Justification of Public Sector Reform: what, why adopted for Myanmar situation Assoc. Prof. Dr. Wongsa Laohasiriwong Faculty of Public Health, Khon Kaen University 1

Pressure to Reform Governments face pressures to improve their processes and impact, from their own citizens, their civil society organizations and domestic business. They also face demands for change from inward investors and from international organizations. A first step in designing reform consists of understanding the pressures and the demands on government to change. Small reforms to key services are often sufficient to satisfy demands. Fundamental, system-wide changes to practices and culture may be required, if there is endemic inefficiency and/or corruption. 2 Source: European Commission, 2009, Public Sector Reform – An Introduction

Reform Reform’ is used to describe the range of processes, but genuine reform can be defined as change that either produces a measurable improvement in services or a noticeable change in the relationship between institutions of the state and the citizens: hence a reform that changes the way in which civil servants are paid that has no impact on services or on the way those civil servants relate to the citizens would not be counted as a genuine reform. 3 Source: European Commission, 2009, Public Sector Reform – An Introduction

Questions for Discussion: What are the pressures on governments to make reforms? 4

1. Electoral systems Electoral systems that include genuine competition can lead to competing parties promising to improve services, and then trying to carry through those promises after elections. 5 Source: European Commission, 2009, Public Sector Reform – An Introduction

What are the pressures on governments to make reforms? 2. Organized Civil Society Pressure can also come from an organized civil society, concerned with the standard of public services or with rights and access to services. Extreme cases such as the Cochabamba, Bolivia, riots over water services or the school pupil strikes and demonstrations in South Sudan over lack of payment for teachers, or the ‘Service Delivery’ demonstrations in South Africa are visible examples of citizens protesting to governments in favor of better services. 6 Source: European Commission, 2009, Public Sector Reform – An Introduction

What are the pressures on governments to make reforms? 2. Organized Civil Society Uneven service delivery, whether by geography, class or ethnicity may also generate public pressure for service improvement. 7 Source: European Commission, 2009, Public Sector Reform – An Introduction

What are the pressures on governments to make reforms? 3. Private Sector Sometimes the pressure comes from the private sector, concerned with the impact of public services on business: bureaucratic obstacles to investment or to trade cause complaint from producers and traders. Such domestic pressures are more likely to produce changes if there is freedom of expression and a democratic system in which people’s views are important to those in power. 8 Source: European Commission, 2009, Public Sector Reform – An Introduction

4. Fiscal Stress Fiscal stress and pressure from lenders have also led to attempts at reform. During the Structural Adjustment period, such pressures led to spending reductions, staff cuts and re-drawing of the boundaries of the state. Clearly the relative weight of outside agencies depends on the degree to which the government is dependent on them for financial support, and on how clever the governments are at promising reform without having to deliver. 9 What are the pressures on governments to make reforms? Source: European Commission, 2009, Public Sector Reform – An Introduction

5. Corruption Corruption can also lead to internal and external demands for change. If there is freedom of expression and an organized civil society and if donors and lenders fear that aid and loans will be wasted through corruption. Governance and management processes that guarantee relevant outputs and outcomes may require reforms of systems in which accountability is weak. 10 What are the pressures on governments to make reforms? Source: European Commission, 2009, Public Sector Reform – An Introduction

Why Public Sector Need to Reform? 11 Economic crisis Political crisis Poverty problem The sanction from outsiders ASEAN community Need strong institutions Dysfunctional financial sector and gross distortions and inefficiencies Citizen’s demand for good governance Source: Asia Report N°231. (2012). Myanmar: The Politics of Economic Reform

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Demand for Good Governance  Citizen’s demand for transparency, accountability and right to participate in public policy  Citizen’s concern about quality public services and their continually rising costs  Corruption was a reason of overthrow and political crises  Corruption cases were disclosed “ Improving governance and Public Administration Reform (PAR) become high priority” 13 Source: Orapin Sopchokchai, Thailand Public Sector Development Commission (

Good governance It is “… among other things participatory, transparent and accountable. It is also effective and equitable. And it promotes the rule of law.” – UNDP It “… encompasses the role of public authorities in establishing the environment in which economic operators function and in determining the distribution of benefits as well as the relationship between the ruler and the ruled.”.” – OECD ( 14

Good governance  It is “… epitomized by predictable, open and enlightened policy making; a bureaucracy imbued with a professional ethos; an executive arm of government accountable for its actions; and a strong civil society participating in public affairs; and all behaving under the rule of law.” ( World Bank 1994: Governance: The World Bank’s Experience.)  “Fundamental aspects of governance” are: g raft, rule of law, and government effectiveness. Other dimensions are: voice and accountability, political instability and violence, and regulatory burden. (Kaufmann, Kraay and Zoido-Lobaton ) 15

Good governance Mechanisms for assuring good governance have three key elements: 1.Internal rules and restraints : internal accounting and auditing systems, independence of the judiciary and the central bank, civil service and budgeting rules; 2. “Voice” and partnership: public-private deliberation councils, and service delivery surveys to solicit client feedback); and 3.Competition : competitive social service delivery, private participation in infrastructure, alternative dispute resolution mechanisms, and outright privatization of certain market-driven activities (WDR 1997) 16

Public Sector Reform  The effectiveness and efficiency of a country's public sector is vital to the success of development activities.  Sound financial management, an efficient civil service and administrative policy, efficient and fair collection of taxes, and transparent operations that are relatively free of corruption all contribute to good delivery of public services. 17

Public Sector Reform Goals Better and clearer structure, roles, and functions of public sector. Higher public sector’s performance to serve the country. Better and more efficient resource management. Service-minded civil servants with new value and culture. Source: Orapin Sopchokchai, Thailand Public Sector Development Commission ( 18

Public Sector Reform Goals Better pay and employment conditions. Improve public service delivery with less costs. Accountable and transparent public sector. Capable to govern and lead the country toward the future world. 19 Source: Orapin Sopchokchai, Thailand Public Sector Development Commission (

The Reform’s Master Plan Structural Reform Administrative Reform Budgetary Reform Public Personnel Reform Value and cultural Reform 5 20 Source: Orapin Sopchokchai, Thailand Public Sector Development Commission (

References OECD ( World Bank 1994: Governance: The World Bank’s Experience. Kaufmann, Kraay and Zoido-Lobaton Orapin Sopchokchai, Thailand Public Sector Development Commission ( World Bank, Public Sector Reform “What works and Why?” XTOED/EXTPUBSECREF/0,,menuPK: ~pa gePK: ~piPK: ~theSitePK: ,00.html 21