A RAND opinion paper calling on Obama to cut the role of contractors in government. Contractors per se are not a bad thing, suggests this report, but when you start replacing core government functions with outsiders you not only lose something, you frequently wind up paying private sector rates for people who before had been happy taking government compensation.
I’m no fan of oversized bureaucracies, but I think our debate about government has become far too focused on size, and not focused enough on efficacy. While RAND to a certain extent has skin in this game, their point of view is less politicized than what is popularly discussed.
This is a question that over the longer term will occupy the governments of China and India as well. Both have long-standing traditions of bloated, multilevel bureaucracies that develop lives and power bases of their own, and will at some point need models to help them “right-size” and make more effective their legions of apparatchiks.