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NPM 1
Submitted To :
Dr. Mobasser Monem
Professor
Department of Public Administration
University of Dhaka
Submitted By :
Department of Public Administration
University of Dhaka
Department of Public Administration
University of Dhaka
Achieving MDGs through NPM
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Introduction
Since the adoption of the Millennium Development Goals at the United Nations Millennium Summit in
2000, the goals have become the international standard of reference for measuring and tracking
improvements in the human condition in developing countries. The Goals are backed by a political mandate
agreed to by the leaders of all UN member states. They offer a comprehensive and multidimensional
development framework and set clear quantifiable targets to be achieved by 2015. ( Alam : 2006 )
The importance of a well-performing public administration was reiterated in Resolution 57/277 of the
General Assembly on Public Administration and Development which states that “an efficient, accountable,
effective and transparent public administration, at both the national and international levels, has a key role to
play in the implementation of internationally agreed goals, including the MDGs”. In that context, the
Resolution stresses the need ”to strengthen public sector administrative and managerial capacity-building, in
particular in developing countries and countries in economic transition”.
As a part of my regular academic activities under the course “Introduction to Public Management (PA-
321)”, I have prepared this paper on “Achieving development using New Public Management Approach ” .
In the beginning part of the assignment , basic concepts of New Public Management are discussed , a brief
concept about Millennium Development Goals is discussed in the next part and final part contains hoe
MDGs can be achieved though NPM .
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New public management
New public management is a management philosophy used by governments since the 1980s to modernize
the public sector. It is a broad and very complex term used to describe the wave of public sector reforms
throughout the world since the 1980s. The main hypothesis in the NPM-reform wave is that more market
orientation in the public sector will lead to greater cost-efficiency for governments, without having negative
side effects on other objectives and considerations.
NPM traces it origins to the first Minnowbrook Conference held in 1968 under the patronage of Dwight
Waldo. The 1960s in the USA was a time of Unusual social and political turbulance and upheaval. In this
context, Waldo concluded that neither the study nor the practice of public administration was responding
suitably to the escalating turmoil and the complications that arose from those conditions.
Defining New public management : NPM is the transfer of business and market principles and
management techniques from the private into the public sector. The term new public management
encompasses a wide range of techniques and perspectives that are intended to overcome the inefficiencies
inherent in the traditional model of public administration.
Garson and Overman (1983: 275) defined it as “an interdisciplinary study of the generic aspects of
administration … a blend of the planning, organizing, and controlling functions of management with the
management of human, financial, physical, information and political resources.”
S. Borins (1995: 12) defines NPM as “a normative conceptualization of public administration consisting of
several inter-related components: providing high quality services that citizens value; increasing the
autonomy of public managers; rewarding organization and individuals on the basis of whether they meet
demanding performance targets; making available the human and technological resources that managers
need to perform well; and appreciative of the virtues of competition, and maintaining an open minded
attitude about which public purposes should be performed by the private sector, rather than a public sector.”
According to Osborne and Gaebler, it is a revolt against values of traditional bureaucracy and a belief that
the public sector can be transformed by the power of leadership, the introduction of market mechanisms, a
focus on results and decentralising power’.
Robert Behn defines the New Public Management as “. . .the entire collection of tactics and strategies that
seek to enhance the performance of the public sector. . . .”
To Guy Peters the new public management includes a range of reforms that have been tried over the past
two decades by governments seeking to improve efficiency. The approaches of the NPM include more
participation, flexibility, and deregulation internally, and the use of market mechanisms externally
Basic principles of NPM : NPM is a new approach based on market values and individual freedom
became dominant . Management is based on scientific knowledge about how to deal with such problems in
the most rational and efficient way. Management is different from politics, which is the realm of conflict and
disorder, and politicians are amateurs in administration in so far as they do not know very much about how
to manage organizations. (EHSAN and Naz 2003) . Many brands play important role in the emergence of
NMP , including :
 Managerialism – Pollitt, 1990
 New public management (NPM) – Hood, 1991
 Market based PA – Lan and Rosenbloom, 1992
 Post-bureaucratic paradigm – Barzelay, 1992
 Entrepreneurial government – Osborne and Gaebler, 199
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The concept of NPM can be explored in more detail starting with the principles of NPM as distinguished by
Pollitt (1993) , Walsh (1995) , Hood (1991) , and Osborne and Gaebler (1992).
The first principle of NPM is managerialism, defined by Pollitt (1993: 2-3) as involving:
 Continuous increases in efficiency.
 The use of “ever-more-sophisticated” technologies.
 A labor force disciplined to productivity.
 Clear implementation of the professional management role.
 Managers being given the right to manage.
The characteristics of the second principle of the NPM are according to Walsh (1995):
 Continual improvements in quality.
 Emphasis upon devolution and delegation.
 Appropriate information systems.
 Emphasis upon contract and markets.
 Measurement of performance.
 Increased emphasis on audits and inspection.
In his article titled A Public Management for All Seasons, Christopher Hood (1991) provided a list of the
main doctrines of the NPM:
1. Hands-on professional management of public organizations, i.e., managers are provided extreme
autonomy to manage their organizations. This is expected to contribute to sufficient accountable
administration.
2. Explicit standards and measures of performance, i.e., goals are well defined and performance targets
set. This is also expected to enhance efficiency and ensure accountability.
3. Greater emphasis on output controls, i.e., resources are directed to areas according to measured
performance, because of the need to stress results rather than procedures.
4. Shift to disaggregation of units in public sector, i.e., breaking up large corporatized units around
products, funded separately and dealing with one another on an arms length basis.
5. Shift to a greater competition in public sector, i.e., move to term contracts and public tendering
procedures, as rivalry is always the key to lower costs and better standards.
6. Stress on private-sector styles on management practice, i.e., military style bureaucracy is discarded.
There should be more flexibility in hiring and rewards.
7. Stress on greater discipline and parsimony in public sector resource use, which means cutting direct
costs, raising labour discipline, resisting union demands and limiting compliance costs to business.
Osborne and Gaebler (1992), in their book Reinventing Government: How the Entrepreneurial Spirit is
Transforming the Public Sector, have also described the main principles behind the NPM theory. They had
put forward the following principles for reinventing the government :
a) Catalytic government: steering rather than rowing;
b) Community-owned government: empowering rather than serving;
c) Competitive government: injecting competition in service delivery;
d) Mission-driven government: transforming rule-driven organizations;
e) Results-oriented government: funding outcomes, not inputs;
f) Customer-driven government: meeting the needs of the customer, not the bureaucracy;
g) Enterprising government: earning rather than spending;
h) Anticipatory government: prevention rather than cure;
i) Decentralized government: from hierarchy to participation and teamwork.
j) leveraging market forces ;
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This principle relates to leveraging market forces and utilizing market based strategies in the delivery of
public goods. It presumes that there is no one way to deliver a public good and a wide variety of delivery
mechanisms are possible (Miller and Dunn, 2006) .These ten principles were translated into an
implementation plan (Osborne and Plastrik, 2000) that has five key elements. These elements constitute the
“action plan” for a successful organization (Miller and Dunn, 2006) . The elements are:
 Core. Create clarity of aim (core) that allows the organization to focus on the key items that will
achieve its ends.
 Consequences. Connect consequences to the actions of organizations, individuals, and collectives so
that those actions have meaning and impact on the public.
 Customer. Focus on the customer in order to recognize that the purpose of public service is the
delivery of a public good to human beings.
 Control. Shift control form the top or center in order to empower individuals, organizations and
communities to address public problems.
 Culture. Change the organizational culture of public agencies by “changing the habits, touching the
hearts, and winning the minds” of public employees.
Millennium Development Goals
The MDGs are the world’s biggest promise – a global agreement to reduce poverty at historically
unprecedented rates through collaborative global action. Many different ideas have shaped their content and
form. ( Hulme 2007)
History of MDG : The idea of a systematic attempt to eradicate or dramatically reduce global poverty has
antecedents that go back to the founding of the UN; the Universal Declaration of Human Rights; the stalled
Development Decade of the 1960s; the many UN summits of the second half of the twentieth century; and,
books, reports and associated advocacy exercises on the issue (e.g. Galbraith 1979; Myrdal 1970).
