
                                                   7
Five Propositions:

1
     Remote Australia confronts extraordinarily diverse and complex local realities. Common
     issues that are globally familiar:
     Common to regions where people reside remote from centres of economic & political
     power but are facing rapid social and economic change




2    Present governance arrangements are not well attuned to the circumstances that are
     emerging in remote Australia and public policy has limited influence




3
     There are ways of remedying these governance issues, but the more promising prospects
     involve greater degrees—and varying patterns—of decentralised governance and
     community engagement




4    Normal legislative politics are unlikely to result in structural reforms.
     Special purpose cross-party initiatives, political commitment and support from business,
     professional and community organisations is required




5
    In the absence of a narrative that embraces micro economic reform and establishes the
    national interest in remote Australia, and a settlement pattern that supports that national
    interest, nothing is going to change                                             8

                                                                                                  8
Five things people in remote Australia
   want but don’t get:

 1. a say in decisions that affect them

 2. equitable and sustainable financial flows

 3. better services and a locally responsive public
    service

 4. local control and accountability where possible;

 5. inclusion in the greater Australian narrative.
                                                       9
What Governments Say:

 Dept Finance

  Productivity Commission

 MAC Reports

  ANAO

  9 Reviews of
  Whole of Government

  FaHCSIA


  WA Economic Audit


                            10
What Governments Say:

  Government intentions proved persistently
  impossible to translate into practice




                                              11
What Governments Say:




  No official body has ever questioned the basic
  framework for program delivery or asked whether
  governance might itself be a primary contributor to
  policy failings.




                                                        12
What Governments Say:




 The systems of government work against change


                                                 13
International experience:

 UK & OECD Reports



 • Place based approaches

 • Localism Bills

 • Innovation Regions

 • Experimentalist/ Pragmatist approaches

 • Relational contracting and learning by doing


                                                  14
Why has this happened ?




                          15
Why has this happened ?

 30 years of New
 Public Management
 Reforms

 have shaped how governments

 • manage the economy,

 • deliver services

 • commit to public welfare




                               16
Why has this happened ?

 30 years of New               NPM Reforms
 Public Management             have had
 Reforms

 have shaped how governments

 • manage the economy,
                               • very uneven effects in
                               remote Australia
 • deliver services

 • commit to public welfare




                                                          17
Why has this happened ?

 30 years of New               NPM Reforms
 Public Management             have led to
 Reforms
                               • a rise in executive power
 have shaped how governments
                               • political administrative
 • manage the economy,         centralisation

 • deliver services            • the fragmentation of
                               government
 • commit to public welfare
                               • problems of accountability




                                                              18
The present configuration of governance policy
and practice is not working in remote Australia




                                                  19
In this context there are severe limits to what can
 be achieved through better coordination or more
             efficient service delivery




                                                      20
For large parts of remote Australia the notion that the
 market will deliver positive outcomes – in services,
settlement patterns, environmental management, and
          wider social inclusion – is a fiction




                                                          21
To resolve ‘wicked’ problems in remote Australia
governments have resorted to whole of government
      and strategic intervention approaches

                                                    22
o rk
                                               t w
                                       ll no
                                 w i
                           m e
                    e sa
             f th
       e o
    o r
M
                                                         23
Six structural dysfunctions erode the capacity
of the present structure of government to
administer remote Australia.




                                                 24
Six structural dysfunctions erode the capacity
of the present structure of government to
administer remote Australia.


                There is not only a
       delivery and local engagement gap
                        but
            a profound systemic gap
     covering the development of strategies
               for remote Australia


                                                 25
New Governance Principles

The nature and pace of change in remote Australia,
the ongoing contest as people respond and adjust to change
necessitates creation of regional governance structures.




                                                             26
New Governance Principles

The nature and pace of change in remote Australia,
the ongoing contest as people respond and adjust to change
necessitates creation of regional governance structures.




These structures need to endure over time and be
above the contest




                                                             27
Lessons for Remote Australia
     Economic policy and practice, rather than a single focus on subsidies,
 1   welfare and ‘services’, must be at the heart of policy on remote Australia.




                                                                                   28
Lessons for Remote Australia
     Economic policy and practice, rather than a single focus on subsidies,
 1   welfare and ‘services’, must be at the heart of policy on remote Australia.


     Government needs to do more than set macro-economic conditions – it
 2   needs to be an active partner in business/livelihood with community and
     private sector.




                                                                                   29
Lessons for Remote Australia
     Economic policy and practice, rather than a single focus on subsidies,
 1   welfare and ‘services’, must be at the heart of policy on remote Australia.


