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emergencias 2014;2:226-231

Original Article

Transition from Traditional Public


Administration to Network Governance
via New Public Management; with an
Emphasis on the Role of Public
Nader Ganji
M.A. in Public Policy, School of Law and Social Sciences, The University of Nottingham

Abstract The NG includes taking into consideration the


Traditional Public Administration (TPA), New Public voluntary, private and public sectors, national,
Management (NPM) and Network Governance (NG) regional and international institutions in the
put different levels of emphasis on sovereignty of performance of different functions of governance. In
citizens. It focuses on the way citizens’ relationship such models, people face various roles. People are
to the state is conceptualized. It examines the considered passive recipients of the services in TPA,
approaches through which public organizations will active customer of the services in NPM, and active
produce outputs more in line with what citizens want citizens in decision-making processes in NG.
as well as the extent to which public are involved in However, what happens in practice seems to be
decision-making in government through such different from the intended goals (Powell, 1990, p.
models. It will discuss whether every of these 296; Hughes, 2003).
models, in implementation, does work and also their
broader implications for democratic governance, The aim of this paper is to examine the strengths and
particularly the impacts on political and weaknesses of the mentioned models of public
administrative leadership and the accountability of administration with emphasis on the role of public.
leaders. This paper has been divided into three parts. In each
Keyword Citizens, Traditional Public part, one of the public administration models will be
Administration, New Public Management, critically reviewed. This paper concludes that NPM
Network Governance, participation, cannot replace a part of qualities such as
accountability, power predictability, stability and due process in TPA with
Introduction its elements. It depicts, nevertheless, more
The public sector has a huge impact on people's lives empowered and less accountable citizens to the
(Lane, 2000). Over the recent decades, the public systems than TPA. However, it can have negative
sectors of the Western countries have implemented effects on low-income class of the society since it
considerable reforms in response to the challenges of largely relies on market regulations. But on the other
technological progress as well as to regional and hand, NG can be the most desirable form of
global changes. These wide-ranging public sector administration as citizens are accountable and
reforms represent a paradigm shift from the responsible in the networks. Nonetheless, there are
Traditional model of Public Administration (TPA), to doubts about the ability of political leadership to
the New Public Management (NPM). In other words, guarantee the accountability of this model.
there have been numerous attempts to replace the
huge massive bureaucracies based on hierarchical
forms with market-based economic theories built on
consumer-driven managerialism. Whilst power was Public in Traditional Public Administration
centralised in TPA, NPM decentralised power
distribution to the businesses. However, The TPA model derived from Weber, Wilson and
shortcomings of both contractual relationships Taylor (Hughes, 2003). TPA is rooted in German
between firms and competitive market regulations administrative traditions and especially Weber’s
gave rise to the Network Governance (NG) model. assumptions of bureaucracy (Pfiffner, 2004). Weber’s
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emergencias 2014;2:226-231

