Comparative Public Sector Reform – Perspectives and Experiences Professor Tom Christensen, Department of Political Science, University of Oslo Presentation at University of Zagreb, May 2013

1. Main questions covered1. Main questions covered What are the main perspectives we can use to understand reform processes?What are the main perspectives we can use to understand reform processes? What do they say about leaders’ control and rational calculation?What do they say about leaders’ control and rational calculation? What are the main features and challenges of New Public Management and post-NPM?What are the main features and challenges of New Public Management and post-NPM?

2. Perspectives on reform processes2. Perspectives on reform processes A. Instrumental perspectiveA. Instrumental perspective Reform is necessary and possibleReform is necessary and possible Leaders control reforms and have clear goalsLeaders control reforms and have clear goals They basically achieve the effects they wantThey basically achieve the effects they want Main instrument is reorganization – vertical/horizontal specialization/coordinationMain instrument is reorganization – vertical/horizontal specialization/coordination

B. Cultural perspectiveB. Cultural perspective A slow evolutionary path-dependent developmental process result in reformA slow evolutionary path-dependent developmental process result in reform Adaptation to internal pressure and external pressure from task environmentAdaptation to internal pressure and external pressure from task environment Reforms must be compatible with historical- cultural traditionsReforms must be compatible with historical- cultural traditions

C. Myth perspectiveC. Myth perspective Institutional environment create reform mythsInstitutional environment create reform myths Dominant norms for what is appropriate:Dominant norms for what is appropriate: Knowledge/professions, organizational forms, systems, services and productsKnowledge/professions, organizational forms, systems, services and products Important to be seen as modern, to increase legitimacyImportant to be seen as modern, to increase legitimacy

3. Main features of New Public Management3. Main features of New Public Management Based in new institutional economic theoryBased in new institutional economic theory Efficiency orientation - use of markets, competition, contracts and privatizationEfficiency orientation - use of markets, competition, contracts and privatization But also based in management theory – ‘let or make the managers manage’But also based in management theory – ‘let or make the managers manage’ Combination of centralization and autonomyCombination of centralization and autonomy

Structural fragmentation - increased structural devolution and horizontal specializationStructural fragmentation - increased structural devolution and horizontal specialization Establishing agencies, regulatory agencies and public enterprises with a lot of autonomyEstablishing agencies, regulatory agencies and public enterprises with a lot of autonomy More service and consumer orientation – choice and participationMore service and consumer orientation – choice and participation

Main challenges of NPM:Main challenges of NPM: Deliver on efficiency – balance efficiency and other central considerations and interestsDeliver on efficiency – balance efficiency and other central considerations and interests Cope with potential undermining of political controlCope with potential undermining of political control Handle structural fragmentationHandle structural fragmentation Balance roles as consumers/users and citizensBalance roles as consumers/users and citizens

4. Why the need for post-NPM-reforms?4. Why the need for post-NPM-reforms? A. NPM could not deliverA. NPM could not deliver Not evident that the economy in large has improved in the main NPM countriesNot evident that the economy in large has improved in the main NPM countries Mixed results concerning the increased efficiency of servicesMixed results concerning the increased efficiency of services Decreasing quality and increased social inqualityDecreasing quality and increased social inquality

B. Major weakening of political controlB. Major weakening of political control It was promised that political control should increase or stay the same, but means changeIt was promised that political control should increase or stay the same, but means change Reality seems to show both a formal and real undermining of political controlReality seems to show both a formal and real undermining of political control More problems of capacity and coordination among top leadersMore problems of capacity and coordination among top leaders

C. More insecure and unstable worldC. More insecure and unstable world Fear of terrorism drives reforms:Fear of terrorism drives reforms: Increasing demands of stronger control and coordinationIncreasing demands of stronger control and coordination Fear of catastrophes and crises:Fear of catastrophes and crises: Pandemics, tsunamies, global financial and environmental problemsPandemics, tsunamies, global financial and environmental problems

5. What is typical for post-NPM reforms?5. What is typical for post-NPM reforms? More emphasis on strengthening the central political and administrative level againMore emphasis on strengthening the central political and administrative level again Increased control and capacityIncreased control and capacity More coordination in and between sectors:More coordination in and between sectors: Create cross-sectoral program and projectsCreate cross-sectoral program and projects

Demands for more pro-active leadership rolesDemands for more pro-active leadership roles Leaders must have a broad competenceLeaders must have a broad competence More pragmatic cooperation among public organizations - smart practiceMore pragmatic cooperation among public organizations - smart practice Value-based management importantValue-based management important More focus on cultural cooperation and common values – counter-acts sub-culturesMore focus on cultural cooperation and common values – counter-acts sub-cultures

6. Possible future development6. Possible future development Governments in reality a complex and hybrid combination of:Governments in reality a complex and hybrid combination of: ”Old public administration” – NPM – post- NPM features”Old public administration” – NPM – post- NPM features A layering process – ‘archeological’ featuresA layering process – ‘archeological’ features What are the effects of such combination?What are the effects of such combination?

Positive effects?:Positive effects?: Give political and administrative leaders flexibility – ‘ambiguity is good’Give political and administrative leaders flexibility – ‘ambiguity is good’ Increased legitimacy through ‘pleasing’Increased legitimacy through ‘pleasing’ Negative effects?:Negative effects?: Problems of control and accountabilityProblems of control and accountability Chaos and lack of goal achievement?Chaos and lack of goal achievement?