Public Administration Reform: Public Administration Reform: Comparative PerspectivesComparative Perspectives

Tony VerheijenTony Verheijen

Senior Public Sector SpecialistSenior Public Sector Specialist

World BankWorld Bank

Key issues in PARKey issues in PAR

Rationale: internally or externally driven, Rationale: internally or externally driven, ideologically driven or based on economic ideologically driven or based on economic necessitynecessity

SequencingSequencing Tools: managerial tools, legislationTools: managerial tools, legislation Management: what works under what Management: what works under what

conditions?conditions? Models, what value under what conditions Models, what value under what conditions

Rationale: relevanceRationale: relevance

Rationale for reform may determine approach Rationale for reform may determine approach to reform support:to reform support:

Internally driven processes mainly need an Internally driven processes mainly need an emphasis on technical (substantive) supportemphasis on technical (substantive) support

Externally driven processes need conviction Externally driven processes need conviction and sound argumentation as well as a close and sound argumentation as well as a close understanding of contextunderstanding of context

Rationale: internal driversRationale: internal drivers

Internally driven PAR processes are still Internally driven PAR processes are still relatively rare:relatively rare:

PAR can be costly and brings few PAR can be costly and brings few immediate benefits to those who initiateimmediate benefits to those who initiate

Vested interests tend to be strong, both Vested interests tend to be strong, both political and administrativepolitical and administrative

Processes tend to be technical, don’t speak Processes tend to be technical, don’t speak to the imagination of politicians and votersto the imagination of politicians and voters

Rationale: internal driversRationale: internal drivers

Likelihood of internally driven processes:Likelihood of internally driven processes:

1.1. Ideologically motivated (NPM reforms in the Ideologically motivated (NPM reforms in the 1980s and 1990s, UK, NZ, but also Latvia 1996, 1980s and 1990s, UK, NZ, but also Latvia 1996, Estonia, etc.)Estonia, etc.)

2.2. Economic necessity: hardship and extreme fiscal Economic necessity: hardship and extreme fiscal constraints require downsizing and prioritization constraints require downsizing and prioritization (Lithuania, 1999, Slovakia, 2000)(Lithuania, 1999, Slovakia, 2000)

3.3. Administration considered a brake on other reform Administration considered a brake on other reform processes (Ukraine) processes (Ukraine)

4.4. State building considerations (Kazakhstan)State building considerations (Kazakhstan)

Internal drivers, ctd.Internal drivers, ctd.

Chances of success:Chances of success:

Ideologically driven: depends on the staying Ideologically driven: depends on the staying power of the initiators and their ability to power of the initiators and their ability to continue ‘conviction politics’ (few and rare continue ‘conviction politics’ (few and rare success cases)success cases)

Need driven: ‘patching up’ or the start of a Need driven: ‘patching up’ or the start of a long term process? (Czech Republic vs. long term process? (Czech Republic vs. Lithuania)Lithuania)

External driversExternal drivers

Integration processesIntegration processes IFI driven reformIFI driven reform

Integration processesIntegration processes

Reform processes often a combination of Reform processes often a combination of external conditions and internal need for external conditions and internal need for reform (awareness of adaptation pressure)reform (awareness of adaptation pressure)

Success depends on the credibility of Success depends on the credibility of conditions and the degree of complexity of conditions and the degree of complexity of the agendathe agenda

Few examples of adaptation processes Few examples of adaptation processes arising from economic integration per se arising from economic integration per se (NAFTA and Mexico)(NAFTA and Mexico)

IFI driven reformsIFI driven reforms

IFI conditionalities:IFI conditionalities:

Do they constitute a shared agenda (always the Do they constitute a shared agenda (always the initial objective)initial objective)

How reasonable are they perceived to be (quality How reasonable are they perceived to be (quality of design, link to existing national policy issues)of design, link to existing national policy issues)

Are IFIs used as a ‘cover’ for already planned Are IFIs used as a ‘cover’ for already planned reforms or really externally imposedreforms or really externally imposed

Problems with IFI conditionsProblems with IFI conditions

IMF PAR conditions often too generic (IMF does IMF PAR conditions often too generic (IMF does not have internal capacity on PSR), causes either not have internal capacity on PSR), causes either resistance or compliance without changeresistance or compliance without change

WB conditions often too ‘soft’, PAR still too WB conditions often too ‘soft’, PAR still too rarely a central element of adjustment operations, rarely a central element of adjustment operations, with few exceptions (Kyrgyzstan, Kazakhstan)with few exceptions (Kyrgyzstan, Kazakhstan)

However, a well designed package can bring good However, a well designed package can bring good results (e.g. Bulgaria)results (e.g. Bulgaria)

SequencingSequencing

What comes first, people, structures??What comes first, people, structures??

Too often reforms are started without putting Too often reforms are started without putting the appropriate conditions in place: a cause the appropriate conditions in place: a cause

of failure of many processesof failure of many processes

Sequencing ctd.Sequencing ctd.

Investing in strategies is crucial:Investing in strategies is crucial:

Clarifies the rationale for reformClarifies the rationale for reform Builds consensus on the reform agendaBuilds consensus on the reform agenda Allows reflection on sequence of stepsAllows reflection on sequence of steps Prepares constituencies for the implications of the Prepares constituencies for the implications of the

processprocess

Still: good strategies are very rare, few go beyond Still: good strategies are very rare, few go beyond formalityformality

After strategies: what next?After strategies: what next?

