Topic 4: Explain how relevant NPM conceptions are in the context of Bangladesh. With some practical examples show how Bangladesh public sector is coping with the wave of NPM.

Introduction

The nature of Public Administration has undergone rapid and profound transformation in the last two decades or so in different ways in different countries worldwide. The traditional way of government’s working i.e. public administration contributed to the modeling of many countries around the world till the late 1960s. However, increasing number of harsh criticisms confirm traditional public administration was no longer appropriate as there was an increasing gap between citizen’s expectations from the government and government’s capacity to deliver quality and satisfactory services that in general led to grave dissatisfaction among citizens. Besides facing criticisms for being characterized by corruption, inefficiency, inflexibility and lack of accountability, government’s involvement into too many activities resulting in overconsumption of scarce resources, high rates of inflation, absence of rational decision making and disregard for citizens’ satisfaction were harshly criticized. All these criticisms collectively pointed at the need for the traditional public administration to be replaced a new management system. By the 1970s, the demands for introducing a new management system based on market orientation gave birth to a new model, New Public Management, which promised a minimal, better and less expensive government that would focus on citizen’s empowerment and customer satisfaction.

New Public Management (NPM) is a management philosophy used by the government of many developed and developing nations to modernize and improve the public sectors in accordance with their context. The concept of NPM brought with it a managerial revolution in the public sector that was felt necessary by many countries in order to ensure effective and efficient management through privatization, right sizing government departments, downsizing the number of employees, and decentralization, introducing performance measurement, and providing high levels of public services. If summed up in a single statement, the core notion of NPM is to change the role of the government which is to ‘steer’, rather than ‘row.

The Objective of the Study

The primary objective of the study is to gain a better understanding about the initiatives taken in Bangladesh to cope with the wave of New Public Management. The other objectives are as below:

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i. To get a better insight into the New Public Management Model theoretically. ii. To understand the reasons behind the emergence of NPM in the in global context as

well as in the context of Bangladeshiii. To identify the relevance of NPM principles in the context of Bangladesh. iv. To suggest ways in which the implementation of NPM might be effective.

The Methodology of the Study

This study is basically based on secondary and published information. Here journals, articles, previous literature about such study, published research reports and papers, unpublished reports from reputable organizations such as UNDP, ADB etc. have been used.

The Limitations of the Study

It was very difficult to portray the emergence, relevance and implementation of NPM principles and concepts in its entirety in the context of Bangladesh within the given word constraints.

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Theoretical Framework: New Public Management

A breakthrough paradigm of public sector management known as new public management (NPM) has been emerged in OECD (Organization for Economic Co-operation and Development) countries and elsewhere. According to the OECD , “a new paradigm for public management” had emerged, with eight characteristic “trends”:(i) Strengthening steering functions at the center;(ii) Devolving authority, providing flexibility; (iii) Ensuring performance, control, accountability;(iv) Improving the management of human resources;(v) Optimizing information technology; (vi) Developing competition and choice;(vii) Improving the quality of regulation; and (viii) Providing responsive service.

Mongkol (2011) has defined NPM as “a set of particular management approaches and techniques which are mainly borrowed from the private sector and applied in the public sector”. NPM is not a precise set of guidelines or a standard package that should be followed entirely; instead, it is a combination of approaches and techniques that could be applied collectively or partially according to each country’s situation and needs (Mongkol, 2011).

Al Gore (cited in Sharma) offers the following concise summary of the most common characteristics of NPM: (i) Cutting red tape: shifting from systems in which people are accountable for following rules to systems in which they are accountable for achieving results; (ii) putting customers first; (iii) empowering employees to get results; and (iv) going back to basics and ‘producing better government for less.

According to Pollitt, NPM has variously been defined as a vision, an ideology or a bundle of particular management approaches and techniques. NPM is thus seen as a body of managerial thought (Ferlie) or as an ideological thought system based on ideas generated in the private sector and imported into the public sector (Hood).

The main hypothesis in the NPM-reform wave is that more market orientation in the public sector will enhance efficiency of governments, without having negative side effects on other objectives and considerations.

