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The Fragmentationist Disease

In: Studies in Economics and Russia

Author

Listed:
  • Alec Nove

    (University of Glasgow)

Abstract

While public attention has been focussed on the issue of privatization, another aspect of government policy has not received the attention it deserves. This is its tendency to fragment. One sees this in a variety of areas: public transport, local government, the BBC, schools, the electricity grid. This is partially explicable by the desire to stimulate competition, and/or by consciousness that there are dangers in turning public monopoly into private monopoly. However there seems to be a marked tendency to ignore the costs of such a solution, a neglect of the importance of system, network, interdependencies and complementarities. At the same time, an over-simplified theory of monopoly is combined with a downgrading of the concept of public service, of the external effects inherent in infrastructure, and of the relationship between efficiency and purpose. What could be called ‘myopic marginalism’ in combination with extremes of methodological individualism can lead to policy errors which it is the purpose of this chapter to examine.

Suggested Citation

  • Alec Nove, 1990. "The Fragmentationist Disease," Palgrave Macmillan Books, in: Studies in Economics and Russia, chapter 13, pages 164-170, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10991-3_13
    DOI: 10.1007/978-1-349-10991-3_13
    as

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