Volltext: Very small countries: economic success against all odds

4.1 Organizational forms of public good provision: a positive approach Many goods that we consume are actually publicly provided. Some of them are tangible like, e.g., parks, money and federal police; some of them are intangible like, for instance, security or good governance. The conventional wisdom that certain goods have to be provided by public agencies has been challenged from two approaches with one central ques tion each: –What is the 
optimal organizational form and unitof provision and production 
in general?Specifically, which goods should be provi- ded by the public sector and which by the private sector? –What is the 
optimal institutional and organizational form and unit within the public sectorto provide those goods, which are typically considered to be public? A grid analysis similar to ours was developed by Gantner and Eibl (1999), who distinguish between three central terms in connection with the provision of public goods: 
priority of tasks, mode of provisionand ex- penditure intensity. Our analysis is intimately related to the question of the provision mode. In other words, which goods should be provided publicly, and which should be provided privately or, more generally, non-publicly? What seems to be a dichotomous question in fact much more resembles a continuum. Figure 4.1 shows some possible degrees of publicness. We deliberately chose six possible positions on the continuum bet- ween public and private production and provision in Figure 4.1. Hence - forth, we will stick to the term «public» for the three positions on the left-hand side of the scale and to the term «private» for the three posi - tions on the right. In contrast to Chapter 3 we now have to be stricter concerning the distinction between provision and production. Although it is not very difficult to distinguish in theory, reality provides a whole spectrum of different arrangements. It is therefore helpful to clarify our understan- ding of the distinction with a simple example in the field of education. In order to be as clear as possible, we restrict ourselves to university edu- 70 
Very small countries: organizational choice and international outsourcing


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