Juraj Nemec

Public Sector Reform: An overview of recent literature and research on NPM and alternative paths

Purpose – The purpose of this article is to discuss the idea that new public management (NPM) would be passe. Design/methodology/approach – The article is based on a review of existing theories. Findings – The article argues that NPM has two dimensions, namely the minimization of the role of government vis-a-vis society and the improvement of the internal performance of the public sector. Whereas the first dimension is indeed more and more disputed nowadays this does not imply this also goes for the second dimension. The conclusion of this article calls for explanatory empirical research in order to explain the increasing variance in reforms among countries, by investigating which factors are determinative for decisions by governments to turn one way or the other. Practical implications – It is far from certain which way the public sector is heading in the so-called post-NPM era. Some countries are still implementing NPM-kind of reforms, either by downsizing or by introducing performance management. Other...

Introducing benchmarking in the Czech Republic and Slovakia

Abstract In many cases the introduction of performance evaluation, performance management and performance financing schemes do not produce the expected results and even create perverse effects. The risks connected with their improper implementation are much higher in developing and transition countries, where the public sector is over-politicized, policy and management capacities are inadequate and resources and experience are limited or often almost absent. Our study provides basic selected data on the use of benchmarking in public administration bodies in the Czech Republic and Slovakia. The findings are clear. In spite of its high potential, benchmarking is not used regularly and properly either in Slovakia or in Czechia. Subjective barriers of its implementation, for example lack of accountability, the rent seeking attitudes of elected politicians and ineffective public services schemes might be most important limits. The situation is slowly improving, but the progress will be naturally limited by territorial fragmentation.

Contracting-out at local government level: Theory and selected evidence from the Czech and Slovak republics 1

Abstract Contracting-out is a public sector reform tool, and it is used as a specific form of privatization. Because of its multi-dimensional character, it does not always lead to positive improvements, even in developed countries, and its impact in countries in Central and Eastern Europe may be limited. This issue is discussed in the theoretical part of this paper. Its analytical part investigates selected important dimensions of contracting-out for local public services in Slovakia and the Czech Republic, namely forms of delivery, decision-making processes concerning the selection of the form of delivery and of supplier, and costs comparisons. The final part provides a brief list of possible tools to improve the current negative situation.

Public Administration and Management Reforms in CEE: Main Trajectories and Results

Public Administration and Management Reforms in CEE: Main Trajectories and Results The common feature of CEE systems is that they change drastically. Political systems change, e.g. from dictatorships to democracies, and their elites are removed. Democratic checks and balances are established. State structures are reshuffled, e.g. toward more decentralisation. The economic system changes its nature, e.g. from state monopolies to market systems with private firms. Societal and social systems with NGOs, not-for-profit organisations and citizen action groups are established and are designed for people to participate actively in the public debate and to become stakeholders of their society and their communities (Peters 1996). To achieve planned changes, CEE countries had to choose their strategies. In focusing on the administration and the management of public systems, five scopes of reform are possible, from very narrow and limited to a very widespread and broad span of reform (Pollitt and Bouckaert 2004). Choosing one of these models has tremendous practical implications for the content of a reform programme, for the choice of the reform projects, for the sequence and timing of the reform portfolio. It also requires different tactical choices to be made. One of the issues is how many degrees of freedom there are to reform the public sector. Just as in many other countries, mixed strategies have been chosen for public- sector reform in CEE countries, and these choices have changed over time. However, it seems that the span of reform has rather been broad than narrow. It also seems that tactics could have been more visible than strategy because of electoral cycles. This brings us to the question of the trajectories to move ahead. Our article, heavily based in the joint NISPAcee research project4 tries to respond to some selected dimensions of the question of what the common and different trajectories and selected outcomes of public administration / management reforms are in the CEE region.