UN Summitry Returns 1990 marked a watershed in the evolution of ideas about poverty reduction. Against
the backdrop of the end of the Cold War it saw the World Development Report 1990, recognizing the need
for economic reform to be accompanied by social policies, and the first of the UNDP’s Human Development
Reports. 1990 was also the year of the Children’s Summit in New York to which the processes leading to the
MDGs can be traced.
The Earth Summit at Rio in 1992 learned this and produced a vibrant event raising public awareness of the
links between the environment and poverty. The World Conference on Human Rights of 1993 in Vienna
reaffirmed the principles that were to underpin the MDGs, and in particular advanced the recognition of the
rights of women. But, by its very nature, it steered clear of generating the prioritized and quantified targets
that results-based management demands. The International Conference on Population and Development
(ICPD) in Cairo in 1994 had great significance for the process of MDG evolution as the agreements it
reached, following heated debates between government officials, professionals, social activists and religious
groups, would generate more backroom negotiations and deals than any other MDG item. ( Hulme 2007)
The peak year for UN summitry came in 1995 with the World Summit on Social Development in
Copenhagen and the UN Forth World Conference on Women in Beijing six months later. The Social
Summit was crucial for the MDGs as there a global consensus emerged that poverty reduction was the
priority goal for development (UNDP 1997: 108). In the same year the Women’s Summit at Beijing – very
much driven by the feminist social movement – reaffirmed the goals of gender equality and women’s
empowerment. It was a vibrant meeting with many delegates seeing the time as ripe for ambitious strategies
of empowerment and social transformation (Eyben 2006).
At the high level meeting ( HLM ) of May 1996 Shaping the 21
st
Century: The Contribution of Development
Co-operation was launched and won media attention in Europe and the USA. The final document was 20
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pages long but attention focused on its seven ‘International Development Goals’ (IDGs) ( Hulme 2007).
The IDGs were to have significance for all of these:
(i) rapidly produce a White Paper;
(ii) (ii) craft a policy narrative that would mobilise public support for development;
(iii) (iii) identify DFID’s targets for New Labour’s results based management systems; and
(iv) (iv) find a way of shifting the government’s development focus from UK foreign aid projects to
changing the policies (development, trade, military, environmental) of the big players.
By late 1998 the progress of the IDGs was much more than delegates at the May 1995 DAC meeting might
reasonably have expected. The UN was now re-entering the game of global target setting. On 3 April 2000
Kofi Annan , the former UN secretary general , launched We the Peoples: the Role of the United Nations in
the 21
st
Century. Poverty eradication was the leading issue for the Report. Its first section focused on
‘freedom from want’ and the first point in its conclusion argued that ‘…we must spare no effort to free our
fellow men and women from abject and dehumanising poverty…’ ( Crossette 2004) .
Over Summer 2000 there were frantic negotiations about what should finally go into the Millennium
Declaration. The position of the OECD, and virtually all of its members, and of the IFIs was clear – they
would like to see the IDGs as the goals. For other parties – other UN member states, NGOs, social
movements, private businesses – preferences varied with their interests and values. Networks of many
different types – formally structured and loose coalitions, single issue and multiple issue, conservative and
radical – sought multiple channels (the media, formal meetings with UN civil servants, marches in national
capitals, cups of tea with Kofi Annan) to advance their viewpoint ( Hulme 2007) .
Finally , the Millennium Declaration was unanimously approved on 8th September 2000. 190 countries of
the world recognized the necessity of fulfillment of Millennium Development goals , which includes 8
goals , 28 targets and 48 indicators .(see Appendix 1)
Achieving MDGs through NPM
The achievement of MDGs is now a top development policy agenda shared by countries across the world .
As is well known that , the MDG requires an achievement of numerical performance indicators , including
poverty reduction and school enrollment by 2025 , which is exactly in accordance with the recent trend in
the Result Based Management (RBM) in NPM literature .How does the “sharing ” of international
development goals among the nations contribute to localizing the result based public policy ? (Takeshi
2004) To get the answer of this question , it is necessary to clarify about “Glocal model” and “Result based
management ”
Globalization of NPM and “Glocal Model”: The NPM is now a world-wide phenomenon regardless
of a countries level of economic development , influencing administrative reforms at all levels .The MDG is
a set of international development goals emerged in this wave of world-wide administrative reforms
(Takeshi 2004) . Millennium Development Goals (MDG) provide evidence for the “glocal” hypothesis .
This could be hypothesized as follows : first of all , a “leader” nation asks an international organization to
formulate and monitor MDG , where the leader nation is equivalent to a “principal” and the international
organizations is an “Agent” (Nielson-Tierney 2003) . The international organization now turns its role from
an agent to a principal and pressures a developing nation to adopt MDG through the formulation of PRSP .
The developing nation has no choice but to accept the PRSP . The developing nation has no choice but to
accept the PRSP , because it is a condition for debt relief or new assistance for donors (Takeshi 2004).
This means that the MDG is shared among leader and “follower” donor nations , implying that the RBM of
NPM based development policy goals become a “global” standard .
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The MDG has been conceived and promoted by the international community , and thus far , no study has
focused on its linkage with domestic administrative reforms . However as the MDG is integrated into the
PRSP and national policy , it may well be the case that the nature of MDG has binding international
agreement or a “regime” (Takeshi 2004).Further, as the donor agencies share the MDG as a common
development strategy , it may be promoting result based NPM .
Results-based management : Results-based management, an integral term of New Public Management ,
is a ‘strategy aimed at achieving important changes in the way government agencies operate with improving
performance (achieving better results) as the central orientation…a key component is the process of
objectively measuring how well an agency is meeting its stated goals or objectives’ (Binnendijk 2001:3).
This encourages a focus on identifying and continuously monitoring time-bound goals, targets and
indicators. Conversely, it led to reduced interest in broader frames of reference, such as human rights,
participation and democracy, that are more difficult to measure. Results-based management (RBM) is a sub-
field of a wider and more theorised body of work, the new public management, seeking to understand how
the public sector could be made more effective (Minogue, Polidano and Hulme 1997). The idea of RBM
meant that the MDGs treated more visionary concepts, like human rights cautiously.
As evealed in Shaping the 21
st
Century development goals meant focussing on measurable outcomes and not
process changes or visions of universal human rights. ‘Essential to the achievement of these measurable
goals are qualitative factors in the evolution of more stable, safe, participatory and just societies…We will
also continue to address these less easily quantified factors of development progress’ (DAC 1996:2). RBM
meant that these grander principles and more visionary goals could be placed in the introductions and
conclusions of documents, but not in the lists that were to generate action. From this perspective human
rights were fine aspirations: in the world of action, concrete targets had to drive policies and programmes.
Key initiatives to achieve MDGs using NPM policy approach : The reasons for adopting
international development goals, targets, and measurable indicators in the MDGs mirror those behind the
New Public Management (NPM) reforms of public sectors from the late 1980s onward. Relying on rational
choice, public choice and agency theories, NPM reforms were justified on the grounds that using targets,
principal-agent employment relationships and market-style incentives to direct public sector behaviour
would improve effectiveness, efficiency, transparency and accountability and reduce opportunities for
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bureaucratic capture (See Hughes 2003; Flynn 2007; Maddison & Denniss 2009) . Therefore , in order to
achieve the MDGs , a state must have adopt itself with the NPM approach by taking following measures :
Public Administration Reform : The Millennium Declaration recognizes good governance, of
which public administration is a central part, as the means for achieving the goals of the Declaration.
Support to modernizing state institutions is linked to achieving the MDGs in several ways. First, more
resources are freed to be used in pursuit of MDGs if the efficiency of the public administration is increased.
Second, by increasing transparency and eradicating corruption, fewer scarce resources will be misdirected
away from achieving MDGs. Third, a public administration that responds to the needs of citizens, especially
women and marginalized people, is critical to ensuring the sustainability of the achievements within the
rubric of the MDGs. Finally, increasing the accountability of state institutions is an essential feature of
governments’ strategies to close the democratic deficit, which is key to achieving the MDGs within the
context of the broader Millennium Declaration.
To understand the changing role of the civil service in modern administration it is particularly important to
understand the trends of changes in public administration.
