Market-Based Governance: Supply Side, Demand Side, Upside, and Downside is a collection of essays that explores the use of market mechanisms to achieve public goals in the 21st century. Edited by John D. Donahue and Joseph S. Nye Jr., the book examines the advantages and disadvantages of market-based governance from four perspectives: the demand side, the supply side, the outside, and the downside.
The demand side deals with how the public sector can use market forces to improve the quality and efficiency of public services, such as procurement, health care, and education. The supply side addresses the role of government as a provider of public goods and services within the market system, such as infrastructure, regulation, and security. The outside explores the potential of market-based arrangements to enhance accountability and responsiveness outside government, such as environmental policy, social markets, and self-regulation. The downside analyzes the risks and limitations of market-based governance, such as inequality, corruption, and loss of democratic control.
The book offers a balanced and nuanced assessment of market-based governance, acknowledging both its strengths and weaknesses. It provides a rich and diverse set of case studies and examples that illustrate the challenges and opportunities of applying market principles to public problems. It also raises important questions about the future of governance in a complex and dynamic world.
The book is a valuable resource for scholars, practitioners, and students interested in understanding the role of markets in governance. It is also a stimulating and provocative read for anyone interested in the relationship between government and society in the 21st century.