(1946, p. 95) concept of bureaucracy is associated and thus make political accountability problematic
with a monocratic hierarchical form of government (Skelcher, 2000; Hughes, 2003). Noticeably, from a
with a top to bottom control system. However, this Fatalist perspective, controllability of human
view has been under much discussion. Indeed, interaction is not as accessible as what advocates of
Weber’s (1946) views indicate a system where TPA point out. Also, egalitarians criticise this model
policies are set at the top and technically qualified as it centralises power in the hands of high-ranking
bureaucrats are strictly subordinate to the political policy makers whereas individualists oppose TPA
superior. This perception of bureaucracy developed since they claim that this model imposes external
in Germany over the next decades as there was a interference upon individual's own interests
parallel development of bureaucracy in the other (Dunleavy & Hood, 1994). Also, a strict separation
countries. Wilson (1887) makes a distinction between between politicians and administrators or between
administration and sphere of politics. He argues that policy and administration may not be logical in the
although politicians set the tasks for administration, real world. For instance, the 1980s reform
there should be a politics-administration dichotomy. movements in the United States were not able to
Nonetheless, this idea is widely criticized since it fails separate these two parts (Hughes, 2003, pp. 32-35).
to take impact of numerous high-level civil servants
on policies into account (Heclo, 1987). Thence, Moreover, the TPA model suffers from inadequacy of
Taylor (1911) emphasised on the bound control of political control. Given that the decisions are
work processes, prudent planning by managers and arbitrarily, there can be a technical inefficiency
domination. These concepts may not necessarily within this model as well. However, the model of
imply exploitation of the workers. Thereupon, the one-best-way thinking can be problematic in its
TPA model expanded in the industrialised world and nature. Also, in TPA, public services are delivered
resulted in the relative breakthroughs of modern with more deficiency and delay than the market-
economies (Pfiffner, 2004). based systems because of the presence of red tape
and rigid conformity of bureaucrats to the formal
Peters (2001, pp. 3-12) summarises fundamentals of rules. Also, the bureaucracy provides public goods
TPA in the following major features: non-political and delivers services as the direct provider whilst the
civil service, hierarchical form, unpermissive internal government can engage in providing services
regulations and rules, permanency and stability, indirectly through subsidies, regulation and contracts.
institutional services and internal and external
equality. This model led to the formation of
overloaded governments in practice, such as the Public in New Public Management
welfare state era of the 1950s to 1970s. These
governments were bound by abounding Inflexible bureaucratic model of administration
responsibilities and demands, many of which they became discredited both theoretically and practically
were unable competently to meet (King, 1975). The in the 1970s and 1980s. Accordingly,
inadequacies of TPA gradually became apparent in Implementation of public management reform
the 1970s and 1980s. Government involvement in programmes changed the relationship between
numerous activities as well as the restrictions’ government and citizens. There have been two major
principals of TPA for economic growth and freedom claims to reject TPA. Firstly, the bureaucracy of the
caused following financial cuts by the governments old model restricts the freedom of the individuals and
of the European countries and decline in Keynesian secondly, TPA’s notion of power should be replaced
economic thought. These reforms were not only with choice (Hughes, 2003). In other words, instead
implemented in the UK, but also in traditionally large of forcing people to perform their affairs through the
systems such as Spain, Italy, Germany and Sweden. bureaucracy, people can do them in a market-based
system with freedom and right of choice which
Nevertheless, TPA indicates an almost undemocratic should be replaced with being the “serfdom” of
system which lacks freedom of employees especially government (Hayek, 1944; Friedman & Friedman,
in the areas such as innovation and limits choice of 1980). However, as Dunleavy (1991) believes, the
citizens. In the propounded model, only key decision- notion of “choice” in NPM has been introduced
making centres are visible and citizens are considered furtively and left under-specified.
passive community of recipients and inactive voters.
There is also a contradiction between a massive NPM includes efforts to decelerate or reverse
bureaucracy where there is a distinct elite acting government growth in overt public expenditure and
secretively and a democracy. Bureaucracies can employees, shift towards privatization and quasi-
abrogate the power of both citizens and politicians privatization with emphasis on subsidiary companies
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Transition from Traditional Public Administration to Network Governance via New Public Management; with an Emphasis on the Role of Public

in service provision, the deployment of automation, different as it is public. In addition, public