Public Administration Public Management
Citizen-state relationship Obedience Entitlement
Accountability of senior officials Politicians Customers
Guiding principles Compliance with rules and
regulations
Efficiency and results
Criteria for success Output Outcome
Key attribute Impartiality Professionalism
Traditional public administration focused on hierarchical accountability within the civil service and further
upward to political leaders. Public management also brought into play professional accountability of the
kind that the manager in the public sector acquires through training and experience. NPM focused on the
dual, mutually reinforcing accountability to the bottom line and to the customer, while responsive
governance depicts diverse, complex forms of accountability in which there are multiple stakeholders in
both government and society, where all should be heard and answered. This in turn, related to the capacity
development, performance management, and accountability of the civil servants which is vital to achieve
any development goals and objectives, i.e. objectives of the Poverty Reduction Strategy Papers, Millennium
Declaration. ( Alam : 2006 )
NPM shifts the emphasis from traditional public administration to public management (Lane, 1994). As the
title of Clarke and Newman.s (1997) book, The Managerial State, reflects, NPM is pushing the state toward
managerialism. The traditional model of organization and delivery of public services, based on the principles
of bureaucratic hierarchy, planning, centralization, direct control and self-sufficiency, is apparently being
replaced by a market-based public service management (Stewart and Walsh, 1992; Walsh, 1995; Flynn,
1993), or .enterprise culture. (Mascarenhas, 1993).
Reforming Policies to Create an Enabling Environment : Policies conducive to achieving the
MDGs need to be put in place at all levels, from the local to the national. The policy reform process needs to
be undertaken in partnership with all stakeholders, including civil society and the private sector which is an
important platform of NPM . The policies in this regard may be the following interventions:
i) promote an integrated policy approach to achieve MDGs;
ii) build capacity to achieve the hunger Goal;
iii) link nutritional, agricultural interventions with institutional development;
iv) empower women and girls;
v) increase the effectiveness of donor agencies’ MDGs related programmes;
vi) remove various barriers in administrative coordination;
vii) promote free flow of information among various field level officials
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viii) train local public representatives and seniors on various aspects of MDGs and PRSP
objectives.
ix) introduce a ‘local monitoring cell’ to monitor development work on the MDGs;
x) create vibrant local and international partnerships to ensure effective policy implementation
Without presence of multiple stakeholders in both government and society , which can be determined only
by applying NPM principles in policy reform initiatives .
Ensuring Good Governance : The Millennium Declaration points out that good governance at all
levels need to be:
 Indispensable for creating an environment for poverty alleviation and development;
 A prerequisite in asserting universal values such as human rights;
 The Millennium Declaration explicitly recognizes good governance as one of the most crucial
requirements in achieving the Millennium Development Goals. An operational link between noble
aspirations and effective realization.
The Millennium Declaration recognizes good governance, of which the civil service is a central element for
achieving the objectives of the Declaration. However, modernizing the civil service is linked to
achievements of MDGs in several ways. First, more resources will be available for the attainments of the
MDG goals if the efficiency and performance of the civil service is to be increased. Second, by increasing
transparency and eradicating corruption, fewer scarce resources will be misdirected away from achieving the
MDGs. Third, quick responses to the needs of citizens, especially women and marginalized people, are
critical to ensuring the sustainability of the achievements within the rubric of the MDGs. Finally, increasing
the accountability of public administration or the civil service is an essential feature of good governance to
achieve the MDGs within the context of broader Millennium Declaration.
The Implementation of the United Nations Millennium Declaration Report of the Secretary-General (2003)
highlights that good governance is also the key ingredient in making the difference between noble
aspirations and effective realization, together with effective institutions, adequate material resources and
international support. Similarly, Technical Cooperation experiences of UN agencies illustrate that it is
”...neither money, nor technology, nor even expertise, but good governance that makes the difference“(UN-
HABITAT Global Campaign on Urban Governance). That implies the term “good governance ” according
to the United Nations Millennium Declaration the restructured and reformed government in lieu with the
NPM.
Stabilizing Macroeconomic economic growth and human development : Frequently, poor
policy articulation means that tensions among various state units result in misguided trade-offs. For
example, finance ministries and central banks often pursue macroeconomic stability with limited
consideration for other socio-economic objectives. Macroeconomic stability and human development are
hardly “either-or” questions, however. Although macroeconomic stability is an essential prerequisite for
economic growth and human development, it should not be pursued as the only development objective and
priority. Result based NPM is thus essential to policy coherence and balance the coercions .
Mobilizing Domestic resource and rationalizing expenditure : In tax administration more
progressive tax rates and a broad tax base gained through focusing more on direct taxes (such as income tax)
could have powerful poverty reducing effects, especially if combined with improved rates of tax collection.
In terms of expenditure rationalization, restructuring expenditures with more funds directed toward human
development is a major economic challenge. Efficiency and accountability (two important NPM premises)
in resource use can help to achieve their development goals.
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The Rights-based Approach to Development : The strategies for moving forward in halving, by the
year 2015, the proportion of the world’s population whose income is less than one dollar a day and the
proportion of people who suffer from hunger, include
 ensuring support for country-led economic and social initiatives that focus on poverty reduction;
 strengthening capabilities to provide basic social services; and
 assisting capacity-building for poverty assessment, monitoring and planning.
Moreover, coordination among various public sector institutions is essential in achieving the targets of
MDG. It is essential to introduce effective decision-making and managing accountability of proper
utilization of resources to see the result of such development initiatives .
Proper Coordination of Sectoral Projects Interventions : in the Governorate under the Law
concerning Local Authorities. Support to the Governorates is needed to help them formulate regional
development plans in conformance with the MDG , which would:
(i) seek a balanced development by developing the economic complementarities
(ii) identify the rural/regional engines of growth as well as the key constraints and investments
needed to alleviate these constraints; and
(iii) seek public/private/civil society partnerships to identify opportunities for investments,
developments and implementation.
“Proper sizing government” and “Decentralization” approaches of NPM only can ensure effectiveness of
such sectoral interventions .
Capacity Building of the Local Administration : Millennium declaration advocated for
strengthening Local government bodies in Planning and Implementing Local Development Goals through:
building up planning, programming, budgeting capacity:
 develop the capacity of local authorities in civil works management in involving projects in the
development of Local Authorities’ Manual of Procedures;
 considering community development initiatives as a source of project initiatives for the local
authorities; and
 assisting local authorities in resource mobilization
In order to ensure strong and capable local government institutes , restructuring and decentralizing principles
of NMP are surely needed .
Checking corruption : The new public management view of corruption is clear-cut. Corruption
negates the bureaucratic values of equity, efficiency, transparency, and honesty. It weakens the ethical fabric
of the civil service and prevents the emergence of a well-performing government. Corruption exacerbates
discrimination, injustice and disrespect for human dignity. As such, an increased emphasis on human rights
is a key element in democratic governance and for achieving the MDGs.The fight against corruption must
get priority at all levels and an applicable anti-corruption regime including various rules and regulations
should be introduced. Not only the rules and regulations but their applicability should be ensured. Moreover,
it should involve the public and private sectors as well as civil society organizations. With support from civil
society and the international community, there is a need to focus on domestic capacity-development efforts
to strengthen institutional mechanisms for fighting corruption.
Ensuring Transparency : Transparency initiatives in service delivery refers to any attempts (by
states or citizens) to place information or processes that were previously opaque in the public domain,
accessible for use by citizen groups, providers or policy makers . Initiatives for transparency can be pro-
active or reactive disclosure by government. We only focus on instances where freedom of information
might have been central to improvements in public services, particularly health and education. (Joshi 2010)
Consequently, in the service delivery subsector, the literature which can be classified as, ‘efforts to improve
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service delivery, increase citizen engagement, voice and accountability,’ is vast. In order to bound the
material for this Review and establish criteria for including or excluding specific initiatives, the first step has
been to clarify the conceptual terrain and define what we mean by accountability and transparency
initiatives.
Ensuring Accountability : According to the lists of “things that must be done” for good
government in MDG targets it is important to generate very good reasons why each of the factors, i.e.
decentralisation, recruitment on the basis of merit, performance base salary, performance accountability,
decentralisation etc. are important. The clearest and most basic exposition of the concept of accountability is
provided by Schedler (1999) in which public accountability comprises of a relationship between the power
holder (account-provider) and delegator (account-demander). There are four elements to this accountability
relationship—setting standards, getting information about actions, making judgments about appropriateness
and sanctioning unsatisfactory performance.. Often some, but not all of these four components can be found
and have an impact on public services. (Joshi 2010) New Public Management (NPM), which emerged in the
1990s, emphasised the use of market mechanisms within the public sector to make managers and providers
more responsive and accountable (Batley 1999).
