New Public Management – Public Policy for Institutional Reforms

The New Public Management model contains public policies for market-driven institutional reforms. Countries that applied this model are generally among the TOP 20 in global rankings concerning human development, human freedom, economic freedom, ease of doing business, market deregulation, competitiveness, anti-corruption transparency and liberal democracy. While the Nordic countries introduced outsourcing and competition within their welfare systems, and Germany strongly focused on privatizations, the Anglo-Saxon countries, and especially the United States, outsource even parts of their national security to private military and intelligence contractors. However, the New Public Management model does not undermine the role of government, but encourages its downsizing and opening for competition, privatization, deregulation and transparency. While the New Public Management is inclusive toward communities and markets, the application of the model can improve institutions and governance by creating predominantly horizontal structures, which ensure connections between different parts of organization and coherent public policy framework. Finally, public management reforms depend on critical thinking, based on the multidisciplinary expertise, which contributes to innovative and inclusive problem-solving institutions, with sufficient level of civic virtues and social trust.