Public Sector Reforms in Developing Countries

Paradoxes and Practices

Charles Conteh, Ahmed Shafiqul Huque, Charles Conteh, Ahmed Shafiqul Huque

• Editore: Routledge
• Anno: 2014
• ISBN:
  9781135100667
• Edizione: 1
• Argomento: Business
• Categoria: Business General

The underpinning assumption of public management in the developing world as a process of planned change is increasingly being recognized as unrealistic. In reality, the practice of development management is characterized by processes of mutual adjustment among individuals, agencies, and interest groups that can constrain behaviour, as well as provide incentives for collaborative action. Paradoxes inevitably emerge in policy network practice and design.

The ability to manage government departments and operations has become less important than the ability to navigate the complex world of interconnected policy implementation processes. Public sector reform policies and programmes, as a consequence, are a study in the complexities of the institutional and environmental context in which these reforms are pursued. Building on theory and practice, this book argues that advancing the theoretical frontlines of development management research and practice can benefit from developing models based on innovation, collaboration and governance.

The themes addressed in Public Sector Reforms in Developing Countries will enable public managers in developing countries cope in uncertain and turbulent environments as they seek optimal fits between their institutional goals and environmental contingencies.

Part I Conceptual rethink of public sector reforms

DOI: 10.4324/9780203797587-1

Introduction

Paradoxes of public management reforms in developing countries

Ahmed Shafiqul Huque and Charles Conteh

DOI: 10.4324/9780203797587-2

Public management in developing countries is confronted with challenges from diverse sources. Some of these originate internally as the system fails to function due to structural or organizational weaknesses. Governmental capacity is often strained as new problems emerge, and the performance of routine administrative tasks as well as the delivery of public services are affected. Often there are pressures from external sources as the international community expects developing countries to adopt new practices and standards. Additionally, unexpected problems can result in crises and the identification of new areas that deserve attention. The combined impact of all of these factors result in extremely high demands on governments in developing countries. In spite of conscious efforts to overcome the weaknesses and effect improvements in public management through reform programs, the progress has not been impressive.

This lack of success with regard to reforms needs to be examined and explained with reference to a number of elements, including concepts, practices, and culture. This book analyzes the issues on the basis of two themes. The first of these relies on the characteristics of the public sector in developing countries and their institutional weaknesses in policy making and implementation. In addition to the management deficit issues and their impacts on public governance, growing complexity constitutes the second relevant theme. Public management goals are, in fact, designed by, assigned to, and implemented through a network of organizations and professionals. The extent of the permeability of public sector boundaries also contributes to the increase of complexities in the practice of public management in developing democracies. This means that ensuring public management effectiveness requires substantive technical and relational skills in addition to the capacities to make networks work.

The ability to manage government departments and operations has become relatively less important than the ability to navigate the complex world of interconnected policy implementation processes. The practice of development management is characterized by processes of mutual adjustment among individuals, agencies, and interest groups bound by shared rules and norms that constrain behavior as well as provide incentives for collaborative action. Some of the most common themes in public management research and practice build on the operationalization of notions such as partnership, network, collaboration, decentralization, and horizontal management. While all these notions have a shared focus on addressing the challenges as well as leveraging the value propositions of working across institutional boundaries, their applicability to, and relevance for, developing democracies deserve attention.

The rationalistic underpinnings of public management in the developing world as a process of planned change are increasingly being recognized as unrealistic. Paradoxes emerge in policy network practices and designs. For example, public sector reform is the modern state’s tool for redressing administrative deficiencies that emerge in governmental processes at different junctures. Reforms in most developing countries have been driven by a range of factors that are internal and external to these states and the factors that dictate the pace and content of these reforms. Consequently, public sector reform policies and programs need to be examined with reference to the complexities of the institutional and environmental context in which they are pursued. It can be argued that advancing the theoretical frontlines of development management research and practice may benefit from developing models based on strategies such as innovation, collaboration, and governance. This approach could enable public managers in developing countries to cope with uncertain and complex environments, as they need to find optimal balance between the institutional goals and environmental constraints.

This chapter begins with an overview of the concepts of public management and reform, and highlights the issues of management deficit and complexity with reference to developing countries. The objective is to prepare the context for the following chapters that present experiences and analyses from a number of developing countries.

Public management

Traditional public administration emphasized control, adherence to rules, and routinization of procedures. These features did not provide scope for flexibility or innovation, and resulted in the adoption of outdated practices that led to wastage and inefficiency. In particular, there was specific concern over the weak systems of accountability that negated many public service accomplishments. The concept of “public management” emerged in the wake of efforts to reduce waste, improve efficiency and effectiveness, and ensure accountability of public sector managers. The new approach was expected to improve the production and delivery of public services through emphasis on performance and outcomes, and achieving value for money invested in the public sector. Hood (1991) identified a number of features that became recognized as the essence of public management. They include hands-on professional management in the public sector, explicit standards and measures of performance, emphasis on output controls, disaggregation of units and greater competition in the public sector, a preference for private sector style of management practice, and greater discipline and parsimony in resource use. The objective was to overcome the inefficiencies inherent in the traditional model of public administration through changes in philosophy, strategies, and management. In brief, public management refers to the “entire collection of tactics and strategies that seek to enhance the performance of the public sector” (Behn 2001: 26).

