Samenvatting

This paper shows how interactive governance can be helpful in dealing with information asymmetries in the design and administration of public policy. It describes the checks and balances of a properly incentivized mechanism design of contextual or situational contracting that reveals information on diversity in demand for public intervention, deals with complexity, creates commitment to the public cause and disciplines uncooperative behavior. The contractual mode, moreover, discloses the actual trade-offs between rivalling criteria of good governance such as individual freedom, efficiency, distributional concerns and sustainability, deepening our insight in who gets – or pays for – what, when, where, how and why, as the key issues of policy analysis. Evidence from early applications is combined with suggestions for rolling out this new mode of relinking public policy, implementation and external control.