GLOBAL ISSUES IN PUBLIC ADMINISTRATION

Prof. Jefferson Mendoza Sadera, MPM

GLOBALIZATION AND PUBLIC ADMINISTRATION

 The

private sector has changed and adopted with the trends set by Globalization. Will the public sector follow suit? are the challenges set by Globalization to Public Administration?

 What

What is Globalization?

an unprecedented compression of time and space reflected in the tremendous intensification of social, political, economic, and cultural interconnections and interdependencies on a global scale. Stegler

the expanding scale, growing magnitude, speeding up and deepening impact of transcontinental flows and patterns of social interaction ((Held and McGrew, Globalization/AntiGlobalization/Anti-Globalization)

With the emergence of GLOBALIZATION, OLD PUBLIC ADMINISTRATION becomes irrelevant

Challenges to Public Administration

Hierarchical, centralized bureaucracies designed in the 1930s or 1940s simply do not function well in a rapidly changing, information-rich, knowledge-intensive society informationknowledgeand economy today. -Osborne & Gaebler
from their book Reinventing Government

Osborne and Gaebler suggest that governments should:

1) steer, not row (or as Mario Cuomo put it, "it is not government's obligation to provide services, but to see that they're provided")  2) empower communities to solve their own problems rather than simply deliver services  3) encourage competition rather than monopolies  4) be driven by missions, rather than rules  5) be results-oriented by funding outcomes rather than resultsinputs


6) meet the needs of the customer, not the bureaucracy  7) concentrate on earning money rather than spending it  8) invest in preventing problems rather than curing crises  9) decentralize authority and  10) solve problems by influencing market forces rather than creating public programs


OLD PUBLIC ADMINISTRATION

Old Public Administration is anchored on Max Webers concept of BUREAUCRACY

Bureaucratic characteristics (Principles)

 Clear  Clear

division of labor hierarchy of authority rules and procedures

 Formal

 Impersonality  Careers

based on merit

Old Public Administration:

Large bureaucracy, slow, and inefficient  Low quality of civil service  Citizens unaware of their rights  Limited resources  Lack of capacity building for citizens and politicians  Excessive and overlapping rules and regulations  Fixed procedures no longer suitable for the changing environment


Old Public Administration

Lack of neutrality and professionalism  Weak performance and weak results-based resultsmanagement system  Lack of culture of competitiveness  State has strong monopoly position (excessive regulation)  Discrete information process (lack of transparency)  Poor accountability mechanisms


New Public Administration



The New Public Administration concept came first time in 1968 in first Minnowbrook Conference held Waldo. under the patronage of Dwight Waldo. The 1960s in the USA was a time of social and political turbulence due to Vietnam war, Civil Rights movements, campus unrest, etc

In word of Dwight Waldo neither the study nor the practice of public administration was responding suitably to escalating turmoil and complications.

The Minnowbrook conference challenged the traditional public administration in a manner that it was antiantipositivist, positivist, and Unrealistic (anti-technical and anti(antiantihierarchical.

N.P.A. has 3 important attacks to PA:



Relevance: Relevance: It says that traditional Public Administration has little to say about contemporary problems Values: It says value-neutrality in Public Administration Values: valueis an impossibility. It is less neutral and more normative. Social Equity: Public Administration fails to work for Equity: changes which try to redress the deprivation of minorities;therefore, will likely be eventually used to repress those minorities.

N.P.A - Significance


Change: Change: It attacks on the status quo and deep rooted power in permanent institutions. It requires positive, proactive and responsive administrators rather than authoritarian and ivory tower bureaucrats. Equity: Equity: It focus more on democratic norms than operating in down top structure. Involvement: Involvement: Involving orgs members and its clients in decision making process.

New Public Management



New Public Management is a management philosophy used by governments since the 1980s to modernise the public sector. sector. The main hypothesis in the NPM-reform NPMwave is that more market orientation in the costpublic sector will lead to greater costefficiency for governments, without having negative side effects on other objectives and considerations.

NPM Element: New Model of Control



Quality Management Decentralization Benchmarking ResultsResults-oriented Product Approach

   

NPM, compared to other public management theories, is more oriented towards outcomes and efficiency through better management of public budget. It is considered to be achieved by applying competition, as it is known in the private sector, to , organizations in the public sector, emphasizing sector, economic and leadership principles.
New public management addresses beneficiaries of public services much like customers. customers.

