Per Lægreid1 NEW PUBLIC MANAGEMENT IN A COMPARATIVE PERSPECTIVE Per Lægreid Department of Administration and Organization Theory University of Bergen Kathmandu

Per Lægreid2 THE OUTLINE What is Administrative Policy and New Public Management? What has happened? Why has it happened? What have the results been? Towards post NPM? What should be done?

Per Lægreid3 ADMINISTRATIVE POLICY Internal focus, infrastructure, indirect Intentional efforts by central political- administrative actors to alter public policy by changing: –Organizational structures –Processes, procedures –Personnel

Per Lægreid4 WHAT IS NPM? The primacy of economic norms, efficiency The hybrid character of NPM –Economic organization theory Centralization Contractualism “Make the managers manage” –Managerialism Decentralization Devolution “Let the managers manage”

Per Lægreid5 KEY ELEMENTS OF NPM From input and process to output and outcome More measurement and quantification Single-purpose organizations Autonomization Governance by contract Market arrangements Service quality Blurring the public-private sectors Private sector management practice Cost cutting

Per Lægreid6 WHAT HAS HAPPENED? Reflections Distinguish between reform and change Success histories, strategies, decisions, announcements or implementation Visions, talks and rhetoric or practice and actions Normative and persuasive or accurate descriptions

Per Lægreid7 REFORM AND CHANGE REFORM CHANGE YesNo Yes Reform that lead to change Change without reform No Reform without change Stability

Per Lægreid8 NPM: ORGANIZATIONAL CHANGE Vertical specialization Horizontal specialization LOWHIGH LOW HIGH

Per Lægreid9 REFORM STRATEGIES Maintaining Modernizing Marketizers Minimal state

Per Lægreid10 TRAJECTORY OF REFORM Divergence more than convergence –Talk –Decisions –Implementation –Result

Per Lægreid11 WHY HAVE REFORMS HAPPENED? The optimistic position The fatalistic position The cynical position The realistic position

Per Lægreid12 DRIVING FORCES FOR REFORMS External pressure Historical institutional context Polity features

Per Lægreid13 A TRANSFORMATIVE PERSPECITVE A complex mix of: –external pressure – national structure – cultural context Editing, filtering, interpretation, translation, modification

Per Lægreid14 WHAT HAVE THE RESULTS BEEN? Little evaluation. The evaluation paradox Different criteria Loose links between programs, measures, implementation, practice and effects Is the nation state the best unit of analysis? The meaning of reform measures vary Different stages of reforms, the problem of timing

Per Lægreid15 WHY IS IT DIFFICULT TO MEASURE RESULTS? Multiple objectives of the reform Intended or unintended effects The reform consists of several means Lack of before and after comparison The attribution problem The counter factual problem The costs of reforms are often not measured The problem of timing

Per Lægreid16 EFFECT CONCEPTS A limited concept of effect –Internal administrative effect –Efficiency, administrative control, internal culture An extended concept of effect –External political effects –Democratic accountability, equity, freedom, transparency

Per Lægreid17 THE NPM HYPHOTESIS More market, management and corporatization will lead to greater efficiency without negative side effects

Per Lægreid18 POSSIBLE EFFECTS OF NPM Impact on major goal Side-effectsPositiveIneffectiveNegative None Simple effectiveness Simple futilitySimple perversity Positive Effectiveness with bonus Futility with bonus Perversity with bonus Negative Effectiveness plus jeopardy Futility plus jeopardy Perversity plus jeopardy

Per Lægreid19 WHAT HAVE THE RESULTS BEEN? Huge volume of change, a lot of rhetoric Real changes in practice Symbolic effects Negative effects Efficiency and democratic effects Political control and accountability

Per Lægreid20 IMPACTS OF NPM - BENEFITS Savings in specific cases Process improvements in some cases Efficiency gains Effectiveness is difficult to measure Mixed evidence of cultural change Difficult to pin down improved capacity/flexibility

Per Lægreid21 IMPACTS OF NPM DISBENEFITS Responsible for uncontrollable outcome Over-concentration on quantifiable aspects Horizontal coordination problems Accountability problems Too much regulation and monitoring Weakening public service ethic

Per Lægreid22 EFFECTS OF NPM Efficiency –Yes, may be, but transaction costs –Negative side effects? Political-democratic effects –Better political control? –Changing power relations? –Less equality –More freedom –Stronger responsiveness?

Per Lægreid23 POST-NPM: TOWARDS WHOLE OF GOVERNMENT? Horizontal and vertical coordination in order to avoid that different policies undermine each other –Better use of resourses, create synergy, offer seamless services –Joined-up government. Blair 1997 –Holistic strategy, integration, ”wicked” issues –Opposite of tunnel vision, vertical silos –Strengthening the centre

Per Lægreid24 WHY WHOLE OF GOVERNMENT? New Public Management could not deliver –”Single purpose organizations” and stuctural devolution has weakened political control, problems of fragmentation, capacity and coordination –Not evident that the efficiency of services has improved –Concern about the quality of public services and increasing social inequality

Per Lægreid25 WHAT SHOULD BE DONE? Reflections No single answer – no best way –No scientific answer –Values and norms differ –Different starting points –Reforms produce reforms - dilemmas

Per Lægreid26 MOTIVE AND OPPORTUNITY FOR PUBLIC MANAGEMENT REFORM Unmotivated government Motivated government Incapable government Technocratic reforms are doomed Basic administrative reforms are relevant Capable government Capacity can be used to deconsentrate economic interests and raise public expectations NPM are useful – but so are traditional administrative reforms

Per Lægreid27 LESSONS FOR DEVELOPING COUNTRIES Context matters More divergence than convergence Weak documentations of the impact of NPM The need for formality, trust, ethical capital and capacity The need for a sequencing path The need for balancing autonomy and control

Per Lægreid28 CONCLUSION The need for an extended concept of effects Bringing the historical-institutional context back in How to build professionalism and ethical capital? How to balance the different public sector norms?

Per Lægreid29 WHAT SHOULD BE DONE? Don’t borrow fashionable ideas Use resources. Be patient Avoid degrading existent strengths Reforms need leaders and allies Modify and adopt as you go along Build in feedback and evaluation Learn to live with inconsistent goals

Per Lægreid30 WHERE DO WE GO FROM HERE? Three scenarios: –Linear process –Cyclical process –Dialectical process