production and distribution of public services management has a political dimension which makes
(Dunleavy, 1985; Dunsire & Hood, 1989). The design it distinct from business models. To some extent, it
of NPM is built on alliance of new institutional can be argued that people in NPM can exercise
economics such as the public choice, transactions power through the economic firms. Nevertheless,
cost and principal-agent theories, and successive they cannot involve the whole public including
waves of business-type 'managerialism' in the public people with different working areas and financial
sector. NPM focuses on hands-on management, capacities. Public are more alike consumers than
active, visible and discretionary control, explicit those who get involved in decision-making
standards and measurement of performance that processes.
results in accountability and transparency. Within
NPM, there is also an emphasis on output control Moreover, there can be a clash between democratic
rather than procedures, disaggregation of public values and business values. NPM contains the core
sectors’ unit, shift towards a greater competition, concepts of competition, value-for-money and
private sectors’ patterns of management and partnership. Since this model propagates business
parsimony in resource use. Such principals are values, it may weaken public interests and collective
considered doctrinal components of NPM (Hood, decision- making. Also, NPM undermines policy
1991). Additionally, contracting is the central idea to formulation since it emphasises policy enforcement
NPM. The aim of contracting is to make the system rather than public policy. Likewise, NPM fails to
more efficient and responsive (Fortin & Hassel, establish a clear-cut relationship between citizens and
2000). The Gore report (1993) specifies the following political representatives whilst it seems that in the
goals to change the American culture towards NPM first model political executives are more accountable
in the United States: cutting red tape or shift from to the public. Furthermore, in absence of a definite
systems in which people are accountable for concept of accountability, instead of being
following rules to systems, attention to customers, accountable to public with the purpose of social
empowering employees and hollowing out the values, public governance will be increasingly
government. In general, NPM is based on the two accountable for maximising profits, accelerating
main ideas of private-sector management and the economic growth and ascertaining cost-effectiveness.
separation of policy formulation and operations. Thus, the accountability for competition, profit
Privatization, contracting, partnerships, maximising and market-based system does not
decentralisation, customer orientation and necessarily result in accountability for equality,
management by result and merit pay are best known representation, welfare, justice, and citizens’ rights.
techniques which are rooted in philosophical roots of Also, due to the redefinition of the concept of citizen
pragmatism (Osborne, 2002). as clients or customers who receive public services,
NPM can reduce social rights. In other words, due to
Although many public sectors’ professionals consider the new definition of citizenship, public governance
NPM a threat to their autonomy and authority, they may become only accountable for the customers who
would not reject it. This is because of the public pay whilst it may be indifferent towards low-income
claim that it improves the services to them. Thus, citizens without appropriate financial capacity
they may accept to implement NPM and attempt to (Pardeep & Vayunandan, 2010; Kaboolian, 1998).
find the ways to ameliorate its effects and escape
from the lack of independency. Public sector
professionals may use “reconfiguration” to retain Public in Network Governance
their control, “de-coupling‟ by downplaying NPM in
the real work and emphasising on its formal Interest in deploying “governance‟ is traced back to
requirements, as well as “colonisation‟ to claim their the “corporate governance‟ movements which
professional rights. Managers in NPM might feel that emerged in the late 1980s as well as the “local
they are under “iron cage‟ of accountability and governance‟ reforms that expanded from the early
audits (Dent et al., 2004, pp. 2-4). Regarding such 1980s. NG includes social inclusion, equality of
reforms, the notion of citizens turns to active opportunities, democratic decision-making, citizen
customers instead of passive recipients. However, and stakeholder engagement, fair and honest
people are still considered recipients of services in treatment towards citizens, free and fair elections,
NPM (Skelcher, 2000). Nonetheless, as Carroll openness and responsiveness of government, and
(1995) states, this change provides customers with accountability and transparency (Bovaird, 2005).
insignificant responsibility to the community. Also, Governance implies a change in the concept of
the advocates of NPM attempt to employ the government towards employment of new methods by
techniques from business sectors, whereas NPM is which the society is governed. Notably, global
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emergencias 2014;2:226-231

