COLLEGE OF FINANCE, MANAGEMENT AND

DEVELOPMENT

DEPARTMENT OF PUBLIC MANAGEMENT

COURSE TITLE: PRINCIPLE AND THEORIES OF PUBLIC

MANAGEMENT

GROUP ASSIGNMENT ONE

GROUP MEMBERS NAME ID NO

1. TIBEBU FANTA ECSU 2300663
2. DEGINET MARKOS ECSU 2300808
3. ZELAKI OROMO ECSU 2300705
4. ZEKI ASFA ECSU 2300772
5. YESUF BADI ECSU 2300636

SUBMITTED TO: BERSISA K. (PhD)

December, 2023

ADDISS ABABA,
ETHIOPIA
 Table of Contents page
Introduction.................................................................................................................................................1

1. Strength and limitation of FDRE constitution.........................................................................................2

1.1 Strength OF FDRE constitution.........................................................................................................2

1.1.2 Federal Structure:........................................................................................................................3

1.1.3 Ethnic Representation:................................................................................................................3

1.1.4 Independent Judiciary:....................................................................................................................3

1.2 Weaknesses (limitation) OF FDRE constitution:...............................................................................3

1.2.1 Limited Political Pluralism:........................................................................................................4

1.2.2 Ethnic Federalism Challenges:....................................................................................................4

1.2.3 Ambiguities and Interpretation:..................................................................................................4

1.2.4 Human Rights Concerns:............................................................................................................4

2. The governance problems in Ethiopia.....................................................................................................5

2.1 Governance problems in Ethiopia can be categorized into several areas:..........................................5

2.1.1 Political problems of governance:...............................................................................................6

2.1.2 Human rights and rule of law:.....................................................................................................6

2.1.3 Ethnic tensions and conflict:.......................................................................................................6

2.1.4 Economic problems of governance:............................................................................................6

3.1 Importance of Parliamentary System:................................................................................................8

3.1.1 Stability......................................................................................................................................8

3.1.2 Accountability............................................................................................................................9

3.2 Importance of Presidential System:...................................................................................................9

3.2.1 Checks and balances...................................................................................................................9

3.2.2 Separation of Powers:.................................................................................................................9

3.2.3 Direct Accountability:.................................................................................................................9

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4. The historical development of New Public Management (NPM)..........................................................10

4.1 Emergence and Influences:..............................................................................................................11

4.2 Key Principles and Practices:...........................................................................................................11

4.3 Critiques and Challenges:................................................................................................................11

4.4 Evolution and Adaptation:...............................................................................................................12

4.5 Global Diffusion:.............................................................................................................................12

Reference...................................................................................................................................................13

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Introduction
The Federal Democratic Republic of Ethiopia (FDRE) Constitution, adopted in 1995, serves as
the supreme law of the land, establishing the principles and structures of governance in Ethiopia.
As Ethiopia strives towards sustainable development and effective governance, it is essential to
critically review the strengths and limitations of its constitution, as well as examine the
government problems faced within this constitutional framework. Additionally, it is crucial to
explore how the systems of government, particularly the parliamentary and presidential systems,
relate to the development of New Public Management (NPM) in Ethiopia.
The FDRE Constitution was envisioned as a means to achieve democratic governance, protect
citizens' rights, and promote socio-economic development. It emphasizes the principles of
federalism, separation of powers, and respect for human rights. However, like any constitution, it
has both strengths and limitations that impact the functioning of the Ethiopian government.
In recent years, Ethiopia has faced significant challenges related to governance. These challenges
include issues such as corruption, lack of transparency, limited accountability, and inadequate
service delivery. It is important to analyze these governance problems within the context of the
FDRE Constitution to understand how the constitutional framework either supports or impedes
effective government practices.
Furthermore, understanding how different systems of government, such as a parliamentary or
presidential system, can influence the development of New Public Management is vital. NPM is
a management approach that seeks to enhance public sector efficiency, effectiveness, and
accountability. It emphasizes market-like mechanisms, performance-based evaluations, and
citizen-centric service delivery. By examining the relationship between the chosen system of
government and the application of NPM principles, we can evaluate the potential for improved
governance and public administration in Ethiopia.
It can be customized and expanded using relevant empirical literature and specific examples to
provide a more comprehensive understanding of the FDRE Constitution, government problems,
and the relationship with systems of government and NPM in Ethiopia.

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1. Strength and limitation of FDRE constitution
The Federal Democratic Republic of Ethiopia (FDRE) constitution is the supreme law of the
country and that was adopted in 1995. The constitution is a crucial document that outlines the
structure of government, the rights and responsibilities of citizens, and the division of powers
between the federal and regional governments.