Policy management systemPolicy management system Administrative structures and accountabilityAdministrative structures and accountability Civil Service reformCivil Service reform

However, sequence often is the reverse: the However, sequence often is the reverse: the temptation to start with people…..temptation to start with people…..

Reform toolsReform tools

Managerial tools vs. legislationManagerial tools vs. legislation

Still often seen as ‘either, or’Still often seen as ‘either, or’ In fact two sides of the same process: diagnostic tools can In fact two sides of the same process: diagnostic tools can

help shape legislationhelp shape legislation

Too often law drafting is started too early: the need to resist Too often law drafting is started too early: the need to resist the temptation of legal quick fixes (especially in states with the temptation of legal quick fixes (especially in states with a ‘continental’ tradition) a ‘continental’ tradition)

The record of using managerial tools is not good: successful The record of using managerial tools is not good: successful examples are few and far between (design flaws, examples are few and far between (design flaws, complexity, ambitions, problems with implementation tools) complexity, ambitions, problems with implementation tools)

Reform tools ctd.Reform tools ctd.

Change management and training:Change management and training:

The most underestimated and underused toolsThe most underestimated and underused tools Change management too often pitched at the Change management too often pitched at the

wrong levelwrong level PAR training capacity often overly conservative: PAR training capacity often overly conservative:

running after the facts, donor driven institutions, running after the facts, donor driven institutions, politicization of appointmentspoliticization of appointments

PAR ManagementPAR Management

What works best depends on national traditions and What works best depends on national traditions and administrative culture:administrative culture:

‘‘Strong ministry-weak center systems’: ministry-Strong ministry-weak center systems’: ministry-based reform management may be a solution, but risk based reform management may be a solution, but risk of PAR being crowded out is significantof PAR being crowded out is significant

In ‘strong center’ systems: PAR should be placed at In ‘strong center’ systems: PAR should be placed at the CoGthe CoG

Special PAR ministries: record is not good, tend to be Special PAR ministries: record is not good, tend to be marginalized unless linked with a central unit (design-marginalized unless linked with a central unit (design-implementation distinctions, Serbia, Romania?)implementation distinctions, Serbia, Romania?)

Models: attractive but deceptive Models: attractive but deceptive

NPM: a model that led its own lifeNPM: a model that led its own life

1990s: NPM used as a ‘cure for all ills’ and 1990s: NPM used as a ‘cure for all ills’ and applied in a variety of contexts (from applied in a variety of contexts (from Mongolia to Latvia and the Pacific Islands)Mongolia to Latvia and the Pacific Islands)

NPM: why was it so attractive?NPM: why was it so attractive?

Politically driven: was seen as legitimizing Politically driven: was seen as legitimizing political interference in top management political interference in top management (drawback: enhanced politicization)(drawback: enhanced politicization)

Service delivery driven: seen as focusing on Service delivery driven: seen as focusing on citizen’s needs (but: often little result citizen’s needs (but: often little result beyond rhetoric) beyond rhetoric)

Contracting between administrative bodies Contracting between administrative bodies (seen as a way for ministries to create new (seen as a way for ministries to create new forms of dependency) forms of dependency)

NPM: what have we learned?NPM: what have we learned?

Why have NPM reforms failed to deliver in so many Why have NPM reforms failed to deliver in so many cases:cases:

Enhanced fragmentation in already weak Enhanced fragmentation in already weak coordination systemscoordination systems

Perceived and real abuse of contract-based top Perceived and real abuse of contract-based top management systems management systems

Introduces advanced concepts of accountability that Introduces advanced concepts of accountability that do not fit realities of less developed statesdo not fit realities of less developed states

Undervalues the need to build policy making Undervalues the need to build policy making capacitycapacity

Alternative models?Alternative models?

‘‘Mixed’ reforms: the middle way applied in Mixed’ reforms: the middle way applied in Northern Europe, Netherlands, Ireland:Northern Europe, Netherlands, Ireland:

Combining NPM-based efficiency and effectiveness Combining NPM-based efficiency and effectiveness drive with attempt to strengthen coherence and drive with attempt to strengthen coherence and coordination as well as retaining ‘public sector coordination as well as retaining ‘public sector

values’values’

Complexity of such reforms makes them difficult to Complexity of such reforms makes them difficult to apply in low capacity environmentsapply in low capacity environments

Alternative models: incremental Alternative models: incremental and gradualand gradual

Continental European approaches:Continental European approaches:

Piecemeal reforms in small steps may Piecemeal reforms in small steps may eventually bring (good) resultseventually bring (good) results

However: not really applicable to systems in However: not really applicable to systems in needs of significant reformneeds of significant reform

Models: conclusionModels: conclusion

Is there any sense in following models??Is there any sense in following models??

Picking measures rather than wholesale Picking measures rather than wholesale application of models is likely to work application of models is likely to work betterbetter

Being weary of exporters of ideology pays: Being weary of exporters of ideology pays: culture and tradition remain key culture and tradition remain key determinants of success, models are notdeterminants of success, models are not