PLANNED DEMOCRACY

Dominion, Volume 32, Issue 256, 27 July 1939, Page 5

PLANNED DEMOCRACY

Administrative Control LECTURE AT VICTORIA COLLEGE In continuation of the series of lectures at Victoria University College on public administration, Mr. J. O. Shearer, M.A., lecturer in economics at the college, spoke on Tuesday night on Ad ministration in a Planned Democracy. He dealt with the advantages of democracy, aspects of planning, its field and problems. The most desirable form of organization, he said, would be an adequate but not too large secretariat attached to one of the major ministries It should operate both on the basts. o a general council and of specials committees. The lecturer also made a plea for consideration of the possibilities of increasing the participation of members of the Opposition in the consideration of some fields of lon« range planning, possibly by wide nng the scope of Parliamentary committees. Discussing democracy in the socioeconomic sphere, the lecturer said that it was unfortunate that the philosophy of private business was still so tied up with the viewpoint of nineteenth century Liberalism, and with the popularized simplifications of the economics of the late nineteenth century. The scale of industrial and business organization made possible by corporate organization and the concentration of economic power and control had acc io ir ed marked changes in the liberal t iad1 ’ tion. It could not be regarded as other than a serious situation if many individuals in the modern world found themselves misfits in the present system. It was still more serious if many who were definitely not misfits in the sphere of business bad lost confidence in the social benefits of the system in which they played an active part. Finally, it could not be ignored that much of the pressure toward planning came from bitter dissatisfaction with some of the results associated with the system of private enterprise. Aspects of Planning.

Mr. Shearer went on to discuss planned economy from the dynamic aspect related to the full employment of economically exploitable resources, the stabilizing ’ aspect, relating to the evening out of fluctuations of production and employment that otherwise might rise as costs of progress; and the socio-economic aspect that related to the progressive mitigation of the worst results of inequality and security and with improving the standard of life. The keynote to economic progress was the continuous shifting, of labour and capital in various specialized or unspecialized forms from industries in which demand was contracting to those in which it was expanding or from older and well-established industries into newer and more risky fields. ‘■There is a reluctance on the part of peoples and Governments to realize that primary and secondary industries cannot expand indefinitely as fields of employment when they are at the same time increasing in efficiency,” continued Mr. Shearer, “and that an. increasing part of the social income and the individual income are devoted to services and luxuries which comprise what are now known as tertiary products.” , , It had to be emphasized that the detailed preparation of planned policy was separate from the application of that policy, though before plans could be embodied in actual policy they had to come under the critical scrutiny el those responsible for administering them. The decision in regard to the broad trends of policy, and even in regard to final details, must rest with Ministers of the Crown. Hence the Impossibility in such a community of uny central planning board with any measure of authority. What w’as required was a bureau or council or committee, the primary responsibility of which would be the assembly and coordination of information, the suggestion of measures, the examination of different segments of planned policy to eliminate elements of inconsistency and conflict, an analysis in the light of available information of the repercussions to be expected after any change and of precautions to be adopted against them. Agricultural Problem. ■“There is no need to stress the occurrence in every country of an extremely complex agricultural problem. So long as, through barriers to trade, and, through stabilization arrangements of one type or another, prices are maintained in older countries by import restrictions,” said the speaker. “With increasing efficiency in agriculture and a slowing up in the rate of population, the time is approaching when increasing production may involve resort to limitations in respect to the use of land and labour in some fields of agriculture. The problem of labour resources is little less complex and it would be desirable to make an anticipatory survey, constantly revised, of the absorptive capacity in different Industries for several years ahead. In the field of industry, the problem is obviously one of rationalization. “Finally in New Zealand, there is the acute problem of the industries to be chosen as economic for development. There is less public evidence that the information available is being discriminatingly applied in our present fostered wave of expansion.” In conclusion, Mr. Shearer suggested the formation of a secretariat attached preferably to the Ministry of Finance and drawing into its work similar specialists in each department and honorary workers from outside. Ministers needed small secretariats to form organs of information, advice and policy i suggestion. There would be special problems in the planning of departmental organization and procedures and in recruitment to and promotion within the services. Finally, said the lecturer, he would like to envisage some reorganization of the activities of political parties, with more consideration of the planning of party policies in view of the trends of planned policy within the administration. Dr. Leslie Lipson, professor of political science at the college, proposed a vote of thanks. The chairman, Professor W. H. Gould, announced that the next lecture of the series, “Administrative Areas and Functions of Local Authorities in New Zealand” -would be delivered by Mr. A. G. Harper on August 1.