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support a transformation
agenda?
Patrick Dunleavy
New Public
Management
push
Web Era
Governance
push
Government transformation
New Public Management
• NPM = Disaggregation plus Competition plus
Incentivization plus performance measurement
• Disaggregation – splitting up large bureaucracies
via agencification, micro-local agencies, more QGAs,
purchaser-provider separation
• Competition – introducing alternative suppliers via
mandatory competition, outsourcing, strategic review,
quasi-markets, deinstitutionalization, asset sales,
consumer-tagged financing, deregulation
• Incentivization via privatization, PFIs and PPPs,
PRP, charging, public sector dividends, valuing public
sector equity
DISAGGREGATION THEMES
Component Current status
Purchaser-provider separation X reversing
Agencification X
Decoupling policy systems X
Growth of quasi-government agencies X
Separation out of micro-local agencies X
Chunking up privatised industries X
Corporatization and strong single
organization management X
De-professionalization X
Competition by comparison ~ stable
Improved performance measurement √ growing
League tables of agency performance √
COMPETITION THEMES
Component Current status
Quasi-markets X reversing
Voucher schemes X
Outsourcing ~ stable
Compulsory market testing ~
Intra-government contracting ~
Public/private sectoral polarization ~
Product market liberalization ~
Deregulation ~
Consumer-tagged financing √ growing
User control √
INCENTIVIZATION THEMES
Component Current status
Re-specifying property rights X reversing
‘Light touch’ regulation X
Capital market involvement in projects X
Privatizing asset ownership ~ stable
Anti-rent-seeking measures ~
De-privileging professions ~
Performance-related pay ~
PFI (private finance initiative) ~
Public-private partnerships ~
Unified rate of return and discounting √ growing
Development of charging technologies √
Valuing public sector equity √
Mandatory efficiency dividends √
New Public Management
• Positive short term direct effects, but...
• Impacts reducing citizen competencies
– e.g unfamiliar processes, hollow choices, club
effects, privatization of information, conflict of
users vs citizens control
• Impacts increasing policy complexity
– e.g agencification/fragmentation, corporatization,
charging, PFIs and PPPs introducing private
bankruptcy risks, re-regulation following
catastrophic failures, increased transaction costs
Key NPM problems
• In the UK
– rollback of NHS quasi-market
– experience of Railtrack, NATS, British Energy
– PFI and PPP instabilities and risk additions, ban
on PFI for IT projects, continuing controversies
• In the USA
– re-governmentalization of airport security post
9/11, and ultra-conventional DHS reorganization
• In both countries
– Awareness of possible over-fragmentation and
adverse siloing effects
Change of public Level of autonomous
management regime citizen competence
1 + 2 +
+ +
4
+ 1
2
+ + +
4
+ 1
2
-
Change of public 5 Level of autonomous
management regime - citizen competence
- + + +
6 4
+ 1
2
Rollback of agencification
Joined-up governance (JUG)
Re-governmentalization
Reinstating central processes
Data warehousing
End-to-end service re-engineering
Agile government processes
DIGITALIZATION THEMES
+
Web-enabling 5 Level of autonomous
government + citizen competence
6
+ + + +
4
- 1
2
1 Leadership 2
Organization
E-change
change
Responsiveness boost