     Government needs to do more than set macro-economic conditions – it
 2   needs to be an active partner in business/livelihood with community and
     private sector.

     Agglomeration, regional integration and regional connectivity are keys
 3
     to an innovative response.




                                                                                   30
Lessons for Remote Australia
     Economic policy and practice, rather than a single focus on subsidies,
 1   welfare and ‘services’, must be at the heart of policy on remote Australia.


     Government needs to do more than set macro-economic conditions – it
 2   needs to be an active partner in business/livelihood with community and
     private sector.

     Agglomeration, regional integration and regional connectivity are keys
 3
     to an innovative response.


     Place centred governance is a precursor to place based initiatives where
 4   place centred relates to mandate rather than location.




                                                                                   31
Lessons for Remote Australia
     Economic policy and practice, rather than a single focus on subsidies,
 1   welfare and ‘services’, must be at the heart of policy on remote Australia.


     Government needs to do more than set macro-economic conditions – it
 2   needs to be an active partner in business/livelihood with community and
     private sector.

     Agglomeration, regional integration and regional connectivity are keys
 3
     to an innovative response.


     Place centred governance is a precursor to place based initiatives where
 4   place centred relates to mandate rather than location.


     Government could stimulate capacity in remote Australia through micro-
 5   economic reform including adopting more innovative regional and
     procurement policies

                                                                                   32
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.




                                                                                      33
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.

     Three tiers of government and a series of ad hoc regional arrangements
 2   appear to be incapable of resolving both the priorities and the contests
     that need to take place around these arrangements.




                                                                                      34
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.

     Three tiers of government and a series of ad hoc regional arrangements
 2   appear to be incapable of resolving both the priorities and the contests
     that need to take place around these arrangements.

      The structure and configuration of institutions across remote Australia
 3
      are largely not ‘custom built’ or fit for their particular purpose.




                                                                                      35
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.

     Three tiers of government and a series of ad hoc regional arrangements
 2   appear to be incapable of resolving both the priorities and the contests
     that need to take place around these arrangements.

      The structure and configuration of institutions across remote Australia
 3
      are largely not ‘custom built’ or fit for their particular purpose.

     Consideration of economic circumstances is crucial in establishing
 4   priorities in remote Australia. The private sector has been more successful
     at working through these issues than government.




                                                                                      36
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.

     Three tiers of government and a series of ad hoc regional arrangements
 2   appear to be incapable of resolving both the priorities and the contests
     that need to take place around these arrangements.

      The structure and configuration of institutions across remote Australia
 3
      are largely not ‘custom built’ or fit for their particular purpose.

     Consideration of economic circumstances is crucial in establishing
 4   priorities in remote Australia. The private sector has been more successful
     at working through these issues than government.

 5   Failure to innovate is most marked in the public sector.




                                                                                      37
Lessons from Remote Australia
     It is not clear who, if anyone, is setting the priorities for remote Australia
 1
     or what those priorities are.

     Three tiers of government and a series of ad hoc regional arrangements
 2   appear to be incapable of resolving both the priorities and the contests
     that need to take place around these arrangements.

      The structure and configuration of institutions across remote Australia
 3
      are largely not ‘custom built’ or fit for their particular purpose.

     Consideration of economic circumstances is crucial in establishing
 4   priorities in remote Australia. The private sector has been more successful
     at working through these issues than government.

 5   Failure to innovate is most marked in the public sector.

     The five things people ‘want but don’t get’ contributes to discontent and
 6
     unhappiness.

                                                                                      38
Our Conclusion:

 Without innovative systemic change in the way
 governments conceive and govern remote Australia;

    • there will only be ephemeral improvements that will
      not sustain a pattern of governance across the
      nation, and

    • the consistency of concerns expressed across
      remote Australia will not diminish, and

    • you will not have a say in decisions that affect you.


