The Assignment:

Discuss the reasons for emergence and spread of New Public Management (NPM) in the latter part of
20th Century. Examine its main characteristics and success stories giving examples from the countries
that have followed the concept. Assess how far Sri Lanka has been successful in adopting this concept
and challenges that the government has faced in its reform attempts.

----------------- . -------------------------------. ------------------------------. ----------------------------------

Introduction:

The concept of new public management has come to important thinking about public sector
reform by practitioners and academics. New Public Management (NPM) is conceived as
'administrative argument' and 'administrative philosophy' (Hood, 1991) Based on this new public
management (NPM) is considered as the managerial process in which administrative activities
are led to improve the administrative activities in order to provide better service delivery by
using the governmental functions in an efficient and successful manner.

The new public management thought has emerged in the 1980s considered an attempt to make
the public sector more meaningful and to improve the efficiency of the Government incorporated
the concepts of the management models from the private sector. It also emphasized the centrality
of citizens who were the recipient of the public goods and services known as customers to the
public sector. New public management system concentrated to a more decentralized control of
resources and exploring other service delivery models to achieve better results, in an attempt to
provide better and faster services. It has been policy wise accepted that NPM as a change process
which developed to meet the issues and challenges created by the effect of globalization,
privatization for economic liberalization, increasing need to cope with the rapid changes in
modern technology. NPM concept has not only led to a wide-ranging change in the role of
government but also the following the best practices of private sector management which
emphasizing the relationship between civil society and the government. Further the NPM, it is
also identified as New Managerialism or service and Market-based Public Administration etc. 

It has been believed that the efforts have been made to increase the good governance elements
such as effectiveness and efficiency by introducing good managerial practices to provide
facilities to the private sector in terms of public administrative guidance to make managerial
transformation. In line with those principles NPM is the practice of using management process,
models and tools to make the policies of the government more effective and meaningful. It
focuses more on outcomes than on process output and, on accountability rather than on
irresponsibility. Meantime the NPM believes that the traditional shortcomings in
the administration should be eliminated and make it on the line of result-oriented management. It
is obvious that it encourages the adoption of the good aspects developed by the private sector in
the public sector as well as helps to make public management productive and accountable
manner. It may able to achieve qualitative improvement in the flow of public service provision.
NPM also adopts flexible, effective and useful and confirm market-oriented policies.
According to Scholars the new manageralism ideas are new, even if some of the aspects are
not. Managerial reforms were not instituted by, or for the benefit of, senior managers, they
were imposed by politicians and governments highly unimpressed with the quality of their
public services. Managerialism may last longer as a result of its implied assault on bureaucratic
principles. The idea of government itself may be under some pressure, but bureaucracy now has
few supporters anywhere.

If we concentrate on the reasons for the emergence of the concept of the NPM, Concerning the
public expectations of the government, there is a large difference between developing and
developed countries. Public expectations on the government service delivery it provides
comparatively low in the developing countries in comparison to Western Countries. This is
because people in the developing world are not used to high quality services, and thus do not put
their governments under pressure compared to people in Western countries, who urge the
government to provide high quality services (Mongkol, 2011).

In between 1980s and 1990s there are many criticisms and aggression on the size, scope and
methods of government and bureaucracy while many hopes and demands were made from this
system. In addition the most frequently criticized topics are the large size of the government,
expansion of scope of government and its impact and the traditional procedures of the
government and the bureaucracy. They unable to meet the people’s aspirations because the
government becomes the ultimate obstacle to national economic growth, prosperity, and
progress. The belief, the new public management has been directed for governance based on the
famous principles related to the economic sector. The profit maximization, introduce the private
sector principle in to the public sector and replacing public sector management aspects by private
sector and restructuring the public sector are the guiding principles of the new Public
management.

Further the rapid development experienced in the private sector through globalization created a
transformation in the public administration into a New Public Management. It based on the in
capacity building, making it competitive and people-oriented in the administrative sector. The
public sector must be as efficient, competitive and effective as the private sector for the good
economy. The efficient operation of the government sector can facilitate the private sector more
effective. Both are interdependent with one each other. Same time the expansion of the
functional role of the government, towards a new public management concept had taken
place. For example NPM is basically an awareness of general management since it discusses
that all management aspects similar contexts and therefore must be moving toward in
comparable ways, not distinguished conferring to the type of job arrangement. The new
applicable public governance tasks the traditional concepts of the inhabitant and the state, the
citizen as a customer, and remarking the welfare state as a market-centered distribution system
(Christensen & Laegreid, 2011)

