Public Organization Review: A Global Journal 4: 361–371 (2004)

# 2005 Kluwer Academic Publishers. Manufactured in The Netherlands.

Reforming Public Administration in Southeast

Asia: Trends and Impacts
M. SHAMSUL HAQUE polhaque@nus.edu.sg
Department of Political Science, National University of Singapore, Singapore

Key words: public service reform, current trend, major impact, Southeast Asia

Abstract
In Southeast Asia, the recent two decades have witnessed major theoretical, structural, functional,
and ethical reforms in the administrative system. In the region, the state-centric mode of public
administration that emerged during the colonial and postcolonial periods, has recently been
transformed into a businesslike public management in line with the current global movement for
such a transition. This article examines the trends of administrative changes in countries such as
Brunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. It also briefly
evaluates the critical impacts of these recent changes on the systems of public administration and
the conditions of citizens and societies in the region.

Introduction

There is a relative absence of critical academic discourse on public

administration in Southeast Asia. The existing literature mostly covers the
empirical illustrations and simple descriptions of the prevailing administrative
systems and periodic administrative changes adopted by various governments
in the region. There is hardly any debate on the conceptual and theoretical
underpinnings of such administrative systems and reforms. On the other hand,
most of these administrative systems and their changes have been imitative of
those found in Western capitalist nations. The administrative systems in
Southeast Asia not only represent the past colonial legacies—e.g., the British
tradition in Malaysia and Singapore, the Dutch system in Indonesia, and the
American pattern in the Philippines—they have also been changed during the
postcolonial period based on the recent reform experiences of Western
nations. During this post-independence period, except for communist countries
such as Vietnam and Cambodia, the administrative systems evolved in South-
east Asia in line with the liberal democratic models of public administration
(especially the British and American models) characterized by principles such
as separation of power, political neutrality, and public accountability, which
were to be maintained through constitutional provision, legal system,
362 M. S. HAQUE

legislative means, ministerial supervision, budget and audit, and performance

evaluation.
However, the recent two decades have seen fundamental historical changes
in public administration in developed nations themselves. Increasingly, the
ideological foundation has shifted toward neoliberal perspective, the policy
orientation has changed toward market-driven agenda, the structural pattern
has moved toward neomanagerial autonomy, the functional nature has shifted
toward a catalytic role, the normative features have changed in favor of
businesslike values, and the service recipients are redefined as stakeholders or
customers (Rosenbloom, 2001; Pereira, 1997). These shifts in public admin-
istration are inherent and evident in the recent reform initiatives undertaken by
governments in Australia, Belgium, Canada, Denmark, France, Germany, Italy,
the Netherlands, New Zealand, the U.K., and the U.S. Following the lead of
these developed nations, many developing nations, including Southeast Asian
countries such as Brunei, Cambodia, Indonesia, Malaysia, the Philippines,
Singapore, Thailand, and Vietnam, have introduced similar ideological, struc-
tural, functional, normative, and service-related changes in their administrative
systems (Haque, 1998).
Interestingly, while the practical nature of public administration has under-
gone such a rapid historical transformation in Southeast Asia, the academic
literature or discourse has not been parallel to this administrative transition in
the region. It is, however, crucial to reexamine the nature and dimensions of
these unprecedented administrative reforms in order to assess their academic
and practical implications for public administration. In this regard, the article
examines the theoretical-conceptual, structural-functional, and ethical-motiva-
tional patterns of changes in the public service in Southeast Asia. It also makes
a brief evaluation of these administrative reforms, especially in terms of their
adverse impacts on the academic discourse, the practical profession, and the
general public. It concludes by stressing the need for a serious critical
evaluation of the current historical trends in public administration in the
region.

Trends in public administration set by current reforms

Theoretical-conceptual trend

During the post-independence period, in line with the overall state-centered

model pursued by most regimes in the developing world, Southeast Asian
countries adopted a planned development model representing a reformed
version of Keynesian economic framework. The centrality of the state and its
administration was emphasized in most theoretical perspectives meant for
developing societies (Haque, 1999d; Randall and Theobald, 1985). During this
period, in articulating the mode of public governance in Southeast Asia, the
REFORMING PUBLIC ADMINISTRATION IN SOUTHEAST ASIA 363

