ABSTRACT
In light of the shift to active purchasing in internal market and managed competition systems, does there need to be continued regulation of the supply side or can it be largely left to evolve on its own? To use the rowboat analogy of Osborne and Gaebler, does the government have sufficient steering power in a managed competition model that it can leave the private sector to row?1 Although the rowboat metaphor has the power of simplicity, in the real world, things are often murkier and less clear-cut than policy-makers, economists and other rationalists would like to assume.