Monitoring and Evaluation : The development of effective institutions for monitoring and
evaluation is essential to address good governance challenges and thus the challenges to achieve the MDGs.
Monitoring and evaluation identifies the progress and gaps in development, which can help formulate future
policies. It also identifies individuals and organizations responsible for various duties and provides
information on how well they are meeting their obligations. A central part of merit-based systems is a
framework of performance evaluation, and rewards for good performers. In practice, almost all performance
management systems are costly to administer. Therefore Result-based NPM which ensures the quality
services through monitoring and evaluation is surely necessary to attain millennium development goals
instead of traditional administration appraisal method.
Conclusion
New public management (NPM), management techniques and practices drawn mainly from the private
sector, is increasingly seen as a global phenomenon. NPM reforms shift the emphasis from traditional public
administration to public management. Key elements include various forms of decentralizing management
within public services , increasing use of markets and competition in the provision of public services, and
increasing emphasis on performance, outputs and customer orientation.
The Millennium Development Goals (MDGs) are the world's time-bound and quantified targets for
addressing extreme poverty in its many dimensions - income poverty, hunger, disease, lack of adequate
shelter and exclusion — while promoting gender equality, education, and environmental sustainability.
Basically, the MDGs were designed on the basis of global demands and necessities.
The Millennium Declaration recognizes the importance of good governance, of which civil servants are very
important considering their role, place and position in administration and in the society. It is commonly
understood that the successful achievement of the Millennium Declaration targets is closely related to the
efficiency and effectiveness of the civil service system using the New Public Management approach. In
doing so, it is important that the civil service is tuned to professionalism and service orientation. It is also
important that the civil service system creates conditions in which new avenues can be pursued to fight
corruption, improve accountability and transparency in service delivery, which is very important to achieve
any development goals including the MDGs.
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Millennium Development Goals , London, U.K.
15. Hulme, David , 2007 , The Making of the Millennium Development Goals: Human Development
Meets Results-based Management In an Imperfect World , Manchester , U.K.
16. Takeshi , Daimon , 2004 , How Globalization Localizes International Public Interest : A Cross-
Country Evidence from Millennium Development Goals
17. UNDP. 2003. Millennium Development Goals: A compact among nations to end human poverty.
Human development report 2003. New York: Oxford University Press
NPM 13
Appendix
Millennium Development Goals, targets and indicators
Goal Target Indicators
Goal 1:
Eradicate
extreme
poverty and
hunger
Target 1: Halve, between 1990 and
2015, the proportion of people
whose income is less than one
dollar a day
1. Proportion of population below $1 (PPP) per day
2. Poverty gap ratio [incidence x depth of poverty]
3. Share of poorest quintile in national consumption
Target 2: Halve, between 1990 and
2015, the proportion of people
who suffer from hunger
4. Prevalence of underweight children under-five years
of age
5. Proportion of population below minimumlevel of
dietary energy consumption
Goal 2:
Achieve
universal
primary
education
Target 3:
Ensure that, by 2015, children
everywhere,boys and girls alike,
will be able to complete a full
course of primary schooling
6. Net enrolment ratio in primary education
7. Proportion of pupils starting grade 1 who reach
grade 5
8. Literacy rate of 15-24 year-olds
Goal 3:
Promote
gender
equality
and
empower
women
Target 4: Eliminate gender
disparity in primary and secondary
education preferably by 2005 and
to all levels of education no later
than 2015
9. Ratios of girls to boys in primary, secondary and
tertiary education
10. Ratio of literate femalesto males of 15-24 year-olds
11. Share of women in wage employment in the non-
agricultural sector
12. Proportion of seats held by women in national
parliament
Goal 4:
Reduce
child
mortality
Target 5: Reduce by two-thirds,
between 1990 and 2015, the under-
five mortality rate
13. Under-five mortality rate
14. Infant mortality rate
15. Proportion of 1 year-old children immunized against
measles
Goal 5:
Improve
maternal
health
Target 6: Reduce by three-
quarters, between 1990 and 2015,
the maternal mortality ratio
16. Maternal mortality ratio
17. Proportion of births attended by skilled health
personnel
Goal 6:
Combat
HIV/AIDS,
malaria and
other
diseases
Target 7: Have halted by 2015 and
begun to reverse the spread of
HIV/AIDS
18. HIV prevalence among 15-24 year old pregnant
women
19. Condom use rate of the contraceptive prevalence
rate
20. Number of children orphaned by HIV/AIDS
Target 8: Have halted by 2015 and
begun to reverse the incidence of
malaria and other major diseases
21. Prevalence and death rates associated with malaria
22. Proportion of population in malaria risk areas using
effective malaria prevention and treatment measures
23. Prevalence and death rates associated with
tuberculosis
24. Proportion of tuberculosis cases detected and cured
under directly observed treatment short course (DOTS)
Goal 7:
Ensure
environmen
tal
sustainabilit
y
Target 9: Integrate the principles
of sustainable development into
country policies and programs and
reverse the loss of environmental
resources
25. Proportion of land area covered by forest
26. Ratio of area protected to maintain biological
diversity to surface area
27. Energy use (kg oil equivalent) per $1 GDP (PPP)
28. Carbon dioxide emissions (per capita) and
consumption of ozone-depleting CFCs (ODP tons)
29. Proportion of population using solid fuels
Target 10: Halve, by 2015, the
proportion of people without
sustainable access to safe drinking
water
30. Proportion of population with sustainable access to
an improved water source, urban and rural
NPM 14
Target 11: By, 2020, to have
achieved a significant
improvement in the lives of at least
100 million slum dwellers
31. Proportion of urban population with access to
improved sanitation
32. Proportion of households with access to secure
tenure (owned or rented)
Goal 8:
Develop a
global
partnership
for
developmen
t
Target 12: Develop further an
open, rule-based, predictable, non-
discriminatory trading and
financial system
Includes a commitment to good
governance, development, and
poverty reduction – both nationally
and internationally
Some of the indicators listed below are monitored
separately for the least developed countries (LDCs),
Africa, landlocked countries and Small Island
developing States. Official development assistance
Indicators:
33. Net ODA, total and to LDCs, as percentage of
OECD/DAC donors’ gross national income
34. Proportion of total bilateral, sector-allocable ODA
of OECD/DAC donors to basic social services (basic
education, primary health care, nutrition, safe water
and sanitation)
35. Proportion of bilateral ODA of OECD/DAC donors
that is untied
36. ODA received in landlocked countries as proportion
of their GNIs
37. ODA received in Small Island developing States as
proportion of their GNIs
Market access
38. Proportion of total developed country imports (by
value and excluding arms) from developing countries
and LDCs, admitted free of duties
39. Average tariffs imposed by developed countries on
agricultural products and textiles and clothing from
developing countries
40. Agricultural support estimate for OECD countries
as percentage of their GDP
41. Proportion of ODA provided to help build trade
capacity Debt sustainability
42. Total number of countries that have reached their
HIPC decision points and number that have reached
their HIPC completion points (cumulative)
43. Debt relief committed under HIPC initiative, US$
44. Debt service as a percentage of exports of goods
and services
Target 13: Address the special
needs of the least developed
countries
Includes: tariff and quota free
access for least developed
countries' exports; enhanced
program of debt relief for HIPC
and cancellation of official
bilateral debt; and more generous
ODA for countries committed to
poverty reduction
Target 14: Address the special
needs of landlocked countries and
Small Island developing States
(through the Program of Action for
the Sustainable Development of
Small Island Developing States
and the outcome of the twenty-
second special session of the
General Assembly)
Target 15: Deal comprehensively
with the debt problems of
developing countries through
national and international
measures in order to make debt
sustainable in the long term
Target 16: In co-operation with
developing countries, develop and
implement strategies for decent
and productive work for youth
45. Unemployment rate of 15-24 year-olds, each sex and
total
Target 17: In co-operation with
pharmaceutical companies,
provide access to affordable,
essential drugs in developing
countries
46. Proportion of population with access to affordable
essential drugs on a sustainable basis
Target 18: In co-operation with the
private sector, make available the
benefits of new technologies,
especially information and
communications
47. Telephone lines and cellular subscribers per 100
populations
48. Personal computers in use per 100 population and
Internet users per 100 populations.