New Public Management (Mid 1980s and 1990s) Major shift from traditional model with new main
focus on achievement of results rather than on process Move away from classic bureaucracy to more flexible forms of organization Clear identification of objectives plus performance indicators that enable measurement A trend towards reducing the scope of government (privatization/decentralization)
23

New Public Management: Elements

    

Lean State Separation of Decision-making Levels DecisionLean Management New Service Attitude New Model of Control

NPM Element: Lean State

    

Cutting back on excessive regulation Prioritizing the freedoms of citizens Defining the core functions of government Developing Public-Private Partnerships (PPP) PublicActive participation of civil society in governance from planning, budgeting, and implementation to monitoring and evaluation Leveraging Resources

NPM Element: Separation of decision-making levels decisionSeparation of the strategic level (deciding what has to be done; setting targets and time frames; and defining the budget) from the operative level (deciding how things have to be done; delivery of services; reporting) of decision making.

NPM Element: Lean Management



Focus on efficiency, continuous improvement, and capacity building Development of new leadership style Management by objectives Teamwork Flat organization Performance incentives

    

NPM Element: New Service Attitude

 While

traditional public administration regards

citizens as service receivers who are unilaterally given limited choices by government, PA must regard citizens as customers who have multiple choices, similar to the alternatives available in any market. market.

Main Criticisms Directed to NPM  1- Focus on Efficiency: and the belief that
government could and should be run like a business.

2- Focus on Customer rather than Citizen:

A customer oriented model puts citizen in a reactive role.
29

N.P.M. Criticism


Treating Americans as "customers" rather than "citizens" is an inappropriate borrowing from the private sector model, because businesses see customers are a means to an end (profit), rather than as the proprietors of government (the owners). people are viewed as economic units not democratic participants.

N.P.M.

Nevertheless, the model is still widely accepted at all levels of government and in many members of the Organization of Economic Cooperation and Development (OECD).

New Public Service N.P.S



This model's chief contribution is a focus on Americans as "citizens" rather than "customers" and strong interest in the adoption of private sector practices and values (e.g., efficiency). Accordingly, the citizen is expected to participate in government and take an active role throughout the policy process.

New Public Service (NPS) Principles / (Denhardt: 2003)

-

Help citizens articulate their mutual interest rather than to steer society in new directions. Create collective and shared notion of public interest (dialogue rather than aggregation individual interests). Effective and responsive policies and programs achieved through a collective effort and collaborative process.
33

New Public Service (NPS) Principles / (Denhardt: 2003)

-

PS is attentive to more than market . Shared leadership is the way for successful public organizations / programs.

Public interest served better by PS and committed citizens than by managers acting as if public money were their own.
34

New Public Service

Public servants do NOT deliver customer service.. They deliver Democracy!

35

Challenges for the Future of Public Service



Economic Changes and Redefining Government (restricted expenditure / new issues / PPP/ privatization / decentralization) Globalization (growing international dimension of public administration) Technology and Work Environment (new people and new values / E-Government EThe Role of Citizens in the Governance Process (NPS and interactive decision making) Ethical and Moral Dimensions (PS are Guardians of Public Trust) 36

NPM /NPS - Criticism



Some authors say NPM/NPS has peaked and is now in decline. The cutting edge of change has moved on to digital era governance focusing on reintegrating concerns into government control, holistic government and digitalization (exploiting the Web and digital storage and communication within government).

TRENDS IN NPM
   

  

Decentralization Downsizing and Restructuring the Government Machinery Information and Communication Technologies and e-governance eContracting-out and Outsourcing: a means for Contractingpublic service delivery through sources other than public bureaucracy: DeDe-bureaucratization Privatization Deregulation

Decentralization
In many countries, decentralization provides the context in which administrative reforms interventions are taken up. A major drawback with many decentralization initiatives is the lack of administrative capacity of the public administration at the local levels and the absence of accountability lines of this administration to the local people. For decentralized government to succeed there needs to be a centre to enable it; thus attention must focus on, for example, fiscal transfer mechanisms; mechanisms for ensuring local
level planning and budgeting is informed by and integrated in

Decentralization
national planning and budgeting; systems for monitoring and oversight linked to the budget; and appropriate human resource regimes. The common shortfall entailed to decentralization is that; it does not automatically lead to improved developmental outcomes for the poor and other disadvantaged groups; in the absence of effective local accountability frameworks some local officials may divert the funds for personal gain; limited capacity of local governments may hamper local decision making and service delivery.

Downsizing and Restructuring the Government Machinery

There is a need for job-redesigning and reallocation of functions jobbetween government departments with the target of reducing the volume of the public service (workforce). This may includes changes in the internal structure of departments, the reallocation of functions within departments, and increasingly, the allocation of functions to bodies other than ministerial departments, with the creation of executive agencies and privatisation of government enterprises. Through privatizing state enterprises, outsourcing and contracting out some of the government functions, the public administration can succeed to downsize and reduce its role into a manageable size. This will then reduce government expenditure while increasing efficiency in service delivery and improving performance. In addition, new tools, notably those based on

Downsizing and Restructuring the Government Machinery

Information Communication Technology, have opened up new possibilities for coordinating the different branches of government better, and for forging a more direct link between the citizen and government hence reducing dependence on labour capital. However, downsizing the government machinery does not go without criticism and resistances as Sharma argues that, retrenchment of staff in the public service assumes political dimensions and becomes a political issue in democratic countries irrespective of its merit. He adds that some such decisions are difficult to implement due to resistance from the existing Trade Unions (2007:27). The most important concern here should be the government to be efficient, facilitative, and appropriate to its circumstances rather than merely small as we advocate downsizing.