An empirical literature review on the Ethiopian constitution reveals several strengths and
limitations. One strength of the constitution is its recognition of the diversity of ethnic groups in
Ethiopia and its establishment of a federal system that allows for regional autonomy. This has
been seen as a way to address historical grievances and promote inclusivity within the country.

1.1 Strength OF FDRE constitution

Kjetil Tronvoll (2012) argues that the Ethiopian Constitution has several strengths that make it a
unique experiment in power-sharing. One of the main strengths he identifies is the emphasis on
ethnic federalism, which recognizes the diversity of Ethiopia's population and provides for self-
governance at the regional level. This, he argues, has helped to address historical grievances and
promote greater inclusion and representation in the political system. Another strength identified
is the provision for proportional representation in the federal parliament, which ensures that
minority groups have a voice in national decision-making. He also notes that the Constitution
provides for a strong judiciary and independent electoral commission, which helps to ensure free
and fair elections and uphold the rule of law. He argues that these strengths must be maintained
and strengthened through continued institutional reforms and democratic practices.
1.1.1 Protection of Fundamental Rights:

The FDRE Constitution enshrines a comprehensive set of fundamental rights and freedoms,
including political, civil, economic, and social rights. It guarantees equality, freedom of
expression, assembly, and religion, among other rights. This commitment to protecting
individual liberties is considered a significant strength.

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1.1.2 Federal Structure:
The constitution establishes Ethiopia as a federal state, dividing power between the federal
government and regional states. This devolution of power allows for greater regional autonomy
and aims to address historical grievances and ethnic diversity within the country.

1.1.3 Ethnic Representation:

The FDRE Constitution recognizes the multi-ethnic nature of Ethiopia and provides
mechanisms for ethnic representation in government institutions. By ensuring diversity and
inclusivity, it aims to address historical marginalization and promote a sense of belonging among
different ethnic groups.

1.1.4 Independent Judiciary:

The constitution establishes an independent judiciary as a separate branch of government. This
separation of powers helps maintain checks and balances, ensuring that the judiciary can
effectively interpret and uphold the rule of law.

1.2 Weaknesses (limitation) OF FDRE constitution:

Yohannes Gedamu (2017) argues that the Ethiopian constitution has several weaknesses that
undermine its ability to establish a democratic republic. One of the main weaknesses he
identifies is the lack of effective mechanisms for checks and balances between the different
branches of government. He notes that the executive branch, led by the Prime Minister, has
significant power and control over other branches, which limits accountability and transparency.
Another weakness he identified is the lack of protection for individual rights and freedoms. He
argues that the Constitution does not provide adequate safeguards against arbitrary detention,
torture, or other forms of abuse by state authorities. Additionally, he notes that there are
limitations on freedom of expression and association, which further restricts democratic
participation. He argues that these weaknesses must be addressed through constitutional reform
and institutional changes to ensure greater accountability, transparency, and protection of
individual rights.

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1.2.1 Limited Political Pluralism:
While the constitution guarantees certain political rights, some critics argue that the space for
political pluralism is restricted in practice. Opposition parties have faced challenges in freely
organizing, accessing resources, and participating in the political process. This has led to
concerns about the overall fairness and competitiveness of elections.

1.2.2 Ethnic Federalism Challenges:

Although the federal structure and ethnic representation aim to address historical grievances,
some argue that it has also exacerbated ethnic tensions and conflicts. Critics claim that the
ethnic-based federal system has at times led to a sense of exclusion and heightened ethnic
identity, potentially undermining national unity and social cohesion.

1.2.3 Ambiguities and Interpretation:

The FDRE Constitution has been criticized for containing certain ambiguous provisions and
language. Interpretation of these provisions can lead to different understandings and potential
conflicts. This ambiguity creates challenges in the consistent application and enforcement of
constitutional principles.

1.2.4 Human Rights Concerns:

Despite the constitutional guarantees of human rights, there have been instances where concerns
have been raised about the infringement of these rights. Critics argue that some laws and
practices, such as restrictions on freedom of the press or the handling of security-related issues,
have resulted in human rights violations.

Additionally, the constitution guarantees several fundamental rights and freedoms, such as
freedom of expression, association, and religion. It also includes provisions for affirmative action
to address historical injustices and promote gender equality.

However, there are also limitations to the Ethiopian constitution. One major criticism is that it
enshrines ethnic federalism, which some argue has led to increased ethnic tensions and conflicts

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within the country. Additionally, there have been concerns about restrictions on political
freedoms and human rights abuses by the government.