The components and features of NPM have been identified and suggested by a number of writers, including Hood (1991, 1995), Dunleavy and Hood (1994), Flynn (1993), Pollitt (1993;1994) and Summa (1997) and Borins (1994), Vigoda (2003), Mongkol(2011).

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Emergence & Relevance of New Public Management: Bangladesh Context

By the early 1980’s when the entire world was being swept away by the wave of New Public Management to modernize the public sector, high and extreme levels of inefficiency was evident in the Bangladesh Public Administration system. This not only became a matter of concern for the national planners but also for all the international donor agencies that were financing and supporting various development projects of newly independent state. Bangladesh which had since long suffered from absence of good governance, political instability, fragile economy, poor law & order situation, unrestrained corruption, unreliable public and social services and incompetent bureaucracy required a concrete public sector reform framework and the donor agencies suggested the adoption of NPM style reform strategies for the betterment of the overall public sector and hence the economy.

It is evident from the success stories of many developed countries, which claims substantial savings in the public expenditure and improvement in public service delivery that NPM style reform strategies are effective if implemented appropriately and thus is here to stay. However, the case is a bit uncertain for developing countries as with Bangladesh where the prevalence of a number of socio-cultural components obstructs the implementation of NPM. But this does not necessarily mean that Bangladesh would lag behind in the era of globalization and fierce competition due to inefficient public sector. In order to achieve a comprehensive understanding of the relevance of NPM conceptions in Bangladesh, it is imperative to answer what makes NPM irrelevant in Bangladesh context and on what grounds can NPM be referred to as relevant for Bangladesh.

Why makes NPM concepts irrelevant in Bangladesh?

1. The Capacity of GoB to implement NPM based reform strategies:

State capacity signifies state’s ability to take any reform measure decisively and is thus characterized by institutional, technical, administrative and political factors and thus become serious impediments to the implementation of NPM style reform.

2. Bureaucratic Resistance:

For NPM style reform to be implemented successfully, the cooperation and support of the public bureaucracy is a necessary pre-condition. But Bangladesh’s case the very civil servants are responsible for implementing NPM manifest strong resistance to change as they consider NPM demoting their present status, position, and power and tend to preserve their status quo.

3. Political Culture & Capacity:

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In Bangladesh, political systems contain some factors that operate against reforms, for example, clientelist politics, a lack of effective political institutions, political confrontation, criminalization of politics and instability and not having clear separation of powers between executive, legislature, and judiciary. This political culture makes the state unable to undertake successful NPM reforms.

4. Ineffective Market:

The principles of NPM are essentially market-oriented and markets are always ineffective without well-developed judicial system providing rule of law to ensure compliance with contracts, to be fair in case of privatization and to manage conflicts in an objective and independent manner. However, rule of law has never been properly established in Bangladesh and the judicial system is has always been overshadowed by bureaucrats and politicians which poses serious threat to the rule of law and thus impedes the implementation of NPM reforms.

The market is further ineffective due to lack of infrastructure and adequate knowledge and experience regarding market operations. It should be considered that the failure is not limited to public enterprises but also widely exists in markets.

5. Cultural ecology:

Bangladesh possesses cultural value with high power distance, collectivism, masculinity, the importance of ‘face’. This makes it more difficult to combat corruption here and merit-based recruitment faces difficulty because of nepotism. Thus cultural variation also has become an obstacle to NPM elements and values are mobilized to defend power structures and the position of bureaucracies and bureaucratic forms of organization.

6. Corruption:

Political and Administrative corruption is already widespread in every walks of public sector. Although NPM model targets transparency and curbing corruption in the public sector, it may create the reverse effect, leading to higher rate of corruption. NPM provides greater freedom to public managers, and together with lower levels of supervision, this can create a fertile climate for corruption (Mongkol, 2011).

The NPM’s prescriptions of contracting out and privatization creates better opportunities for private accumulation and patronage distribution as there is a web of inter-locked exchanges among political elites, bureaucracy and business elites. The business community offers political leaders political and financial support and bribes to bureaucrats. In return, they receive favorable decisions and patronage resource distribution.

