In what ways are agents of collective action (parliamentarians ministers, bureau

Question

In what ways are agents of collective action (parliamentarians ministers, bureaucrats, judges) typically controlled so that they serve the citizen-principals in your community? If you know of a principal-agent problem in your community? If you know of a principal agent problem in your local government, what mechanism of control has failed? What would you advocate to avert a recurrence of such an event?

Pls, refer and answer from the text book. Give the revelance answer with Chapter 10.

http://www.mediafire.com/file/corion2bv8p4xu7/Institutional+Economics+socialorder+%26public+p+.pdf

Explanation / Answer

The agents of collective action (parliamentarians mnisters,bureaucrats,judges) are accountable to different bodies .The are directed,supervised and controlled by the bodies of Public administration.

For Example:

The Bureaucrat is continuously reviewed and investigated by different different devices of investigation for his actions by the minister through the policy of ministerial responsibility to the legislature. The legislature exercises his power of 'supervision of Public administration, direction to them and control of Public administration.

It investigate them through devices and look through their budgetary review and hence they keep a regular check on them.

There are other different means for the legislature to enforce responsibilty to the executive such as

1.Financial Control-Parliament control over the fund and finance given to administration for their activities

2.Budget Discussion- They keep voting to pass it and it is not an easy procedure to get funds

3.Control on Delegated legislation- The administrative auhorities are strict towards it and keep check on it whether it is violating terms of conditions of the agreement. Judicial Review is a must forthe smooth and legal functioning of the delegated legislation

4.President Speech-This discussion gives an opportunity to the parliamentarians to appreciate or criticise the administration for doing or not doing their duties.

. Principal Agent Problem- It develops when a principal creates an environment in which an agent's incentives don't align with its own.

An example of Principal agent problem that actually happens in often in our community,,,,is that suppose you hire a lawyer on this trust that he will work as your agent and always keep your main interest as his center focus.However but that does not happen in every case, sometimes if the lawyer realize that it will cost him some extra hours to sit in the office and work in order to win your case, he may decide to go play golf instead of spent some extra hours.

This is a classical example of principal agent problem that happens with most of us in our community because in this case lawyer(agent) did not fulfill his end of relationship by deciding not to put inthe required work for you(principal)

An example of Principal agent problem that happens in our local government-All health care systems have a feature that is the flow of finaces from the population through a variety of gencies to providers of this healt care system.

There is a principal agent problem in each transfer of funds wuthin the health care system witj the sense that a principal is entrusting funds to an agent with the intention that some desired aspect of health care delivery can be secured.

I would advocate to keep a regular check on these bodies through some administrative bodies to avert a recurrence of such an event. They should be keep monitoring,reviewed , directed or controlled by administartive bodies. So there would not be chances of happening of these principal agent problem on frequent basis

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