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Be driven by  elimination of outdated and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?