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CHAPTER PUBLIC MANAGEMENT IN FLUX (Reforms) SU DINH THANH FIRST GENERATION OF REFORMS There was a flowering Th fl i off public bli sector t reform f efforts ff t in some English-speaking and Scandinavian countries i the in th 1980s 1980 andd 1990s 1990 which hi h brought b ht new thinking thi ki and processes into public services to make them more efficient ffi i t andd more responsive i to t clients li t FIRST GENERATION ƒ Obj Objectives ti off the th first fi t generation ti off reforms: f ƒ Many of these improvements are a matter of technical or operating efficiency – more outputs produced with fewer inputs But as important as it is, efficiency in producing outputs is not the whole of public management It also is essential that government has the capacity to achieve its larger political and strategic objectives It will have to mo e from management issues move iss es to policy polic objectives, objecti es to fostering outcomes ƒ A feature of these reforms was that they were directed at ‘managerializing’ the public sector Source: Schick (1996, p 87) FIRST GENERATION ƒ Management M t efficiency ffi i as main i result: lt ƒ Beyond the impressionistic evidence, there is strong reason to believe that restructuring public management has brought sizeable efficiency gains that are reflected in lower staffing levels and reductions in real operating expenditures Source: Schick (1997, (1997 p p 10) FIRST GENERATION ƒ P Public bli sector t reforms f off New N Z l d has Zealand h b been strengths: ƒ M More efficient ffi i t production d ti off outputs t t ƒ A more responsive, innovative public sector delivering better services ƒ Improved financial accountability ƒ Improved overall fiscal control FIRST GENERATION ƒ B Butt there th are some weaknesses k : ƒ The alignment of outputs with outcomes ƒ Weakness W k i the in th link li k between b t governmentt strategy t t and budget spending ƒ The Th potential t ti l for f conflict fli t between b t purchase h andd ownership interests ƒ Problems P bl i contracting in t ti for f outputs t t ƒ Unforeseen consequences of the new regime ƒ Uneven U performance f off departments d t t andd agencies i FIRST GENERATION ƒ The Th first fi t generation ti off reformers f ( ith the (with th notable t bl exception of New Zealand) tended to treat the public managementt process in i isolation i l ti f from th political the liti l policy process and the legislative process ƒ The Th Strategic St t i Management M t Initiative I iti ti in i Ireland I l d sought ht to bring about major management change in the public sector, t without ith t addressing dd i the th role l andd accountability t bilit of ministers in strategy and resource use ƒ It did nott achieve hi it original its i i l strategic t t i goals l COUNTRIES RESPOND DIFFERENTLY TO CHANGING PUBLIC POLICY CONTEXTS The pressures for change have been influenced by six major variables: ƒ The state of the economy (fiscal crisis) ƒ Industrial relations (unemployment, social insurance) ƒ Attitude to the role of government ƒ Differing administrative cultures ƒ Differing national priorities ƒ Differing constitutional arrangements THE NEW REFORM The role of government should be adaptive – to monitor changes in the international and domestic environment and to adapt government actions accordingly => The movement to ‘performance’ and attention to citizens as ‘customers’ introduces major pressures towards change THE NEW REFORM The main Th i points i t involved i l d in i the th public bli managementt reforms f including: ƒ A strategic approach ƒ Management not administration ƒ A focus on results ƒ Improved financial management ƒ Flexibility in staffing ƒ Flexibility Fle ibilit in organization organi ation ƒ A shift to greater competition ƒ The new contractualism ƒ A stress on private sector styles of management practice ƒ Relationships with politicians ƒ Relationships with the public ƒ Separation of purchaser and provider THE NEW REFORM „ Traditional public administration was based on two theories, the theory of bureaucracy (Max Weber) and the theory of separation between politicians and administrators administrators „ There are also two main theoretical bases to new public management These are economics and private management management management „ The OECD argues the old paradigm of public sector management ‘is replaced by a new paradigm which attempts to combine modern management practices with the logic of economics, while still retaining core public service values’ (OECD, 1998, p 5) ... clients li t FIRST GENERATION ƒ Obj Objectives ti off the th first fi t generation ti off reforms: f ƒ Many of these improvements are a matter of technical or operating efficiency – more outputs... with fewer inputs But as important as it is, efficiency in producing outputs is not the whole of public management It also is essential that government has the capacity to achieve its larger political... purchase h andd ownership interests ƒ Problems P bl i contracting in t ti for f outputs t t ƒ Unforeseen consequences of the new regime ƒ Uneven U performance f off departments d t t andd agencies i

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