varieties of modernization theories and economic-growth models (endorsed by

academics and policy makers) prescribed an interventionist agenda, although
there were variations among countries in the region in terms of the degree of
actual state intervention.
However, during the recent decades, under the influence of a global market
ideology, the state-centric thinking in public administration has increasingly been
replaced with market-biased theories and models in Southeast Asia. This current
intellectual trend in governance reflects the worldwide revival of neoclassical
economic thinking and the reinforcement of public choice theory. In fact, the basic
tenets of structural adjustment program—which represent some major compo-
nents of recent public sector reforms in Southeast Asian countries—are largely
based on the neoclassical model that opposes state intervention, endorses the
downsizing of the public sector, and suggests the expansion of business
enterprises (see ADB, 1999; Haque, 1999c; Stein, 1994). The earlier tradition of
public administration guided by a state-led development perspective, is in eclipse
in countries such as Malaysia, Thailand, and Indonesia. Even the communist state
like Vietnam has reformed its administrative system in order to realize a market-
led model of development. With regard to this changing orientation in develop-
ment pursued by the state in developing nations, Smith (1991:28) mentions that
neoclassical economics and its principles and policies of free market have
become the dominant foundation of development thinking in these countries while
the planned-development framework is being rejected as inefficient.
This trend represents a basic change in the policy assumption and theoretical
framework of public administration in developing countries, especially in terms of
the shift in its postcolonial mission of state-run development programs para-
phrased as ‘‘development administration.’’ The emerging neoclassical basis of
public administration is represented in its increasing use of market-driven public
choice theory that subscribes to the adoption of market principles and business
strategies in the public sector. This tendency toward the neoclassicist choice
theory is well reflected in the emerging neomanagerial interpretation of public
administration under the facade of ‘‘new public management’’ characterized by a
strong belief in market principle, reduction in the scope of public sector, anti-
welfare policy orientation, and businesslike changes in administrative structure
(Hood, 1991; Terry, 1998). Such changes in the principle, scope, orientation, and
structure—which amount to nothing less than a shift from ‘‘development
administration’’ to ‘‘new public management’’—can be observed in Southeast
Asian countries such as the Philippines, Malaysia, Singapore, Indonesia, and
Thailand (Das, 1998; Haque, 1998). Recently, almost all public sector agencies
and enterprises in these countries have been affected by these market-driven
principles and policies.
In line with these changes in the theoretical orientation of public management,
there have also been significant changes in the concepts and terminologies used
in public administration. In Southeast Asia, the postcolonial period saw the
proliferation of terms such as nation-building, self-reliance, basic needs, and
364 M. S. HAQUE

citizens’ welfare, which became conceptual guidelines for various public

agencies. But today these ideas have been replaced with languages such as
joint venture, partnership, service quality, and customer satisfaction. For
instance, the use of joint venture and partnership in public agencies has become
a common official rhetoric in Malaysia, Indonesia, Thailand, the Philippines, and
Vietnam (World Bank, 1996, 1997). On the other hand, the redefinition of citizens
as customers and the adoption of a customer-oriented culture have gained
prominence in recent administrative reforms in Brunei, Malaysia, Singapore, and
the Philippines (Haque, 1999d; Llewellyn and Varghese, 1997; Liou, 2002). The
emergence of such business languages in the public sector has also been
reinforced by the adoption of business-sector techniques like Total Quality
Management, Work Improvement Teams, Excellent Work Culture, and Quality
Control Circle in various Southeast Asian countries. This tendency toward the use
of business concepts and strategies is relatively new in the region’s admin-
istrative thinking.

Structural-functional trend

Reflecting the above theoretical-conceptual trend are the recent structural and
functional changes in public administration in Southeast Asia. In the region, the
earlier pattern of administrative structure was largely in line with the liberal-
democratic model based on principles such as political neutrality of civil servants,
distinction between public and private interests, and mechanisms of internal and
external control for ensuring bureaucratic accountability. Although in many
instances some of these principles were often violated, they came to constitute
the official administrative outlook in most Southeast Asian countries except the
communist cases like Vietnam and Cambodia. In countries such as Indonesia,
Malaysia, Singapore, Thailand, and the Philippines, there emerged certain
constitutional provisions and legal means to represent the foundation of
administrative structure, which involved various political and administrative
processes to enforce these principles of neutrality, meritocracy, accountability,
and so on.
But during the recent two decades, in line with the trend of administrative
changes in the developed world, there has been diminishing significance of such
control mechanisms and processes, and a growing emphasis on managerial
autonomy in public agencies in Southeast Asian countries. One of the main
components of the current neomanagerial ethos of public management (‘‘new
public management’’), in fact, is the operational or structural autonomy of public
managers (OECD, 1993, 1995). This managerial autonomy is being articulated
through diverse means ranging from the actual or proposed creation of new
‘‘autonomous agencies’’ to the structural reforms of existing public agencies in
countries such as Singapore, Malaysia, Indonesia, Thailand, and the Philippines
(Haque, 1998; United Nations, 2000; World Bank, 1995; RIAP, 2001). The scope
REFORMING PUBLIC ADMINISTRATION IN SOUTHEAST ASIA 365

