CONTEMPORARY CROATIAN CONTEMPORARY CROATIAN PUBLIC ADMINISTRATION ON PUBLIC ADMINISTRATION ON

THE REFORM WAVESTHE REFORM WAVES

Professor Ivan KoprićProfessor Ivan Koprić

Faculty of Law, University of ZagrebFaculty of Law, University of Zagreb

Political and administrative dynamicsPolitical and administrative dynamics

The new Croatian Government (July 2009) was elected by the Parliament (Sabor) from the same political coalition - Jadranka Kosor became the first female prime minister – former PM, Ivo Sanader, resigned at the beginning of July 2009

Establishment of the Ministry of (Public) Administration (my proposal, pp. 20, 27!)

Genuine political processes as a source of environmental uncertainty for public administration

Framework for Comparative AnalysisFramework for Comparative Analysis

Comparative experiences as a basis for learningCountry specific elements (idiosyncrasies) as a basis for specific

institutional pace of developmentIssues to be compared: Outline of particular administrative system The phases in its development The main problems Current reform efforts Perceived environmental influences Possible future development Theoretical grounds: neo-institutionalism (normative and

historical) and organisation theory (complexity, environment complexity, interdependence ...)

PA - composition, technical complexity (tasks, internal dynamics), complex external global and regional influences, interdependencies of internal and external processes, value complexity (democratic, legal, social, economic, ecological values)

Administrative doctrines (NPM and GG)Reform strategies

CroatiaCroatia

Independence at the beginning of the 1990s

Self-management legacy (public interest, public participation, social welfare)

War and rebellion (1991-1995) and the period of reconstruction

Economic transition (from social ownership economy to free market economy)

Privatisation of social ownership as grounds for economic way of thinking, neo-liberalist tendencies and managerial doctrine in the public sector

Europeanisation efforts have raised the issue of good governance

Public administrative system: composition and the main tendencies

State administration – organised as the system of classical administrative organisations like ministries; reorientation to the “core-business” (smaller organisations concentrated on public policies, drafting regulations, authoritative decision-making, inspections, and similar tasks)

Territorial self-government (local and regional); harmonisation in wider European context; decentralisation and new legitimacy; wider responsibilities: from administrative tasks to the support of economic and social development

Services of general interest (economic and non-economic, i.e. social, health, etc.); new European regulation of the services of general economic interest, especially in network industries; European social model

Overall Europeanisation within broader globalisation context

Public sector values- are integrating governance system- are crystallized through political processes of

amalgamation of interests and ideologiesPublic administration should gain overall legitimacy in its

social milieu – that is why it has to adapt to complex value orientations.

Value heterogeneity:- Continental European space: stress on the political,

legal, and social values (Hegel: a state is God’s walk on Earth; Greek democracy and Roman law tradition)

- Anglo-Saxon space: stress on the economic values and pragmatism (brutal economic and social situation)

- Within the public sector: different situation in transport sector, finances, local self-government …

- during historical development: political – legal – social – economic - ecological

Types of public sector valuesPolitical (democratic): accountability, publicness,

transparency, responsiveness, political decentralisation, openness, legitimacy, flexibility (user-friendliness)

Legal: the rule of law, legality (organisational, substantive, procedural, with regard to competence), legal responsibility (for damage caused by illegal functioning, or disciplinary responsibility), legal certainty, protection of fundamental rights and freedoms, equality, impartiality, due process, court supervision

Social: social justice, solidarity, social sensibility, care, charity, sympathy, mercy, assistance to the citizens, cultural diversity, respect of national, sexual, and other minorities

Ecological: protection of natural environment, protection of biological diversity, careful management of natural resources, life in harmony with nature

Economic: the three Es (economy, efficiency, effectiveness), quality, market-orientation and private sector-orientation, competitiveness, entrepreneurship

Strategies for administrative change

Pollitt and Bouckaert (2000; 2001):1. Maintain. To preserve and incrementally improve (up-

grade) classical, Weberian model of public administration as rational, well-organised, monocratic organisation with fine tailored hierarchy, professionalism, impartiality, legality, and standardised bureaucratic procedures.