changes, emergence of regional institutions, and being paid attention than the weaker (Hardiman,
increase in transnational economic activities resulted 2006; Holliday, 2000). Also, high levels of
in first wave of network governance (Rhodes, 2012). transparency or the information disclosure may cause
the same issue as privilege of certain vocal citizen
The core notion within the NG model is participation participants rather than responding to the public
of stakeholders who are independent in terms of interest (Baxandall & Magnuson, 2008).
resources in governing. Functionally, NG is a shift
from whether the unicentric form of TPA or the Moreover, since NG involves low degree of
multicentric marked-based system of NPM towards a supervision by politicians due to its design, it
system of pluricentric governance (Kersbergen & develops new spaces for democratic activity through
Waarden, 2004). Hierarchical system and state rule which the public and other stakeholders can shape
are two inseparable parts of TPA. NPM is based on decision-making processes and affect implementation
competition with market regulations. However, NG of policies (Mathur & Skelcher, 2007). It can also
involves interaction of a huge number of result in collaborative policy-making. However,
interdependent actors in policy-making. Peters (1997, stakeholder engagement in governance can be very
p. 57) defines NG as a “system which provides costly and sometimes, may also cause substantial
direction to society”. Indeed, NG evokes a world delay in decision-making and implementation (Leat
where the state power is scattered among et al., 2002). Likewise, there is a possibility that NG
functionally distinct networks including public, causes fragmentation of accountability. This issue
private and voluntary (Rhodes, 2012). Whilst power “may allow stakeholders to exercise power without
is centralised in hierarchies, it is decentralised in appropriate checks and balances” (Bovaird, 2005, p.
networks. Also, power is determined by position in 70). Given than the most appropriate protective tool
TPA whilst in NG, it is settled by interactions with for democratic accountability is political leadership,
other network actors (Freeman, 1979; Wachhaus, accountability may “disappear in the interstices of
2012). In NG, public can effectively affect policy- the webs of institutions that make up governance”
making through NGOs and networks in the civil (Rhodes, 2000, p. 77). To Stoker (2006), the latter
society. problem of NG evokes a world where no one is in
charge. Furthermore, NG runs the risk of deformed
Moreover, network participation is neither driven by management when there is just all talk and no
stand-alone strategies nor is inherently competitive action. However, management cannot be entirely
(Wachhaus, 2012). This model provides actors with democratised in its nature (Stoker, 2006, p. 56).
involvement in the political process more effectively Also, networks bring policy-making to the street
than the TPA and NPM. Networks as informal level. Thus, there is a danger of manipulation of the
institutions help overcoming the problems of public by interest groups and political insiders
collective action. Thus, they can result in (Bogason & Musso, 2006). In the real world, there
effectiveness of public policy (Kees & Waarden, are numbers of examples which require technical
2004; Hardiman, 2006). Likewise, public solutions, even small-scale issues such as the location
participation in NG can break traditional iron triangle of a road. However, people who are involved in
of administrators, organised interest groups, and decision-making may not accept a technical solution.
legislative staff (Bogason & Musso, 2006). Therefore, imposing the solution would often be
Customers in NG are also co-producers who engage undemocratic (Hughes, 2003).
in a number of activities and have responsibilities for
their demands. This approach can lead to decrease in
government’s tasks. Notably, co-production may not Conclusion
be only a division of service delivery, but also a part
of public service planning (Bovaird, 2007). In the past decades, there has been a shift from
hierarchy towards governance via market. Rapidly
Although the legal and administrative framework of changing in forms of governments brings risk, thus a
NG seems to provide safeguards for acceptable logical suggestion would be that the governments
citizen participation, the practice of democracy in should move towards collaborative policy-making
reality might be different from the proposed basic slowly in order to decrease the possible jeopardies.
standards of this model (Mathur & Skelcher, 2007, p. Also, in developing countries where the hierarchical
229). Additionally, in NG, the problem of democratic bureaucracies are not replaced, it may be difficult to
legitimation may arise. Given that some organisations meet preconditions of implementation of NPM or NG
are more vocal than the others, a number of them (Batley & Larbi, 2004). Nonetheless, there are always
may not be given a voice and the stronger is more a number of potentials for tensions between
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Transition from Traditional Public Administration to Network Governance via New Public Management; with an Emphasis on the Role of Public

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