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Achieving MDGs through NPM (Bangladesh perspective)

  • 1. NPM 1 Submitted To : Dr. Mobasser Monem Professor Department of Public Administration University of Dhaka Submitted By : Department of Public Administration University of Dhaka Department of Public Administration University of Dhaka Achieving MDGs through NPM
  • 2. NPM 2 Introduction Since the adoption of the Millennium Development Goals at the United Nations Millennium Summit in 2000, the goals have become the international standard of reference for measuring and tracking improvements in the human condition in developing countries. The Goals are backed by a political mandate agreed to by the leaders of all UN member states. They offer a comprehensive and multidimensional development framework and set clear quantifiable targets to be achieved by 2015. ( Alam : 2006 ) The importance of a well-performing public administration was reiterated in Resolution 57/277 of the General Assembly on Public Administration and Development which states that “an efficient, accountable, effective and transparent public administration, at both the national and international levels, has a key role to play in the implementation of internationally agreed goals, including the MDGs”. In that context, the Resolution stresses the need ”to strengthen public sector administrative and managerial capacity-building, in particular in developing countries and countries in economic transition”. As a part of my regular academic activities under the course “Introduction to Public Management (PA- 321)”, I have prepared this paper on “Achieving development using New Public Management Approach ” . In the beginning part of the assignment , basic concepts of New Public Management are discussed , a brief concept about Millennium Development Goals is discussed in the next part and final part contains hoe MDGs can be achieved though NPM .
  • 3. NPM 3 New public management New public management is a management philosophy used by governments since the 1980s to modernize the public sector. It is a broad and very complex term used to describe the wave of public sector reforms throughout the world since the 1980s. The main hypothesis in the NPM-reform wave is that more market orientation in the public sector will lead to greater cost-efficiency for governments, without having negative side effects on other objectives and considerations. NPM traces it origins to the first Minnowbrook Conference held in 1968 under the patronage of Dwight Waldo. The 1960s in the USA was a time of Unusual social and political turbulance and upheaval. In this context, Waldo concluded that neither the study nor the practice of public administration was responding suitably to the escalating turmoil and the complications that arose from those conditions. Defining New public management : NPM is the transfer of business and market principles and management techniques from the private into the public sector. The term new public management encompasses a wide range of techniques and perspectives that are intended to overcome the inefficiencies inherent in the traditional model of public administration. Garson and Overman (1983: 275) defined it as “an interdisciplinary study of the generic aspects of administration … a blend of the planning, organizing, and controlling functions of management with the management of human, financial, physical, information and political resources.” S. Borins (1995: 12) defines NPM as “a normative conceptualization of public administration consisting of several inter-related components: providing high quality services that citizens value; increasing the autonomy of public managers; rewarding organization and individuals on the basis of whether they meet demanding performance targets; making available the human and technological resources that managers need to perform well; and appreciative of the virtues of competition, and maintaining an open minded attitude about which public purposes should be performed by the private sector, rather than a public sector.” According to Osborne and Gaebler, it is a revolt against values of traditional bureaucracy and a belief that the public sector can be transformed by the power of leadership, the introduction of market mechanisms, a focus on results and decentralising power’. Robert Behn defines the New Public Management as “. . .the entire collection of tactics and strategies that seek to enhance the performance of the public sector. . . .” To Guy Peters the new public management includes a range of reforms that have been tried over the past two decades by governments seeking to improve efficiency. The approaches of the NPM include more participation, flexibility, and deregulation internally, and the use of market mechanisms externally Basic principles of NPM : NPM is a new approach based on market values and individual freedom became dominant . Management is based on scientific knowledge about how to deal with such problems in the most rational and efficient way. Management is different from politics, which is the realm of conflict and disorder, and politicians are amateurs in administration in so far as they do not know very much about how to manage organizations. (EHSAN and Naz 2003) . Many brands play important role in the emergence of NMP , including :  Managerialism – Pollitt, 1990  New public management (NPM) – Hood, 1991  Market based PA – Lan and Rosenbloom, 1992  Post-bureaucratic paradigm – Barzelay, 1992  Entrepreneurial government – Osborne and Gaebler, 199
  • 4. NPM 4 The concept of NPM can be explored in more detail starting with the principles of NPM as distinguished by Pollitt (1993) , Walsh (1995) , Hood (1991) , and Osborne and Gaebler (1992). The first principle of NPM is managerialism, defined by Pollitt (1993: 2-3) as involving:  Continuous increases in efficiency.  The use of “ever-more-sophisticated” technologies.  A labor force disciplined to productivity.  Clear implementation of the professional management role.  Managers being given the right to manage. The characteristics of the second principle of the NPM are according to Walsh (1995):  Continual improvements in quality.  Emphasis upon devolution and delegation.  Appropriate information systems.  Emphasis upon contract and markets.  Measurement of performance.  Increased emphasis on audits and inspection. In his article titled A Public Management for All Seasons, Christopher Hood (1991) provided a list of the main doctrines of the NPM: 1. Hands-on professional management of public organizations, i.e., managers are provided extreme autonomy to manage their organizations. This is expected to contribute to sufficient accountable administration. 2. Explicit standards and measures of performance, i.e., goals are well defined and performance targets set. This is also expected to enhance efficiency and ensure accountability. 3. Greater emphasis on output controls, i.e., resources are directed to areas according to measured performance, because of the need to stress results rather than procedures. 4. Shift to disaggregation of units in public sector, i.e., breaking up large corporatized units around products, funded separately and dealing with one another on an arms length basis. 5. Shift to a greater competition in public sector, i.e., move to term contracts and public tendering procedures, as rivalry is always the key to lower costs and better standards. 6. Stress on private-sector styles on management practice, i.e., military style bureaucracy is discarded. There should be more flexibility in hiring and rewards. 7. Stress on greater discipline and parsimony in public sector resource use, which means cutting direct costs, raising labour discipline, resisting union demands and limiting compliance costs to business. Osborne and Gaebler (1992), in their book Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector, have also described the main principles behind the NPM theory. They had put forward the following principles for reinventing the government : a) Catalytic government: steering rather than rowing; b) Community-owned government: empowering rather than serving; c) Competitive government: injecting competition in service delivery; d) Mission-driven government: transforming rule-driven organizations; e) Results-oriented government: funding outcomes, not inputs; f) Customer-driven government: meeting the needs of the customer, not the bureaucracy; g) Enterprising government: earning rather than spending; h) Anticipatory government: prevention rather than cure; i) Decentralized government: from hierarchy to participation and teamwork. j) leveraging market forces ;
  • 5. NPM 5 This principle relates to leveraging market forces and utilizing market based strategies in the delivery of public goods. It presumes that there is no one way to deliver a public good and a wide variety of delivery mechanisms are possible (Miller and Dunn, 2006) .These ten principles were translated into an implementation plan (Osborne and Plastrik, 2000) that has five key elements. These elements constitute the “action plan” for a successful organization (Miller and Dunn, 2006) . The elements are:  Core. Create clarity of aim (core) that allows the organization to focus on the key items that will achieve its ends.  Consequences. Connect consequences to the actions of organizations, individuals, and collectives so that those actions have meaning and impact on the public.  Customer. Focus on the customer in order to recognize that the purpose of public service is the delivery of a public good to human beings.  Control. Shift control form the top or center in order to empower individuals, organizations and communities to address public problems.  Culture. Change the organizational culture of public agencies by “changing the habits, touching the hearts, and winning the minds” of public employees. Millennium Development Goals The MDGs are the world’s biggest promise – a global agreement to reduce poverty at historically unprecedented rates through collaborative global action. Many different ideas have shaped their content and form. ( Hulme 2007) History of MDG : The idea of a systematic attempt to eradicate or dramatically reduce global poverty has antecedents that go back to the founding of the UN; the Universal Declaration of Human Rights; the stalled Development Decade of the 1960s; the many UN summits of the second half of the twentieth century; and, books, reports and associated advocacy exercises on the issue (e.g. Galbraith 1979; Myrdal 1970). UN Summitry Returns 1990 marked a watershed in the evolution of ideas about poverty reduction. Against the backdrop of the end of the Cold War it saw the World Development Report 1990, recognizing the need for economic reform to be accompanied by social policies, and the first of the UNDP’s Human Development Reports. 1990 was also the year of the Children’s Summit in New York to which the processes leading to the MDGs can be traced. The Earth Summit at Rio in 1992 learned this and produced a vibrant event raising public awareness of the links between the environment and poverty. The World Conference on Human Rights of 1993 in Vienna reaffirmed the principles that were to underpin the MDGs, and in particular advanced the recognition of the rights of women. But, by its very nature, it steered clear of generating the prioritized and quantified targets that results-based management demands. The International Conference on Population and Development (ICPD) in Cairo in 1994 had great significance for the process of MDG evolution as the agreements it reached, following heated debates between government officials, professionals, social activists and religious groups, would generate more backroom negotiations and deals than any other MDG item. ( Hulme 2007) The peak year for UN summitry came in 1995 with the World Summit on Social Development in Copenhagen and the UN Forth World Conference on Women in Beijing six months later. The Social Summit was crucial for the MDGs as there a global consensus emerged that poverty reduction was the priority goal for development (UNDP 1997: 108). In the same year the Women’s Summit at Beijing – very much driven by the feminist social movement – reaffirmed the goals of gender equality and women’s empowerment. It was a vibrant meeting with many delegates seeing the time as ripe for ambitious strategies of empowerment and social transformation (Eyben 2006). At the high level meeting ( HLM ) of May 1996 Shaping the 21 st Century: The Contribution of Development Co-operation was launched and won media attention in Europe and the USA. The final document was 20
