e-Government and e-Governance in Developing Countries
Preconditions for Their Implementation - A Case Study of Indonesia
©2002
Diplomarbeit
117 Seiten
Zusammenfassung
Inhaltsangabe:Abstract:
The emergence of Information and Communication Technologies (ICT) has launched a global debate (digital or technological revolution) about a paradigm shift from an industrialised towards an Information Society. In the front of this debate lies the assertion that the application of ICT is the impelling factor of transformation which will result in far reaching changes within all parts of the economy, the society and the State. The State plays therefore an important role for this transformation. First, the creation of a "New Economy" which stands for a branch of industry that develops and produces hardware, software and communication equipment and its penetration and application into the whole economy. The emergence of e-buzzwords such as e-commerce or e-business are related to the application of ICT within the economy. Second, after a laissez-faire policy implementation through the State, it has to care for social aspects such as to connect the society to the internet and create a digital literate society. This "second stage" of the Information Society has its expression in the common used catchword "digital divide". Finally, the State itself comes under pressure to apply ICT within government institutions, expressed by the latest catchwords of e-government and e-governance.
Their hype (chiefly technologically determined) can be equated with the emergence of the "New Economy" within the global debate about the Information Society. Emerged from developed countries, e-government and e-governance experience an increasing use in developing countries. Their advocates (i. e. international development organisations) stress the catchwords for the purpose of poverty alleviation, improved living standards and economic growth, in developed and particularly in developing countries. Furthermore, both subjects of the thesis have started up a new tractive force within the debate of public administration reforms. Both can be summarised as ICT-led public administration reform. They are deemed to be an impelling factor of organisational change and transformation of governmental institutions. Moreover, the literature concerning both catchwords, is full of positive expectations (i.e. enhance participation, accountability, transparency and overall democracy) and thus, they are seen as a medium to implement and support their theoretical concepts New Public Management (NPM) and Good Governance. Fairly few observations in developed countries […]
The emergence of Information and Communication Technologies (ICT) has launched a global debate (digital or technological revolution) about a paradigm shift from an industrialised towards an Information Society. In the front of this debate lies the assertion that the application of ICT is the impelling factor of transformation which will result in far reaching changes within all parts of the economy, the society and the State. The State plays therefore an important role for this transformation. First, the creation of a "New Economy" which stands for a branch of industry that develops and produces hardware, software and communication equipment and its penetration and application into the whole economy. The emergence of e-buzzwords such as e-commerce or e-business are related to the application of ICT within the economy. Second, after a laissez-faire policy implementation through the State, it has to care for social aspects such as to connect the society to the internet and create a digital literate society. This "second stage" of the Information Society has its expression in the common used catchword "digital divide". Finally, the State itself comes under pressure to apply ICT within government institutions, expressed by the latest catchwords of e-government and e-governance.
Their hype (chiefly technologically determined) can be equated with the emergence of the "New Economy" within the global debate about the Information Society. Emerged from developed countries, e-government and e-governance experience an increasing use in developing countries. Their advocates (i. e. international development organisations) stress the catchwords for the purpose of poverty alleviation, improved living standards and economic growth, in developed and particularly in developing countries. Furthermore, both subjects of the thesis have started up a new tractive force within the debate of public administration reforms. Both can be summarised as ICT-led public administration reform. They are deemed to be an impelling factor of organisational change and transformation of governmental institutions. Moreover, the literature concerning both catchwords, is full of positive expectations (i.e. enhance participation, accountability, transparency and overall democracy) and thus, they are seen as a medium to implement and support their theoretical concepts New Public Management (NPM) and Good Governance. Fairly few observations in developed countries […]
Leseprobe
Inhaltsverzeichnis
ID 5994
Wolf, Harald: e-Government and e-Governance in Developing Countries - Preconditions for
Their Implementation - A Case Study of Indonesia
Hamburg: Diplomica GmbH, 2002
Zugl.: Leipzig, Universität, Diplomarbeit, 2002
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I
Acknowledgements
First, I would like to thank my parents for their support in the
time of my studies at the University of Leipzig and abroad. Many
thanks to `HW and the Dynamites' and Hong Joo for their
productive suggestions in any form. Thanks to Phil for his
extensive smoking breaks, Andy for his `morning honk' and
Volker for `listening' my music. Many thanks to you during the
extraordinary `hard times', you know! Last but not least, thanks
to Sophie, Gregor, Vera and Skadi.
II
Table of Contents
Acknowledgements...I
Table of Contents... II
List of Figures ... V
List of Tables...VI
Introduction ... VII
1. E-Government and e-Governance Against the Background of Their
Theoretical Classification ... 1
A.
