Question

A government decision maker is faced with making a choice among alternatives, all of which come with costs. Think of an example of such a situation and explain what the official should do.

A government official is faced with the dilemma of doing something for the public good that will have adverse consequences for himself. Think of an example of such a situation and explain what the official must do.

Answer 1

Suppose the government has decided to construct a dam on a river to ensure proper flow of water to the nearby villages to nurture and foster growth in that area and a government employee has the responsibility to allot a contract of making dam to the prospective contractors at an economical cost to the government.The government employee is a civil engineer and has rich field experience of 15 years, he knows the quality of work of fellow contractor companies.

He invites applications for the contract and receives 3 bids ;-

Contractor A - Quotes 25 million dollars

Contractor B - Quotes 28 million dollars

Contractor C - Quotes 35 million dollars

As per government rules, the contract must be given to only the lowest bidder. Which in this case is Contractor A, but the government official knows with his experience that Contractor A uses cheap material and doesn't do quality work, if the dam is not perfectly made it may break and the whole village may be submerged in water, thereby making a widespread loss to life and property.

Official is in dilemma because he will have to explain to the government why did he make a loss of 3 million by providing the Contract to Contractor B. This may cost him his job.

But, public good is the first and foremost service to the nation as a government employee, he must not take risk of destruction for few million dollars, he should never give contract to Contractor A.

Contractor B is the right choice.