This document discusses the emergence and key aspects of New Public Management (NPM). It begins by explaining that NPM emerged in the late 1980s as a new theory that advocated applying private sector management models to improve efficiency and service orientation in the public sector. It then outlines some of the main criticisms of prior public administration models that led to calls for reform. Some of the core features of the NPM approach that were proposed include an emphasis on efficiency, use of markets and competition, and giving managers more autonomy. The document also notes that NPM-style reforms have now spread globally and have been driven by various economic and political factors.
3. Introduction…
In the late 1980s, yet another generation of Public
Administration theories Began to displace the last.
The new theory, which came to be called…
“NEW PUBLIC MANAGEMENT”
Was proposed by David Osborne & Ted Geabler in there
book Reinventing Government.
The new model advocated the use of private sector-style
models, organizational ideas & values to improve the
efficiency & service orientation of the public sector.
4. New Public Management refers to a cluster of contemporary
ideas and practices that seek, at their core, to use private
sector and business approaches in the public sector.
While, as we have seen, there have long been calls to….
“run government like a business;
5. The Root of New Public Management.
1. An Old Paradigm in Gradual Disarray: 1970s and early
1980s.
2. Political and Economic Changes to old order.
3. Force of new ideas and ideology.
4. Emergence of a new paradigm.
6. The Old Paradigm and Its
Short comings.
Single, Integrated, Hierarchical Civil Service means
delay, inflexibility.
Overly bureaucratic structure and culture...
Primary responsibility to Ministers alone.
State-owned monopolies stifle private initiative.
Results are Overload, Over-reach, Decline of trust.
7. Fiscal Crisis: Demands for government spending not
matched by revenue growth.
Globalization: New pressures of competitiveness on
both private and public sectors.
New technologies transform workplaces.
Budget-Maximizing Bureaucrats.
Managerialism: erasing the private/public distinction.
8. Main Features of NPM
Based on New institutional economic theory.
Efficiency orientation; Use of markets, competition,
contracts and privatization.
But also based o management theory;
“let or make the managers manage”
Combination of centralization & autonomy.
9. Over the past couple of decades, the New Public
Management has literally swept the nation and the
world.
As a result, a number of highly positive changes
have been implemented in the public sector.
New public management (NPM), management
techniques and practices drawn mainly from the
private sector, is increasingly seen as a global
phenomenon.
The New Public Management Approach
and Crisis States
10. New Zealand public management model and
accountability: systems evolution
11. NPM reforms shift the emphasis from traditional public
administration to public management.
NPM reforms have been driven by a combination of
economic, social, political and technological factors.
A common feature of countries going down the NPM
route has been the experience of economic and fiscal
crises, which triggered the QUEST for efficiency and for
ways to cut the cost of delivering public services.
13. Most of developing countries, reforms in public
administration and management have been driven more
by external pressures and have taken place in the
context of structural adjustment programmes.
Other drivers of NPM-type reforms include the
ascendancy of new liberal ideas from the late 1970s, the
development of information technology, and the growth
and use of international management consultants as
advisors on reforms
14. Additional factors, in the case of developing countries,
include lending conditionality and the increasing
emphasis on good governance.
Autonomous agencies within the public sector are being
created in some countries.
Examples include autonomous hospitals in Ghana,
Zimbabwe and Sri Lanka, as well as the hiving-off of the
customs and excise, and internal revenue departments to
form executive agencies in Ghana and Uganda.
15. References
1- http://www.ssc.govt.nz/node/5579
2- Publication and ordering details
Pub. Date: 1 Sep 1999
Pub. Place: Geneva
ISSN: 1012-6511
From: UNRISD
3- Author(s): George A. Larbi
Programme Area: Governance
Code: DP112
Project Title: Public Sector Reform and Crisis-Ridden States
No. of Pages: 65
4-
http://www.unrisd.org/80256B3C005BCCF9/(httpPublications)/5F280B19C6125F438025
6B6600448FDB
5- The Book of THE NEW PUBLIC SERVICE; JANET V. DENHARDT AND ROBERT
DENHARDT