Theoretical Classification: New Public Management and Governance ... 2
I.
New Public Management ... 2
a)
Reasons for the Adoption of New Public Management ... 2
b)
Objectives of NPM ... 3
c)
Raise the Issue of Internal Structures in Developing Countries ... 5
d)
ICT as Driving Power for Civil Service Reforms in Developing
Countries? ... 8
II.
The Concept of Governance... 10
a)
The Basics... 10
b)
The Emergence of Networking within the Concept through ICT ... 12
1.
Characteristics of Networking... 12
2.
Tendencies so Far ... 13
3.
Critical Issues ... 14
B.
Definitions in the Scope of the Information Society ... 16
I.
Framework of the Information Society ... 17
a)
Technological and Economic Dimensions ... 18
b)
Policy Dimension... 20
II.
E-Government ... 22
a)
Definition and Orientation in the Scope of e-Buzzwords... 22
b)
Reasons for the Adoption of e-Government Concepts ... 25
c)
Objectives of e-Government... 26
d)
Barriers or Challenges: Do Structures Matter?... 27
III
III.
E-Governance... 29
a)
Definition of e-Governance ... 29
b)
Reasons for the Adoption of e-Governance Concepts... 31
c)
Objectives of e-Governance... 31
d)
Barriers or Challenges: Do Structures Matter?... 33
C.
Further Development? A Provisional Result ... 34
2. Preconditions of e-Government/e-Governance for Their
Implementation: Constructing a Test Model ... 38
A.
The Macro-level: The Bureaucratic Developmental State ... 38
B.
The Micro-level: Theory of Structuring ... 40
C.
Networking Effects: Summary of Quantitative Indicators and the Policy
Environment ... 42
3.
Testing the Model: The Case of Indonesia... 46
A.
Why Indonesia?... 46
B.
Polit- and Socio-Economic Conditions in Post Soeharto Era and
Networking Effects ... 48
I.
Reinforcing Economy: Government-Business Networks and ICT... 48
a)
The Government-Business Networks in Indonesia ... 49
b)
The Destruction of Conglomerates by IBRA ... 52
c)
The ICT Sector and Telecommunication Market: Conglomerate's
Impetus and State-owned Duopoly... 56
II.
Unconnected Society: Multiplicity of Divide ... 59
a)
The Development of the Telecommunication Infrastructure... 59
b)
Evaluating Networking Effects... 63
C.
The Public Administration in Indonesia ... 69
I.
Civil Service Reform in Post-Soeharto Era ... 70
a)
Decentralisation Reform ... 70
b)
ICT-led NPM Reform... 71
II.
The Ascendancy of Duality of Structures Within ICT-led Reforms ... 73
IV
a)
Following Old Visions:
Political Thinking in the Public Administration... 74
b)
Backing the System: Formal Structures ... 76
c)
Human Factor: Informal Structures ... 80
D.
Summarising the Test Results... 84
Conclusion ... 86
Appendix ...VI
Bibliography...IX
Eidesstattliche Erklärung ...XXIII
V
List of Figures
Figure 1-1: Shift of NPM and Governance Concepts Between Industrialised and Developing
Countries... 16
Figure 1-2: Interrelations of Public Administrations with the e-Government Model... 23
Figure 1-3: e-Government and e-Governance... 30
Figure 2-1: Duality of Structure and Micro-Political Analysis... 42
Figure 2-2: Test Model for the Implementation of e-Government/e-Governance Projects ... 45
Figure 3-1: Internet and Telecommunication in Indonesia, 1997-2001... 66
Figure 3-2: Formal Organisation of Departments and the Two Versions of ICT Unit
Implementation... 79
Figure 3-3: Internal Patron-Client Networks with Vertical Relationships and Horizontal
Patron Alliances... 81
Figure 3-4: Duality of Structure and Micro-Political Analysis in Indonesia ... 85
VI
List of Tables
Table 1-1: e-Buzzwords in the Light of Three e-Government Models... 24
Table 1-2: Overview of e-Government and e-Governance Models and Their Theoretical
Background... 36
Table 3-1: Top 300 Conglomerates in Indonesia from 1988 to 1996 ... 51
Table 3-2: Market Shares of State-owned Companies PT Telkom and PT Indosat in the
Telecommunication Market in 2002... 58
Table 3-3: Development Targets According to the Five-year Government Plans ... 60
Table 3-4: Overview of Telecommunication and Information Technology in Indonesia, 1997-
2001 ... 68
VII
Introduction
`ICT is also changing the economic and political structure of domestic institutions, of
states, and the relations between states. Indeed, the most knowledge-based and digitalised
states have acquired a competitive edge. Indeed, knowledge is power'.