  • 6. NPM 6 pages long but attention focused on its seven ‘International Development Goals’ (IDGs) ( Hulme 2007). The IDGs were to have significance for all of these: (i) rapidly produce a White Paper; (ii) (ii) craft a policy narrative that would mobilise public support for development; (iii) (iii) identify DFID’s targets for New Labour’s results based management systems; and (iv) (iv) find a way of shifting the government’s development focus from UK foreign aid projects to changing the policies (development, trade, military, environmental) of the big players. By late 1998 the progress of the IDGs was much more than delegates at the May 1995 DAC meeting might reasonably have expected. The UN was now re-entering the game of global target setting. On 3 April 2000 Kofi Annan , the former UN secretary general , launched We the Peoples: the Role of the United Nations in the 21 st Century. Poverty eradication was the leading issue for the Report. Its first section focused on ‘freedom from want’ and the first point in its conclusion argued that ‘…we must spare no effort to free our fellow men and women from abject and dehumanising poverty…’ ( Crossette 2004) . Over Summer 2000 there were frantic negotiations about what should finally go into the Millennium Declaration. The position of the OECD, and virtually all of its members, and of the IFIs was clear – they would like to see the IDGs as the goals. For other parties – other UN member states, NGOs, social movements, private businesses – preferences varied with their interests and values. Networks of many different types – formally structured and loose coalitions, single issue and multiple issue, conservative and radical – sought multiple channels (the media, formal meetings with UN civil servants, marches in national capitals, cups of tea with Kofi Annan) to advance their viewpoint ( Hulme 2007) . Finally , the Millennium Declaration was unanimously approved on 8th September 2000. 190 countries of the world recognized the necessity of fulfillment of Millennium Development goals , which includes 8 goals , 28 targets and 48 indicators .(see Appendix 1) Achieving MDGs through NPM The achievement of MDGs is now a top development policy agenda shared by countries across the world . As is well known that , the MDG requires an achievement of numerical performance indicators , including poverty reduction and school enrollment by 2025 , which is exactly in accordance with the recent trend in the Result Based Management (RBM) in NPM literature .How does the “sharing ” of international development goals among the nations contribute to localizing the result based public policy ? (Takeshi 2004) To get the answer of this question , it is necessary to clarify about “Glocal model” and “Result based management ” Globalization of NPM and “Glocal Model”: The NPM is now a world-wide phenomenon regardless of a countries level of economic development , influencing administrative reforms at all levels .The MDG is a set of international development goals emerged in this wave of world-wide administrative reforms (Takeshi 2004) . Millennium Development Goals (MDG) provide evidence for the “glocal” hypothesis . This could be hypothesized as follows : first of all , a “leader” nation asks an international organization to formulate and monitor MDG , where the leader nation is equivalent to a “principal” and the international organizations is an “Agent” (Nielson-Tierney 2003) . The international organization now turns its role from an agent to a principal and pressures a developing nation to adopt MDG through the formulation of PRSP . The developing nation has no choice but to accept the PRSP . The developing nation has no choice but to accept the PRSP , because it is a condition for debt relief or new assistance for donors (Takeshi 2004). This means that the MDG is shared among leader and “follower” donor nations , implying that the RBM of NPM based development policy goals become a “global” standard .
  • 7. NPM 7 The MDG has been conceived and promoted by the international community , and thus far , no study has focused on its linkage with domestic administrative reforms . However as the MDG is integrated into the PRSP and national policy , it may well be the case that the nature of MDG has binding international agreement or a “regime” (Takeshi 2004).Further, as the donor agencies share the MDG as a common development strategy , it may be promoting result based NPM . Results-based management : Results-based management, an integral term of New Public Management , is a ‘strategy aimed at achieving important changes in the way government agencies operate with improving performance (achieving better results) as the central orientation…a key component is the process of objectively measuring how well an agency is meeting its stated goals or objectives’ (Binnendijk 2001:3). This encourages a focus on identifying and continuously monitoring time-bound goals, targets and indicators. Conversely, it led to reduced interest in broader frames of reference, such as human rights, participation and democracy, that are more difficult to measure. Results-based management (RBM) is a sub- field of a wider and more theorised body of work, the new public management, seeking to understand how the public sector could be made more effective (Minogue, Polidano and Hulme 1997). The idea of RBM meant that the MDGs treated more visionary concepts, like human rights cautiously. As evealed in Shaping the 21 st Century development goals meant focussing on measurable outcomes and not process changes or visions of universal human rights. ‘Essential to the achievement of these measurable goals are qualitative factors in the evolution of more stable, safe, participatory and just societies…We will also continue to address these less easily quantified factors of development progress’ (DAC 1996:2). RBM meant that these grander principles and more visionary goals could be placed in the introductions and conclusions of documents, but not in the lists that were to generate action. From this perspective human rights were fine aspirations: in the world of action, concrete targets had to drive policies and programmes. Key initiatives to achieve MDGs using NPM policy approach : The reasons for adopting international development goals, targets, and measurable indicators in the MDGs mirror those behind the New Public Management (NPM) reforms of public sectors from the late 1980s onward. Relying on rational choice, public choice and agency theories, NPM reforms were justified on the grounds that using targets, principal-agent employment relationships and market-style incentives to direct public sector behaviour would improve effectiveness, efficiency, transparency and accountability and reduce opportunities for
  • 8. NPM 8 bureaucratic capture (See Hughes 2003; Flynn 2007; Maddison & Denniss 2009) . Therefore , in order to achieve the MDGs , a state must have adopt itself with the NPM approach by taking following measures : Public Administration Reform : The Millennium Declaration recognizes good governance, of which public administration is a central part, as the means for achieving the goals of the Declaration. Support to modernizing state institutions is linked to achieving the MDGs in several ways. First, more resources are freed to be used in pursuit of MDGs if the efficiency of the public administration is increased. Second, by increasing transparency and eradicating corruption, fewer scarce resources will be misdirected away from achieving MDGs. Third, a public administration that responds to the needs of citizens, especially women and marginalized people, is critical to ensuring the sustainability of the achievements within the rubric of the MDGs. Finally, increasing the accountability of state institutions is an essential feature of governments’ strategies to close the democratic deficit, which is key to achieving the MDGs within the context of the broader Millennium Declaration. To understand the changing role of the civil service in modern administration it is particularly important to understand the trends of changes in public administration. Public Administration Public Management Citizen-state relationship Obedience Entitlement Accountability of senior officials Politicians Customers Guiding principles Compliance with rules and regulations Efficiency and results Criteria for success Output Outcome Key attribute Impartiality Professionalism Traditional public administration focused on hierarchical accountability within the civil service and further upward to political leaders. Public management also brought into play professional accountability of the kind that the manager in the public sector acquires through training and experience. NPM focused on the dual, mutually reinforcing accountability to the bottom line and to the customer, while responsive governance depicts diverse, complex forms of accountability in which there are multiple stakeholders in both government and society, where all should be heard and answered. This in turn, related to the capacity development, performance management, and accountability of the civil servants which is vital to achieve any development goals and objectives, i.e. objectives of the Poverty Reduction Strategy Papers, Millennium Declaration. ( Alam : 2006 ) NPM shifts the emphasis from traditional public administration to public management (Lane, 1994). As the title of Clarke and Newman.s (1997) book, The Managerial State, reflects, NPM is pushing the state toward managerialism. The traditional model of organization and delivery of public services, based on the principles of bureaucratic hierarchy, planning, centralization, direct control and self-sufficiency, is apparently being replaced by a market-based public service management (Stewart and Walsh, 1992; Walsh, 1995; Flynn, 1993), or .enterprise culture. (Mascarenhas, 1993). Reforming Policies to Create an Enabling Environment : Policies conducive to achieving the MDGs need to be put in place at all levels, from the local to the national. The policy reform process needs to be undertaken in partnership with all stakeholders, including civil society and the private sector which is an important platform of NPM . The policies in this regard may be the following interventions: i) promote an integrated policy approach to achieve MDGs; ii) build capacity to achieve the hunger Goal; iii) link nutritional, agricultural interventions with institutional development; iv) empower women and girls; v) increase the effectiveness of donor agencies’ MDGs related programmes; vi) remove various barriers in administrative coordination; vii) promote free flow of information among various field level officials
