Public Administration: New Public Management

Study Notes

Definition and Origins

New Public Management (NPM) refers to a paradigm shift in public administration that emerged in the 1980s and 1990s
Originated in the UK, Australia, and New Zealand, with the aim of introducing business-like practices into the public sector

Key Principles

Decentralization: delegation of authority and decision-making to lower levels of government or autonomous agencies
Marketization: introduction of market mechanisms and competition in the provision of public services
Privatization: transfer of ownership or operation of public services to private sector entities
Performance management: emphasis on measurable outcomes, targets, and accountability
Customer focus: treating citizens as customers and emphasizing service quality and user satisfaction

Reforms and Strategies

Agencification: creation of semi-autonomous agencies to deliver public services
Contracting out: outsourcing of public services to private or non-profit providers
Public-Private Partnerships (PPPs): collaborative arrangements between public and private entities
Performance-based budgeting: allocation of resources based on performance targets and outcomes

Criticisms and Controversies

Neoliberal ideology: accused of promoting market-oriented values over social welfare and equity concerns
Inequality and exclusion: criticized for exacerbating social and economic inequalities
Loss of public accountability: concerns about transparency, accountability, and democratic control
Unintended consequences: potential for unintended consequences, such as decreased public sector capacity and expertise

Impact and Legacy

Widespread adoption: NPM principles have been adopted in various forms across the globe
Mixed results: evaluations of NPM reforms have yielded mixed results, with both successes and failures reported
Evolution and adaptation: NPM has evolved over time, with many governments adapting and refining its principles to suit their contexts

Definition and Origins

New Public Management (NPM) emerged in the 1980s and 1990s as a paradigm shift in public administration.
It originated in the UK, Australia, and New Zealand, aiming to introduce business-like practices into the public sector.

Key Principles

Decentralization involves delegating authority and decision-making to lower levels of government or autonomous agencies.
Marketization introduces market mechanisms and competition in the provision of public services.
Privatization involves transferring ownership or operation of public services to private sector entities.
Performance management emphasizes measurable outcomes, targets, and accountability.
Customer focus involves treating citizens as customers and emphasizing service quality and user satisfaction.

Reforms and Strategies

Agencification creates semi-autonomous agencies to deliver public services.
Contracting out involves outsourcing public services to private or non-profit providers.
Public-Private Partnerships (PPPs) establish collaborative arrangements between public and private entities.
Performance-based budgeting allocates resources based on performance targets and outcomes.

Criticisms and Controversies

NPM is accused of promoting market-oriented values over social welfare and equity concerns, reflecting a neoliberal ideology.
Critics argue that NPM exacerbates social and economic inequalities.
Concerns about transparency, accountability, and democratic control arise due to potential losses of public accountability.
Unintended consequences, such as decreased public sector capacity and expertise, may arise.

Impact and Legacy

NPM principles have been widely adopted in various forms across the globe.
Evaluations of NPM reforms have yielded mixed results, with both successes and failures reported.
NPM has evolved over time, with many governments adapting and refining its principles to suit their contexts.

Description

Learn about the principles and origins of New Public Management, a paradigm shift in public administration that emerged in the 1980s and 1990s. Understand decentralization, marketization, and other key principles.