2.08.2007

Paul Krugman: "The Green-Zoning of America"

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One of the best of the many recent books about the Iraq debacle is Rajiv Chandrasekaran’s “Imperial Life in the Emerald City.” The book tells a tale of hopes squandered in the name of politicization and privatization: key jobs in Baghdad’s Green Zone were assigned on the basis of loyalty rather than know-how, while key functions were outsourced to private contractors.

Two recent reports in The New York Times serve as a reminder that the Bush administration has brought the same corruption of governance to the home front. Call it the Green-Zoning of America.In the first article, The Times reported that a new executive order requires that each agency contain a “regulatory policy office run by a political appointee,” a change that “strengthens the hand of the White House in shaping rules that have, in the past, often been generated by civil servants and scientific experts.”

Yesterday, The Times turned to the rapid growth of federal contracting, fed “by a philosophy that encourages outsourcing almost everything government does.”

These are two different pieces of the same story: under the guise of promoting a conservative agenda, the Bush administration has created a supersized version of the 19th-century spoils system.

The blueprint for Bush-era governance was laid out in a January 2001 manifesto from the Heritage Foundation, titled “Taking Charge of Federal Personnel.” The manifesto’s message, in brief, was that the professional civil service should be regarded as the enemy of the new administration’s conservative agenda. And there’s no question that Heritage’s thinking reflected that of many people on the Bush team.

How should the civil service be defeated? First and foremost, Heritage demanded that politics take precedence over know-how: the new administration “must make appointment decisions based on loyalty first and expertise second.”Second, Heritage called for a big increase in outsourcing — “contracting out as a management strategy.” This would supposedly reduce costs, but it would also have the desirable effect of reducing the total number of civil servants.

The Bush administration energetically put these recommendations into effect. Political loyalists were installed throughout the government, regardless of qualifications. And the administration outsourced many government functions previously considered too sensitive to privatize: yesterday’s Times article begins with the case of CACI International, a private contractor hired, in spite of the obvious conflict of interest, to process cases of incompetence and fraud by private contractors. A few years earlier, CACI provided interrogators at Abu Ghraib.
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