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CHAPTER THE CHANGING CONTEXT OF PUBLIC POLICY SU DINH THANH LEARNING OBJECTIVES RECENT CHANGES IN THE CONTEXT OF PUBLIC POLICY „ Financial crises put pressure on public organizations to become more efficient In particular, the fiscal crises in most OECD countries in the 1980s and 1990s was a key trigger for public sector reforms „ What about Vietnam? RECENT CHANGES IN THE CONTEXT OF PUBLIC POLICY „ From the early earl 1990s, 1990s other pressures press res on governments go ernments became more important, consisting of a mixture of e ternal and internal factors external factors „ „ External factors: Political; Economic/financial; Social; T h l i l Environmental; Technological; E i t l Legal/legislative L l/l i l ti Internal factors: Socializing public services; changing th way off providing the idi public bli services: i contracting t ti outt … EXTERNAL FACTORS Political P liti l ƒ New political and social movements in many countries – and internationally – which contest the neo-liberal world view, especially in relation to world trade, the global environment and attitudes to civil liberties ƒ Changing expectations by globalization about the quality of services which governments should be able to deliver, given what is currently available in other countries ƒ Changing expectations about the extent to which public services should be meet to the needs of individual citizens/ stakeholders ƒ Increased insistence by key stakeholders that new levels of public accountability are necessary with associated transparency of decision making and openness of information systems systems ƒ Changing expectations that there will be widespread and intensive engagement with all relevant stakeholders during the policy making and policy implementation processes… processes EXTERNAL FACTORS Economic/financial ƒ Economic boom of the 1990s in most OECD countries and many other parts of the world, world generally producing rising tax revenues for governments g) resistance/oposition p byy citizens to ƒ Increasingg ((or continuing) paying higher rates of tax to fund public services ƒ Investment environment should be improved (loosing/decreasing in tax….) ƒ … EXTERNAL FACTORS Social S i l „ Changing expectations about the core values in society – just as the 1980s saw traditional values such as public duty and individual responsibility being replaced by values of individual self - realization and rights, so in the 1990s there was a slow return to the h understanding d di that h ‘social ‘ i l capital’ i l’ is i vital i l to a successful public sector „ The ageing society, society which means that much higher proportions of the population are in need of health and social care „ Changing g g pperceptions p about the minimum qqualityy of life for certain vulnerable groups which is acceptable in a wellordered society – especially in relation to child poverty, minimum wages for the low paid, paid and the quality of life of elderly people EXTERNAL FACTORS Technological „ Technological changes, which have meant that public policies can now take t k advantage d t off major j innovations i ti i ways off delivering in d li i services and also that the policy - making process itself can be much more interactive than before before „ The information society, in which a much higher proportion of the ppopulation p can make use of new technologies g „ Changing beliefs about the efficacy of ‘hi - tech’ solutions (e.g renewed interest in ‘alternative healthcare’ and in ‘alternative technologies’) EXTERNAL FACTORS Environmental E i l „ Increasing concerns with global warming „ Willingness to take some serious steps to reduce the level of usage of non - renewable energy sources and to recycle l other h materials i l „ Increasing pressure for governments to demonstrate the environmental i l impact i off all ll new legislation, l il i policies li i andd major projects EXTERNAL FACTORS Legal/legislative L l/l i l i „ Increasing influence of supra national b di / bodies/organisations i i ( (e.g UN World UN, W ld Bank, B k IMF, IMF WTO, WTO EU) in driving legislative or policy change at national level level „ Legal challenge in the courts/process to decisions made by government, government citizens, citizens businesses and by other levels of government CHANGING PARADIGMS OF PUBLIC POLICY „ In the 1980s, the drivers of change, particularly financial pressures pushed most countries towards a focus on making the public sector more competitive, at the same time, trying to make public administration more responsive to citizens’s needs by offering added value, choice flexibility, and transparency „ This movement was referred to later by the academic community as ‘new public management’ or NPM CHANGING PARADIGMS OF PUBLIC POLICY ELEMENTS OF NPM ƒ Emphasis on performance management (Balanced – Score Card Model); ƒ More flexible and devolved financial management; ƒ More devolved personnel management with increasing use of performance-related performance related pay and personalized contracts; ƒ More responsiveness to users and other customers in public services; ƒ Greater decentralization of authority and responsibility from central to lower levels of government; ƒ Greater recourse to the use of market market-type type mechanisms, such as internal markets, user charges, vouchers, franchising and contracting out; ƒ Privatization of market - oriented public enterprises enterprises Source: OECD (1993) CHANGING PARADIGMS OF PUBLIC POLICY „ These challenges put public agencies under pressure to adapt „ Next figure shows the main directions of reform as a movement from law - driven to service - driven to citizen - driven agencies, but with these co - existing with each other to some degree in any given agency CHANGING PARADIGMS OF PUBLIC POLICY CHANGING PARADIGMS OF PUBLIC POLICY „ Pollitt and Bouckaert suggest that there are four strategic options (4Ms’) for public sector reforms: „ „ „ „ Maintenance of existing relationships Modernization off the system y Marketization of the system Minimization of the administrative system THE POLITICS OF PUBLIC POLICY „ It I is i important i to recognize i that h politicians li i i play l a number of roles: „ „ „ „ „ „ „ Leadership L d hi off their th i polity; lit Policy making for society; Strategy making for the organization; Partnership building with other organizations and with other stakeholders;; Watch-dog over the decisions made within their polity; Lobbyist y in relation to decisions made in other ppolities; And last but not least, representation of their constituents THE ROLE AND SCOPE OF GOVERNMENT „ What is the appropriate role, scope and size of government? „ There is no simple or straightforward technically grounded answer to this question „ Central to the debate are the basic normative questions of ‘what should ggovernments do; how bigg should the share of public spending be in the national economy; and should ggovernments engage g g in direct pproduction activities?’ THE ROLE AND SCOPE OF GOVERNMENT THE ROLE AND SCOPE OF GOVERNMENT THE ROLE AND SCOPE OF GOVERNMENT „ Whether there are government failure’ and policy failure ? „ These failures result in both allocative and managerial inefficiencies within the public sector, reflected in inappropriate policies being implemented through wasteful bureaucracies THE CHANGING BOUNDARIES OF THE STATE „ There is a great diversity in the size and scope of government across the various nations of the world „ This in part reflects differences in preferences for the ‘good g society’ y but it also arises from variations in pper capita real incomes and hence the capacity of countries to finance their public policies; differences in social factors such as population size and composition; and also differences in political institutions THE CHANGING BOUNDARIES OF THE STATE ... OF PUBLIC POLICY „ From the early earl 1990s, 1990s other pressures press res on governments go ernments became more important, consisting of a mixture of e ternal and internal factors external... boom of the 1990s in most OECD countries and many other parts of the world, world generally producing rising tax revenues for governments g) resistance/oposition p byy citizens to ƒ Increasingg... i l „ Increasing pressure for governments to demonstrate the environmental i l impact i off all ll new legislation, l il i policies li i andd major projects EXTERNAL FACTORS Legal/legislative

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