This document discusses New Public Management and its effects on government administration. New Public Management aims to make government more efficient through market mechanisms and reducing the size of the welfare state. It introduces structural changes like privatization and outsourcing. It also emphasizes reducing the size of government and increasing autonomy and accountability of public sector organizations. New Public Management takes a more market-based approach to public services and deregulates the public sector. However, it may weaken social programs and services while increasing issues like poverty, unemployment, and democratic deficits.

1. NEW PUBLIC MANAGEMENT

2. Do we make government efficient
or use market mechanism for the
solution of welfare state?

3. Changing models of public
administration
 Classic (Weberian) model: hierarchy,
professionalism and political
accountability
 New public management
 Good governance: democratic and
efficient public administration

4. New Public Management:
measures and effects
a) Structural
b) With regard to personnel
c) Functional
d) Other

5. Structural measures and effects
- Reduction (lean state; privatisation, budget
reduction, reduction of the level of social rights,
etc.)
- Forms of private and third sector participation in
public affairs (PPP, outsourcing, concessions,
etc.)
- Loosening structural tights (fragmenting state;
agentification, decentralisation, greater autonomy
of public sector organisations, etc.)
- Problems: accountability, coordination, strategic
policy, ethics, local self-government, costs

6. Measures and effects with regard to
personnel
- More mechanical measures (reducing the number,
pays reduction, flexibilisation, private sector
managers engagement, greater autonomy of
public managers with regard to remuneration, pay
and career system, etc.)
- Human potentials development (education, in-
service training, organisational culture building,
ethics, orientation towards results and the needs
of citizens)
- Problems: instability, insecurity, organisations as
psychic prisons, unsuccessful organisations,
consumerism, etc.

7. Functional measures and effects
• Marketisation of the state; public market
• Competitiveness
• Real prices
• Services of general economic interest (liberalisation
and privatisation)
• Deregulation
• Debureaucratisation (removing procedural obstacles to
private sector subjects and citizens; management by
results)
• New budgetary solutions; internal and external audit,
etc.

8. Social consequences
• Reinvigorating capitalism (state failure)
• Crisis of social state: poverty and lower level of social
services, unemployment rate is increasing
• Democratic deficit: weakening democratic legitimacy of
the state
• Anomy (crime, social conflicts, disregarding legal
regulations)
• Positive effects?

9. Thank you!
Professor Ivan Koprić
Faculty of Law, University of Zagreb
Mailto: ivan.kopric@pravo.hr