  • 9. NPM 9 viii) train local public representatives and seniors on various aspects of MDGs and PRSP objectives. ix) introduce a ‘local monitoring cell’ to monitor development work on the MDGs; x) create vibrant local and international partnerships to ensure effective policy implementation Without presence of multiple stakeholders in both government and society , which can be determined only by applying NPM principles in policy reform initiatives . Ensuring Good Governance : The Millennium Declaration points out that good governance at all levels need to be:  Indispensable for creating an environment for poverty alleviation and development;  A prerequisite in asserting universal values such as human rights;  The Millennium Declaration explicitly recognizes good governance as one of the most crucial requirements in achieving the Millennium Development Goals. An operational link between noble aspirations and effective realization. The Millennium Declaration recognizes good governance, of which the civil service is a central element for achieving the objectives of the Declaration. However, modernizing the civil service is linked to achievements of MDGs in several ways. First, more resources will be available for the attainments of the MDG goals if the efficiency and performance of the civil service is to be increased. Second, by increasing transparency and eradicating corruption, fewer scarce resources will be misdirected away from achieving the MDGs. Third, quick responses to the needs of citizens, especially women and marginalized people, are critical to ensuring the sustainability of the achievements within the rubric of the MDGs. Finally, increasing the accountability of public administration or the civil service is an essential feature of good governance to achieve the MDGs within the context of broader Millennium Declaration. The Implementation of the United Nations Millennium Declaration Report of the Secretary-General (2003) highlights that good governance is also the key ingredient in making the difference between noble aspirations and effective realization, together with effective institutions, adequate material resources and international support. Similarly, Technical Cooperation experiences of UN agencies illustrate that it is ”...neither money, nor technology, nor even expertise, but good governance that makes the difference“(UN- HABITAT Global Campaign on Urban Governance). That implies the term “good governance ” according to the United Nations Millennium Declaration the restructured and reformed government in lieu with the NPM. Stabilizing Macroeconomic economic growth and human development : Frequently, poor policy articulation means that tensions among various state units result in misguided trade-offs. For example, finance ministries and central banks often pursue macroeconomic stability with limited consideration for other socio-economic objectives. Macroeconomic stability and human development are hardly “either-or” questions, however. Although macroeconomic stability is an essential prerequisite for economic growth and human development, it should not be pursued as the only development objective and priority. Result based NPM is thus essential to policy coherence and balance the coercions . Mobilizing Domestic resource and rationalizing expenditure : In tax administration more progressive tax rates and a broad tax base gained through focusing more on direct taxes (such as income tax) could have powerful poverty reducing effects, especially if combined with improved rates of tax collection. In terms of expenditure rationalization, restructuring expenditures with more funds directed toward human development is a major economic challenge. Efficiency and accountability (two important NPM premises) in resource use can help to achieve their development goals.
  • 10. NPM 10 The Rights-based Approach to Development : The strategies for moving forward in halving, by the year 2015, the proportion of the world’s population whose income is less than one dollar a day and the proportion of people who suffer from hunger, include  ensuring support for country-led economic and social initiatives that focus on poverty reduction;  strengthening capabilities to provide basic social services; and  assisting capacity-building for poverty assessment, monitoring and planning. Moreover, coordination among various public sector institutions is essential in achieving the targets of MDG. It is essential to introduce effective decision-making and managing accountability of proper utilization of resources to see the result of such development initiatives . Proper Coordination of Sectoral Projects Interventions : in the Governorate under the Law concerning Local Authorities. Support to the Governorates is needed to help them formulate regional development plans in conformance with the MDG , which would: (i) seek a balanced development by developing the economic complementarities (ii) identify the rural/regional engines of growth as well as the key constraints and investments needed to alleviate these constraints; and (iii) seek public/private/civil society partnerships to identify opportunities for investments, developments and implementation. “Proper sizing government” and “Decentralization” approaches of NPM only can ensure effectiveness of such sectoral interventions . Capacity Building of the Local Administration : Millennium declaration advocated for strengthening Local government bodies in Planning and Implementing Local Development Goals through: building up planning, programming, budgeting capacity:  develop the capacity of local authorities in civil works management in involving projects in the development of Local Authorities’ Manual of Procedures;  considering community development initiatives as a source of project initiatives for the local authorities; and  assisting local authorities in resource mobilization In order to ensure strong and capable local government institutes , restructuring and decentralizing principles of NMP are surely needed . Checking corruption : The new public management view of corruption is clear-cut. Corruption negates the bureaucratic values of equity, efficiency, transparency, and honesty. It weakens the ethical fabric of the civil service and prevents the emergence of a well-performing government. Corruption exacerbates discrimination, injustice and disrespect for human dignity. As such, an increased emphasis on human rights is a key element in democratic governance and for achieving the MDGs.The fight against corruption must get priority at all levels and an applicable anti-corruption regime including various rules and regulations should be introduced. Not only the rules and regulations but their applicability should be ensured. Moreover, it should involve the public and private sectors as well as civil society organizations. With support from civil society and the international community, there is a need to focus on domestic capacity-development efforts to strengthen institutional mechanisms for fighting corruption. Ensuring Transparency : Transparency initiatives in service delivery refers to any attempts (by states or citizens) to place information or processes that were previously opaque in the public domain, accessible for use by citizen groups, providers or policy makers . Initiatives for transparency can be pro- active or reactive disclosure by government. We only focus on instances where freedom of information might have been central to improvements in public services, particularly health and education. (Joshi 2010) Consequently, in the service delivery subsector, the literature which can be classified as, ‘efforts to improve
  • 11. NPM 11 service delivery, increase citizen engagement, voice and accountability,’ is vast. In order to bound the material for this Review and establish criteria for including or excluding specific initiatives, the first step has been to clarify the conceptual terrain and define what we mean by accountability and transparency initiatives. Ensuring Accountability : According to the lists of “things that must be done” for good government in MDG targets it is important to generate very good reasons why each of the factors, i.e. decentralisation, recruitment on the basis of merit, performance base salary, performance accountability, decentralisation etc. are important. The clearest and most basic exposition of the concept of accountability is provided by Schedler (1999) in which public accountability comprises of a relationship between the power holder (account-provider) and delegator (account-demander). There are four elements to this accountability relationship—setting standards, getting information about actions, making judgments about appropriateness and sanctioning unsatisfactory performance.. Often some, but not all of these four components can be found and have an impact on public services. (Joshi 2010) New Public Management (NPM), which emerged in the 1990s, emphasised the use of market mechanisms within the public sector to make managers and providers more responsive and accountable (Batley 1999). Monitoring and Evaluation : The development of effective institutions for monitoring and evaluation is essential to address good governance challenges and thus the challenges to achieve the MDGs. Monitoring and evaluation identifies the progress and gaps in development, which can help formulate future policies. It also identifies individuals and organizations responsible for various duties and provides information on how well they are meeting their obligations. A central part of merit-based systems is a framework of performance evaluation, and rewards for good performers. In practice, almost all performance management systems are costly to administer. Therefore Result-based NPM which ensures the quality services through monitoring and evaluation is surely necessary to attain millennium development goals instead of traditional administration appraisal method. Conclusion New public management (NPM), management techniques and practices drawn mainly from the private sector, is increasingly seen as a global phenomenon. NPM reforms shift the emphasis from traditional public administration to public management. Key elements include various forms of decentralizing management within public services , increasing use of markets and competition in the provision of public services, and increasing emphasis on performance, outputs and customer orientation. The Millennium Development Goals (MDGs) are the world's time-bound and quantified targets for addressing extreme poverty in its many dimensions - income poverty, hunger, disease, lack of adequate shelter and exclusion — while promoting gender equality, education, and environmental sustainability. Basically, the MDGs were designed on the basis of global demands and necessities. The Millennium Declaration recognizes the importance of good governance, of which civil servants are very important considering their role, place and position in administration and in the society. It is commonly understood that the successful achievement of the Millennium Declaration targets is closely related to the efficiency and effectiveness of the civil service system using the New Public Management approach. In doing so, it is important that the civil service is tuned to professionalism and service orientation. It is also important that the civil service system creates conditions in which new avenues can be pursued to fight corruption, improve accountability and transparency in service delivery, which is very important to achieve any development goals including the MDGs.