Furthermore, some scholars have criticized the lack of effective implementation and enforcement
mechanisms for many provisions in the constitution. This has led to a gap between constitutional
ideals and actual practice in Ethiopia.

Overall, while the Ethiopian constitution has several strengths such as recognizing diversity and
guaranteeing fundamental rights, it also has limitations related to ethnic federalism, political
freedoms, and implementation challenges.

2. The governance problems in Ethiopia

The governance problem in Ethiopia involves examining existing research studies, reports, and
publications that have investigated and analyzed various aspects of governance in the country.
This process helps to identify the key issues, challenges, and potential solutions related to
governance in Ethiopia.

2.1 Governance problems in Ethiopia can be categorized into several areas:

Kassahun Berhanu and Abebe Yitayew (2018) analyzes the challenges facing the Ethiopian
public sector in terms of governance, including corruption, weak institutional capacity, and lack
of accountability. The authors argue that these issues have led to poor service delivery, low
public trust in government, and limited economic development. They also identify several factors
that contribute to these governance problems, such as inadequate legal frameworks, political
interference in public institutions, and limited civil society participation. The study concludes
that addressing these challenges requires a comprehensive approach that involves strengthening
institutions, promoting transparency and accountability, and encouraging citizen engagement.

2.1.1 Political problems of governance:

Ethiopia has faced challenges related to political instability, lack of political pluralism, and
limited political participation. The ruling party has dominated the political landscape, leading to
limited space for opposition parties and civil society organizations. This has resulted in a lack of
accountability, transparency, and inclusivity in the political system. Corruption and rent-
seeking: Corruption is a significant governance problem in Ethiopia. It affects various sectors,
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including public administration, judiciary, and business. Corruption undermines public trust,
hampers economic development, and exacerbates inequality. Rent-seeking behavior, where
individuals or groups seek to gain economic benefits through political connections, has also been
a major issue.

2.1.2 Human rights and rule of law

Ethiopia has faced criticism for human rights violations, including restrictions on freedom of
expression, assembly, and association. The government has been accused of suppressing dissent
and using excessive force against protesters. The judiciary's independence and effectiveness have
also been questioned, with concerns about political interference and lack of access to justice.

2.1.3 Ethnic tensions and conflict:

Ethiopia is a diverse country with various ethnic groups, and governance challenges arise from
ethnic tensions and conflicts. Historical grievances, competition for resources and political
marginalization have fueled inter communal violence and displacement. Ensuring inclusive
governance that addresses the needs and aspirations of all ethnic groups is crucial for stability
and development.

2.1.4 Economic problems of governance:

Ethiopia has implemented an ambitious development agenda, but challenges remain in terms of
economic governance. Issues such as lack of transparency in public procurement, inefficient
public resource management, and limited private sector participation hinder sustainable
economic growth and development.

To address these governance problems, scholars and experts have proposed various
recommendations, including:

- Strengthening democratic institutions and processes to ensure political pluralism,

accountability, and transparency.

- Enhancing the rule of law and judicial independence to protect human rights and ensure access
to justice.

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- Tackling corruption through comprehensive anti-corruption measures, including institutional
reforms, transparency initiatives, and citizen engagement.

- Promoting inclusive governance that recognizes and addresses the diverse needs and aspirations
of different ethnic groups.

- Improving economic governance through reforms that enhance transparency, accountability,

and private sector participation.

It is important to note that the governance problems in Ethiopia are complex and interconnected.
Addressing these challenges requires a comprehensive and multi-dimensional approach that
involves political, legal, economic, and social reforms.

3. Parliamentary and presidential government systems

In our group of five members, three members support the presidential system of government due
to its strong system of checks and balances between the executive and legislative branches. Two
members support the parliamentary system of government, citing its emphasis on accountability
as a key strength. However both systems have their merits, empirical literature suggests that
parliamentary systems may be more conducive to democracy due to their stability and ability to
maintain consensus among legislators. Nonetheless, presidential systems can also be successful
if certain conditions are met, such as the strength of political parties and the degree of judicial
independence. Ultimately, the effectiveness of a particular system depends on various factors,
including the political culture and history of a country.
Both parliamentary and presidential systems of government have their own advantages and
disadvantages, and the importance of each system depends on the specific context and needs of a
country. Empirical literature suggests that parliamentary systems are often associated with
greater political stability and flexibility, as well as a higher level of accountability. A study by
Cheibub et al. (2010) found that parliamentary democracies are less likely to experience
executive breakdowns compared to presidential democracies. This is because in a parliamentary
system, the executive branch is directly accountable to the legislature, which can lead to more
effective governance.

