New Public
Management
Presented by:
Ethel N. Mendiola
Ulysses Quinton
Dada Villanueva
PA 201 Class, UP-NCPAG
Presentation Outline
I. What is NPM?
II. Emergence of NPM
Evolution from Traditional to NPM
III. NPM: “Steering not Rowing”
Theoretical Bases of NPM
o Economics
d
o Private Management
n
Owen Hughes
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE INTENDED OUTCOMES
PRINCIPLES
Steer, rather Greater flexibility
than row Concentration on overall mission
Greater willingness to experiment
and focus on comprehensive
solutions to problems
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Empower a greater understanding of the community's
real problems
communities to
a tendency to tackle and solve problems
solve their own rather than just deliver services
problems the provision of care and not just service
a greater degree of flexibility and creativity
lower cost
more effective enforcement of standards of
behaviour (which is really an adjunct to caring)
a tendency to focus on capacities rather than
to respond to deficiencies.
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Promote and greater efficiency and value for money
encourage pressure on monopolies to consider and
respond to the customers’ needs
competition rather
innovation is valued and rewarded
than monopolies
increased pride and morale of public
sector
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Be driven by elimination of outdated and
mission rather than unnecessary rules and regulations
rules flexibility of budgets
transformation from
“conventional” to a more
“supportive” civil servicce
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Be results-oriented Promotes improved performance
by funding focus on successful programs
outcomes rather and reward success
than inputs potential to gain community
support by demonstrating
successful programs
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Meet the needs of more accessible
customers rather government services
than those of the
bureaucracy
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Concentrate on long-term view toward
earning money outlays
rather than just develops goal-oriented
spending it public sector managers
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Invest in preventing Adoption of longer-term
problems rather view of planning to anticipate
than in curing problems that could emerge
crises
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Decentralize More flexible in responding to
authority rather local needs
than build More effective problem-solving
hierarchies More innovative in service
delivery
Generation of high-morale,
commitment and productivity
HIERARCHY is replaced with
ACCOUNTABILITY
Core Principles of NPM
(Osborne and Gaebler, 1992)
CORE PRINCIPLES INTENDED OUTCOMES
Solve problems by Desired results are
influencing market produced through
forces rather than by leverage and market
creating public programs intervention
The PUBLIC CHOICE THEORY
3Es plus RELEVANCE, CLIENT-ORIENTEDNESS
AND EQUITY (Pilar)
Adopted strategies of people participation, social
access and participative governance
Public Service Values:
o Administrative and political accountability
o Nationalism and Good Governance
o Public-Private Partnership in Poverty Alleviation
Focus: RESULTS (Hughes)
The PUBLIC CHOICE THEORY
PROBLEMS CONFRONTING
PA IN RP
BLOATED CIVIL SERVICE
As of 2009, a total of 1.445 million personnel were
employed in government.
65 percent of all government employees are assigned
to national government agencies and only 27 percent
to LGUs.
35 percent - 40 percent of the national government
expenditures are channeled to personnel services
PROBLEMS CONFRONTING
PA IN RP
PROBLEMS IN PRIVATIZATION
resulted in higher costs in the delivery of
services offered by this privatized corporations.
Fiscal deficit problems from debt incurred by
GOCCs
o Budget Deficit (2005): P146.5 B
o National Debt: $72 B or 79% of GDP
PROBLEMS CONFRONTING
PA IN RP
DETERIORATING INVESTMENT CLIMATE
Causes:
weakness of the legal and regulatory framework
limited recourses available to resolve disputes
high level of political intervention in the
commercial sector
Greater cost of power and labor as opposed to
other neighboring countries in the region
CORRUPTION
PROBLEMS CONFRONTING
PA IN RP
PROBLEMATIC CONDUCT OF ELECTIONS
Election fraud
Absence of modernized election system
NPM in the Philippines
The role of technical consultants in the formulation of
reform interventions led to the introduction of some
NPM concept in the Philippines.
many of the NPM inspired reform initiatives in the
Philippines are hastened by the presence of IT
infrastructures
structural adjustment programs of multilateral lending
institutions like the World Bank, ADB and the
International Monetary Fund (IMF) have contributed to
the “growth” of NPM in the Philippines.
Did NPM lead to
better governance?