of managerial autonomy in these newly created or restructured agencies

encompasses areas such as finance, personnel, production, pricing, and
procurement. A significant dimension of managerial autonomy, however, is in
the budgeting system, which is increasingly based on the final outcomes
produced by these autonomous public agencies rather than the inputs needed
to produce such outcomes. With regard to personnel matters, there is also a
growing trend toward replacing the traditional closed structure by a more open-
ended hierarchy that allows ministries or political executives to practice lateral
entry or fresh recruitment of employees at any level. These trends are more
systematically articulated in cases like Singapore and Malaysia in comparison
with other Southeast Asian countries. This emerging structural trend based on the
autonomy of top public managers is quite unprecedented in the region.
Parallel to the above structural changes toward managerial autonomy is a
transition in the role of public administration in Southeast Asia to facilitate or
support rather than lead or direct socioeconomic activities. These role changes in
the public service also reflect the above mentioned theoretical shifts from a state-
centered perspective to a market-driven approach. The current functional
agenda is to curtail all forms of state intervention in the production and
distribution of goods and services, and to facilitate market forces to assume
the dominant role. Following the examples of reorienting the public service
towards a catalytic institution in developed nations (OECD, 1995), Southeast
countries are redefining the role of state bureaucracies in favor of expanding the
private sector and encouraging private entrepreneurs to take over the functions
of state enterprises.
For instance, Brunei is emphasizing the private sector to play the major role in
national development (Salleh, 1992). In the case of Malaysia, the Director General
of the Public Service Department (Mazian Ahmad) cited Osborne and Gaebler to
suggest that in terms of economic activities, the public sector should ‘steer’
rather than ‘row’ (Arnold et al., 1998). In Thailand, there is a growing emphasis on
the role of public administration as a catalyst in the process of development and
in the provisions of services delivered by the private sector (Salleh, 1992).
Indonesia has also moved toward the reduction of government role, trans-
formation of the public sector into a supportive institution, and encouragement of
the private sector to provide basic services (Salleh, 1992:44; Kristiadi, 1992:102).
Similar trend of changes in the roles or functions of public administration can be
observed in the Philippines, Singapore, and Vietnam. This historical shift in
administrative functions in Southeast Asia is not unique, it represents a common
global trend experienced by other regions and nations.

Normative-ethical trend

The indigenous normative or ethical features in public administration that existed

in Southeast Asia during the precolonial phase were transformed (if not
366 M. S. HAQUE

completely replaced) under the colonial rule. During the colonial phase, in various
degrees, a new set of administrative values articulated by the British, Dutch,
French, and American colonial powers, began to affect the indigenous mode of
public administration in Southeast Asian countries. Since these colonial powers
themselves went through changes in administrative ethics under the emerging
liberal-democratic tradition in their own societies, their colonial administration in
Southeast Asia was influenced by such a tradition, especially during the last
phase of the colonial rule. In the postcolonial period, instead of replacing the
colonial tradition, most countries in the region (except for cases like Vietnam and
Cambodia) tried to emulate this liberal-democratic model of administration,
including its ethical standards, in reforming their public organizations. Although
Thailand had no direct colonial experience, its administrative reforms in the
postwar period were largely based on this borrowed model.
In short, during the colonial and postcolonial periods, the administrative norms
or ethics that emerged in Southeast Asia were largely influenced by the liberal
democratic values of public administration found in developed nations, which
included norms such as neutrality, equality, accountability, representation,
fairness, and so on (Haque, 1996). However, during the recent two decades,
with the proliferation of market-driven state policies and the businesslike
restructuring of public service, the patterns of administrative ethics have changed
in developed nations themselves. Although the above traditional ethical stand-
ards are not replaced altogether, there is an increasing priority of promarket
values or business norms in the public sector, including efficiency, competition,
value-for-money, entrepreneurship, and partnership (Haque, 1996; Terry, 1998).
To a certain extent, similar trends of changes in administrative ethics have
occurred recently in Southeast Asian countries such as Brunei, Malaysia, the
Philippines, Singapore, and Thailand (Kelegama, 1995; Haque, 1998).
In particular, the earlier normative focus of public administration on equality
(equality in serving citizens, access to government services, and income
distribution) has eclipsed while the efficiency norm has gained priority in most
Southeast Asian countries. The justification of contemporary administrative
reforms in Brunei, Indonesia, Malaysia, the Philippines, and Thailand has been
based on the efficiency criterion rather than the equality consideration (Haque,
1998; Salleh, 1996). In Singapore, the emphasis on efficiency, which has always
been one of the most primary normative standards of its administration, has been
intensified further due to the country’s perceived vulnerability to global
competition. Even in communist Vietnam, the state’s ideological principle of
socioeconomic equality seems to have become less significant than market-led
efficiency during the current period of public sector reforms. The main rationale of
the current market-driven public policies undertaken by Southeast Asian
countries, including privatization, deregulation, and liberalization, is primarily
efficiency, although in reality, the outcomes of such policies have often been a
worsening condition of economic inequality (Farazmand, 1999; Haque, 1999c). In
addition, the main agenda for adopting the aforementioned business manage-
REFORMING PUBLIC ADMINISTRATION IN SOUTHEAST ASIA 367