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7. Absence of Central Autonomous Monitoring Institutions:

Privatization, corporatization, decentralization give rise to abuse of power and corruption in the absence of strong, independent, autonomous, and fair monitoring institutions.

All the above issues along with absence of rule of law make the NPM style reform strategies over-ambitious and inappropriate for adoption in its entirety in the context of any developing countries including Bangladesh.

What makes NPM concepts relevant in Bangladesh?

As the whole world is moving towards greater liberalization and globalization, it is next to impossible for Bangladesh to ensure overall development of the country with a public sector that is deficient in countless aspects. The citizen’s of Bangladesh are frustrated with large, centralized, and inefficient bureaucracy that soaks up ever more tax money and provides ever poor public service. They don’t want more government but they don’t want less government either providing them with superior service and various choices. Traditional bureaucracy cannot meet such demands. Furthermore, extreme centralization, little room for the private sector to participate in public services delivery, inadequate transparency and accountability, and weak incentives package that encourages corruption and discourages proactive initiatives. Thus, embracing NPM approach for reforming the public sector in Bangladesh appears to be quite appropriate to stay ahead in competition and prosper

However, ‘one size fits all’ ideology should never be practiced in the implementation of NPM reform strategies. NPM can serve best if some its components are adopted selectively and modified to suit local gaps and demands, otherwise there might be a considerable reduction in the performance of public sector which NPM definitely does not advocate.

Public Sector Initiatives: Coping with the waves of New Public Management

While the whole world chose to switch over to the New Public Management paradigm from traditional public management, in order to ensure good governance, improved management, social cohesion, efficient service delivery and confidence in public entities, Bangladesh, with no exception, initiated reform efforts aligned with NPM model to transform the inefficient, wasteful and unresponsive bureaucracy into an dynamic one from all aspects.

Since the independence of Bangladesh in 1971, each different regime has attempted to bring about NPM style reforms in the administrative system that suits their policy declarations and political agenda. National governments have constituted reform commissions/ committees from time to time.

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New Public Administration Reform Commission (PARC) was constituted in 1997, chaired by A.T.M Shamsul Haque. With a view to achieve socio-economic development of the country by ensuring good governance, PARC completed preparing a report in 2000 that focused on the entire public sector. The then national government in order to keep up with the fast moving pace of the new era that urged for the incorporation of New Public Management ideologies set up the commission.

Some of the key recommendations of the PARC report which reflected the spirit of NPM included the following: meritocracy in the public sector; professionalism; performance standards, market based pay structure; reduction of manpower in public sector; devolution of authority to locally elected bodies; citizen’s charter; e-governance; contracting-out public services; privatization of public enterprise; facilitating private investment; charging user’s fees; combating corruption by establishing an independent commission; reducing wastage and promoting value for money; strengthening parliamentary oversight etc (GoB, 2000).

However, the grand recommendations made in the reform reports have either not been implemented or been implemented in a way that suppressed the real essence of the suggestions.

It is important to note that no developing country has ever considered implementing the whole NPM model but different governments all over the world have tailored the principles of NPM in a way that suits their own circumstances and needs. The following discussion highlights some initiatives undertaken in the public sector of Bangladesh to cope with the far-reaching waves of NPM.

Citizen’s Charter:

On 8 May 2007, Government of Bangladesh adopted the Citizen’s Charter, suggested in the PARC report and Poverty Reduction Strategy Paper II (PRSP II) previously. This initiative aims to create an interactive platform to facilitate communication between citizens and civil servants to develop the quality and quantity of services that the citizens receive in exchange of their tax money. It has also been included in Secretariat Instruction, 2008 to make public service provision more citizen-led, ensure value for money and provide citizens a written commitment. The CC encourages the involvement of users in discussions about the service, provides information about how to contact, what services to expect, and the ways to seek a remedy in case any problem arises. In the core of CC lie the rights of the public and the obligations of the public servants.

