Md. Shamsul Arefin, New Public Management , Bangladesh

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NEW PUBLIC MANAGEMENT Implication for the
provision of Public goods and Services By Md.
Shamsul Arefin Joint Secretary Ministry of Public
Administration Government of the peoples
Republic of Bangladesh The lecture note is
prepared for the 134 Foundation Course organized
by NAEM, Dhaka 21-05-2012
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Outline

• What is New Public Management?
• Key elements of NPM
• Features of NPM
• Arguments, dynamics and lessons
• Implication for the provision of Public goods and
  Services
• Conclusion

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What is NPM? NPM denotes broadly the government
policies, since the 1980s, that aimed to
modernise and render more effective the public
sector. The basic hypothesis holds that market
oriented management of the public sector will
lead to greater cost-efficiency for governments,
without having negative side-effects on other
objectives and considerations.
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Key elements of NPM

• Performance management
• Deregulation, liberalization
• Single-purpose organizations
• Separation of policy and operations
• Managerial autonomy
• Contract, privatization, market-orientation
• Customer choice

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Features of NPM

• Redefine clients as customers
• Offer choices
• Prevent problems before they emerge
• Earning money, not simply spending it
• Decentralise authority
• Participatory management
• Preference for market mechanisms
• Energising all sectors public, private and
  voluntary to solve their communitys problems.

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Situation after the NPM reforms

• Strengthening the local level
• Strengthen Coordination in and between sectors
• Pro-active leadership roles
• Pragmatic cooperation among public organizations
• Value-based management
• Good Governance starts

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• Changing models of Public Administration
• Classical (Weberian) model hierarchy,
  professionalism and political accountability
• New public management
• Good governance democratic and efficient public
  administration

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• New Public Management measures and effects
• Structural
• With regard to personnel
• Functional
• Other

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• Structural Measures and effect
• 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 tights (fragmenting state
  agentification, decentralisation, greater
  autonomy of public sector organisations, etc.)

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• Measures and effects with regard to personnel
• More machanical measures (reducing the number,
  pays reduction, flexibilisation, private sector
  managers engagement, greater autonomy of public
  managers with regard to remuneration, pay and
  career system, etc.)
• Human potentials development (education,
  in-service training, organisational culture
  building, ethics, orientation towards results and
  the needs of citizens)

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• Functional measure and effect
• Marketization of the state public market
• Competitiveness
• Real prices
• Services of general economic interest
  (liberalisation and privatisation)
• Deregulation
• Debureaucratisation (removing procedural
  obstacles
• Budgetary solutions internal and external audit,
  etc.

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• Social Consequences
• Growing of capitalism
• Crisis of social state poverty and lower level
  of social services, unemployment rate is
  increasing
• Other (crime, social conflicts, disregarding
  legal regulations)

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Implication for the provision of Public goods
and Services NPM, compared to other public
management theories, is oriented towards outcomes
and efficiency, through better management of
public budget. For which it Can deliver more
quality public goods. It is considered to be
achieved by applying competition, as it is known
in the private sector, to organizations in the
public sector, emphasizing economic and
leadership principles. New public management
addresses beneficiaries of public services much
like customers, and conversely citizens as
shareholders.
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Conclusion The Economist Ha-Joon Chang in his
book Bad Samaritans, claims that "increased
NPM-inspired reforms have often increased, rather
than reduced, corruption," as a result of "more
contacts of state-sector functionaries with the
private sector, creating new opportunities for
bribes. Robert Nield, a retired Cambridge
economics professor and a member of the 1968
Fulton civil service reform committee, has
stated, in reference to civil sector reforms
implemented by British PM Margaret Thatcher, a
pioneer and strong proponent of NPM, "I cannot
think of another instance where a modern
democracy has systematically undone the
system. Through a continuous thirst for
betterment in the public service the NPM has
given a way to reach a stage of getting quality
public goods and services.
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• Conclusion
• It includes various forms of decentralizing
  management within public services (e.g., the
  creation of autonomous agencies,
• Devolution of budgets and financial control),
  increasing use of markets and competition in the
  provision of public services (e.g., contracting
  out and other market-type mechanisms),
• Increasing emphasis on performance, outputs and
  customer orientation.

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• Questions
• Please explain the features of NPM?
• What do you mean by New Public Management?
• How does it differ with Classical
  hierarchical (Weberian) model.

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Thank You All for the Patient Hearing Email
s2arefin_at_yahoo.com Cell 01741329408