Public Management Reform in the OECD countries
description
Transcript of Public Management Reform in the OECD countries
Public Management Public Management Reform in the OECD Reform in the OECD
countriescountries
Nick Manning Manager Sector
PREM - Latin America and Caribbean – Public Sector unit
September 10th, 2008
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General Government Expenditure as Percent of GDP in OECD, 1870-2005
Source: 1870-1990: (World Bank: 1997), Figures 1 and 1.2; 1995-2005: OECD.Stat - National Accounts, and Clements, Faircloth, and Verhoeven: 2007, Figure 2; IMF, Governemnt Finalcial
Statistics: 2008.
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Confidence in the Civil Service in OECD countries
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Source: CD-Rom; ICPSR 2790, World Values Surveys and European Values Surveys, 1981-1984, 1990-1993, and 1995-1997, 1st ICPSR version, February, 2000
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Reforming Public Management in OECD Reforming Public Management in OECD countriescountries
GDP p.c. in US$ (purchasing-power-parity) in 28 OECD Countries, 2005
Source: World Bank data
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OECD
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Reforming Public Management in OECD Reforming Public Management in OECD countriescountries
The Deepening Basis for the Legitimacy of the Public ServiceProgress Tensions
1990s – Performance
1970s - Responsiveness to elected officials and political priorities
1950s - Equal access and equal treatment
19th century - Due process and institutional continuity
• Concern to make promises and deliver on them• Measurement of results and the use of measurements for planning or accountability purposes
• Frustration with political neutrality• Concern that the public service is an obstacle to political objectives
• Impartiality• Concern that employment in the public sector should be representative of society
• Driven by the law• Administration as a "separate world"
Source: Authors
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Responsiveness and PerformanceResponsiveness and Performance
A responsive public sector is one that reduces the time lag between political priorities and public policy actions.
A performance orientation in the public sector is one
that establishes explicit linkages between measured results and planning for
future services or accountability for past deliverables.
Source: Authors
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5 technical dimensions of reform5 technical dimensions of reform
Human Resources Management
The structure of public sector
Demand-sidereforms
Public expenditure management and financial accountability
5technical
dimensions of reform
Alternative Service Delivery
Source: Authors
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Reform Patterns in the OECDReform Patterns in the OECD
Budget rules
Budget rules
• Input-oriented line item budget, incrementalist• Input-oriented line item budget, non-incrementalist • Input-oriented line item budget, plus some performance information • Budget procedures and timing based around performance reporting• Some accruals budgeting
• Input-oriented line item budget, incrementalist• Input-oriented line item budget, non-incrementalist • Input-oriented line item budget, plus some performance information • Budget procedures and timing based around performance reporting• Some accruals budgeting
AccountingAccounting
• Cash-based• Double-entry bookkeeping• Accruals accounting with extended cost calculation supported by performance measurement system
• Cash-based• Double-entry bookkeeping• Accruals accounting with extended cost calculation supported by performance measurement system
AuditAudit• Traditional financial and compliance audit• Compliance focus with elements of performance and evaluation• Institutionalized financial, compliance and performance auditing
• Traditional financial and compliance audit• Compliance focus with elements of performance and evaluation• Institutionalized financial, compliance and performance auditing
1. Public expenditure and financial accountability reforms
Area of Reform Reform Patterns
Source: Joumard et al: 2004; OECD: 2005b, c, 2007b; Pollitt et al: 2004a.
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Reform Patterns in the OECDReform Patterns in the OECD
Workforce size and
composition
Workforce size and
composition
• Incentives for workforce reduction• Greater use of lateral entry – particularly for senior staff• Incentives for workforce reduction• Greater use of lateral entry – particularly for senior staff
Compensation and
careers
Compensation and
careers
• Moves towards position-based system (or even towards use of general labor law)• Promotion by performance• Decentralization of the employer function • Limited introduction of performance-related pay – associated with targets or quasi-contracts for agencies• Moves towards defined contribution pension schemes
• Moves towards position-based system (or even towards use of general labor law)• Promotion by performance• Decentralization of the employer function • Limited introduction of performance-related pay – associated with targets or quasi-contracts for agencies• Moves towards defined contribution pension schemes
2. Human resource management reforms
Area of Reform Reform Patterns
Source: Joumard et al: 2004; OECD: 2005b, c, 2007b; Pollitt et al: 2004a.
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Reform Patterns in the OECDReform Patterns in the OECD
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Finland
Belgium
Portugal
New Zealand
Australia
United States
Ireland
United Kingdom
Spain
Netherlands
FTC (fixed-term contract) OTC (open-term contract) or lifelong guaranteed
Source: OECD, 2006.
