Designing the Process of Public Management Policy Change: Practical Implications of Case Studies on Brazil and Peru Dr Michael Barzelay Reader in Public Management London School of Economics and Political Science Francisco Gaetani (Brazil) Juan Carlos Cortázar Velarde (Perú) Ph.D. Candidates, LSE Inter-American Development Bank, III Meeting of the Management and Transparency Network Washington, D.C., November 14, 2002

The Practical Questions How can government leaders act effectively to improve public management in their countries? –How can they act effectively to improve public management policies? What process design issues should they consider? –What considerations should they bring to bear to

The Practical Questions How can government leaders act effectively to improve public management in their countries? How can they act effectively to improve public management policies? What process design issues should they consider? What considerations should be brought to bear in resolving design issues?

Defining Public Management Policies Public management policies are Government-wide institutional rules and routines that guide, constrain, and motivate the public service, typically managed by central agencies

Policy Domain What is Included in Public Management Policy Expenditure Planning Process and Financial Management Civil Service and Labor Relations Procurement Organization and Methods Audit and Evaluation

What Public Management Policies are Not Broad Political Reform Political Decentralization Executive Leadership Program Designs Reform Themes

Case Studies on Change ORDERED EVIDENCE ABOUT THE EXPERIENCE STUDIED (narrative structure ) Explanatory Framework (linked explanatory Factors, observer Concepts) Reference Disciplines Scientific Archive New insights Policy change efforts And decisional outcomes

Outline of Generic Policy Change Process Prior Events t The Episode Related Events Contemporaneous Events Later Events A Policy Cycle

Outline of Generic Policy Change Process Prior Events t The Episode Related Events Contemporaneous Events Later Events E1 Policy Cycle E1-1 Agenda setting E1-2 Alternative specification E1-3 Decision- making LE-1 Imple- mentation Elections Focusing Events Policy-making events Transitions

The Brazil Case Contemporaneous Events Related Events t Period I Period II PE1 Real Plan PE2 Presidential Transition to Cardoso E1 Managerial Reform of the State Apparatus 1993 Later Events E2 Planning and Budgeting System Changes

The Peru Case Related Events t Period I Period II PE1 Fujimori Presidential Transition PE2 Establishing a Redirection in Economic Policy E1 Implementing Econ Policy through Institutional Change in Selected Ministries 1989 Later Events E2 Comprehensive Administrative Modernization CE1 Managing Economic Policy PE2 Presidential Election and Regime Adjustments

Variety in Public Management Policy-Making Agenda-setting Issue Profile Scope and Face of the Issue

Brazil Agenda Setting Process Policy cycle Issue ProfileIssue Scope E1 E2 High – Constitutional amendment Low – Civil Service Selection High – Brasil en Ação, Avance Brasil (post decision) Low – Conversion to Program Budgeting & Management Selective but wide -Civil Service -Organization & Methods -Procurement Focused -Expenditure planning and financial management

Institutional Location Variety in Public Management Policy-Making Alternative- Specification Learning Process Pacing

Brazil Alternative Specification Process Policy cycle Institutional Locus E1 E2 Learning Process Pacing Centered in Ministry for Federal Administration and Reform of the State (MARE) Centered in Planning Ministry and Policy transfer from UK and direct learning Revival of national planning practices, combined with project management disciplines and foreign models of program budgeting Quick paced, campaign style Followed rhythms of Presidential election cycle and macroeconomic situation changes

Institutional Location Variety in Public Management Policy-Making Decision-Making Supporting and Opposing Coalitions Pacing

Brazil Decision-Making Process Policy cycle Institutional Locus E1 E2 Supporting and Opposing Coalitions Pacing Constitutional Amendment - Presidency and Congress Centered in Planning Ministry and Presidency Constitutional amendment – state governors President Constitutional Amendment - slow Opportunistic, pace determined by windows of opportunity including effects of time-scale of planning system Others – Central agencies Others – segments of Federal bureaucracy Private sector Segments of Federal Bureaucracy

Ingredients of Successful Public Management Policy Change Policy entrepreneurship in agenda-setting and alternative-specification Presidential leadership in agenda-setting and decision-making Combining high and low profile issues Capable units within policy subsystem Direct learning in alternative-specification Fluid relations within policy subsystem Support from within bureaucracy

Functional Requirements Analysis Successful Public Management Policy Change Agenda-Setting Process Alternative-Generation Process Decision-Making Process Effective Public Entrepreneurship Favorable Institutional Arrangements Presidential leadership Central agency executives Constitution Policy subsystem

Generalizations Failure Modes Trade-offs Smart Practices What went wrong in Peru (1996)? (see Executive Summary) Issue profile Issue definition Hybrid high and low profile Domestic policy transfer and learning Develop the public management policy subsystem

The Practical Questions How can government leaders act effectively to improve public management in their countries? How can they act effectively to improve public management policies? What process design issues should they consider? What considerations should be brought to bear in resolving design issues?

Research – Practice Linkages Successful Public Management Policy Change Effective Public Entrepreneurship Analysis, Ingenuity, And Craftsmanship Comparative Case Research Policy Learning Country Cases Coherent Research Design Improved Public Management And Policy Achievements

Back up slides

Narrative Structure of Policy Change (Baumgartner and Jones) Prior Events t The Episode Related Events Contemporaneous Events Later Events E1 Agenda setting PE1 Rule making PE2 Operations E2 Policy decision making LE1 Rule making LE2 Operations

The Public Management Policy Subsystem Money-centered central agencies People-centered Central agencies Organization-centered central agencies Presidency Ministry Central Budgeting Unit Supreme Audit Institution Central Personnel and Civil Service Unit Central Services Units Presidency Legislature Public Employees Assoc. Int’l Instit. Economic Policy-makers