It is responsibility of the individual ministry to formulate and implement its own Citizen Charter. Currently, 70%- 80 % government offices do have their CCs displayed. However, there is no

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internal mechanism within the ministries to monitor the formulation or implementation of the Citizen’s Charter.

Apart from the absence of a central monitoring system, lack of details of services, not soliciting feedback from citizens, lack of enough resource and competent staff, arrogance and reluctance of the officials, and most importantly lack of awareness among citizens obstruct the implementation of CC also.

Privatization

NPM model stresses on the need for deregulation de-nationalization and de-control of public enterprises. Recognizing the importance of privatization and in accordance with NPM model, the government established the Privatization Board on 20 March, 1993 to stimulate the implementation of the privatization program of the Government which was afterwards the transformed into a Commission in 2000. This Commission was vested with more authority to privatize the industrial, commercial and service oriented state- owned enterprises (SOEs). Since the establishment of the Privatization Commission in 2000, 74 state owned enterprises were privatized including Bangladesh Cycle Industries, Dhaka; Meghna Textile Mills, Tongi,Gazipur; Mymensingh Jute Mills Ltd., Mymensingh; Bangladesh Cycle Industries, Dhaka; Purbachal Jute Industries, Jessore; Kariline Silk Mills, Fouzderhat, Chittagong. The Government of Bangladesh also formulated the Privatization Act, 2000; Privatization policy, 2007 and Privatization Regulations, 2007 etc.

However, due to a number of reasons, privatization has been unable to deliver the promised benefits in Bangladesh, some of which includes lack of capital; lack of proper regulatory guidelines; lack of professional people in decision making process unfavorable trade union activities and labor unrest; resistance from bureaucrats; political affiliation getting the highest priority rather than the personal qualifications and capabilities etc.

Public-Private Partnership:

With a view to achieving greater efficiency in the service-delivery, augment limited government budgets and support from development financing institutions, and bring clarity to price and operations and ensure economic growth, the GoB has formulated Public-Private Partnership (PPP) budget in the fiscal year 2009-10 and allocated significant funds for PPP projects. However, there still remained lack of policy and strategy guidelines which hindered the projects to the implemented on the ground. To fill this gap, the GoB issued ‘Policy & Strategy Paper for Public-Private Partnership (PPP) 2010’ in August 2010. Under the PPP initiative, 3 government organizations have been conferred upon the responsibility of implementing the projects in collaboration with the private sector, namely: Infrastructure Development Company Limited

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(IDCOL), a 5-year term Investment Promotion & Financing Facility in Bangladesh Bank, and Infrastructure Investment Facilitation Center (IIFC).

The position paper on PPP published in 2009 attached the highest priority in infrastructure development and welcomed PPP investment in several areas such as power & energy, transport & telecommunications, IT, water supply, waste management, e-service delivery etc. The first ever PPP project taken by the current Awami League-led government is the ‘Dhaka Elevated Expressway’ to be constructed from Dhaka.

However, bureaucratic resistance and lethargy tops the list of the problems regarding PPP and the list also includes lack of trust in the public sector by the private sector, lack of knowledge and efficiency of the bureaucrats, undue bossing lack of clear guidelines and tailored law for PPP in place, volatile political condition, and lack of performance based pay etc.

Contracting Out

Contracting out public service delivery is gaining popularity in Bangladesh. NGOs have been contracted-out by City Corporations using a competitive bidding process to improve urban Primary Health Care (PHC). NGOs are even contracted for family-planning, maternal-health and abortion-related care countrywide. The overall quality of care has become better in as there have been significant improvements in both government and NGO-run areas in terms of coverage, equity, quality of care and efficiency.

Also, in 2009, the current government went into agreements with the private sector electricity generating companies to purchase electricity from the rental power plants to meet the national demand of about 5,200 MW of electricity. Private Chartered Accounting Firms are contracted out to do the financial auditing of public institutions, such as Upazilla Parishad. These examples adhere to the NPM principles of contracting out public services to private entities and thus upheld the essence of NPM.

