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Lecture 4 - PA Theory - NPA and NPM

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MPA 602

Public Administration Theory and


Practice
Fall 2021
Lecture 4: New Public Administration
and New Public Management
Phases of PA

Phases in the Evolution of Public Administration

Classical Public Administration (1800s to 1950s)


Development Administration (1950s to 1960s)
New Public Administration (1970s)
New Public Management (1980s to 1990s)
Reinventing Government (1990s)
PA & Governance (1990s to the present)
Classical Public Administration: 1800s-1950s

Wilson:

Public administration should be a separate


professional field

Politicians seek to get reelected; administrators need


to ensure stability

Distinction between politics and administration;


administration should be politics-free
Classical Public Administration: 1800s-1950s

Leonard D. White
“Introduction to the Study of Public Administration”
(1926)

Administration is still an art; but it is being


transformed into a science.

Not much focus on politics-administration dichotomy;


emphasis on the managerial phase of
administration.
Modern Public Administration

Starts around 1950s

The sub phases include:


• Development Administration
• New Public Administration
• New Public Management and “Reinventing
the Government”
• Governance
Development Administration (1950-1960s)

Emerged in 1950s/1960s
Third world countries as the focal point
The term was mostly applied to refer to developing
countries of Asia, Latin America, and Africa.
These developing countries struggled with
development issues after World War II.
Debates around DA
- not addressing state functions such as public service
delivery and enforcement of laws
- Focusing on management of change to pursue
development aspirations.
- DA was built upon several critical assumptions:
- development needs are the most important needs of
developing countries,
- the development needs of developing and developed
countries are inherently different,
- development can be administered,
- the political, social, and cultural context of development
can be easily altered.
Identity Crisis of PA

“Identity crisis” of PA field led to the emergence of


the New Public Administration movement in the
1970s.

Lack of specific scientific/disciplinary identity

Interdisciplinary approach eventually took over

Embracing political science, management,


economy and finance
New Public Administration

Emerged in 1968, at a conference in Syracuse


University (mostly young scholars)

1960s – time of turbulence and violence

Rejected classic PA theories


New principles: equity, morality, public good
Public administrators should not be neutral; they
should be committed to achieve public good and
social equity
New Public Administration
New Public Administration
Traditional PA is guilty of global inequality and
injustice

Modern society is too individualistic and careless;


more participative political approach is needed

PA should focus on participatory management and


further social equality

People are political beings; people can only be fully


human if they have a chance to participate in
political life
New Public Administration
Participatory citizenship
citizens must be active participants

Public interest
collective common good as a goal

Public policy
focus on ‘public’ - participation is encouraged

Ethics-based approach
Moral and ethical standards must be met
New Public Management (1980-1990s)

Started in 1970s under Thatcher cabinet in the UK

“Government as business”: use of private sector and


business approaches in the public sector

More “client” or “customer” oriented, decentralization


of authority, “business oriented” practices
New Public Management

Traditional PA shortcomings (according to NPM):

• Hierarchical public sector = delays and inflexibility


• Overly bureaucratic culture
• Slow decision-making
• State overregulation discourage private initiative
• “Too much” State - government involved in too
many activities
• Poor performance of public sector
• No accountability / corruption
New Public Management

Main Features of NPM

• Focus on efficiency
• Deregulation, competition and privatization
• Decentralization of management
• Citizens as “customers”
• Accountability and performance measurement
• Adaptability and review
New Public Management
NPM – Preconditions for Success

• Some level of economic development and market


economy

• Developed judicial system – “ the rule of law”

• Functioning administrative system should already


exist - upon which NPM can be implemented.

Applicable everywhere?
New Public Management
NPM did not succeed in many countries

Reasons:
• Management is underdeveloped for market-oriented
reforms
• Corruption – if system is not corruption-free, NPM
will create extra opportunities for private
accumulation and patronage
• Weak political institutions and lack of judicial
system
New Public Management
Examples:

Britain under PM Thatcher (1979-1990)


Privatization of most industries
Fight with trade unions
Closure of coal mines
New Public Management
Examples:

New Zealand: classic case of NPM

Privatization of substantial public functions


Redesign of the personnel system in order to be more
performance-oriented
New productivity measures
New Public Management
Examples:

Australia:
Deregulation of markets
Public sector downsizing and privatization
Less restrictive regulatory framework
New Public Management
Shortcomings and criticisms:

• Public sector and private sector are different

• Public sector cannot be driven purely by financial


efficiency – conflict with “public good” idea

• Priority for money over people

• “Customers” of public sector are not really


customers – no option to get the service
elsewhere
New Public Management

Shortcomings and criticisms:

• Some things only the public sector should do

• Outsourcing key functions of government just to


be financially efficient is risky

• Emphasis on people as ‘customers’ not ‘citizens’

• Undermining classical role/understanding of State

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