The notifiable features are very much important to confirm the successfulness of the NPM
practices in order to achieve the intended objectives of the reforms. Where it replaces the large
and multi-purpose bureaucracy with a quick government system that emphasizes achievement
and results rather than process. It is a mechanism based on market economy is promoted for the
availability of public goods and services by the public sector. Which enabled by extend
Cooperation between public sector and private sector in which the government machinery to play
a coordinating and facilitating role by making the private sector more active. It may materialized
by maximum use of information technology to make the public sector management effective and
changed the values of public sector. It emphasizes institutional economy, efficiency and
effectiveness. Further it guarantees the right of consumers to make their own choices and raise
voices while using goods and services. In line with this aspect it ensures personal and
institutional accountability. And also it provides flexibility as per the needs of public sector
management practices. 

NPM initiatives are recognized essential components of an effective public sector. Accordingly,
in Sri Lanka time to time elected governments of different parties have taken various steps to
formulate the background for and implementing NPM by positive reforms in public sector
agencies. Sri Lanka also has taken necessary initiatives to introduce NPM to the government
sector with the hope of enhancing and streamlining the sector for better delivery of services .
The contribution of state became an important role of the government in the late 20th century
advocating its economizing encouraged by liberal ideas. Resultantly, Sri Lanka embarked in
1977 becoming the pioneer in the whole of South Asia on implementing the extensive economic
liberalization process.The impact of NPM has had a widespread influence on how public
facilities are structured and delivered aimed at (Lapsley, 2009).

The NPM is a relatively new phenomenon of management culture and organizational

procedures that emphasizes the centrality of the citizen or the as well as accountability for
results. Direct public sector costs should be cut and labor discipline should be enhanced so as to
improve the maximum utilization of resources. The management practices duplicated the
Private-sector-style and applied to increase flexibility in decision-making. Explicit standards and
performance measures established, due to confirm accountability which requires clearly stated
targets and efficiency requires attention to goals; Managers given powers to conduct hands-on
professional management, because accountability requires clear assignment of responsibility
does not mean that diffusion of power. It has been believed that NPM based on the above remedies
followed in the administrative reforms in the institutional framework of the government may
represents affordable human resources and strength ensuring corruption free public sector by
delivering the efficient and effective service. Although the practicability of the NPM have
Limitations in terms of practical implementation such as Repetition of traditional principles of
public choice theory, ethics and accountability problem of politicization and difficulty in
applying market principles etc. 
Since the inceptions of independence in the 1950s, underdeveloped and the developing
countries had moved toward the stronger governments to assist in the development
of their nations. Political leaders In Southeast Asia, tended to depend much on
bureaucracies to tailored by the colonies and enforce the national development plans. In
the process of development, major industries were nationalized in these countries.
However, productivity of nationalized industry tended to be secondary, where the political
leaders utilized government corporations for employment of political supporters.

According to the Flynn 1999 mentioned on the Asian miracle by more the countries
developed, the more people demanded democracy. As shown in the recent political
changes in Philippines, Indonesia and Malaysia, the old-styled authoritative regimes
have allowed more democracy and local autonomy. After the oil crises in the 1970s,
foreign companies rushed to Asia seeking to lower production costs. As a result,
Southeast Asian countries achieved a high economic growth.

Further, the government reform imperatives come from the out side. Since the 1990s,
international aid organizations like the World Bank and the International Monetary Fund
(IMF) request recipient countries to improve governance for the effective use of
development assistance, providing fund and experts for civil service reform and
improvement of public management. It is applicable in the Sri Lankan Context also
stressed. After the crash of financial markets in 1997, Southeast Asian countries
experienced , demand for government reform and it became more serious. Necessity for
governmental reforms in these developing countries strategies expected Fairness in the
rule of law, procedures, and merit system in the service provisions. Accountability
accounting and audit system through decentralization process, Credibility for their
citizen participation and confirm the good governance aspects.

A serious issue encountered is that they have to pursue conflicting values at the same time.
To establish a credible government, it is necessary for leaders to disclose government
information to the public in simply accountability. Perhaps, governments tend to hide
information that might be advantageous to opposing forces. In pursuing value in efficiency
through privatizing state institutions, political leaders tend to prefer them to remain
inefficient due to fears of mass unemployment, corruption. Here the need aroused to the
politicians to utilize political appointment to control bureaucracies.
In a nutshell it will be difficult and even risky to adopt the New Public Management to
the administrative reform in developing countries, unless taking steps for establishing
fundamentals of modern governance. The government intended to the NPM should
invest more in the "capacity-building" of the state through the establishment of a fair
political system and solid legal foundations, and through the human resource
development. It is rational to promote information exchange on governance reform
among the developed and developing states. For instance, Japan's experience of
privatizing public corporations would be a lesson for the states that propose deficit-ridden
state corporations. Further, positive use of transnational bodies seems very effective.

