Organizational Failure in the Hollow State: Lessons from the Milwaukee Voucher Experience

In this conceptual article we use the experience of the longstanding Milwaukee private school voucher program to categorize different failure types within the hollow state. Specifically, we argue that the overall performance of the hollow state is dependent on the performance of organizations operating within the hollow state, that organizational failures are inevitable in hollow state activities, and that such failures can be categorized as marketplace failures, service failures, institutional failures, or customer service failures. We conclude that policy makers must plan for the reality of organizational failures in the hollow state if such arrangements are to be effective.