ABSTRACT
Autonomy-type reforms promise to free functions from central control in return for the promise of improved performance. With a venerable lineage extending back to the creation of the first central banks, the autonomy idea has been applied in a variety of different ways. Currently one of its most prominent manifestations sees hospitals and schools given the autonomy to manage their own affairs. Whether used in central government (like banking) or local delivery (in the case of hospitals and schools), the performance improving potential of autonomous organisation depends on four lines of reasoning. First, autonomy promises to liberate those responsible for delivery from the problems of red tape and political interference. Second, it promises to empower decentralised professionals or managers to make decisions closer to the frontline of delivery. Third, it allows organisations to engage with, and respond directly to, the demands of citizen-consumers. Fourth and finally, it is claimed that autonomy can be used to foster a more entrepreneurial orientation and in turn a greater appetite for risk and innovation.
