International Public Management Network (IPMN)

Vol. 1, No. 2

A Contractual Framework for New Public Management Theory
Education and Training for New Public Management
Obstacles to the Administrative Modernization Process in Germany 
Relationships Between Government Size and Economic Growth
The New Public Management Paradigm and the Search for Democratic Accountability

Documents

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The New Public Management Paradigm and the Search for Democratic Accountability The New Public Management Paradigm and the Search for Democratic Accountability

Filesize: 2.03 MB

Robert D. Behn

Can we permit empowered. responsive civil servants to make decisions and be innovative and still have democratic accountability? This important question haunts those who would advocate a "new public management." The proponents of a new public management paradigm emphasize performance the ability of their strategy to produce results. But they cannot ignore the troubling question of political accountability. They must develop a process that not only permits public managers to produce better results but also provides accountability to a democratic electorate.

Relationships Between Government Size and Economic Growth: Japan's Government Reforms and Evidence f Relationships Between Government Size and Economic Growth: Japan's Government Reforms and Evidence f

Filesize: 1.67 MB

Katsuaki L. Terasawa, William R. Gates

This paper examines the relationship between govern­ment size and economic growth of 21 industrialized countries. Govern­ment size is measured by government final consumption expenditures and transfer payments. The relationship between government consump­tion is expected to increase GDP growth for developing countries, and reduce it for industrialized countries. Government consumption can contribute to increased economic growth. However, government consump­tion is likely to expand beyond an efficient level in industrialized countries. In contrast, transfer payments, and social welfare programs are likely to reduce economic growth for most countries. These pro­grams reduce work incentives and encourage tax avoidance activities. Work disincentives and tax avoidance reduce economic growth. These expected relationships are consistent with economic performance and government size for the countries considered here. Inefficiency and excessive government growth are checked by voter feedback as tax burdens exceed the associated benefits. Unfortunately, government pro­gram costs and benefits are asymmetrically distributed. The resulting tendency is to expand government programs, particularly programs that benefit a minority of voters at the expense of a minority. This tendency becomes even more acute as the tax system becomes more progressive (I.e., tax burdens become concentrated. Reductions in government size are more likely with stagnant or declining economic growth, and in government programs whose costs are widely shared, compared to pro­grams with widely shared benefits and narrowly shared costs.

Obstacles to the Administrative Modernization Process in Germany Obstacles to the Administrative Modernization Process in Germany

Filesize: 706.33 kB

Helmut Klages, EIke Löffler

According to two surveys of the German Association of Cities among its members in 1994/95 and 1996, the number of medium-sized and big cities pursuing administrative modernization is impressive and still rising. Yet, the data also point out implementation problems of the new steering model, which is the German variation of new public management. First, financial crisis is the most common reform motive. This implies that most reformers rather focus on 'hard' management areas like financial management and neglect human resource management. Secondly, the data give evidence that the new steering model still has a critical mass of scepticism in local government councils. As a consequence, the re-engineering of the relationship between the administrative staff and local council members is very much deficitary. Also decentralized resource management usually boils down to the reduction of household titles and lump-sum budget cuts. This raises many questions on the democratic accountability of local government reforms in Germany.

Education and Training for New Public Management Education and Training for New Public Management

Filesize: 1 MB

Christoph Reichard

This article argues for a new approach to educate and train public managers. Several functional requirements regarding knowl­edge, skills and attitudes are discussed. The status and trends of public management education and training in several countries are reviewed. Situation and recent developments of public management education in Germany are subject of an exemplary case study. Elements of an effective curriculum with an international perspective and steps towards a common understanding of public management education are suggested.

A Contractual Framework for New Public Management Theory A Contractual Framework for New Public Management Theory

Filesize: 1000.63 kB

James M. Ferris, Elizabeth A. Graddy

This paper evaluates the potential for institutional eco­nomics to help us frame choices for the design of institutional arrange­ments aimed at improving public sector performance, and the lessons it offers for the development of a new public management theory. It defines the key elements of transaction cost and principal agency theory and their application to the public sector. Local government contracting, fiscal decentralization, and performance budgeting, applications that share problems resulting from divergent objectives, information costs associated with policy making and implementation, and risks to public sector accountability, are analyzed. This analysis demonstrates that institutional economics can illuminate how public management can effectively utilize private sector solutions by providing the theoretical underpinnings for government reform initiatives.