                                                              39
To receive a copy of the report, join the
remoteFOCUS conversation at
www.desertknowledgecommons.net




                                            40

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Having a Say - Innovation in Governance

  • 1. remoteFOCUS Having your Say: Innovations in Governance in Remote Australia Presentation to Desert Knowledge Virtual Meeting Place Desert Innovation Festival – Australian Innovation Festival Dr Bruce Walker Project Director remoteFOCUS Project May 2012
  • 3. Characteristics of Remote Australia Geography Demography Economy Social 3
  • 4. Characteristics of Remote Australia Variable Climate Geography •Extremes of weather •Unpredictability Patchy Resources •Low soil fertility Demography •Unreliable water •Natural resource enclaves Under-capitalised Infrastructure •Skewed investments link to global Economy economy Settlement Pattern •Determined for a past era •Impacted by technology and government policy Social 4
  • 5. Characteristics of Remote Australia Sparse mobile population •Great distance to economic and Geography political centres •Government has prominent role FIFO •Change to resource sector business model Demography •Tourism competes with mining •Increasing expatriate outlook •Not tuned to local diversity Small Business Sector •Significant contribution to local Economy employment Outmigration of Young People Long Term Resident Population of Aboriginal People •Current policy changes causing Social change and movement 5
  • 6. Characteristics of Remote Australia • Historically minerals, cattle, tourism Geography create wealth • Wealth production not matched by investment in local labour or communities • Productivity is lower Demography • Chronic underinvestment in public services • Benefits accrue in larger urban centres like Perth Remote Australia is on the periphery of Economy Australian democracy. It is characterised by a dual economy and absence of a market that might deliver outcomes without government Social interventions. 6
  • 7. Characteristics of Remote Australia Geography • local institutions are being overwhelmed • many are unsuited to the Demography tasks they confront • they are unable to create durable and equitable Economy arrangements to manage conflict, deliver services or sponsor entrepreneurial activity Social 7
  • 8. Five Propositions: 1 Remote Australia confronts extraordinarily diverse and complex local realities. Common issues that are globally familiar: Common to regions where people reside remote from centres of economic & political power but are facing rapid social and economic change 2 Present governance arrangements are not well attuned to the circumstances that are emerging in remote Australia and public policy has limited influence 3 There are ways of remedying these governance issues, but the more promising prospects involve greater degrees—and varying patterns—of decentralised governance and community engagement 4 Normal legislative politics are unlikely to result in structural reforms. Special purpose cross-party initiatives, political commitment and support from business, professional and community organisations is required 5 In the absence of a narrative that embraces micro economic reform and establishes the national interest in remote Australia, and a settlement pattern that supports that national interest, nothing is going to change 8 8
  • 9. Five things people in remote Australia want but don’t get: 1. a say in decisions that affect them 2. equitable and sustainable financial flows 3. better services and a locally responsive public service 4. local control and accountability where possible; 5. inclusion in the greater Australian narrative. 9
  • 10. What Governments Say: Dept Finance Productivity Commission MAC Reports ANAO 9 Reviews of Whole of Government FaHCSIA WA Economic Audit 10
  • 11. What Governments Say: Government intentions proved persistently impossible to translate into practice 11
  • 12. What Governments Say: No official body has ever questioned the basic framework for program delivery or asked whether governance might itself be a primary contributor to policy failings. 12
  • 13. What Governments Say: The systems of government work against change 13
  • 14. International experience: UK & OECD Reports • Place based approaches • Localism Bills • Innovation Regions • Experimentalist/ Pragmatist approaches • Relational contracting and learning by doing 14
  • 15. Why has this happened ? 15
  • 16. Why has this happened ? 30 years of New Public Management Reforms have shaped how governments • manage the economy, • deliver services • commit to public welfare 16
  • 17. Why has this happened ? 30 years of New NPM Reforms Public Management have had Reforms have shaped how governments • manage the economy, • very uneven effects in remote Australia • deliver services • commit to public welfare 17
  • 18. Why has this happened ? 30 years of New NPM Reforms Public Management have led to Reforms • a rise in executive power have shaped how governments • political administrative • manage the economy, centralisation • deliver services • the fragmentation of government • commit to public welfare • problems of accountability 18
  • 19. The present configuration of governance policy and practice is not working in remote Australia 19
  • 20. In this context there are severe limits to what can be achieved through better coordination or more efficient service delivery 20
  • 21. For large parts of remote Australia the notion that the market will deliver positive outcomes – in services, settlement patterns, environmental management, and wider social inclusion – is a fiction 21
  • 22. To resolve ‘wicked’ problems in remote Australia governments have resorted to whole of government and strategic intervention approaches 22
  • 23. o rk t w ll no w i m e e sa f th e o o r M 23
  • 24. Six structural dysfunctions erode the capacity of the present structure of government to administer remote Australia. 24
  • 25. Six structural dysfunctions erode the capacity of the present structure of government to administer remote Australia. There is not only a delivery and local engagement gap but a profound systemic gap covering the development of strategies for remote Australia 25
