New Public Management (NPM) Overview

Study Notes

New Public Management (NPM) refers to a managerial approach to public administration that emerged in the 1980s
Developed in response to criticisms of traditional bureaucratic approaches to public administration
Influenced by private sector management practices and neoliberal ideology

Decentralization: Devolution of authority and responsibility to lower levels of government and frontline managers
Marketization: Introduction of market mechanisms and competition in the provision of public services
Managerialism: Emphasis on management skills and practices, rather than traditional bureaucratic routines
Performance measurement and accountability: Focus on outputs, outcomes, and performance metrics to evaluate public sector performance
Customer orientation: Public services designed to meet the needs of citizens as "customers"

Efficiency and effectiveness: Maximizing outputs with minimal resources
Flexibility and adaptability: Encouraging innovation and responsiveness to changing circumstances
Partnerships and collaboration: Collaboration between government, private, and non-profit sectors
Citizen engagement and participation: Involving citizens in the design and delivery of public services

Privatization and commercialization: Concerns about the erosion of public sector values and the exploitation of public services for private gain
Inequity and exclusion: Fears that NPM approaches may exacerbate social and economic inequalities
Accountability and transparency: Concerns about the lack of transparency and accountability in NPM approaches

UK: Margaret Thatcher's government introduced NPM reforms in the 1980s
USA: The Clinton Administration's "Reinventing Government" initiative in the 1990s
Australia: The Australian government's "New Public Management" reforms in the 1990s
International organizations: The World Bank and other international organizations have promoted NPM approaches in developing countries

New Public Management (NPM) emerged in the 1980s as a managerial approach to public administration
Developed in response to criticisms of traditional bureaucratic approaches to public administration
Influenced by private sector management practices and neoliberal ideology

Decentralization involves devolving authority and responsibility to lower levels of government and frontline managers
Marketization introduces market mechanisms and competition in public service provision
Managerialism emphasizes management skills and practices over traditional bureaucratic routines
Performance measurement and accountability focus on outputs, outcomes, and performance metrics
Customer orientation designs public services to meet the needs of citizens as "customers"

Efficiency and effectiveness aim to maximize outputs with minimal resources
Flexibility and adaptability encourage innovation and responsiveness to changing circumstances
Partnerships and collaboration involve government, private, and non-profit sectors
Citizen engagement and participation involve citizens in the design and delivery of public services

Privatization and commercialization erode public sector values and exploit public services for private gain
Inequity and exclusion exacerbate social and economic inequalities
Accountability and transparency concerns revolve around lack of transparency and accountability

UK: Margaret Thatcher's government introduced NPM reforms in the 1980s
USA: The Clinton Administration's "Reinventing Government" initiative in the 1990s
Australia: The Australian government's "New Public Management" reforms in the 1990s
International organizations: The World Bank promotes NPM approaches in developing countries