ABSTRACT
Agencification, or the carving out of independent agencies from the government, is a New Public Management (NPM) approach for restructuring government through separating the policy formulation and policy implementation functions. This research empirically investigates agencification in the public health system of the State of Rajasthan in India, with reference to the rationale for agencification, composition of agencies, autonomy and control of agencies, and service delivery by agencies. This research employs organisation theory perspectives such as interorganisational relations to explicate mechanisms for achieving functional integration and coordination between agencies and parent departments.
Agencies studied in this research are legally independent bodies with notfor-profit status, which undertake public functions. Though the agencies have operational autonomy, they function within the policy framework provided by the parent ministry/department. However, there is no explicit performance contracting between agencies and parent ministry/department. Though evidence on the rationale for agencification is not conclusive, the emergence of agencies is linked to the reforms process. Because of resource dependence, agencies achieve functional integration with the parent ministry/department. Most agencies deliver services through a network of private providers and voluntary organisations. These actors establish coordination through the exchange of resources and information. Coordination is more formalised and dependent on Memorandums of Understanding (MoUs), contracts and authority-based relationships than on trust, norms, reciprocity and informal communication.
