Concept of devolution and the demarcation of roles

Workshop of PILDAT

29th and 30th of January 2003

Bhurban, Pakistan

Citizens

New Public Management

ExecutiveLegislative

Elections

Concepts of New Public Management (NPM)

• Lean State

Steps to a “Lean State”

1. Task criticism

2. Decentralization, Devolution, Subsidiarity

3. Privatization

4. Deregulation

Situation in Germany

• Special situation after World War II– All structures were destroyed or not

allowed– State was build from bottom to top

• Special situation because of the European Union– Annual subsidiarity report

Levels of political decision-making

• European Union

• Federal level

• 16 federal states

• 440 county

• 13.929 municipalities

Tasks of the European Union

• Agriculture• Foreign trade• Steel, coal• Currency• Other political

fields according to agreements

Tasks of the federal level

• Foreign affairs• Defence• Railways• Air transport• Energy• Some elements of

taxation• Social security

Tasks of the federal states

• Education (schools, universities etc)

• Cultural affairs• Adult education• Media• Police• Local government

Tasks of municipalities

• Supply (water, energy) • Disposal (waste, sewage)• Construction and

maintenance of schools• Local transport• Road construction• Town planning• Theatres, museums• Sport facilities• Hospitals• Kindergarten etc

Tasks of the counties

• Measures, which are beyond the means of smaller municipalities

Structure of Germany

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Inhabitants in 1000 Municipalities

Bawü

Bavaria

Berlin

Brandenburg

Bremen

Hamburg

Hessia

MVP

Lower Saxony

NRW

RLP

Saarland

Saxonia

Saxonia-Anhalt

Schleswig-H.

Thüringen

Mistakes we made in Germany

• Too many financial transfers between the levels– Loss of responsibility for the expenditure

and raising resources

• Joint projects between the national and federal state level.– loss of responsibility

Experiences from other countries

• South Korea

• Indonesia

• Russia

• Argentina

• Former Yugoslavia and the new states

Experiences Case: South Korea

• Implementation of self government on local level.

• Mistrust and fear of losing power• Power transfer in steps• Training for candidates and staff• Lesson learned: Training, good

preparation and political will make decentralization successfull.

Experiences Case Indonesia

• Decentralization by order of the (former) president

• Decentralization of parts of the health system (transport)

• Resistance of the administration of the higher level, because of losing power.

• Lesson learned: Convince the staff which give and take responsibility and power.

Experiences Case: Russia

• Federal subjects too heterogeneous• Yeltsin: “Grab as much power as you can.”• Dominant and corrupt governors without acceptance

of central needs and without the political will to allow local self government.

• Reaction of the president: Recentralization and implementation of the “Commissioners of the President.”

• Lesson learned: The newly created units on the lower level have to be able to fulfill the new tasks and the smallest unit should not limit the scope of decentralization.

ExperiencesCase: Argentina

• Decentralization because of budget problems on the national level.

• No preparation, no experience, no competence on local level

• No financial, organizational and technical resources for task performance

• Lesson learned: Training of the staff and financial and technical conditions have to be prepared before shifting the task to a lower level

ExperiencesCase: Former Yugoslavia and the new states

• Decentralization by war• Reason: over centralized system with

suppression of ethnic groups and minorities.• Lesson learned: Resistance against

devolution of power to lower levels and ethnicities can not avoid separation. The best way to avoid war and conflicts is proactive decentralization.

Concepts of New Public Management (NPM)

• Lean State

• Separation of strategic from operational level

Concepts of New Public Management (NPM)

• Lean State

• Separation of strategic from operational level

• Product approach

Product approach

• Public administration provides services to citizens.

• Every activity of the administration should be defined as a service product.

• Every activity, which is not citizen oriented is a „waste“ of resources.

Concepts of New Public Management (NPM)

• Lean State

• Separation of strategic from operational level

• Product approach

• Customer orientation and service mentality

Customer orientation

• „The customer is the king.“.

• The citizen is a customer.

• Service mentality is needed.

Concepts of New Public Management (NPM)

• Lean State

• Separation of strategic from operational level

• Product approach

• Customer orientation and service mentality

• New model of control

New Model of control.

New model of control

• Separation between strategic and operative level

• Contract management

• Output control

• Controlling

• Benchmarking