The Political Economy of Slovak and Czech Health Policy: 1989-2000

After 1989, the Czech and Slovak health-care systems followed dissimilar policies. Change was faster, more profound and more experimental in the Czech Republic. But after 10 years there are clear similarities in their health status achievements and systemic problems. By showing how a common past and a similar insurance-based finance model interact with commitments to universal access, the common outcomes and problems are explained. It is argued that greater spending, rather than privatization, has improved health-care outcomes since transition began. It is also argued that most of the key problems with the two systems are finance related.

Public Management as a University Discipline in New European Union Member States

Abstract Many market-type mechanisms were introduced in the public administration reforms in Central and Eastern Europe (CEE). Therefore public administration higher education in CEE should prepare not only classical public administrators but also public managers to operate in this new environment. This paper summarizes our research results on three new Central European members. The focus is on the scale of public management (PM) programmes, on the proportion of PM courses in the curricula of accredited PM programmes and on the dominant teaching approaches.

Is the Estonian Municipal Benchmarking Really Better

Abstract The research tries to explain the contrasting pictures presented by two recent articles published in Public Management Review: Tonnisson and Wilson (2007) and Nemec, Merickova and Ochrana (2008). The data suggest that the research methodology has a major impact on the results, and in our case this factor is the main explanation for the differences between the results. Although the use of different research methodologies explains a lot of the inter-country variation in results, it does seem that the benchmarking situation, particularly for local service delivery in Czechia and Slovakia, is less satisfactory than in Estonia.

Health Policy in Slovakia and the Outcomes of Health Care Reforms: 1989-2003

Slovak health policy and health outcomes since 1989 are described and analyzed. It is shown that health outcomes have improved during this period, but it is suggested that with a stronger financial base, and improved economic efficiency, more could be achieved. After the 1993 reforms the system moved from direct funding from the budget, to a mixed funding model. The most important funding source is health insurance. There are also some state budget payments and private contributions. But state under-funding of the health insurance of those not in the workforce has created a chronic and worsening financial crisis. In part this is due to the explosion of the drugs bill, as increasing quantities have been imported. It is argued that a long-term solution that will see improved efficiency and health outcomes, requires more consistent health and health care policies, based on an informed and genuinely public debate, an increase in the political priority of health care, and an agreed and fully implemented funding model. There is no sign of real and urgent government movement in this direction.

Municipality Size and Local Public Services: Do Economies of Scale Exist ?

Abstract Economies of scale are a standard topic in economic theory, frequently applied, for example, in the analysis of monopolies. They exist when a firm optimising its production costs while facing some fixed costs enjoys lower per-unit production costs as the production increases. Similarly to other production units municipalities have to be large enough to minimise average costs. We analysed the local public services in 205 municipalities with extended powers in the Czech Republic for the first time in this context, using regression analysis, a correlation diagram of local public services and statistical analysis. The paper examines this issue using data from 2008 to 2012. Our analysis showed that economies of scale cannot be clearly identified for local services in municipalities with extended powers in the Czech Republic and that the size of a municipality is not a key factor influencing the provision of local services.

Central European Health Reform: the Case of Slovakia, 1990-97

The focus of this article is changes in Slovak health-care policy 1990-7. To place these changes in a comparative perspective we also examine recent Czech, Polish and Hungarian experiences. In the Slovak case we show that although there has been official support for privatization, decentralization, mixed sources of provision, accountability and individual choice, in practice progress towards these goals has been very slow. This relative immo bility has been caused by public preferences; chronic political instability; the legacy of plan ning; a policy-making process dominated by a small number of politicians and a politicized bureaucracy. In addition we argue that the variety of health-care policies we observe in Central Europe reflects the general lack of a clear vision of social policy during transition. The article has six main sections. In the first we use public choice theory to explain why the results have occurred. In the second we sketch the health-care system under communism. There follows a description of policy changes since 1989. This topic is split into three parts. First the political background to change is de scribed, then the finance of health care is discussed, and finally issues of organization, control and delivery are raised. A concluding section has a summary and discussion of the arguments.