Chapter 2: Modern Trends: From NPM to Governance

To resolve the inefficiencies caused by overgrown bureaucracies, principles of ‘Markets’ and ‘Networks’ were introduced. This shift is one of the most frequently tested topics in public administration.

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1. New Public Management (NPM)

“Government should focus on steering rather than rowing.” - Osborne & Gaebler

(1) Key Features

• Market Principles: Introducing competition within the government and expanding outsourcing.
• Result-Oriented: Emphasizing accountability for outcomes rather than inputs.
• Customer Direction: Treating citizens as customers of administrative services.

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2. New Governance

While NPM emphasized market competition, New Governance focuses on networks and collaboration among government, markets, and civil society.

(1) NPM vs. New Governance Comparison

Feature	New Public Management (NPM)	New Governance
Operating Mechanism	Market, Competition	Network, Trust
Institutional Unit	Market	Network
Role of Citizens	Customer	Partner
Primary Interest	Efficiency	Democracy, Transparency

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3. New Public Service (NPS)

“The role of the administrator is to serve, not steer.” - Denhardt & Denhardt

• Value: Priorities placed on democratic citizenship and the public interest.
• Citizen Status: Citizens are neither just consumers nor partners, but the sovereign ‘citizens’ to whom the government is accountable.

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4. Post-NPM (Whole-of-Government)

Emerging to fix the ‘fragmentation’ (departmental silos) caused by excessive NPM reforms.

• Core: Focuses on ‘Whole-of-Government’ approaches, emphasizing integration and coordination across agencies.

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Key Checklist

• Which theory argues that government should “steer, not row”? (Answer: New Public Management, NPM)
• How are citizens viewed in the New Public Management (NPM) framework? (Answer: Customers)
• What movement emerged to resolve the problem of fragmentation caused by excessive market reforms? (Answer: Post-NPM / Whole-of-Government)