Total Quality Management

Total Quality Management (TQM) is a set of principles, tools and management process that is increasingly being popular among public officials where it is must to do more with less. It is a method through which public officials can be involved in the constant improvement of the production and quality of services to be delivered by the government to its citizens to maximize their satisfaction regarding service delivery and quality, which is one of the chief features of NPM.

Recognizing the role of TQM in ensuring quality and effective service delivery, Government of Bangladesh introduced a bottom-up TQM approach, to promote TQM on a national level and to meet the social needs of the citizens. Since 2007, JICA and Bangladesh Public Administration

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Training Centre (BPATC) officially launched the “Project for Enhancing the Capacity of Public Service Training” (ECPUST-BD) to transfer the Japanese TQM know-how in Bangladesh Public Sector. Beginning from Upazila administrative level and with the cooperation of the higher authorities, the JICA project for ECPUST-BD has demonstrated that a TQM approach can raise the bar of organizational effectiveness, increase officer efficiency and improve public service delivery to clients.

Based on this model, a 2nd Phase of this Project named “Improving Public Services through Total Quality Management Project” commenced in 2012. The objective of this 5-year (2013-18) Project is to improve the quality of public services, particularly in the Field Administration and Local Governments in Bangladesh through the application of Total Quality Management (TQM) and Kaizen.

Governance Innovation Unit

Governance Innovation Unit helps public to understand the transformations in service delivery possible through innovation. Considering its importance, the government of Bangladesh in 2012 established the Governance Innovation Unit (GIU) in the Prime Minister’s Office. The purpose was to create a supporting environment that promotes and encourages the civil servants to deliver improved public services through innovative initiatives. The GIU works as a tool to make sure that the citizens obtain the services they need on a timely basis and that public servants value citizen service. This Unit is the government’s ‘think tank’ on governance reform and innovation in coherence with the spirit of NPM.

GIU has also organized a three-month-long training program on ‘Innovation Concepts & Practices of Government Officials for the Public Servants of Bangladesh’ from August 20 to November 4, 2013, where around 720 government officials have participated. This program’s purpose was to introduce a culture of innovation among them so that they can contribute towards improvement of the livelihood of the citizens, and promote NPM model further in public sectors.

One Stop Service

The main objective of One Stop Service is to cater quick service to the people within the stipulated time according to citizen charter. Some example of One Stop Service initiatives taken by the Government of Bangladesh include the following

The Ministry of Women & Children Affairs of the GoB launched ‘One-Stop Crisis Centre’ (OCC) in 2000 to provide victim of violence health care, police assistance, DNA test, social services, legal assistance, psychological counseling and shelter service etc. in one place. The general objective of the project is to address and prevent violence against women in Bangladesh through a

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coordinated integrated inter-ministerial approach. Two OCCs have been established in Dhaka and Rajshahi Medical College Hospitals, during the pilot phase of the project. Four new OCCs in Chittagong, Sylhet, Barisal and Khulna Medical college Hospitals were established in the 1st phase of the project. In the 2nd phase management and efficiency in 6 OCCs were improved.

Grievance Redress System & Public Hearing

The Government of Bangladesh established the ‘grievance redress system’ in all line ministries in 2008 and has helped reduce public grievances and improve service delivery by the public sector as a whole. Focal points for grievance redress have been appointed in each Ministry/Division/Agency. The Cabinet Division monitors the overall progress of the grievance redress system. The focal points ensure that: (i) all staff members and the general public are aware of the current grievance redress procedures; (ii) all grievances are addressed and resolved fairly, impartially and transparently; (iii) that all grievances are dealt with by the appropriate levels of authority.

The Government of Bangladesh’s attempt to institutionalize grievance redress in the Rajshahi City Corporation included setting up complaint boxes and register books in ward offices where people preferred to lodge their complaints. The ward offices keep detailed complaint registers and most problems are being solved within a week. Local media was used to disseminate information on the public grievance redress system. The number of complaints being registered had increased and ward councilors and service providers are increasingly becoming more accountable to citizens. Although the number of complaints being registered has increased over time but due to an effective mechanism to redress the complaints, the whole mechanism falls weak in case of Bangladesh.

