GOVERNANCE, PUBLIC ADMINISTRATION, AND THE CHALLENGES…
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also point out that the governments are limited in their scope to pursue an independent policy as a result of the increasing influence of global finance and communication. They suggest that the transnational actors are using four distinct ways to internationalize: market dependence; international rules; international normative discourses; and infiltration on the domestic policy-making process. This complex interdependence has affected public administration. Developing countries are dependent on the MNCs for job creation and the overall level of economic development, which promotes political stability. Public administrators, especially in developing countries, do not have the freedom to exercise their discretion because of the financial regulations of the international financial institutions.
Global Value Chain The demand for the establishment of a global value chain placed additional pressures on governance by requiring the outcomes beyond the control of a particular state. As a result, the complex problems of human rights, environment, and corruption are not addressed adequately. Vogetlin et al. (2012, p. 12) argue that “globalization, understood as an increased integration of value creation transcending national boundaries, impedes the capability of the nation-state system to moderate the outcomes of the economic, political, and social systems.” Therefore, this leads to governance gaps and, in turn, to insufficient support for the public interest (Scherer et al. 2006; Scherer and Palazzo 2007).
Globalization and the Challenge of Network Governance Globalization and the rise of different actors have led to a demand for network governance in the field of public administration. The various interactions that characterize governance have led some authors to promote network governance. This concept refers to the horizontal interactions by which various public and private actors at different levels of government coordinate their interdependencies in order to realize public policies and deliver public services. Governance refers to the self-regulation of actors within networks and the management of these actors. The various theories of network governance emphasize several features. One of the most important of these is the involvement of different actors. There is
