Thursday, July 6, 2017

Roots of the PPBS and scientific mgmt

The Planning-Programming-Budget System (PPBS) found its roots squarely with RAND, but reflected a broader trend in public administration dating back in the U.S. to the late nineteenth century. 

If the logic of military unification derived from German concepts of administration and the general staff, then the PPBS derived from the German historical school of economics.[1] Essential to the German tradition is analytical holism and a rejection of the “fictitious individualistic assumption” of classical liberals. Because markets produced social and economic failures, particularly monopoly, a new class of expert were required to identify remedies using the administrative state. 

The economist as an American profession was built on men schooled in Germany, who then solidified their expertise by creating university departments, prestigious associations, and new government bureaus on statistics and regulation. 

To justify its role for guiding government, the economic expert relied on the legitimacy of the scientific method. One top expert, Henry Farnam, compared the evolution of the economic sciences to the medical sciences. He found that surgery was once primitive and dangerous, but advances in science had made it most beneficial to society. Similarly, the economic expert had by 1910 enough scientific knowledge to make its reforms “more effective and less dangerous.”[2] 

The analogy was repeated over 50 years later by Alain C. Enthoven, Assistant Secretary of Defense for Systems Analysis, who said “My general impression is that the art of systems analysis is in about the same stage now as medicine during the latter half of the 19th century; that is, it has reached the point at which it can do more good than harm.”[3]
Alain C. Enthoven was 31 when he became head of the
Office of Systems Analysis


[1] F. A. Hayek traced the ideas inherent in the German school, particularly logical positivism, back to the French Revolutionaries and the Ecole Polytechnique – but he attributed its spread to the U.K. and U.S. through Germany. This form of rationalism also finds precedent thinkers such as Francis Bacon, who opposed Copernican Astronomy, and Lord Kelvin, who denied evolution because he calculated the Earth too young for its emergence. Ultimately analytical holism goes back to Plato, who believed in a “Guardian” class to guide policy and abhorred asymmetries so much that he thought humans should use both hands with equal dexterity.
[2] Leonard, Thomas C. Illiberal reformers, Princeton University Press, 2016, pp. 22, 33
[3] “Planning Programming Budgeting” Inquiry of the Subcommittee on National Security and International Operations (Jackson Committee), U.S. Senate, U.S. Government Printing Office, Washington: 1970, pp. 127

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