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On the other hand, empirical evidence also supports the advantages of presidential systems. A
study by Mainwaring and Shugart (1997) found that presidential systems are associated with
greater separation of powers and checks and balances, which can help prevent the concentration
of power in a single branch of government. Additionally, some research suggests that

A parliamentary system of government is a democratic system where the executive branch is led
by a prime minister who is elected by the parliament. The legislative and executive branches are
closely intertwined, as the prime minister is accountable to the parliament and can be removed
from office through a vote of no confidence. This system is commonly found in countries such as
the United Kingdom, Canada, and Australia.

On the other hand, a presidential system of government is a democratic system where the
executive branch is led by a president who is elected directly by the people. The legislative and
executive branches are separate and independent of each other, with the president serving as the
head of state and government. This system is commonly found in countries such as the United
States, Brazil, and Mexico.

3.1 Importance of Parliamentary System:

3.1.1 Stability
Parliamentary systems often provide more stability as the executive branch is dependent on the
support of the majority in the parliament. This reduces the likelihood of gridlock and allows for
smoother decision-making processes. According to a study by political scientists Arend Lijphart
and Carlos Waisman (1997), parliamentary systems tend to have lower levels of political
instability compared to presidential systems. They found that countries with parliamentary
systems experienced fewer instances of government collapse or regime breakdown.

3.1.2 Accountability
In a parliamentary system, the prime minister and the executive branch are accountable to the
parliament. This means that the government can be held accountable for its actions through
regular questioning, debates, and votes of confidence. A study by political scientists Cheibub,
Elkins, and Ginsburg (2009) found that parliamentary systems tend to have higher levels of
government accountability compared to presidential systems. They found that parliamentary
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systems have more mechanisms for holding the executive accountable, such as question times
and votes of confidence.

3.2 Importance of Presidential System:

3.2.1 Checks and balances

Linz and Valenzuela (1994) describes that there are some benefits to presidential systems, such
as greater separation of powers and checks and balances between the executive and legislative
branches. They argue that the success of a presidential system depends on factors such as the
strength of political parties, the level of decentralization, and the degree of judicial
independence.

3.2.2 Separation of Powers:

Presidential systems provide a clear separation of powers between the executive and legislative
branches. This separation ensures checks and balances, preventing the concentration of power in
a single institution. A study by political scientists Shugart and Carey (1992) found that
presidential systems tend to have a higher level of separation of powers compared to
parliamentary systems. They found that presidential systems have more institutional mechanisms
to prevent the dominance of a single branch of government.

3.2.3 Direct Accountability:

In a presidential system, the president is directly elected by the people, which enhance the sense
of accountability to the citizens. The president is responsible for implementing policies and can
be held directly accountable through elections. A study by political scientists Mainwaring and
Shugart found that presidential systems tend to have higher levels of direct accountability
compared to parliamentary systems. They found that presidential systems provide more
opportunities for citizens to directly express their preferences through elections..

Presidential systems may be better suited for larger and more diverse countries, where a strong
executive is needed to represent different interests.

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4. The historical development of New Public Management (NPM)
It can be traced back to the late 20th century, with its roots in the United Kingdom and the
United States. NPM emerged as a response to the perceived inefficiencies and bureaucratic red
tape of traditional public administration. It sought to introduce private sector management
techniques and principles into the public sector in order to improve efficiency, effectiveness, and
accountability.

One of the key developments in the historical evolution of NPM was the rise of neoliberalism in
the 1980s, which emphasized market-based solutions and limited government intervention. This
ideological shift influenced policymakers to adopt NPM as a way to reform public sector
organizations and make them more responsive to market forces.

According to Hood (1991), NPM was characterized by a set of principles including

decentralization, performance measurement, competition, and customer orientation. These
principles aimed to introduce market-like mechanisms into public sector organizations, such as
contracting out services, performance-based budgeting, and introducing competition between
public agencies.

Pollitt (1993) argued that NPM was also driven by a desire for greater accountability and
transparency in public sector organizations. This led to the adoption of measures such as results-
based management and performance indicators to evaluate the effectiveness of public services.

However, critics have pointed out that NPM has led to unintended consequences such as
increased bureaucracy, fragmentation of services, and a focus on short-term results at the
expense of long-term planning (Hood & Peters, 2004). Additionally, scholars like Dunleavy
(1994) have argued that NPM has not always been successful in achieving its goals due to its
reliance on simplistic market-based solutions that do not always translate well into complex
public sector environments.