2. Modernise. More fundamental changes in structures and functioning (from procedures to results; output budget orientation; autonomous executive agencies; from appointment acts to employment contract, etc.)

3. Marketize. Introduction of market principles and mechanisms in the PA system (internal market – British NHS and competition of hospitals; charging real market prices; consumer-orientation)

4. Minimize. Shrinking the public sector by privatisation, contracting out, public-private partnerships, civil (voluntary) sector involvement, etc.

The New Public Management

Imposing economic values and private sector techniques into the public sector

Stress on economy and efficiency; ideology of state failure; inclination to private entrepreneurship and free market economy

From the 1980s, grounded in neo-liberal ideologyConservative political actors in Anglo-Saxon countriesNew Zealand, Australia, Canada, UK, USASignificant role of international organisations (IMF; WB;

OECD)Attack on welfare state; reaffirmation of capitalism class

structure; neo-colonialism

Structural and functional measures and effectsStructural and functional measures and effectsa) Structural Reduction (lean state; privatisation, budget reduction, reduction of

the level of social rights, etc.) Forms of private and third sector participation in public affairs

(PPP, outsourcing, concessions, etc.) Loosening structural ties (fragmenting state; agencification,

decentralisation, greater autonomy of public sector organisations, etc.)

Problems: accountability, coordination, strategic policy, ethics, local self-government, costs

b) Functional Marketisation of the state; public market Competitiveness Real prices Services of general economic interest (liberalisation and

privatisation) Deregulation De-bureaucratisation (removing procedural obstacles to private

sector subjects and citizens; management by results) New budgetary solutions; internal and external audit, etc.

NPM – Ideas and effects with regard to personnel; social consequences

Personnel More mechanical measures (reducing the number, reduction of

salaries, flexibilisation, private sector managers engagement, greater autonomy of public managers with regard to remuneration, payment and career system, etc.)

Human potentials development (education, in-service training, organisational culture building, ethics, orientation towards results and citizens’ needs)

Problems: instability, insecurity, organisations as psychic prisons, unsuccessful organisations, consumerism, etc.

Social consequences Reinvigorating capitalism (state failure) Crisis of welfare state: poverty and lower level of social services,

unemployment rate is increasing Democratic deficit: weakening democratic legitimacy of the state Anomy (crime, social conflicts, disregarding legal regulations) Positive effects?

Good GovernanceNPM criticisms during the 1990s followed by building a new set

of ideas on a bit different value baseThe role of international organisations: OUN; OECD; EUStill under construction and stabilisation European Governance: A White Paper (Brussels: COM (2001)

428) (governance based on proportionality and subsidiarity); fundamental principles:

a) Opennessb) Participationc) Accountabilityd) Effectivenesse) CoherenceThe stress is on the role of citizens, civil society, and local self-

governmentUNDP: combination of efficient and democratic governanceOECD: Citizens as Partners: Information, Consultation and

Public Participation in Policy-Making, 2001Increasing administrative and policy capacities + legitimacy

strengthening

Croatian public administration development

I. 1990-1993 – Establishment phase Semi-presidential system Considerable new parts of state administration (new ministries, etc.) War Politicisation; poor professional standards; hidden lustrationII. 1993-2001 – Consolidation phase (war till 1995) Etatisation and centralisation A number of poor reorganisations Introduction of new local governance system Very slow democratisation First Law on State Civil Servants in 1994III. 2001-2008 – Europeanisation phase First political change after 1990 (coalition Government); parliamentary

system Democratisation, decentralisation, attempts to raise professionalism

(second Law on State Civil Servants in 2001; third one in 2005) Stabilization and Association Agreement (2001); candidate status in

2004; accession negotiationsIV. 2008 – Modernisation phase?

