Concept and causes
Rhodes (1994) argued that privatisation, agencification and contracting, transfers of power to the European Union and managerialism were hollowing out the British state downward, outward and upward. Milward and Provan (2000) used 'hollow state' for governments that rely on contracted networks of non-profits and firms, a trend that spread with New Public Management.
Problems of governing
In the hollow state, government is a principal and providers are agents, raising agency problems. Kettl (1993) warned that governments losing oversight capacity cannot be 'smart buyers'; Van Slyke (2003) found little real competition and weak contract management in social services. Milward and Provan (2003) stressed collaboration and network management beyond contracts.
Accountability and assessment
When services pass through layers of contracts, responsibility blurs and citizens struggle to see government's role. Frederickson and Frederickson (2006) examined performance measurement as an accountability tool with limits, and Salamon (2002) highlighted new capacities for managing indirect tools such as contracts, grants and vouchers. Others argue that hollowing is overstated, since the state retains power through regulation and finance.
FAQ
- What is the hollow state in simple terms?
- A government that hands most services to private or non-profit providers, so it looks large but is empty inside.
- What problems does it create?
- Overseeing contractors is hard, and it becomes unclear who is accountable when things go wrong.
Sources reviewed: 2026-10-26
References
- Rhodes, R. A. W. (1994). The hollowing out of the state: The changing nature of the public service in Britain. The Political Quarterly, 65(2), 138–151. The classic account of the British state's hollowing out.
- Milward, H. B., & Provan, K. G. (2000). Governing the hollow state. Journal of Public Administration Research and Theory, 10(2), 359–380. How a contracting-out state can still govern.
- Milward, H. B., & Provan, K. G. (2003). Managing the hollow state: Collaboration and contracting. Public Management Review, 5(1), 1–18. Collaboration and contracting in the hollow state.
- Kettl, D. F. (1993). Sharing power: Public governance and private markets. Brookings Institution. Problems when government relies on private contractors.
- Salamon, L. M. (Ed.). (2002). The tools of government: A guide to the new governance. Oxford University Press. A guide to indirect tools of third-party government.
- Van Slyke, D. M. (2003). The mythology of privatization in contracting for social services. Public Administration Review, 63(3), 296–315. Shows weak competition and capacity in social-service contracting.
- Frederickson, D. G., & Frederickson, H. G. (2006). Measuring the performance of the hollow state. Georgetown University Press. Performance measurement in the hollow state.