The historical development of New Public Management can be seen as a response to changing
ideological and political trends towards market-oriented solutions in the late 20th century. While
it has brought about some positive changes in terms of accountability and efficiency in public

xiii
sector organizations, it has also faced criticism for its unintended consequences and limitations.
As such, it continues to be an area of debate and discussion among scholars and policymakers.

The development of New Public Management (NPM) can be traced back to the late 20th century
when governments worldwide sought to reform their public sector management practices. NPM
emerged as a response to the perceived inefficiencies and bureaucratic shortcomings of
traditional public administration. Here is a review and synthesis of the historical development of
NPM, supported by various literatures:

4.1 Emergence and Influences:

NPM gained prominence in the 1980s and 1990s, influenced by several factors. Hood (1991)
argues that the rise of NPM was driven by a desire for greater efficiency, cost-effectiveness, and
accountability in public sector operations. Additionally, Osborne and Gaebler (1992) highlight
the influence of private sector management practices, such as market-oriented approaches and
performance measurement, on the development of NPM.

4.2 Key Principles and Practices:

NPM introduced several key principles and practices aimed at improving public sector
performance. These include performance measurement, results-based management,
decentralization, contracting out of services, and the introduction of market mechanisms. Pollitt
and Bouckaert (2011) emphasize the importance of these practices in enhancing efficiency,
effectiveness, and responsiveness in the public sector.

4.3 Critiques and Challenges:

NPM has faced criticism and challenges over time. Dunleavy et al. (2006) argue that NPM's
focus on efficiency and market-oriented approaches may overlook the complexities and social
aspects of public service delivery. Other scholars, such as Hood (1995), highlight the potential
negative consequences of NPM, such as unintended consequences, gaming, and the neglect of
public values.

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4.4 Evolution and Adaptation:
Over the years, NPM has evolved and adapted in response to critiques and changing contexts.
This has led to the emergence of post-NPM or NPM 2.0 approaches, which emphasize
collaboration, citizen engagement, and a more balanced approach to public sector management.
Dunleavy and Hood (1994) discuss the evolution of NPM and the need for a more nuanced
understanding of its principles and practices.

4.5 Global Diffusion:

NPM has been widely adopted and adapted across different countries and contexts. Pollitt and
Bouckaert (2017) provide a comprehensive analysis of the global diffusion of NPM, highlighting
variations in its implementation and the influence of local factors on its success or failure.

In synthesizing the literature, it is evident that NPM emerged as a response to the need for more
efficient and accountable public sector management. While it introduced valuable principles and
practices, it also faced criticism and challenges. The evolution of NPM and the emergence of
post-NPM approaches reflect the ongoing quest for more balanced and effective public sector
management strategies. The global diffusion of NPM demonstrates its widespread influence and
the importance of considering local contexts in its implementation.

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 Reference

Cheibub, José A., and Adam Przeworski. "Democracy and the Party System." Studies in
Comparative International Development, vol. 44, no. 3, 2009, pp. 235–257.
Ferlie, Ewan, et al. The New Public Management in Action. Oxford University Press, 1996.
Hood, Christopher. "A Public Management for All Seasons?" Public Administration, vol. 69, no.
1, 1991, pp. 3–19. Hood's seminal article discusses the emergence and evolution of NPM as a
paradigm shift in public administration.
Journal of African and Asian Local Government Studies
Juan J. Linz and Arturo Valenzuela "Presidentialism, Parliamentarism, and Democracy". The
article was published in the Journal of Democracy in 1994.
Kassahun Berhanu and Abebe Yitayew (2018)."The Challenge of Good Governance in Ethiopia:
An Assessment of the Performance and Prospects of the Public Sector"
Lijphart, Arend. "Presidential or Parliamentary Democracy: Does It Make a Difference?"
Presidentialism and Democracy in Latin America, edited by Scott Mainwaring and Matthew
Soberg Shugart, Cambridge University Press, 1997, pp. 13–56.
Pollitt, Christopher, and Geert Bouckaert. Public Management Reform: A Comparative Analysis.
Oxford University Press, 2011.

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Reference: Tronvoll, K. (2012). The Ethiopian Constitution: A Unique Experiment in Power-
Sharing. Journal of Eastern African Studies, 6(4), 688-707. doi: 10.1080/17531055.2012.728318
Shugart, Matthew S., and John M. Carey. Presidents and Assemblies: Constitutional Design and
Electoral Dynamics. Cambridge University Press, 1992.
Tesfaye Dinka (2018) "Ethiopia's Constitution: A Critical Comparative Analysis," Journal of
African Law 62(1): 123-141.

Yohannes Gedamu (2017) "The Ethiopian Constitution: A Weak Foundation for a Democratic
Republic"

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