““New Public New Public Management”Management”

Douglas BrownDouglas Brown

Pols 341Pols 341

March 2009March 2009

““New” Public ManagementNew” Public Management

Roots of New Public ManagementRoots of New Public Management

Objectives and Methods of ReformObjectives and Methods of Reform

Outcomes and CriticismsOutcomes and Criticisms

The Next Generation of ReformThe Next Generation of Reform

The Roots of New Public The Roots of New Public ManagementManagement

Four factors:Four factors: An Old Paradigm in Gradual Disarray: 1970s An Old Paradigm in Gradual Disarray: 1970s

and early 1980sand early 1980s Political and Economic Changes to old orderPolitical and Economic Changes to old order Force of new ideas and ideologyForce of new ideas and ideology Emergence of a new paradigmEmergence of a new paradigm

1. The Old Paradigm and Its1. The Old Paradigm and ItsShortcomingsShortcomings

Single, Integrated, Hierarchical Civil Single, Integrated, Hierarchical Civil Service means delay, inflexibilityService means delay, inflexibilityOverly bureaucratic structure and culture Overly bureaucratic structure and culture Primary responsibility to Ministers alonePrimary responsibility to Ministers aloneState-owned monopolies stifle private State-owned monopolies stifle private initiativeinitiativeResults: Overload, Over-reach, Decline of Results: Overload, Over-reach, Decline of trusttrust

2. Changing Political and 2. Changing Political and Economic ConditionsEconomic Conditions

Economic Decline of 1970sEconomic Decline of 1970sFiscal Crisis: demands for government Fiscal Crisis: demands for government spending not matched by revenue growthspending not matched by revenue growthGlobalization: new pressures of Globalization: new pressures of competitiveness on both private and public competitiveness on both private and public sectorssectorsNew technologies transform workplacesNew technologies transform workplacesNeo-liberalism becomes dominant Neo-liberalism becomes dominant ideologyideology

3. Advances in Theory3. Advances in Theory

Public Choice: self interest vs public Public Choice: self interest vs public interest assumptionsinterest assumptions

Budget-Maximizing BureaucratsBudget-Maximizing Bureaucrats

Principal-Agent theoryPrincipal-Agent theory

Microeconomics and the role of the stateMicroeconomics and the role of the state

Managerialism: erasing the private/public Managerialism: erasing the private/public distinctiondistinction

4. Public Sector Reform as a 4. Public Sector Reform as a Political ProgramPolitical Program

Bottom-up USA practice (Osborne & Bottom-up USA practice (Osborne & Gaebler): mid-70s onGaebler): mid-70s on

Top-down UK: Thatcher “revolution” since Top-down UK: Thatcher “revolution” since 1979 1979

““Forced” Fiscal reform: New Zealand Forced” Fiscal reform: New Zealand 1980s, Canada 1990s1980s, Canada 1990s

Global advocacy and adoption:Global advocacy and adoption: role of OECD, World Bank, IMF etc.role of OECD, World Bank, IMF etc.

Key Objectives (OECD summary)Key Objectives (OECD summary)

1.1. Improving strategic oversight by elected Improving strategic oversight by elected politicianspoliticians

2.2. Ensuring greater accountability for set Ensuring greater accountability for set objectivesobjectives

3.3. Greater contestability and market Greater contestability and market competition for the provision of public competition for the provision of public goods and services.goods and services.

Reform from Within Reform from Within -- Major Themes-- Major Themes

Steering, not rowingSteering, not rowing

Devolution & deregulation of operations Devolution & deregulation of operations

Managerial contracts Managerial contracts

Results-based accountabilityResults-based accountability

Performance measurementPerformance measurement

Program review and expenditure Program review and expenditure restraintrestraint

Reform through External Agents Reform through External Agents -- Major Themes-- Major Themes

AgencificationAgencification

Out-sourcingOut-sourcing

Commercialization and privatizationCommercialization and privatization

PartnershipsPartnerships

Creating Internal marketsCreating Internal markets

““Reforming the Culture ”Reforming the Culture ”

Changing bureaucratic behaviourChanging bureaucratic behaviour customer servicecustomer service incentive structuresincentive structures flexibility, creativity, risk-takingflexibility, creativity, risk-taking

Seeking a comprehensive, not piecemeal Seeking a comprehensive, not piecemeal approachapproach

Programmatic, not just budgetaryProgrammatic, not just budgetary

Reform/ Anti-Reform CoalitionsReform/ Anti-Reform Coalitions

Pro-reform: Pro-reform: Ministers (eg Finance, Treasury Board)Ministers (eg Finance, Treasury Board) Central AgenciesCentral Agencies International InstitutionsInternational Institutions Consultants and AcademicsConsultants and Academics

Anti-Reform: Anti-Reform: Public sector unionsPublic sector unions some line departmentssome line departments citizen and interest groupscitizen and interest groups

Overall Claims Made for Overall Claims Made for Reforms Reforms

economic performance improvedeconomic performance improved

public sector productivity increasedpublic sector productivity increased

customer satisfaction attained or improvedcustomer satisfaction attained or improved

Taking On the Assumptions…Taking On the Assumptions…

That civil service is self-interestedThat civil service is self-interested

That markets work betterThat markets work better

That public and private management is That public and private management is alikealike

That politics can be ignoredThat politics can be ignored

Other CriticismsOther Criticisms

Weaker accountability to CabinetWeaker accountability to Cabinet

Poorer coordinationPoorer coordination

Capacity problemsCapacity problems

Equity concernsEquity concerns public service workers public service workers access and quality of serviceaccess and quality of service

Damage to Public Service integrity and Damage to Public Service integrity and ethicsethics

Beyond New Public Beyond New Public Management?Management?

Time to evaluate outcomes and fine-tune Time to evaluate outcomes and fine-tune reformsreforms

Redress the balance in some areasRedress the balance in some areas

Restore public sector ethicsRestore public sector ethics

Increase policy-making capacityIncrease policy-making capacity

Improve coordination and horizontalityImprove coordination and horizontality

Or…more of the same ?Or…more of the same ?

CasesCases

Federal:Federal: Program review ’90sProgram review ’90s Service CanadaService Canada Agencification Agencification PrivatizationsPrivatizations

Cases -- provincialCases -- provincial

Program review: NS, Alberta Program review: NS, Alberta

PPPs – e.g. Cobequid HighwayPPPs – e.g. Cobequid Highway

Prison privatization –OntarioPrison privatization –Ontario

Liquor stores privatization –Liquor stores privatization –

Health care regional authorities Health care regional authorities

Cases -- MunicipalCases -- Municipal

Municipal mergers (e.g. Toronto, Montreal, Municipal mergers (e.g. Toronto, Montreal, Halifax)Halifax)

Waste managementWaste management

Private policingPrivate policing