(Wolfgang Möllers, Regional Representative,
Konrad-Adenauer-Stiftung, 9
th
Conference of the
East and Southeast Asia Network for Better
Local Governments (e-Governance Workshop),
Indonesia, 15-19 July 2001)
The emergence of Information and Communication Technologies (ICT) has launched a
global debate (digital or technological revolution) about a paradigm shift from an
industrialised towards an Information Society. In the front of this debate lies the assertion that
the application of ICT is the impelling factor of transformation which will result in far
reaching changes within all parts of the economy, the society and the State (Stiglitz et al.
2000, 8). The State plays therefore an important role for this transformation. First, the creation
of a `New Economy' which stands for a branch of industry that develops and produces
hardware, software and communication equipment and its penetration and application into the
whole economy. The emergence of e-buzzwords such as e-commerce or e-business are related
to the application of ICT within the economy. Second, after a laissez-faire policy
implementation through the State, it has to care for social aspects such as to connect the
society to the internet and create a digital literate society. This `second stage' of the
Information Society has its expression in the common used catchword `digital divide'.
Finally, the State itself comes under pressure to apply ICT within government institutions,
expressed by the latest catchwords of e-government and e-governance.
Their hype (chiefly technologically determined) can be equated with the emergence of
the `New Economy' within the global debate about the Information Society. Emerged from
developed countries, e-government and e-governance experience an increasing use in
developing countries. Their advocates (i. e. international development organisations) stress
the catchwords for the purpose of poverty alleviation, improved living standards and
economic growth, in developed and particularly in developing countries. Furthermore, both
subjects of the thesis have started up a new tractive force within the debate of public
administration reforms. Both can be summarised as ICT-led public administration reform.
They are deemed to be an `impelling factor of organisational change and transformation' of
VIII
governmental institutions (Schedler 2001a, 44; Gesellschaft für Informatik e.V. 2000, 2).
Moreover, the literature concerning both catchwords, is full of positive expectations (i.e.
enhance participation, accountability, transparency and overall democracy) and thus, they are
seen as a medium to implement and support their theoretical concepts New Public
Management (NPM) and Good Governance (Reichard 1999; Upadhyaya 2000; Heeks 2001;
OECD 2001a; World Bank 2002c). Fairly few observations in developed countries stressed
the significance of internal structures within governmental institutions which can influence
the introduction of ICT in general (see Killian/Wind 1997; Killian 1999; Killian 2001) and the
developing countries (see Calhoun et al. 1987; Peterson 1998; Berman/Tettey 2001).
However, they are unrecognised within the debate of e-government and e-governance.
Furthermore, the debate of these catchwords contains a lack of concern about and notice
of a possible influence of internal structures of public administrations on the implementation
of e-government and e-governance regarding developed and especially developing countries.
Under this review and in bringing back the e-government/e-governance debate into reality, the
central question of this thesis is: which preconditions have to be considered before the
implementation of both catchwords in non-Weberian bureaucracies in developing countries?
In answering this question, the case of Indonesia is taken as a basis because it is planning to
implement an extensive e-government project since the end of 2001. The thesis will reveal
that an ICT-led public administration reform through e-government or e-governance will
certainly fail, as long as the developed preconditions in the constructed test model are
unrecognised. E-government and/or e-governance will reinforce and strengthen existing
internal structures within public administrations instead of transform them towards the
normative concepts.
In approaching the central question, the thesis is compiled as follows: First, chapter one
discusses the catchwords' theoretical background under consideration of ICT and their
general critiques. Then, the catchwords themselves are defined in the scope of the Information
Society and their present critiques. Both sections expose the necessary preconditions for the
implementation of e-government and e-governance. The preconditions are: The networking
effects (totality of integration), the analysis of internal structures of public administrations
(micro-level) and the analysis of related actors' interests (macro-level).
From this point of view, chapter two constructs a test model where these more broad
preconditions are substantiated and operationalised through the application of several theories.
IX
Chapter three applies the test model to the case of Indonesia. On the macro-level the theory of
bureaucratic developmental State by Elsenhans is applied with an emphasis on the ICT sector.
This section reveals that on the supply side within the ICT sector there are existing tendencies
where indigenous and non-indigenous conglomerates regain there position on the economy,
namely on the emerging ICT sector and their influence on IBRA (Indonesian Bank
Restructuring Agency). Furthermore on the telecommunication sector there exists a duopoly
of State-owned companies. Both findings are related to a segmentation of the State Class
which favours more indigenous conglomerates instead of non-indigenous as in the pre-
Soeharto area.
