📘 Model Answer 6
Public Choice Theory
Question
Model Answer (250 Words)
Public Choice Theory applies economic principles to political and administrative behavior. Developed by scholars such as James Buchanan and William Niskanen, it challenges the traditional assumption that public officials always act in the public interest.
According to this theory, bureaucrats are rational actors motivated by self-interest, similar to individuals in the market. Niskanen’s budget-maximization model argues that bureaucrats seek to expand their departments’ budgets to increase power, prestige, and job security. This may lead to inefficiency, overproduction of services, and fiscal strain.
Public Choice Theory thus portrays bureaucracy as self-serving rather than purely public-serving. It advocates mechanisms such as competition, privatization, and performance incentives to reduce bureaucratic inefficiency.
However, critics argue that the theory oversimplifies administrative motivation and ignores normative values such as public service ethics and accountability. Not all bureaucrats act purely out of self-interest, especially in democratic systems with institutional checks and transparency mechanisms.
In the Indian context, reforms inspired by Public Choice ideas can be seen in disinvestment, PPP models, and performance-based evaluation systems.
Thus, while Public Choice Theory highlights real problems of bureaucratic expansion and inefficiency, it must be balanced with democratic values and social objectives.
Prepared by Shaktimatha Learning
Economic Lens + Critique + Indian Context = High Analytical Marks
No comments:
Post a Comment