(Gadjah Mada University – Yogyakarta- Indonesia) New Governance YLDA Workshop Jakarta, November 22-27, 2007 Cornelis Lay (Gadjah Mada University – Yogyakarta- Indonesia)

“Magic words” on New Governance Minimalist State Corporate Governance New Public Management Good Governance Socio-cybernetic system Self-organizing network

Minimalist State Pro-market or quasi-market Skepticism about the effectiveness of the state Resources to be allocated by market Nachwakerstaat – police state  State is needed only to compensate the failure of collective of individuals in managing things.

Corporate Governance Target of Change: Key Issues: Management of the public sector to follow management of the business sector. Key Issues: Freedom of (open) information Stick on the “agreement”. Solving problem Developing accountability A clearly division of responsibilities and roles

New Public Management (1) Managerialist Version: The professional first to manage the work. A clear standart of jobs. Managing by result  output and outcome. New pattern of relationship between state and society: citizens are customers Customers get the service according to their contribution.

New Public Management (2) Institutional Economics Version Assumption: rational individual and society The best choice is determined by the existing structure of choices. Key issue: redesigning the incentive structure in public goods transactions. Developing competition.

New Public Management (3) Enterpreneour bureaucracy version: Redefining the role of the state -- : rowing (service delivery)  steering (decision making). Enabling competition, empowering society, focusing on result not input, freedom for customers, preventing not solving.

Good Governance (1) Focus: state authority is to solve country own problem. Area of changes: Systemic: distribution of political and economic power both internally and externally. Political: authority and power is steamed from democratic political processes. Administrative: efficient and accountable public services provided by competent bureaucracy.

Good Governance (2) Issue-issue kunci: Efficiency in public services Independent judiciary system Law framework to uphold contract Accountable management of public finance. Independent auditor Accountable people representation Respect to law and human rights. Pluralistic institutional design. Free press

Good Governance (3) Characteristic: Accountability Competence Participation Transparency Equity Rule of Law

Socio-Cybernetic System (1) Focused: actors involved in negotiated-based interaction. Area of Governance: Process: a calculable intervention Impact of intervention.

Socio-Sybernetic system(2) Out from the debate between state and market. How to utilize structure (hierarchy) and management Responsibility is not limited to the state (government).

Socio-Cybernetic System(3) Model: self-regulation or co-regulation, public-private partnership, co-operative management, entrepreneurial venture’ Scope : local, national and international. Mechanism: formal and informal Nature: interactive.

Interaction (1) Civil Society State Market

Interaction State Market Civil Society Private Sector

Self Organizing Network (1) There is a networking: within and outside the government, within society, between government and society. To avoid conflict in managing public affairs. Exchange of resources (financial, information, etc) in the interaction processes.

Self-organizing network (2) Network  social coordination, self organizing Network  an alternative to both state and market. Pillars: trust, reputation, inter-dependency. Governance: is to manage networking so as to maximally synergy. An integrative network preventing domination.

Reflection: What is new about the concept of new governance. What is good about good governance? What is (are) the problem (s) in conceptualizing and implementing the concept? How to anticipate the limitation of each variant?