If we concentrate on the developing countries there is no doubt that many developing countries
are experimenting with new public management reforms ( Podianno 1999). There are some well-
known examples: Malaysia’s experiments with total quality management is the results-oriented
management initiative in Uganda (Langseth 1995); the application of the NPM in the developing
countries they committing themselves to NPM-style reforms. This is mainly undertaken as part
of the worldwide pursuit towards greater efficiency and cost savings which is derived as a
driving force of the new public management and the reason especially to the particular country
concerned. During the implementation of the NPM concept the political interferences with
various objectives of the ruling party may become impediment for the process.
Political decentralization tends to be considered separately from public management reform in
industrialized countries
According to Willy McCourt, the application of NPM in developing countries is still in its early
stages not reached the intended objectives it is mainly due to these developing country
governments are reluctant to expose themselves to scrutiny. He further extend his reasons are
But governments lack money and donors lack interest; until very recently, donors have been
busy with issues of governance and of financial and human resource management.

For the successful implementation needs corruption free environment. For example we take the
sub-Saharan countries like Mozambique, South Africa, Tanzania, Uganda and Zambia (and some
extend as Pakistan). These are bodies that owe their origins to the twin imperatives to increase
tax and customs revenue and to reduce corruption in revenue collection. Furthermore some
countries Like Sri lanka, Tanzania In reality, administration in many places remains highly
centralized, even if only in theory. It is the bottleneck for the fruitful implementation of NPM.

Sri Lankan Experience, issues and Challenges:

In 1977, the country’s centralized administrative model has survived without hard
challenges. During the period in between 1977-1994 government attempt to introduce open
market economic policies to incorporate with the world economic trends and to encourage
private sector involvement in the economic activities ( Samaretunge and Nyland) Further
the government reform imperatives come from the outside. Since the 1990s, international
aid organizations like the World Bank and the International Monetary Fund (IMF) request
recipient countries to improve governance for the effective use of development assistance,
providing fund and experts for civil service reform and improvement of public
management ( Osumu)
McCourt reveals that, the developing country evidence is less promising, but not to the point of
ruling these elements out. If they can be separated from other unpromising elements such as
quality circles and citizen’s charters, especially where these are definitely unproductive, they will be
more attractive to the developing country policymakers for whose attention NPM has to compete.
Developing countries could usefully learn more about them, and public management scholars
could do more to help them apply them critically issues, no clear hire and fire policy has
been evident in the public sector. Despite a performance related pay system possibly being
able to ensure better performance and productivity than the traditional wages and salaries
system (Hughes 1998), it has been a most difficult element to introduce in Sri Lanka.
These automatic promotions adversely affect the overall performance in the public sector".
However, in the existing culture and without a proper safety net in place it will be
politically controversial to introduce this element. They indicated that the government had
tried to minimize its costs and had tried to introduce greater transparency. However, they
suggested that the government should focus more on maintaining a rule-based government,
which they saw to be a prerequisite for any effective public sector reform. Also, bureaucrats
mentioned that changes in the present political culture have had a significant impact on
their working This could suggest that their domination in the public policy process is now
being challenged.
Issues and Problems

There are some obstacles that need to be highlighted Hughes (1998 ) that NPM ‘has effectively
supplanted the traditional model of public administration, and that the public sector in the future
will inevitably be managerial, in both theory and practice’ the country urgently needs more
managers, rather than administrators, with new competencies such as interpersonal and
communication skills and IT knowledge to implement NPM-based reform policies in the
present global environment.

Hughes and Teicher (2004) mentioned that adoption of NPM principles may create more layers of
complexity in developing countries. Some scholars have warned against the use of NPM in developing
countries because the absence of rule-based government and a strong legal system might do more harm
than good (Schick, 1998). It is in real situation of Srilanka’s Most of the civil servants cannot
find solutions to the practical issues. They always emphasize rules and regulations but not the
way of solving people's problems. ( Athukorala, P& Jayasuriya ).

The above mentioned pre conditions should meet to confirm for a more efficient and
competent bureaucratic system in Sri Lanka. Adherence to rules and regulations are reportedly
takes precedence over efforts to improve outcomes. A change of attitude among bureaucrats
and politicians may be necessary to promote a better working environment. Some training
for both groups is required to provide an environment conducive to their working
collectively in order to achieve an effective public sector. Performance evaluation in the
public sector needs exposures. Frustration with the present evaluation system was quite evident.
Without a proper performance evaluation system in the public sector, nobody knows on
the progress of the venture. finding new initiatives for the enforcement of greater
transparency is of paramount importance to the country Probity remains the main concern
in any public sector reforms (Polidano 2000). This issue is more critical in developing
countries such as Sri Lanka in the absence of a rule-based government.

