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His obsession with value for public money led him to fire 40% of the city’s non-uniform employees. He improved quality and spend less by allowing private firms compete with the public sector to supply lots of the city’s services. After the presidential election of 2000 he joined the administration, helping to form George Bush’s plan to hands provision of some services to faith-based groupings. He became chairman of the organization for National and Community Service, which oversees the SIF now. Mr Goldsmith says that society is on the threshold of the fourth stage of how it addresses its thorniest problems. In stage one, in the beginning of the 20th century, caring for individuals was largely left to families and charities.

In the second stage, marked by the welfare state in Britain and the Great Society in America, the national federal government required on the job of closing poverty. Private attempts were packed away mainly. In stage three the continuing state tried to foster partnerships with the private sector through competitive outsourcing, but although this occasionally made a large difference (as with Indianapolis), too the partnerships were too prescriptive and highly centered on cost-cutting often.

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In the fourth stage authorities will tap the ability of the private sector, non-profit and for-profit, to deliver “disruptive, transformative innovation”. Now Mr Goldsmith is getting his hands dirty again: Mr Bloomberg “made me an offer I couldn’t refuse” to be New York’s deputy mayor for functions. His job is to create on the mayor’s work in interpersonal innovation, which has influenced the Obama administration clearly.

Mr Bloomberg got office in 2002 thinking he could run the town much as he had run the press company that bears his name. He even experienced all his older staff sit in an open-plan office with himself in the centre. However the mayor was soon frustrated by something hostile to advancement. Projects are selected by competition.

The winners get some open public money-their merits having been proven to the city’s risk-averse bureaucrats. For instance, they have supported a controversial set of experiments to encourage the indegent to be vaccinated or to move exams by fulfilling them with cash. 5.7m to replicate five anti-poverty programmes in seven other towns, including Memphis, Tulsa and Newark. Indeed, the CEO inspired the SIF, says Mr Goldsmith, who influenced the SIF’s design. There is certainly, however, a difference.