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14th December 2023 (10 Topics)

The consultocracy

Context:

The role of consulting firms in government and balancing benefits and concerns emphasizes the need for regulatory oversight.

Pros and Cons of Consulting Dominance

  • Benefits of Consulting Support: Consulting firms aid complex policy formulation and digitized service delivery, providing needed expertise.
  • Concerns of Overdependence: Unchecked use of consultants risks hollowing out government capabilities, fostering dependency, and promoting mission creep.
  • Lobbying and Mission Creep: There's a risk of consulting firms leveraging dependency for repeat work, lobbying, and influencing sensitive policy decisions.

Global Concerns and "Consultocracy"

  • Global Criticisms: Worldwide, concerns arise about consultants reducing government skills, distorting public policy objectives, and contributing to corruption.
  • Distorted Objectives: Books like "The Big Con" caution against consultants leading governments down amoral pathways and shaping public policy objectives.
  • Emergence of "Consultocracy": Consultants permeating government can diminish traditional roles of public servants, altering government functions and capabilities.

Need for Comprehensive Regulatory Framework

  • Compelling Reasons for Engagement: Complexity demands external expertise, but engagements should be within a regulated framework.
  • Transparent Onboarding: Regulations should ensure fairness, transparency, curb rent-seeking, and demand disclosure of added value.
  • Knowledge Transfer Protocols: Clear protocols for knowledge transfer and internal capacity building should be integral to consulting engagements.
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