Pfiffner (2004: 446) noted that the “large size and rigid structures of the traditional system are too cumbersome for the new era of instant communication and an economy in which economic value is based on information and its manipulation rather than industrial production.” Wu and He (2009) argue that the inability of governments to maintain economic stability, protect environmental quality, and reduce poverty led to a search for innovative solutions outside the public sector. The main approaches include more participation, flexibility, and deregulation internally, and the use of market mechanisms externally (Peters 2001). It is obvious that decentralization, delegation, contracting for goods and services, performance, and outcomes have assumed increasing importance in the management of the public sector. Kettl went on to identify six core characteristics of “new public management:” productivity, marketization, service orientation, decentralization, a policy orientation, and accountability for results (2000: 29). Developing countries were both obliged and compelled to adjust to the trend that began in the developed world. “New Public Management (NPM) has emerged as a key approach in shaping public sector reforms in the last two decades” (Wu and He 2009: 521).

Reform

Reform in public management is intended to achieve several outcomes. Generally, the pattern is to analyze a system and introduce methods and mechanisms to correct errors, remove obstacles, and resolve problems to ensure improvements. It entails deliberate actions to improve the efficiency and effectiveness of public sector management, and provide better services to the citizens at lower cost. The changes and improvements are achieved through a variety of approaches and strategies.

Reform implies the “artificial inducement of administrative transformation” (Caiden 1969: 65), and Dror views it as “directed change of the main features of an administrative system” (1976: 127). It is necessary to develop the means for the administrative system to cope, on a continuous basis, with problems created by social change aimed at the goal of achieving political, economic, and social progress (Khan 1975). All governments are interested in improvements in the administrative process and develop plans to achieve that end. However, the application of reform plans need to be considered with reference to the context and circumstances in which they are introduced.

The World Bank identified a number of broad reform concerns in developing countries. These include reduction of public expenditure, strengthening of policy responsiveness and implementation, improvement of government as employer, enhancement of service delivery, and building private sector confidence (Manning and Parison 2004). However, the circumstances vary to a great extent across developing countries and management reform has to be attempted simultaneously with the creation and evolution of development agencies. Along with international institutional factors (the web of international normative expectations, regulations, and ways of thinking that are brought to bear on administrative systems of developing countries) and local institutional factors (rules and regulations to govern the operation of organizations), cognitive (manner in which reality is perceived) and normative (perceptions of how things should be done) factors might influence the process (see Mavima and Chakerian 2002; Scott 1995). In addition, local organizational factors (the capacity of the organizations responsible for reform implementation) and programmatic factors (the extent to which the program is properly designed) are also critical (Mavima and Chakerian 2002). The design and application of reform packages have often fluctuated in developing countries as local and international factors influenced agenda, strategies, and objectives.

In spite of worldwide prominence as the preferred approach to reform, public management is criticized for sacrificing fundamental values such as fairness, justice, representation, and participation for enhancing efficiency (deLeon and Denhardt 2000). The search for a new paradigm brought the concept of “New Governance” to the fore, with emphasis on citizen participation and network governance (Bingham, Nabatchi and O’Leary 2005). However, Lane (1994) holds that new paradigms could introduce new dimensions, but the traditional bureaucratic paradigm “continues to provide an indispensable foundation in the field” (see Wu and He 2009: S21). The complex nature of the various paradigms adds to the challenges faced by developing countries in implementing public management reforms.

Paradoxes in developing countries

Public management reforms are essential in developing countries in order to overcome problems related to administering laws and rules, providing services, and to ensure equity and justice. Various historical, social, and economic factors have combined to shape the nature of societies and entrenched inequalities, inefficiencies, and problems such as poverty, illiteracy, and social divisions. While there are many reasons to reform public management, it has remained a challenge for most developing countries. It is indeed a paradox because these countries need major reforms to support progress, growth, and good governance. Unfortunately, their capacity is severely limited due to a lack of skilled workforce, resources, institutions, and autonomy to design and implement reform programs. While recognizing that various factors impede public management reforms, this book highlights two specific aspects of the problem.

Management deficit emerges due to weaknesses in the process of recruitment and training of public sector managers, as well as the design of organizational structures and processes. Traditional practices from the colonial period do not allow many developing countries to attract the best and brightest employees to the public service. In addition, corruption and a high degree of politicization affect the integrity of the public management system. In spite of efforts by the international community to improve the quality of public service in developing countries, most reform attempts are, at best, modest successes and the objectives remain unattained.

The task becomes much more challenging as governments are confronted with increasing complexities. These result from problems in the political and economic institutions, as well as complex social structures and relationships. The forces of globalization and advancements in information technology help convey the nature of changes that take place worldwide to developing countries. The international community seeks to establish common standards for all, and many developing countries are unable to comply with them. In their efforts to comply with aid requirement, however, these countries often initiate unrealistic reforms that are not suitable for their contexts, and suffer the consequences. It is paradoxical that developing countries need effective public management reforms, but do not have the resources, skills, and conditions that are necessary for success in such endeavors. It is unfortunate, but efforts at reform continue with the expectation that the majority of problems can be reduced to some extent and that relationships with the donors will remain undisturbed in the face of increasing complexity. The paradoxes are reflected in a number of case studies presented in the book.

Outline of book

The book addresses a number of issues related to reform in public management in developing countries, management deficit, and institutional building strategies. The chapters touch upon contemporary trends toward democratization, decentralization, devolution, and the reconfiguration of power and responsibilities. This is done through a rethinking of the contradictions and paradoxes of public sector reform in the developing world, with a particular focus on participation and decentralization. Based on the various case studies, the final section undertakes analyses of the broader questions of public sector reform in developing countries, including an assessment of the developmental state as a concept and model of institutional reform in those nations.

Zafarullah and Huque examine the paradoxes and contradictions in public management reform strategies adopted by developing countries from western, liberal, democratic, industrialized countries, and find that they ...