It’s the Mix That Matters

Abstract

After explaining the idea of the differentiated polity, the chapter discusses the characteristics of governance with examples; institutional complexity, power-dependence, game playing, self-organizing, and steering. It argues that the shift to governance requires the new language of diplomacy, not marketization. Governments must choose between markets and networks and bureaucracy. It is the mix that matters. Networks are pervasive. Government is picking up the skills of indirect management, but slowly. This chapter aims to hasten that process by providing a language for exploring and managing the mix of governing structures in the differentiated polity. The new public management, whether in the guise of managerialism or institutional economics, is no longer the challenge confronting government. The challenge is diplomacy in governance. The Afterword expands on the ideas of governing structures, unintended consequences, and metagovernance.