Third-Party Governance: Using Third Parties to Deliver Governmental Goods and Services

Every year thousands of college students apply for and receive federally guaranteed loans to fund their educations in the United States. The loans are managed by nongovernmental entities – Sallie Mae, College Ave Student Loans – that indirectly implement the public goal of affordable higher education. Put another way, the US Department of Education relies on these nongovernmental entities for implementation of public policy via third parties. Where this kind of indirect implementation occurs, and how it differs from direct implementation, is the focus of this book, introducing readers to the theory and practice of third-party governance. It helps students understand market-oriented tools such as contracting, networks, public-private partnerships and other collaborative governance mechanisms that make up the repertoire of third-party governance. This background is, in turn, key to understanding modern governance arrangements all over the world.

Author Jessica N. Terman explores the ‘whys’ behind government and the market, alongside the theories behind when one or both should be used. The book is filled with case studies exploring the issues at play in third-party governance, including transaction costs and the practices that mitigate transaction costs, as well as the advent of networks and how they have changed the governance structure of public policy implementation. Taking a jargon-free approach, the book is written as a primer on third-party governance, introducing readers to the ways that government is structured and the factors that influence contemporary policy implementation. Third-Party Governance will be required reading on courses related to public administration, public policy, and governance and collaboration.

Jessica N. Terman is Associate Professor in the Schar School of Policy and Government at George Mason University, USA. She teaches courses on collaboration and third-party governance in the Master of Public Administration Program. Prior to joining the Schar School, Professor Terman spent two years as a faculty member at the University of Nevada. Her research focuses on implementation issues in public management, especially tools of third-party governance such as the use of intergovernmental grants and contractors. Her most recent work looks at the state and local government use of energy efficiency and conservation policy. Terman has also published on bureaucratic policy-making and procurement activities in the context of state government.