  • 12. NPM 12 Bibliography 1. Joshi, Anuradha , 2010 , Review of Impact and Effectiveness of Transparency and Accountability Initiatives: A review of the evidence to date Service Delivery , India 2. Larbi , George A. , 1999 , The New Public Management Approach and Crisis States , UNRISD 3. Davis , Dr Thomas W D , 2009 , The MDGs and the Incomplete Relationship between Development and Foreign Aid , Melbourne , Australia 4. Kolthoff , Emile ; Huberts, Leo and Heuvel , Hans van den , 2006 /2007 , The Ethics of New Public Management: Is Integrity at Stake? , The Netherlands 5. Ewalt , Jo Ann G. , 2001 , Theories of Governance and New Public Management: Links to Understanding Welfare Policy Implementation 6. Miller , David Y. and Dunn , William N. , 2006 , A Critical Theory of New Public Management , 7. Behn, R.D. , 2003, Why Measure Performance? Different Purposes Require Different Measures. Public Administration Review 8. Borins, S. , 1998, Lessons from the New Public Management in Commonwealth Nations. International Public Management Journal, 9. Osborne, D.; Gaebler, T.A. , 1992 , Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector; Addison-Wesley: Reading. 10. Peters, B. Guy. , 2001 , The Future of Governing (Studies in Government and Public Policy, 2nd edition; University Press of Kansas: Lawrence. 11. Hood, Christopher. 1991. “A Public Management for All Seasons?”, Public Administration, Volume 69, No. 1. 12. Annan, K. (2000), We the Peoples: The Role of the United Nations in the Twenty First Century, United Nations, New York. 13. Joshi, A., 2008, ‘Producing Social Accountability? The Impact of Service Delivery Reforms,’ IDS Bulletin, Vol. 38. No. 6. 14. Alam , Dr. Manzoor , 2006 , Role and Effectiveness of Bangladesh Civil Service in Achieving Millennium Development Goals , London, U.K. 15. Hulme, David , 2007 , The Making of the Millennium Development Goals: Human Development Meets Results-based Management In an Imperfect World , Manchester , U.K. 16. Takeshi , Daimon , 2004 , How Globalization Localizes International Public Interest : A Cross- Country Evidence from Millennium Development Goals 17. UNDP. 2003. Millennium Development Goals: A compact among nations to end human poverty. Human development report 2003. New York: Oxford University Press
  • 13. NPM 13 Appendix Millennium Development Goals, targets and indicators Goal Target Indicators Goal 1: Eradicate extreme poverty and hunger Target 1: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day 1. Proportion of population below $1 (PPP) per day 2. Poverty gap ratio [incidence x depth of poverty] 3. Share of poorest quintile in national consumption Target 2: Halve, between 1990 and 2015, the proportion of people who suffer from hunger 4. Prevalence of underweight children under-five years of age 5. Proportion of population below minimumlevel of dietary energy consumption Goal 2: Achieve universal primary education Target 3: Ensure that, by 2015, children everywhere,boys and girls alike, will be able to complete a full course of primary schooling 6. Net enrolment ratio in primary education 7. Proportion of pupils starting grade 1 who reach grade 5 8. Literacy rate of 15-24 year-olds Goal 3: Promote gender equality and empower women Target 4: Eliminate gender disparity in primary and secondary education preferably by 2005 and to all levels of education no later than 2015 9. Ratios of girls to boys in primary, secondary and tertiary education 10. Ratio of literate femalesto males of 15-24 year-olds 11. Share of women in wage employment in the non- agricultural sector 12. Proportion of seats held by women in national parliament Goal 4: Reduce child mortality Target 5: Reduce by two-thirds, between 1990 and 2015, the under- five mortality rate 13. Under-five mortality rate 14. Infant mortality rate 15. Proportion of 1 year-old children immunized against measles Goal 5: Improve maternal health Target 6: Reduce by three- quarters, between 1990 and 2015, the maternal mortality ratio 16. Maternal mortality ratio 17. Proportion of births attended by skilled health personnel Goal 6: Combat HIV/AIDS, malaria and other diseases Target 7: Have halted by 2015 and begun to reverse the spread of HIV/AIDS 18. HIV prevalence among 15-24 year old pregnant women 19. Condom use rate of the contraceptive prevalence rate 20. Number of children orphaned by HIV/AIDS Target 8: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases 21. Prevalence and death rates associated with malaria 22. Proportion of population in malaria risk areas using effective malaria prevention and treatment measures 23. Prevalence and death rates associated with tuberculosis 24. Proportion of tuberculosis cases detected and cured under directly observed treatment short course (DOTS) Goal 7: Ensure environmen tal sustainabilit y Target 9: Integrate the principles of sustainable development into country policies and programs and reverse the loss of environmental resources 25. Proportion of land area covered by forest 26. Ratio of area protected to maintain biological diversity to surface area 27. Energy use (kg oil equivalent) per $1 GDP (PPP) 28. Carbon dioxide emissions (per capita) and consumption of ozone-depleting CFCs (ODP tons) 29. Proportion of population using solid fuels Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water 30. Proportion of population with sustainable access to an improved water source, urban and rural
  • 14. NPM 14 Target 11: By, 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers 31. Proportion of urban population with access to improved sanitation 32. Proportion of households with access to secure tenure (owned or rented) Goal 8: Develop a global partnership for developmen t Target 12: Develop further an open, rule-based, predictable, non- discriminatory trading and financial system Includes a commitment to good governance, development, and poverty reduction – both nationally and internationally Some of the indicators listed below are monitored separately for the least developed countries (LDCs), Africa, landlocked countries and Small Island developing States. Official development assistance Indicators: 33. Net ODA, total and to LDCs, as percentage of OECD/DAC donors’ gross national income 34. Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation) 35. Proportion of bilateral ODA of OECD/DAC donors that is untied 36. ODA received in landlocked countries as proportion of their GNIs 37. ODA received in Small Island developing States as proportion of their GNIs Market access 38. Proportion of total developed country imports (by value and excluding arms) from developing countries and LDCs, admitted free of duties 39. Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries 40. Agricultural support estimate for OECD countries as percentage of their GDP 41. Proportion of ODA provided to help build trade capacity Debt sustainability 42. Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) 43. Debt relief committed under HIPC initiative, US$ 44. Debt service as a percentage of exports of goods and services Target 13: Address the special needs of the least developed countries Includes: tariff and quota free access for least developed countries' exports; enhanced program of debt relief for HIPC and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction Target 14: Address the special needs of landlocked countries and Small Island developing States (through the Program of Action for the Sustainable Development of Small Island Developing States and the outcome of the twenty- second special session of the General Assembly) Target 15: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term Target 16: In co-operation with developing countries, develop and implement strategies for decent and productive work for youth 45. Unemployment rate of 15-24 year-olds, each sex and total Target 17: In co-operation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries 46. Proportion of population with access to affordable essential drugs on a sustainable basis Target 18: In co-operation with the private sector, make available the benefits of new technologies, especially information and communications 47. Telephone lines and cellular subscribers per 100 populations 48. Personal computers in use per 100 population and Internet users per 100 populations.