Information and Communication Technologies and e-governance eBuilding Public Sector capacity in information, innovation, and Technology is crucial in order to seize the opportunities of globalization. Information and Communication Technologies (ICT) provides increasingly powerful process tools that can be deployed to address traditional development problems in innovative ways. Such information technologies as Wide Area Networks and the Internet, can transform government interactions with citizens, businesses, and other parts of government. However, the focus needs to be less on the technology per se and more on the transformation and reorganization of functions and interactions that it permits. By locating service centers closer to clients, customers and partners, e-governance can facilitate better, user-friendly service delivery, userimproved and economical links with business, and more efficient and

Information and Communication Technologies and e-governance erigorous management of government business. For example, communitycommunity-based computerized kiosks in India provide the basic information, documentation and forms needed for citizens in rural villages, saving people time and money and extending the range of services available locally. In addition to enhancing relations with the public, e-government can also improve the einternal working of an administration. Introducing Management Information Systems within government departments, for example, can result in improved personnel management, cost reductions and improvements in service delivery and government procurement, better management of technical assistance funds and projects, and increased revenue collection. It is the challenge for developing countries to localize this technology and utilize the potential opportunities in it.

Contracting-out and Outsourcing: a Contractingmeans for public service delivery through sources Governments than public bureaucracy other in the developing countries can strengthen their
public administration by contracting-out and outsourcing noncontractingnoncore activities to the private sector firms. Contracting out and outsourcing all refer to the process of purchasing goods or services via contractual agreements from private or not-fornot-forprofit organizations. The term contracting-out is often used contractingspecifically to denote the contracting process targeting the purchasing of goods and services that once were provided by government or thought to be a part of the responsibility of government to provide. The basic idea here is to reduce the activity of the state and to utilize competition as a means of

Contracting-out and Outsourcing: a Contractingmeans for public service delivery through sources assuring the best price and efficiency. Government should let the other than public bureaucracy
private sector provide services while government steers. In both contractingcontracting-out and outsourcing, there is a strong need for managing competition by making the private firm bid against each other, with the bidding process resembling an auction where the lowest-priced bid (for provision of service) wins. The lowestWorld Bank study (2004) concludes that for contracting out to be successful, governments should seek to foster competition in the providers market, introduce mechanisms for ensuring transparency in the selection process to avoid corruption, and establish systems for strong performance monitoring.

DeDe-bureaucratization
DeDe-bureaucratization as one of the components of new public management aims to respond to structural deficiencies in the public sector through simplification and redesign of the bureaucratic processes, with the objective of increasing efficiency and improving the ability of these processes to respond to citizens needs regarding the provision of public services. It does not mean doing away with bureaucracy, legal framework, rules and legitimate sources of authority, but checking

DeDe-bureaucratization
the negative impact of (Webers) ideal model of bureaucracy (Sharma Op cit. p.23). Governments in the developing countries need to address and provide remedies to the ailments of bureaucracy such as red tape, excessive paper work, unnecessary long procedures, corruption and arrogance of public servants towards clients so as to strengthen their public administration machinery.

Privatization
Privatization as a hub of new public management refers to any means of increasing private provision of what had been thought of as public goods and services. In much of todays literature, privatization is equated with the total divestiture of goods or services (for example selling off public enterprises). It simply denotes the transfer of ownership of public enterprises to private firm through enterprise sales. However in its broader spectrum, privatization comprises all measures and policies aimed at strengthening the role of the private

Privatization
sector in the economy including contracting out, management contracts Franchises, leases, publicpublic-private partnership and many other (Sharma, 2007:28). Privatization is sought to increase efficiency, improve productivity, downsize the public sector, promote competition, stimulating the private sector, and relieve the government from loss-making state lossenterprises.

Deregulation
Deregulation reduces the legal constraints on private participation in service provision or allows competition among private suppliers for services that in the past had been provided by the government or by regulated monopolies. In recent years privatization and deregulation have become more attractive alternatives to governments in developing countries. Local governments are also privatizing by contracting out service provision or administration.

Deregulation
The challenges and constraints on practical implementation of such kind of reform is the nature of relationship between the public sector and private sector. The two are not very much friendly and they all deal with each other with distrust perspective. Moreover, deregulation should not be taken to mean going without regulation since that will not mean democracy but chaos.