ment techniques—including Total Quality Management, Work Improvement

Team, and Quality Control Circle—is to overcome public-sector inefficiency
and achieve the level of efficiency found in the private sector.
In line with the recent global trend, another transition in administrative ethics in
Southeast Asia is a normative shift from the principle of neutrality or impartiality to
the idea of partnership. In the region, although public administration, in practice,
was not always neutral from political influence and impartial in delivering goods and
services, especially in cases such as Indonesia, the Philippines, and Vietnam, its
official position was largely to follow such neutrality and impartiality principles.
However, in recent years, this norm of neutrality has increasingly come under
challenge due to some basic changes in the public service, including the
decentralization of personnel practices, decline in job security, and emergence
of contract-based appointments. For example, the Philippines, Malaysia, and
Singapore have moved towards a system of decentralized recruitment, promotion,
and compensation, which implies a transfer of personnel authority from the
politically-neutral central personnel agencies (often known as civil/public service
commission) to individual ministries and departments managed by political heads,
including ministers and political appointees. As a result, there is potential for
greater political influence on personnel matters, and it may require some new
measures to ensure neutrality as an essential dimension of administrative ethics. In
addition, due to the growing job insecurity in the public sector—caused by the
current retrenchment measures and short-term contracts often decided by
political executives—there is a more likelihood that the insecure or vulnerable civil
servants will be easily politicized. Once again, the challenge is to identify alternative
means for maintaining the political neutrality of the administrative system.
On the other hand, the traditional impartiality principle of public administration
(with regard to its treatment of various groups of citizens) is under attack due to
the recent expansion of partnership between the public and private sectors.
There is a growing priority of public sector’s partnership with local and foreign
private investors in Southeast Asian countries such as Indonesia, Malaysia,
Singapore, the Philippines, Thailand, and Vietnam (Regional Bureau for Asia and
the Pacific, 1999; World Bank, 1996, 1997). Some of these countries have
introduced different institutions and projects to facilitate the process of such a
partnership (World Bank, 1996, 1997). In countries like Indonesia, Thailand, and
the Philippines, where the close linkages between the government and the
business sector have already been a cause of unfair official practices, the current
expansion of public-private partnership may pose a greater challenge to the
principle of impartiality. In particular, it may lead to a situation in which the
affluent business partners receive better treatment by public servants and gain
easier access to public offices. Therefore, this trend of change in administrative
ethics from impartiality to partnership may not represent a favorable change in
the region’s administrative systems. These are few examples of how the
normative or ethical standards have shifted in public administration in Southeast
Asia in recent years.
368 M. S. HAQUE

