Friday, May 16, 2008
The Life Cycle of an Aid Program
“Christmas tree” amendments added, costs understated, bill passed, hosannas all around.
Word gets out – more people than anticipated take advantage of the program.
Idiotic (possibly apocryphal) abuse case gets high public profile.
Means test proposed. Committees formed. Abuses investigated.
New rules – means testing, reporting requirements, eligibility tightened.
Faculty complain about administrative bloat, citing new staff.
New rules cause misunderstandings, bureaucratic errors. Complaints soar.
Participation drops. Costs remain high, due to overhead for stricter reporting requirements.
Unmet needs increase. Citing ineffectiveness, funding for program withers.
Staff hiring freeze, cuts by attrition. Staff union protests mismanagement.
5.a) Humans adapt to new reality, resulting in unintended consequences
5.b) Problems resulting from unintended consequences generate cries to "Do Something!" (i.e., a thousand new "unmet needs" created by government trying to fix first "unmet need")
Examples abound!
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