Implications of Public Sector Reforms

Learning Outcomes

At the end of this lecture, students should be able to:

Understand the New Management policy in the public sector reforms.

Explain the advantages and disadvantages of public sector reforms.
Describe the implications of public sector reforms in Fiji.
Know the future direction of public sector reforms.
 New Management Policy in the Public Sector Reforms
is a replacement of the traditional process/rules-driven management paradigm by one that
attempts to combine modern private sector type management practices with the logic of
economics, while still retaining the core public services values.
 is the process of creating, communicating, and maintaining policies and procedures within an
organization.
privatization of public entities and the introduction to such entities of new managerial models
are referred to as New Public Management
objectives including creating an innovative, flexible, problem-solving, customer-focused, and
more entrepreneurial culture that is better suited to a competitive business environment.

NPM edges around these views

freedom to choose and freedom to manage.
achievement of results through accountability.
focuses on end results.
private sector approach towards public sector management.
At the basis of the New Public Management (NPM) model for public sector reforms lie two
fundamental prescriptions:
removing government controls; and
reliance on the efficiency of the market (private sector) in resource allocation and
utilization.
This encourages all stakeholders to actively participate in resource allocation in the
market
Reforms in Fiji’s Public Sector are done through:
 reorganization
corporatization
divestment/privatization
They either end up as :
Government Commercial Company (GCC) or
Commercial Statutory Authority (CSA).
 Example: Case Study: Reform of Public Rental Board (PRB)
there were tensions between profit-seeking and the provision of public service.
private sector business techniques (such as economic rents, sale of state houses, and
performance measurement in the form of the balanced scorecard) were implemented.
there were tensions between the mission and performance of the PRB charged with
providing accommodation for the less fortunate in Fiji.
too many (thousands of) applications received and fewer places available.
revenue is less and increases in squatter’s
rent were only about $6-$7 a week.
Example: Reform of Fiji Electricity Authority to Energy Fiji Limited
to be more customer or service oriented rather than authoritative
allow the people of Fiji to become shareholders
improvement in services
toll-free complain number
government subsidies provided for the poor and also encouraged less consumption of
electricity
customer response time – within 24 hours
working well may still need improvement in other areas
need more electricity providers to encourage competition
Advantages of public sector reforms.
to be updated with the modern world or changing processes, globalization
improved services and service delivery
increase in productivity
more income for the government
able to compare with other developing countries
enhancement of efficiency and effectiveness
become environmentally concerned
able to better carry out the duties of transparency and accountability
 Disadvantages of public sector reforms.
loss of jobs
staff have to undergo training
increase in costs – training, hiring of new staff or purchasing software
may take a lot of time to grasp the new systems
Implications of Public Sector Reforms in Fiji
can lead to positive outcomes, and improvement in services, and an increase in revenues
can help achieve government objectives of accountability and transparency.
may not always lead to positive outcomes. Can be a failure at times too. This, lead to
wastage of the budget allocated.
sometimes, donors and lenders can dictate which kinds of reforms they want. This can
sometimes lead to failure since overseas processes may not always work locally.
could lead to an increase in costs
re-engineering public services to improve value-for-money and innovation.
correct ‘privileged’ pay and employment conditions.
The future direction of public sector reforms
ministry of land and mineral resources – improvement of roads or changes to land
transport authority –may be renamed to land transport services.
avail public services 24/7; some services could even have a toll-free number that can be
reached 24/7.
make email addresses public of all civil servants who can be reached by the people
instead of posting things on social media. One reason this happens is due to non-
availability of contacts.
avail more than enough vehicles for police who can reach people on time.
have more qualified people in the area of medicine so that all operations can take place
in Fiji instead of people visiting overseas.
maybe have thresholds. People who earn more than $50,000 could be asked to pay for
services such as medical treatments at public hospitals.
government should provide attractive scholarships for people to undertake PhDs locally
or overseas and have Fiji citizens as Ph.D. holders instead of hiring expatriates.
invite investors to open another water and electricity service in Fiji, to have competition
and improvements in services. Avoid monopoly.
have a 24/7 toll-free number to combat mental health and suicidal issues where non-
judgmental services could be provided.
maybe outsource some government services

THE END