The State and its role - Transport Policy and Planning in Great Britain - page 139

9 The State and its role

9.1 Introduction
When we speak of 'public policy' we are referring to the principles adopted in steering
the activities of institutions which collectively form, or act on behalf of, the State. In
our case we are concerned about activities relating to transport, and in subsequent
chapters we will be looking at objectives and instruments which are specifically
relevant to them.
However before getting into that level of detail we need to think first about the
criteria which should govern State action more generally. What exactly is 'the State'
and what determines whether it should initiate action in a particular field? If so, how
should the amount and type of action be judged? What distinguishes action by the
State from actions undertaken by any other organisation?
These questions are especially relevant to transport because - unlike, say, military
intervention or international diplomacy - it is not itself the product of the State.
Transport and transport services can be engaged in by private individuals and businesses
and it is perfectly possible to conceive of a situation in which their activities were solely
a matter determined by social and market forces. (This was very largely the case in
Britain until the mid-19th century.) As we saw in Chapter 6 it is also possible for public
policy to be pursued with the explicit aim of lessening State involvement (compared
with that undertaken hitherto) in the belief that these forces, left to themselves, will
produce a more beneficial outcome.
We therefore consider first in this chapter the nature and role of the State (9.2
and 9.3). We then go on to explore the various sources of 'market failure' on which
State action is predicated (9.4). The economic case underpinning such action is to
maximise aggregate welfare but in practice this is moderated by a range of social equity
considerations (9.5). Equally concern for the well-being of particular social groups
may prompt State action in itself but at the expense of forgoing greater benefits which
could be enjoyed by the population as a whole.
The arguments presented here do not resolve what course of action should be
followed in a particular case but they do illuminate the criteria by which options deserve
to be assessed. Ultimately decisions will depend on the relative importance attached to
economic and social considerations, to individual versus collective interests and to the
efficacy of public versus private action. Many of the policy differences between political
parties on particular transport and other issues derive from ideological differences on
these fundamental matters.