GOVT3987 Lecture Notes - Lecture 5: New Public Management, Public Choice, Mixed Economy
3 Apr 2019
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Document Summary
Active role for state in managing economy, More role for markets, less for state. Successful in wwii and post war boom, but. Criticism of keynesian" economics especially demand became less so (now partially revived) Economic context in developed west (esp anglo countries). Main theoretical supports for new public management (npm) Rejection of public administration/ business management divide guiding principle public sector must be reduced and become more like the private sector . More a general movement than a single doctrine ie divergence rather than convergence in practice (kapucu) private sector practice varies, therefore copying from private sector varies but common ideas, especially at the level of theory and principle. Main features (see criticism of traditional bureaucracy (lecture 4)) (i) institutional economics: Suspicion of monopoly rather than competitive markets. Bureaucrats driven by self-interest not public interest (public choice theory (ii) management theory: reduction in public sector spending. Cost-cutting and down-sizing": marketisation, managing for results, managerial autonomy ( let the managers manage")
