New public managment

New Public Management (NPM) is a public administration approach that emerged in the 1980s and 1990s, characterized by a shift from traditional bureaucratic governance to a more market-oriented and performance-based approach. The core principles of NPM are:

  1. Decentralization: Decision-making authority is devolved from central government to lower levels of government, agencies, or even private organizations.
  2. Privatization: Public services are outsourced to private companies or non-profit organizations.
  3. Competition: Public services are subject to market competition, encouraging efficiency and innovation.
  4. Performance measurement: Public organizations are held accountable for their performance, using metrics such as output, outcome, and efficiency measures.
  5. Customer orientation: Public services are designed to meet the needs and expectations of citizens, who are seen as customers.
  6. Managerialism: Public organizations are managed like private companies, with a focus on efficiency, effectiveness, and accountability.
  7. Results-oriented: Public organizations are expected to produce specific results, rather than simply performing tasks.

The goals of NPM are to:

  1. Improve efficiency: Reduce costs and increase productivity.
  2. Enhance accountability: Hold public officials and organizations accountable for their actions.
  3. Increase citizen satisfaction: Provide better services that meet citizen needs and expectations.
  4. Promote innovation: Encourage innovation and experimentation in public services.

NPM has been implemented in many countries, including the United States, the United Kingdom, Australia, and Canada. While it has achieved some successes, such as improved efficiency and accountability, it has also faced criticisms, including:

  1. Loss of public trust: The shift to a more market-oriented approach can lead to a loss of public trust in government.
  2. Inequity: Privatization and decentralization can exacerbate existing social and economic inequalities.
  3. Lack of transparency: The increased use of private contractors and non-profit organizations can reduce transparency and accountability.
  4. Overemphasis on efficiency: NPM's focus on efficiency can lead to a neglect of other important values, such as equity and social justice.

In recent years, there has been a growing recognition of the limitations of NPM and a shift towards more collaborative and participatory approaches to public governance, such as:

  1. Collaborative governance: Public officials work with stakeholders, including citizens, civil society organizations, and private companies, to achieve common goals.
  2. Participatory governance: Citizens are actively involved in the decision-making process, through mechanisms such as citizen juries, participatory budgeting, and deliberative democracy.
  3. Hybrid governance: Public and private organizations work together to achieve public goals, blurring the lines between the public and private sectors.

These new approaches aim to address the limitations of NPM and promote more inclusive, equitable, and effective public governance.