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„The Features of New Public Management Reforms in Developing Countries: Case of Georgia“
Khatia Nikolaishvili
Content
Content
- The main features of NPM;
- Development and outcomes of NPM;
- The critical view on NPM;
- NPM reforms in developing countries - Impacts and Outcomes;
- NPM reforms in Georgia.
Why was there a need For REFORMS?
NPM
Reforms
- Citizens dissatisfaction;
- Inefficiency;
- Increasing costs;
- Lack of trust in Public sector;
Preconditions
NPM reforms in developing coutries
- Economic deficit;
- Citizen’s loss of trust towards state;
- Political Imbalance;
- Weak civil society;
- Improper social system.
NPM Reform
NPM
- Slimming down outsized government;
- Government institutions shifting its functions towards privatization;
- Implementing new informational technology in public sector;
- The development of a more international agenda, establishing intergovernmental cooperation and policy design.
Does NPM Work?
NPM reforms became more related to “modern tendencies” rather than effective transformation
Critical Review
- First wave of critics-1995
- Serious Controversy-2000
- No longer Viable con.-2005
The main Drawbacks
Drawbacks
- Diminished State’s function;
- Failed Decentralization;
- Discouraged public servants;
- Deficient coordination between public bodies;
- The reform to reduce salary expenditure failed.
NPM in Developing countries
The developing countries were challenged
NPM
in Developing Countries
gam Location
Non-effective bureaucracy
The necessity to form effective pub. inst.
- Communist type of administration legacy;
- Re-introduce institutional pluralism;
- Increase the efficiency of the administrative state;
(budgeting, performance and HR management, ethics)
First Phase
Reform and Its Consequences
- Public-Private Partnership- FAIL
Reforms
- The Policy Implementation was-WEAK
The Process of Decentralization didn't Succeed
Corruption and Clientelism
Positive Effects:
Performance management, quality improvement and the creation of agencies were successful!
Before "Rose Revolution"
NPM Georgia
- Economic crisis;
- The state was the main employer;
- Extremely low wages;
- Corruption;
- Favoritism and Nepotism;
- Non-transparent Public sector;
- Lack of motivation of public servants.
In order to ensure effective and fast implementation of reforms he increased the powers of the president, which also implied the partial decrease of the powers of the parliament and the government.
New Government
Mikheil Saakashvili
Anti-Corruption Strategy
- Decreasing the bureaucracy and simplifying the process;
- Implementation of new modern technologies;
- Downsize the Government;
- Salary of the public servants increased;
Strategy
From 102,571 to 66,615 (by 35%)
The governmental bodies, 18 ministries and 18 state departments were decreased into 15 ministries and later was reorganized into 13.
The Parliament of Georgia
Overall the reforms of public sector made following improvements:
Outcomes
- Started to optimize the number of public servants;
- Increased the salaries of public servants;
- Raised level of transparency in government activities;
- Corruption level was drastically reduced;
- The system became more flexible;
- Motivation system of public servants improved;
- Budget spending decreased and improved planning mechanisms;
- Improved Civil Society;
- Increased government accountability;
- Government involvement in regulating private sector activities was reduced;
- Created new model of police.
"Georgian Dream"
- Shift form presidential-republic to parliamentary system;
Georgian Dream
Different Policy
- The reform wave in developing countries was failure but successful in some spheres;
- The case study of the Georgia showed evidence of successful impact of NPM reform.