Conclusion:
New Public Management (NPM) is a new paradigm shift in the administrative values and
methods of public management that puts forward a different relationship between governments,
the public service delivery and the clients and consumers of service. Also it is a new model of
public management that sets onward a different association between administrations, the public
facility and the community. There have been changes in the improved delivery of services in
public sector by intended reforms. The introduction to new public management involves
inevitable positive public service reforms. It is explicit intended changes in the delivery of
public goods and services to the ways that public services operate towards an efficient, effective
accountable, manner and the changes to the scope of governmental activities, to confirm the
public satisfaction.

In recent years, Sri Lanka has attempted to implement a range of new public management
initiatives, but has not replicated the NPM "model" as a whole. Sri Lankan government has
taken several attempts to reforms the public administration system with special array of NPM
in recent decades, however major problems remain same. The NPM principle was projected as a
suitable answer heading for constructing the public segment administration more effective,
operative and receptive. Numerous events, for instance small administration, proficient
organization, production alignment, performance-centered answerability arrangement,
performance events, deliberate planning, contracting out, privatization, accrual accounting,
quality administration, output planning, contract service and accordingly onward have been
recommended for refining the performance of the public segment in both developing and
developed states .

In Sri Lanka’s NPM initiative reveals that the Democratization and Participation especially
involvement in Decision Making and the Customer Orientation have positive impact on
Organizational Performance. While Management Style of Human Resource Practices and
Decentralization do not have positive impact on Organizational Performance in NPM. New
Public Management had influenced the process of changing public sector organizations com-
prehensively in almost the entire world. The emphasis of the New Public Management
movement was on the implementation of decentralization, Therefore it is necessary to implement
pure devolution process and capacitate the Officials are important to achieve the benefits.
Reference:
Athukorala, P& Jayasuriya, S 1994. Macro Economic Policies, Crises, and Growth in Sri Lanka,
1969-90, Washington: The World Bank.
Charles Polidano , The new public management in developing countries IDPM Public Policy and
Management Working Paper no. 13 November 1999
Christensen, T., & Laegreid, P. (2001). New Public Management: The effects of
contractualism and devolution on political control. Public Management Review, 3(1), 73-94.

Hood, C. (1995). The “new public management” in the 1980s: Variations on a

theme. Accounting, Organizations and Society, 20(2–3), 93– 109.

Hughes. O E 1998. Public Management & Administration. 2nd ed, London:

Jannatul Ferdous, The Journey of New Public Management. An Analysis. International Journal
of Business, Economics and Law, Vol. 11, Issue 2 (Dec.)

Lapsley, I. (2009). New public management: The cruelest invention of the human spirit? 1.
Abacus, 45(1), 1-21.

Mangkol, K. (2011). “The Critical Review of New Public Management Model and its
Criticisms” Research Journal of Business Management 5: 35-43.

McCourt, W. (forthcoming a) ‘Finding a way forward on public employment reform: A Sri

Lankan cases tudy’, Asia Pacific Journal of Human Resources.
Naveen Kumar C., New Public Management in Developing Countries, Global Journal of
Management and Business Studies., ISSN 2248-9878 Volume 3, Number 11 (2013), pp. 1241-
1246

Osamu Koike, New Public Management in Japan and Southeast Asian Countries: A
Magic Sword for Governance Reform? Osamu Koike, Paper presented at the IIAS/ Japan
Joint Panel on Public Administration, Bologna, Italy, June 21, 2000.
Ramanie Samaratunge, Quamrul Alam and Julian Teicher, The New Public Management
reforms in Asia: a comparison of South and Southeast Asian countries International Review of
Administrative Sciences 2008; 74; 2
Samaratunge Ramanie, Alam Quamrul and Telcher Julian. 2008. The New Public Management
Reforms in Asia: A Comparison of Southeast Asian Countries in International Review of
Administrative Sciences, Vol. 74 (1).

Samaratunga R, NylandC, (2006) Globalization and Social Protection in Sri Lanka, Journal of
South Asian Studies XXIX (3): 415-34

Willy McCourt, New Public Management in developing countries, Chapter14, The New Public
management in actin, Oxford University press, 1996
https// mpra.ub.uni-munchen.de/83307/MPRA Paper No. 83307, posted 16 dec 2017 14:41 UT.