Assignment #10a - Optimization in public sector

Review Article

1) Article Reference
BRILL ED (1979) USE OF OPTIMIZATION MODELS IN PUBLIC-SECTOR PLANNING, MANAGEMENT SCIENCE, 25

2) Summary
This paper dates from the seventies and deals with the use of optimization models applied to public sector problem solving. According to the authors, many optimization models were concentrated in finding the best economic solution, but failure to consider equity and have empirical shortcoming in estimating benefits and costs. The author also suggests that multi objective programming can examine tradeoffs between different objectives and mention the use of goal programming as well. Many limitations to the use of optimization techniques are pointed, specially related to complete and incomplete multi objective programming, with some examples as the planning of a lakeside park with solutions favoring boaters or swimmers and the location of regional facilities.
An important issue, as pointed by the author, is that usually optimization models have been used to find the “answer” for the public sector, considering the economic efficiency and social optimality. As empirical problems arise, new approaches had to be developed. Among many reasons pointed by the author, the fact that many of the problems are wicked, demonstrated the difficulty to find one best approach for solving this problems.
A general flow chart on how to use optimization techniques for the planning process is presented and some alternatives discussed in more detail such as the join use of models: optimization and simulation; analytical and optimization; and using a toolbox of models. Several examples are presented, including one study developed in the Netherlands to analyze the implementation of an estuary dam, considering several factors such as flood protection, ecological aspects, costs and social impacts providing elements for the parliament ultimate decision.
Two main advantages by that time are pointed by the author as the capability of generating alternatives and facilitating evaluations and generating alternative solutions that are different from each other.
The author finally concludes that although multiojective planning in the way it was developed by his time, “as the second generation of optimization techniques”, had improved the way of solving optimization problems, but was still limited to the wicked organization of public sector problems. He also argues that such techniques should be used to gain insights about the problem itself, develop alternative scenarios and support human creativity to find the best solutions of a problem.

3) Discussion
I personally think it is great to have a historical overview on how the author, and scientific community, is approaching optimization problems. Besides the historical importance, I think an important issue that puts his discussion a little out of date is the considerable advance of computer potential and capacity to solve mathematical problems nowadays.