New Public Management and the Ontario “Common Sense Revolution” Douglas Brown St Francis Xavier University Revised March 2009

New Public Management and the Ontario “Common Sense Revolution” The International NPM Paradigm Canada in Comparative Perspective The Common Sense Revolution Platform The Harris Government in Office Some Tentative Assessments

What is New Public Management ? paradigmatic theory neoliberal ideology managerialist rhetoric: business metaphors political program international template of “best practice”

Key Objectives (OECD) 1. Improving strategic oversight by elected politicians over the business of government 2. Ensuring greater accountability for outcomes against pre-set objectives 3. Greater contestability and market competition for the provision of goods and services.

The Climate for NPM Ideas in Canada Declining economic growth, fiscal crisis Declining trust in government, bureaucrat bashing Globalization and continental integration Limited acceptance of neoliberalism Federalism as constraint and opportunity

The Changing Context of Governance in Ontario 1992 recession and Ontario’s competitive economic position The Rae government dilemma Public Service restructuring The Voice in the Wilderness (Mike Harris)

The “Common Sense Revolution” Platform –Tax cuts first, then balanced budget –Expenditure cuts of $6 billion in “non-priority” areas –725,000 new jobs –Regulatory review and reduction –Welfare reform –Education reform –Turn-Around management

Common Sense = NPM ? Common Themes: –reasserting control –performance standards –spending smarter Contradictions: –CSR not a management strategy –risky public finance –distrust of or by the public service ?

Harris Government in Office 1. Reasserting Strategic Control 2. Reinventing Public Finance 3. Accountability for Objectives 4. Introducing Contestability

Reasserting Strategic Control Controlling the Bureaucracy: –Top-down Cabinet process –Centralized Communications –Public service cuts –Policy control by political advisors / “create a crisis” Centralizing the public sector: –Education reforms –Municipalities –Hospital restructuring –Community boards

Reinventing Public Finance Tax Cuts Tax Structure –PIT and CIT –Property Tax Expenditure Cuts Balanced Budget

Accountability for Outcomes Ministry Business Plan process Partnerships within: accountability conflicts (e.g. Andersen/Comsoc affair) Contracting Out (social services, prisons, highways, water quality) Delegated Regulatory Authorities (e.g. Technical Standards and Safety Authority)

Contestability Hydro markets Competition within Education (testing, private schools) Mandating competition for service delivery (e.g. Community Care)

The Walkerton Case May 2003: 7 people die as a result of contaminated water supply in small town of Walkerton, Ontario Inquiry finds failure of overall regulatory system to protect water supply. Points to: –The effect of MOE budget cuts –The effect of anti-red tape culture….Harris government had cut regulation, privatized water testing –Government ignored expert advice Public became highly skeptical of NPM reform rhetoric following the Walkerton episode

Assessment 1: By CSR Blueprint Successful in terms of program completion Good luck / good management in public finance Major unforeseen challenges: municipal restructuring Unfinished reforms: health and education Successful in (re)electoral terms? –Yes in 1999No in 2003

Assessment 2: By the NPM Paradigm 1. Strategic Control: Effective, but became over-control, especially on implementation matters 2. Accountability for outcomes: Improved within government; but had problems with alternative delivery 3. Contestability: In progress / Incomplete 4. Overall assessment: Not a thorough reform

Assessment 3: By Traditional Public Administration Values Fiscal probity and efficiency increased Over-centralization of government and the public sector Loss of policy capacity Low public service morale Reduced accountability for some functions

Concluding Thoughts NPM ideas have been very influential but not the dominant paradigm in Ontario NPM not a passing fad, but will continue to be exercised in tandem with older Public Admin values Deep NPM reform in Canada is (so far) the product of neo-conservative leadership Uncovering the “secular” merits of NPM requires careful evaluation: by sector, by each specific reform.