The State Administration Reform Strategy

Main problemsI. Orientation Strategic planning Public policies Better regulation and regulatory impact assessmentII. Motivation Politicisation Mechanisms of motivation Professionalism and administrative education system Administrative cultureIII. Implementation Legal standards Administrative ethics Bureaucratic resistances Reducing managerialism and state’s capture

Reform efforts

I. Reform StrategyII. DecentralisationIII. Local and regional developmentIV. Many new reform projects

a) New LGAP (administrative simplification)b) Administrative justice reformc) Access to public sector informationd) Functional reviewe) HRM systemf) National minority representationg) In-service training

V. System of administrative education

State Administration Reform Strategy

Adopted by the Croatian Government in March 2008 as part of EU accession efforts (www.uprava.hr)

Structure: I. Executive summaryII. State administration we want (Vision and goals of

modern administration)III. The main results in the reform of political system and

state administrationIV. The main areas and directions of state administration

reformV. Implementation of strategic measuresVI. Leadership, monitoring and evaluation of results

State Administration Reform Strategy - goals

1. Increasing efficiency and economy in the state administration system

2. Raising the quality of administrative services3. Openness and access to state administrative

organisations4. The rule of law5. Increasing social sensitivity inside state

administration and in relations with citizens6. Rising ethical level and reducing corruption7. Modern ICT implementation8. Joining the European Administrative Space *accompanied by 29 indicators

State Administration Reform Strategy – main areas and directions

1. Structural adaptations of state administration system: from structure to good governance (3 directions; 13 activities)

2. Increasing the quality of programmes, laws and other regulations: better regulation (4 directions; 14 activities)

3. System of state servants: modern civil service (4 directions; 10 activities)

4. Education and in-service training of state administration: knowledge, skills and competences (2 directions; 8 activities)

5. Simplification and modernisation of administrative procedures: e-administration (2 directions; 17 activities)

Other strategic documents

a) Strategic Development Framework for 2006-2013 - Previous efforts: 55 recommendations for improving national

competitiveness of Croatia

b) Decentralisation strategy under preparation – failure?- Previous efforts: Decentralisation of Public Administration (2000-

2003)

c) Lack of an overall strategic document with regard to services of general interest

- Sectoral documents (for example, Strategy for Development of Communal Utilities)

Environmental influences

I. Domestic influences- Political system- Business community- Civil sector- Academic community

II. Foreign influences- Europeanisation- Other world dominant organisations (IMF, WB, WTO, OECD ...)- Changes in administrative doctrines

Future

Croatia as a late-comer in transition and EuropeanisationOptimistic and pessimistic scenariosDifferent possible directions of development:• Conceptually straight modernisation• Inertia (hesitating development)• Chaotic institutional declineProposals:• Reform Strategy refinement and better reform

management• Sound system of administrative education (Faculty of

Public Administration?)• Structural measures• Decentralisation• Better regulation (RIA improvement included)• Administrative procedures modernisation• Two-level and effective administrative justice system• Civil servants motivation improvement, etc.

Lessons learned PAR as part of the Europeanisation process is not the best

solution for domestic problems (Europeanisation is only one of the environmental influences; the EU is one of broader institutional frameworks, not the only one)

PAR should be in line with previously discussed and adopted basic national goals – otherwise it could be unsuccessful or counter-productive

Three main parts of PA (state administration; local and regional self-government; public services) need different reform approaches

Strong administrative body needed (Ministry of Public Administration, probably with vice PM as a minister)

Laws could foster or freeze reform efforts, but cannot replace real will to make PA modern and better

Policy orientation should be developed Education and training should be more intensive – capacity

building State administration system, structural, personnel, human

resource, financial etc. measures needed

Institutional challenges

Good institutional structure is a necessary prerequisite for successful reforms, but other prerequisites are needed and are of equal importance (political will and support; strategic planning and policy making; educated and informed civil servants; extra-organisational expertise; financial support; reform dedication, etc.) – institutions do matter

Inappropriate institutions (weak institutions or inappropriate networks of institutions …) impede positive impacts of other favourable conditions

Institutions should be adapted to the specific circumstances of a country (culture, external conditions, basic state’s goals …)

Certain regularities are generally recognizable and could be used for learning and suggesting proposals

Significance of good and bad examples in similar and different conditions – experiential learning

Thank you!Thank you!

Professor Ivan KoprićProfessor Ivan Koprić

Faculty of Law, University of ZagrebFaculty of Law, University of Zagreb

Mailto: ikopric@pravo.hrMailto: ikopric@pravo.hr