https://archive.ph/ftP4v
Just dropping an archived version here so discussion can continue when the sharetoken expires (24 hours?).
Quangos go back a long way. Trying to find out how far back through googling, I found a speech made by Thatcher in Oct 1978 which includes:
"Just compare the years of Clement Attlee and Hugh Gaitskell with those of Harold Wilson and James Callaghan. Today, instead of the voice of compassion, the croak of the Quango is heard in the land. There may not be enough jobs for the workers, but there are certainly plenty of jobs for the boys.
That is the house that Harold built, to which his successor has not been slow to add a wing or two of his own."
And a Guardian article from 2009 refers to: "First it was Margaret Thatcher, then Tony Blair and Gordon Brown. Now David Cameron has joined battle, promising that millions of pounds will be saved by reducing the number of quangos."
So the outsourcing of decisions and responsibilities has indeed been going on for decades - 50 years or so if Harold Wilson was involved.
I expect it largely worked, for as long as the people in charge had integrity and stuck to the job in hand. But then, people with agendas infiltrated and changed the course of the ship, as it were, exactly as they did with the Green Party and the LibDems. Whilst smaller organisations can be nimbler and more responsive to changing requirements, being smaller makes them vulnerable to infiltration and takeover. Fewer people are needed to take it over! There's a certain amount of safety in being a large lumbering organisation (although it just means you need more people and it takes longer).