Discuss the conceptual framework of New Public Management.

 Conceptual framework of New Public Management:

The Neo-liberal ideas gained prominence because of the economic crises in the West, which followed the massive increase in oil prices in the 1970s. It borrowed loan from the International Monetary Fund and had to introduce divestiture of public enterprises, public expenditure cuts and so on. Gradually, other countries followed suit. It was increasingly felt that the poverty and economic stagnation, especially in the developing countries was the result of State undermining the operation of market forces. The need for structural adjustment and reduced role of State in economic development was considered indispensable.

This led to the emergence of Washington Consensus. It basically comprised the reform measures promoted by Bretton Woods's institutions, US Congress and Treasury and several think tanks, which aimed to address the economic crises, especially by Latin American countries in the 1980s. This was also termed as Structural Adjustment and Stabilisation Programme. It emphasised the need for sound macro- economic and financial policies, trade and financial liberalisation, privatisation and deregulation of domestic markets.

Following distinct characteristics of new public management:

i) Complementing managerial along with policy-making skills.

ii) Disaggregating public organisations into separate self-contained units having their own goals, plans and requisite autonomy.

iii) Adopting private sector managerial practices by the public sector. 200 @ Setting explicit measurable performance standards for public organisations.

iv) Controlling the performance of public organisations by pre-determined output New Public measures. Management Approach

v) Contracting out, private ownership and competition in public service provision.

vi) Promoting competition both among public sector organisations as well as public and private sectors. Making services more responsive to the needs of the customer and ensuring

vii) Assigning the role of steering activities to the government rather than rowing, relying on third parties such as non-profit organisations and other levels of government in implementation of policies

viii) Deregulating the government activities to make it result-oriented.

ix) Empowering the employees to serve the customers as it promotes team work.

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