Proportion of Fixed-Term and Open-Term Contracts or Lifelong Guaranteed Employment in the Civil Service at the
National/Federal Level in 2004/05 in Selected OECD Countries
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Reform Patterns in the OECDReform Patterns in the OECD
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DK SWE ICE FIN FRA NOR BLG CAN UK ITA NL USA PL ESP IRL SWT SK GER LUX CZ KOR
Sources: National Accounts, OECD
Source: National Accounts, OECD.
General Government wage bill as % of GDP (1995 and 2004)
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Reform Patterns in the OECDReform Patterns in the OECD
Regulatory managementRegulatory
management• Growth in independent regulators• Creation of central bodies for regulatory management• Growth in independent regulators• Creation of central bodies for regulatory management
Inter-governmental
decentralization
Inter-governmental
decentralization
• Some functional and fiscal decentralization to sub-national governments• Some functional and fiscal decentralization to sub-national governments
Organizational diversification
Organizational diversification
• Unbundling – (possible) creation of more "arms-length" agencies• Delegation of managerial authority within central ministries and departments
• Unbundling – (possible) creation of more "arms-length" agencies• Delegation of managerial authority within central ministries and departments
3. Structure of the public sector reforms
Area of Reform Reform Patterns
Source: Joumard et al: 2004; OECD: 2005b, c, 2007b; Pollitt et al: 2004a.
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Reform Patterns in the OECDReform Patterns in the OECD
Chart 1. Trends in independent regulatory Authorities in OECD Countries
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Financial regulators
Energy
Telecommunications
Source: (Malyshev: 2006, p.291)
Increasing Numbers of Independent Regulatory Authorities in OECD Countries
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Reform Patterns in the OECDReform Patterns in the OECD
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Balanced decentralization
Decentralized expenditures
Centralization
Expenditures
Reven
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Source: National Accounts, in (Blöchliger et al: 2006)
Evolution of revenue and expenditure decentralization in OECD countries, 1995-2003 (% age change)
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Reform Patterns in the OECDReform Patterns in the OECD
OutsourcingOutsourcing • Increased out-sourcing• Increased out-sourcing
Public Private
Partnerships
Public Private
Partnerships• Greater use of "public private partnerships"• Greater use of "public private partnerships"
4. Alternative service delivery
Area of Reform Reform Patterns
Source: Joumard et al: 2004; OECD: 2005b, c, 2007b; Pollitt et al: 2004a.
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Reform Patterns in the OECDReform Patterns in the OECD
Source: Joumard et al: 2004; OECD: 2005b, c, 2007b; Pollitt et al: 2004a.
Market-type mechanismsMarket-type mechanisms
• Market-based approaches to delivering public services (including the introduction of user charges and some use of vouchers)• Market-based approaches to delivering internal government services• Market-based approaches to setting regulatory standards or prices
• Market-based approaches to delivering public services (including the introduction of user charges and some use of vouchers)• Market-based approaches to delivering internal government services• Market-based approaches to setting regulatory standards or prices
Participation Participation • Diverse pilot activities of increasing user participation in management and planning. • Diverse pilot activities of increasing user participation in management and planning.
Open government
Open government
• Provision of information about services and entitlements through charters • Freedom of Information legislation• Extension of offices of ombudsman
• Provision of information about services and entitlements through charters • Freedom of Information legislation• Extension of offices of ombudsman
5. Demand side reforms
Area of Reform Reform Patterns
E-governmentE-government• Provision of information about services and entitlements through e-government• E-government infrastructure and legal framework
• Provision of information about services and entitlements through e-government• E-government infrastructure and legal framework
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Conclusion: some achievement and some Conclusion: some achievement and some risksrisks
• Productivity and quality improvements the public sectors of OECD countries in the last three decades. These improvements are due:
o measure to the quantum leap in human capacity within the public sector; o ICT investments;o managerial reforms.
• The contribution of performance-based approaches has undoubtedly been significant.
• Productivity and quality improvements the public sectors of OECD countries in the last three decades. These improvements are due:
o measure to the quantum leap in human capacity within the public sector; o ICT investments;o managerial reforms.
• The contribution of performance-based approaches has undoubtedly been significant.
Achievements
• Reforms may have been more costly than anticipated - and they may also have had unintended consequences. • Unintended consequences:
o The erosion of value in the public service; o Managing the political-administrative boundary;o Emerging risks (Could there be too many reforms?);o Performance approaches bring with them a significant risk of "gaming“.
• Reforms may have been more costly than anticipated - and they may also have had unintended consequences. • Unintended consequences:
o The erosion of value in the public service; o Managing the political-administrative boundary;o Emerging risks (Could there be too many reforms?);o Performance approaches bring with them a significant risk of "gaming“.
Risks and Unintended consequences
Source: Authors