New public management

New Public Management (NPM) is a set of ideas and practices that emerged in the 1980s and 1990s, aimed at reforming the public sector and making it more efficient, effective, and responsive to citizens. The core principles of NPM are:

  1. Managerialism: Emphasis on professional management and leadership in the public sector.
  2. Market-oriented: Introduction of market mechanisms and competition to improve public services.
  3. Decentralization: Transfer of authority and resources to lower levels of government or to non-governmental organizations.
  4. Performance measurement: Use of performance indicators and targets to evaluate public services.
  5. Privatization: Transfer of public services to the private sector.
  6. User orientation: Focus on meeting the needs and expectations of citizens and customers.
  7. Flexibility and adaptability: Encouragement of innovation and experimentation in public services.

The key features of NPM include:

  1. Agencification: Breaking down large government departments into smaller, autonomous agencies.
  2. Contracting out: Outsourcing public services to private contractors.
  3. Public-private partnerships: Collaboration between government and private sector organizations.
  4. Performance-based budgeting: Allocating resources based on performance targets.
  5. Citizen engagement: Involving citizens in the design and delivery of public services.

The goals of NPM are:

  1. Improved efficiency: Reducing costs and increasing productivity.
  2. Enhanced effectiveness: Improving the quality and outcomes of public services.
  3. Increased accountability: Holding public officials and organizations accountable for their actions.
  4. Better responsiveness: Improving the responsiveness of public services to citizens' needs and expectations.

The impact of NPM has been mixed, with some countries and organizations experiencing positive outcomes, such as:

  1. Improved efficiency: Reduced costs and increased productivity.
  2. Enhanced effectiveness: Improved quality and outcomes of public services.
  3. Increased accountability: Improved transparency and accountability.

However, NPM has also been criticized for:

  1. Inequity: Increased inequality and exclusion of marginalized groups.
  2. Privatization of public goods: Transfer of public goods and services to private interests.
  3. Loss of public trust: Erosion of public trust in government and public institutions.
  4. Inadequate regulation: Inadequate regulation of private contractors and public-private partnerships.

Overall, NPM has had a significant impact on the public sector, and its principles and practices continue to shape public policy and administration around the world.