  • 26. New Governance Principles The nature and pace of change in remote Australia, the ongoing contest as people respond and adjust to change necessitates creation of regional governance structures. 26
  • 27. New Governance Principles The nature and pace of change in remote Australia, the ongoing contest as people respond and adjust to change necessitates creation of regional governance structures. These structures need to endure over time and be above the contest 27
  • 28. Lessons for Remote Australia Economic policy and practice, rather than a single focus on subsidies, 1 welfare and ‘services’, must be at the heart of policy on remote Australia. 28
  • 29. Lessons for Remote Australia Economic policy and practice, rather than a single focus on subsidies, 1 welfare and ‘services’, must be at the heart of policy on remote Australia. Government needs to do more than set macro-economic conditions – it 2 needs to be an active partner in business/livelihood with community and private sector. 29
  • 30. Lessons for Remote Australia Economic policy and practice, rather than a single focus on subsidies, 1 welfare and ‘services’, must be at the heart of policy on remote Australia. Government needs to do more than set macro-economic conditions – it 2 needs to be an active partner in business/livelihood with community and private sector. Agglomeration, regional integration and regional connectivity are keys 3 to an innovative response. 30
  • 31. Lessons for Remote Australia Economic policy and practice, rather than a single focus on subsidies, 1 welfare and ‘services’, must be at the heart of policy on remote Australia. Government needs to do more than set macro-economic conditions – it 2 needs to be an active partner in business/livelihood with community and private sector. Agglomeration, regional integration and regional connectivity are keys 3 to an innovative response. Place centred governance is a precursor to place based initiatives where 4 place centred relates to mandate rather than location. 31
  • 32. Lessons for Remote Australia Economic policy and practice, rather than a single focus on subsidies, 1 welfare and ‘services’, must be at the heart of policy on remote Australia. Government needs to do more than set macro-economic conditions – it 2 needs to be an active partner in business/livelihood with community and private sector. Agglomeration, regional integration and regional connectivity are keys 3 to an innovative response. Place centred governance is a precursor to place based initiatives where 4 place centred relates to mandate rather than location. Government could stimulate capacity in remote Australia through micro- 5 economic reform including adopting more innovative regional and procurement policies 32
  • 33. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. 33
  • 34. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. Three tiers of government and a series of ad hoc regional arrangements 2 appear to be incapable of resolving both the priorities and the contests that need to take place around these arrangements. 34
  • 35. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. Three tiers of government and a series of ad hoc regional arrangements 2 appear to be incapable of resolving both the priorities and the contests that need to take place around these arrangements. The structure and configuration of institutions across remote Australia 3 are largely not ‘custom built’ or fit for their particular purpose. 35
  • 36. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. Three tiers of government and a series of ad hoc regional arrangements 2 appear to be incapable of resolving both the priorities and the contests that need to take place around these arrangements. The structure and configuration of institutions across remote Australia 3 are largely not ‘custom built’ or fit for their particular purpose. Consideration of economic circumstances is crucial in establishing 4 priorities in remote Australia. The private sector has been more successful at working through these issues than government. 36
  • 37. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. Three tiers of government and a series of ad hoc regional arrangements 2 appear to be incapable of resolving both the priorities and the contests that need to take place around these arrangements. The structure and configuration of institutions across remote Australia 3 are largely not ‘custom built’ or fit for their particular purpose. Consideration of economic circumstances is crucial in establishing 4 priorities in remote Australia. The private sector has been more successful at working through these issues than government. 5 Failure to innovate is most marked in the public sector. 37
  • 38. Lessons from Remote Australia It is not clear who, if anyone, is setting the priorities for remote Australia 1 or what those priorities are. Three tiers of government and a series of ad hoc regional arrangements 2 appear to be incapable of resolving both the priorities and the contests that need to take place around these arrangements. The structure and configuration of institutions across remote Australia 3 are largely not ‘custom built’ or fit for their particular purpose. Consideration of economic circumstances is crucial in establishing 4 priorities in remote Australia. The private sector has been more successful at working through these issues than government. 5 Failure to innovate is most marked in the public sector. The five things people ‘want but don’t get’ contributes to discontent and 6 unhappiness. 38
  • 39. Our Conclusion: Without innovative systemic change in the way governments conceive and govern remote Australia; • there will only be ephemeral improvements that will not sustain a pattern of governance across the nation, and • the consistency of concerns expressed across remote Australia will not diminish, and • you will not have a say in decisions that affect you. 39
  • 40. To receive a copy of the report, join the remoteFOCUS conversation at www.desertknowledgecommons.net 40