Bureaucratic Limits to Markets: The Case of Local Government in Victoria, Australia

Abstract

Compulsory competitive tendering (CCT) was introduced into local government in the state of Victoria (Australia) as the centrepiece of a reform package to make local government more ‘business-like’ and market-oriented. This article evaluates the extent of changes introduced by the reforms. To some extent, post-bureaucratic organizational characteristics have been adopted, although the degree of change has been limited by several factors, including: the bureau-shaping behaviour of senior managers, the failure of competition to generate contestable environments for all services, and the increased level of formalization which has accompanied the introduction of CCT in local authorities.