Implications and concluding remarks

In the above discussion, it has been pointed out that during the recent two
decades, public administration has undergone significant transformation in
almost all Southeast Asian countries, although there are cross-national variations
within the region in terms of the degrees of such transformation. This current
administrative transition represents a fundamental break from the earlier tradition
of public administration that emerged in the region during the colonial and
postcolonial periods. The major dimensions of such an historical transition in
public administration encompass the conceptual-theoretical shifts, structural-
functional changes, and normative-ethical adjustments. These trends of changes
have implications not only for public administration as an academic field and a
practical profession, but also for societies and citizens in Southeast Asia.
First, in terms of academic implication, while the postwar period saw the
deepening of concepts and theories of public administration guided by
democratic ethos and the citizenship principles, the current atmosphere is
affected by ideas and models borrowed from business management. As a result,
the validity claims of administrative knowledge are increasingly based on its utility
for the marketplace rather than its relevance to the realization of public needs and
concerns (Haque, 1999b). In fact, international institutions like the World Bank,
the International Monetary Fund, and the International Finance Corporation, have
played a significant role in redefining public governance and redesigning the
administrative model through various worldwide projects and reports affecting
academic institutions in developing countries, including those in Southeast Asia
(Farazmand, 1999; Haque, 1999c). In general, these externally prescribed (often
imposed) definitions and models of public administration have largely been based
on promarket assumptions found in ‘‘new public management’’. As a result, there
have emerged a new breed of administrative experts in Southeast Asia who often
receive financial support from international agencies, believe in the superiority of
market principles, and suggest the application of business criteria to the public
sector. This external and internal forces have serious impacts on public
administration in terms of the current and future directions of relevant academic
institutions in the region.
Second, in terms of practical implications, the above historical trends in public
administration may have critical impacts on the level of public confidence in the
public service, and thus on its legitimacy. The emerging structural, functional, and
normative similarities and convergence between the public and private sectors
may raise doubts among citizens with regard to the authenticity of public service
in terms of its essential qualities such as accountability, accessibility, neutrality,
and impartiality. More specifically, the new businesslike autonomy of public
service may challenge the realization of its public accountability, its shift toward
an indirect facilitating role may displace its basic obligation to deliver services to
the citizens, and its expansive partnership with private investors or business
interests may threaten its impartiality. These potentially adverse implications or
REFORMING PUBLIC ADMINISTRATION IN SOUTHEAST ASIA 369

outcomes of the current market-driven reforms in the public service are less likely
to gain public support for such reforms. In this regard, one may examine the
causes behind the current diminishing public confidence in various public sector
agencies in Southeast Asian countries such as the Philippines (Endriga, 1997).
Finally, this diminishing public confidence or legitimacy problem in the public
service may also be reinforced by the fact that its businesslike reforms often
create critical impacts on citizens in terms of living standards. The market-driven
policy shifts, especially the withdrawal of welfare subsidies and a reduction in
public expenditures on social programs, have critical impacts on citizens’ access
to services such as health care, education, housing, and transportation—this
amounts to the ‘‘de-publicization’’ of the public service (Farazmand, 1999:562). In
Southeast Asia, the provision of these subsidized public services is essential in
poorer countries such as Indonesia, Cambodia, Vietnam, Thailand, and the
Philippines. However, the current public sector reforms based on anti-welfarism
pose a formidable challenge to the social safety nets of common citizens in these
countries. In addition, the market-led restructuring of the public service—which
tends to favor the narrow interests of affluent business elite at the expense of
citizens’ common interests and entitlements—is likely to have adverse con-
sequences for inequality among various income groups in Southeast Asian
countries. These critical outcomes of recent trends in public administration
should not be overlooked.
In conclusion, it should be pointed out that in advanced capitalist nations,
where the model of market-biased ‘‘new public management’’ originated, there
are many critics of the above trends of reforms in the public sector. They point
out the drawbacks of the model in terms of its indifference towards various
contextual factors, its imitation of private sector management, its tendency to
demonize and politicize bureaucracy, its displacement of public accountability by
managerial autonomy, its indifference toward public service ethics, and its
adverse impacts on the citizens and their rights (see Wright, 1997; Farazmand,
1996; Haque, 1999a). These critical observations on the current historical
transition should be taken seriously by developing countries that have recently
undertaken initiatives to adopt similar kinds of changes in their administrative
systems. The policy-makers in these countries need to realize that the business
model is not compatible with the ethos of public administration even in advanced
capitalist nations with deep-rooted market institutions and business culture; and
that the model is more inappropriate for developing societies where the market
atmosphere and business mindset are less developed. In addition, the condition
of abject poverty in the developing world demands that public administration
should play a crucial role, and ensure that the fate of low-income citizens is not
left with the vagaries of market forces.
In the case of Southeast Asia, the emergence of state-centered public
administration under the ‘‘developmental state’’ coincided with the region’s
spectacular economic growth and industrial progress during the postwar period.
The public sector played an historical role in accelerating economic growth,
370 M. S. HAQUE

building infrastructure, improving living standards, and upgrading the level of

overall development. But the period of market-driven policies and reforms, which
led to the diminishing capacity of the state and its administration, saw severe
economic crisis in the region, especially in the late 1990s. This critical economic
crisis, which coincided with the current trends of public sector reforms, almost
reversed the past economic achievement in cases like Indonesia, Malaysia, and
Thailand. This unprecedented economic crisis vis-à-vis the recent transition in
the public sector can be a source of valuable lesson for the policy makers in
Southeast Asia to reexamine their recent reform initiatives undertaken for
restructuring the administrative system.

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M. Shamsul Haque is an Associate Professor in the Department of Political Science at the National
University of Singapore. He has published extensively on various issues related to public
administration, public policy, and governance. He is the Co-editor of Asian Journal of Political
Science.