Back in April 2014, the current Prime Minister Sheikh Hasina ordered the expansion of ‘public hearings’ to directly address complaints from people. This move aimed at improving the services provided by the government on the basis of Citizen’s Charter by resolving the complaints from the public through public hearings held once a week at a district and Upazila levels conducted by the officers in charge of the district and Upazila offices of all department and agencies.

In addition, the officials also have to transfer a complaint to a relevant department if it turns out to be not related to them. Complaints are taken in the written or verbal form or online and the Upazila level hearings are evaluated by the District level officials. Before this initiative, deputy commissioners resolved complaints through public hearings every Wednesday.

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Along with the GoB, The Anti Corruption Commission (ACC) has been arranging public hearing on corruptions in different government offices for identifying sources of corruption to ensure and reach improved services to the people in a hassle-free, in collaboration with JICA since April 2014.

Both the grievance redress mechanism and public hearing system satisfies the NPM principles of having a government that is community owned and customer oriented.

Access to Information (a2i)

Access to Information (a2i) program was implemented by the Prime Minister’s Office, with technical support from UNDP and USAID. This has increased access to services and information by establishing e-service delivery centers in all 4,545 Union Parishads, by simplifying service delivery processes in district and sub-district offices, and by setting up partnerships with hundreds of government agencies, private companies and NGOs.

Before this project the people had to come to the government but this project enables the government services to reach the doorstep of the common people, particularly the marginalized communities and would help them save the high cost and time loss that would have incurred otherwise. The a2i program thus clearly steps into NPM-style administrative model where the government treats its citizens as customers and safeguards citizens’ rights and liberties.

The Information Commission (IC) enforces and oversees the Right to Information Act 2009 to keep the citizens updated with the information about government activities through computerized system. Websites for maximum Ministries are now available online.

Vision 2021

The adoption and initiation of e-governance to implement Digital Bangladesh had been declared as the political commitment of the ninth parliamentary democratic government. This initiative widely known as Vision 2021 consists of 4 pillars- (a) developing human resources for the 21st century, (b) connecting citizens in ways that is most meaningful, (c) taking services to citizens’ doorsteps, (d) making the private sector and market more productive, dynamic and competitive through the use of ICTs. All these pillars of the program reflects the spirit of NPM by putting the citizens and their satisfaction regarding public service quality and delivery the top of the priority list of the government.

The aspects of Digital Bangladesh focuses on safeguarding people’s democracy and human rights, transparency, accountability, instituting justice and ensuring delivery of government

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services to the citizens of Bangladesh through optimum use of technology and thereby bringing an overall improvement in the daily lives of people.

Recommendation & Conclusion

It is quite difficult to determine the relevance of NPM in developing countries such as in Bangladesh, as some NPM approaches and techniques are suitable while others are inappropriate. NPM has failed in Bangladesh due to a number of reasons associated with political factors, the bureaucratic domination of the system, centralized decision making process, high power distance work culture as well as reluctant attitude of the civil servant toward implementation of reform, faulty application process of NPM principles which is mostly donor-driven and are reluctantly accepted by the government and state’s tradition of continuing failure to implement policy reforms.

Therefore, to establish efficient and effective public management practice in Bangladesh as well as getting expected outcomes from NPM model, it important to establish the following steps:

1. Strong political & government commitment;2. Eradication of confrontational politics;3. Changed mindsets of Bureaucrats who will place people in the centre of

administrative process.4. Effective training and evaluation of bureaucrats;5. Establish rule of law and a separate judicial system in practice;6. Strong, participatory and accountable local government bodies;7. A competitive and reward based working environment for civil servants;8. Non-political, strong and functional civil societies.9. Donor agencies which are more sensitive and responsive to local needs while

proposing reform agenda.

Thus, if implemented properly in appropriate situations, NPM model can modernize and enhance the current administrative system, bring about improvement in the conditions of the people and lead to a sustainable national development of Bangladesh.

Bibliography

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16. https://en.wikipedia.org/wiki/ Vision _ 2021

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