Public Governance More
Globalization, changes in information and communication technology, the declining importance of ideologies, new ideas on the reasons for efficiency in organizations, and a changed understanding of the relation between the state and society demand an extensive restructuring of public administration. The challenge is to change the structure and function of public administration in a way that affects all societies and all nations.
Initiatives to modernize public administration are being carried out around the world. The first generation of changes, implemented in the 1980s, focused on public sector modernization, based on the concepts and instruments of New Public Management. New Public Management had two main tracks. The first was to restructure the relationship with external actors by sharpening the customer focus and introducing alternatives to the in-house production of services, such as contracting out, corporatization, agencification, and privatization (Naschold, Jann, and Reichard 1999). The second was to optimize the processes and organization within public administration by applying transparent financial management with cost-benefit assessment, improved transparency of administrative processing, and reformed incentive structures.