Ch6. Administrative Reform and E-Government

The Meaning of Administrative Reform

Administrative Reform:
Intentional change to government functions, structure, or processes

Approaches to Reform:
Structural: reorganizing agencies (mergers, decentralization)
  → Examples: DHS creation (2002), ODNI establishment (2004)
Functional: changing how work is done (deregulation, contracting out)
  → Examples: OMB Circular A-76 (competitive sourcing)
Behavioral: changing culture and norms of the civil service
  → Examples: ethics reform, leadership development programs
Technological: deploying information technology
  → Examples: e-government initiatives, shared services

Resistance to Reform:
Fear of losing power or resources
Uncertainty and organizational inertia
Overcoming resistance: participation, phased rollout, communication

New Public Management (NPM)

Origins:
1980s fiscal crisis in the U.S. and UK welfare state
Drive toward smaller, more efficient government

Core Elements:
① Market mechanisms: competition, performance pay, benchmarking
② Contracting out: privatizing or outsourcing public services
③ Customer orientation: citizens as service consumers with choices
④ Performance management: goals, metrics, and results-based evaluation
⑤ Deregulation: reduce internal government rules; empower managers

Representative Examples:
U.S.: Reagan's private-sector initiatives; Clinton/Gore's "Reinventing Government"
  (National Performance Review, 1993)
UK: Thatcher's Next Steps agencies; Major's Citizen's Charter
New Zealand: most radical NPM reform — state-owned enterprises, output budgeting

NPM Limitations:
Weakens public values (equity, access, democratic accountability)
Market failures require government to step back in
Blurs accountability when services are contracted out
Struggles with "wicked problems" that markets cannot solve

New Governance / Collaborative Governance

Governance:
Government, civil society, and the market jointly solve public problems
Networks, partnerships, and collaboration replace top-down hierarchy

Characteristics:
① Network coordination: vertical command → horizontal collaboration
② Participation: citizens, nonprofits, and businesses in decision-making
③ Co-production: shared service delivery between government and others
④ Flexibility: adaptive to rapid environmental change

New Governance vs. NPM:
NPM: government → market (competition, contracting)
Governance: government + market + civil society (networks, partnerships)

Examples in the U.S.:
Public-private partnerships (P3s) in infrastructure
Interagency task forces, joint ventures with nonprofits
Community policing, community development block grants

Limitations of Collaborative Governance:
Accountability gaps when no single entity is responsible
Slow, consensus-driven decision-making
Power imbalances favor well-organized stakeholders

E-Government

E-Government:
Using ICT to deliver government services more efficiently and accessibly

Stages of E-Government Development:
Stage 1: Information (one-way: government → citizen)
  → Agency websites with static content
Stage 2: Interaction (two-way: basic online inquiry/feedback)
  → Contact forms, FAQ, email
Stage 3: Transaction (online service delivery)
  → Online permit applications, tax filing, benefit enrollment
Stage 4: Integration (cross-agency, one-stop service)
  → USA.gov, Login.gov, interoperable backend systems

U.S. Federal E-Government Milestones:
E-Government Act of 2002: established federal CIO and GSA's e-gov initiatives
USAJobs.gov: federal job listings
IRS.gov / Free File: online tax filing
Benefits.gov, HealthCare.gov: integrated benefit portals
Login.gov: unified identity for federal websites

Benefits:
Greater administrative efficiency, cost savings
Reduced corruption potential (less face-to-face transaction)
Improved citizen access to services

Digital Divide:
Older adults, low-income populations, and persons with disabilities
face unequal access to digital government services
→ Requires digital equity policies and accessible design (Section 508)

NPM Core Characteristics ★★★★★ : Market mechanisms, contracting out, performance management, customer orientation. Efficiency gains at potential cost to public values. Memory tip: NPM = market + metrics + customers

New Governance ★★★★★ : Network of government + civil society + market collaborating to solve public problems. Addresses NPM’s accountability gaps. Memory tip: governance = collaborative network

Four Stages of E-Government ★★★★☆ : Information → Interaction → Transaction → Integration. Memory tip: IITI — each stage adds a new capability layer

Practice Questions

Q. What are the advantages and disadvantages of expanded contracting out?

Advantages: cost savings, access to private-sector expertise, competition driving efficiency. Disadvantages: reduced public accountability, blurred responsibility when a contractor fails, “cream-skimming” (private firms avoid unprofitable services), and potential for lower wages and labor instability among contractor employees.

Q. Why does the digital divide limit e-government’s potential?

E-government platforms require reliable internet access and digital literacy. Elderly, low-income, rural, and disabled populations are disproportionately excluded, meaning a transition to digital-only services can deepen inequality in access to government benefits and information. Digital equity programs and ADA/Section 508 compliance are necessary complements to e-government expansion.