The demand side of ICT is summarised through the analysis of the stage of networking
effects. It includes quantitative indicators from 1997 to 2001 and policy indicators. It
emphasises that at the present stage of networking the internet is biased towards an educated
high-income group within the Indonesian society. The speed of developing a `connected
society' is reduced by weaknesses in policy formulation, implementation and monitoring.
On the micro-level the duality of structure by Giddens and applied by Killian/Wind
(1997) is used. This analysis concludes that the mesh of formal and informal structures and
the old vision of political thinking lead to a concentration of power, authority and control over
resources in the hands of top officials who are part of the State Class. With the emergence of
ICT a new powerful group within the public administration can evolve which will challenge
existing power and authority holders. Thus, in stabilising and guaranteeing their traditional
economic and informational resources, the patrons (top officials) have to co-opt the ICT unit
(new powerful group) to obtain control over the access, transfer and selection of information.
The thesis finishes with a conclusion that emphasises important questions which should borne
in mind before implementing e-government and/or e-governance.
Theoretical Classification: New Public Management and Governance
1
1. E-Government and e-Governance Against the Background of
Their Theoretical Classification
The theoretical concept, which lies behind the catchwords e-government/e-governance,
is managerialism, commonly known as NPM. It emerged in the late 1970s and early 1980s in
Western countries as an answer to the excessive complexity of State activities, financial
shortages of public administrations and can be seen as a general critique towards the
Weberian `ideal-type' of bureaucracy. The purpose of NPM is a reduction of the State's
activities and the reorganisation of State institutions. In developing countries and since the
new Millennium, growing support emerged in developed countries as well - the concept of
Governance was established by the World Bank echoing the concept of NPM. In spite of the
lack in the literature to emphasise it, the purpose of Governance integrates NPM objectives,
that is to say, the reorganisation of State institutions and attaches importance to an efficient,
effective, accountable, transparent, participative and responsible political steering through the
State. Both concepts, NPM and Governance, can be regarded as ones worldwide used,
resistant to their critiques. NPM shifted towards developing countries in the broader form of
the Governance concept, whereas this concept now shifts towards developed countries.
The technologically determined change, from an industrialised society towards a
Information Society
1
, has additionally reinforced the State and its institutions under pressure
of change, namely as both subject and object of this change. E-government and e-governance
explain it. However, both catchwords are nothing new. Now, despite of old critiques about
information technology within public administrations, which are largely ignored by the
advocates, the intention of e-government and e-governance is to reinforce their underlying
theories. They can be regarded as a new reform debate (`technical renaissance') and as key
tools for the implementation of the theoretical concepts mentioned above. Furthermore, it can
be suggested that e-government and e-governance do not keep what they promise. Chapter
one will reveal, that the analysis of internal structures and power distributions within political-
administrative systems do matter before implementing e-government/e-governance.
1
Synonyms for the term Information Society are Knowledge Society or Modern Service Society. All expressions
have the same content, goal, and positive connotation in mind.
Theoretical Classification: New Public Management and Governance
2
A. Theoretical Classification: New Public Management and
Governance
I.
New Public Management
In the late seventies and early eighties NPM emerged first in the United Kingdom and
several municipal governments in the United States (Gruening 2001, 2). Now, it is used as a
generic term for the worldwide movement of administrative reforms and is `one of the most
striking international trends in public administration' (Hood 1991, 3)
2
. Many countries have
implemented NPM or better used some instruments of NPM to reform their public sector. For
example Germany, a latecomer in NPM implementation, adopted more instruments for
internal reorganisation of public administration (like performance and quality strategies)
3
.
NPM is more a concept of existing multiple theoretical and managerial concepts rather a
single theory on the reform of public administrations. In order to discuss NPM, it will be
necessary to analyse the reasons for its emergence and expose the objectives which are
regarded as universal (ibid, 9). Furthermore its critique will be specified in relation to
developing countries to form certain preconditions for its implementation.
a)
Reasons for the Adoption of New Public Management
The implementation of NPM concepts should be understood in the context of
historically grown structures and procedures within public administrations of a modern
bureaucratic State. This means, that the characteristics of a bureaucratic State, explained by
Max Weber in 1920
4
, came under pressure with the emergence of exogenous reasons which
reveal an inflexible bureaucratic State. Yet, it should be said, that not all reasons emerged in
the same emphasis in all countries, which implemented NPM. However, Minogue identifies a
parallel of pressure for change across different socio-political systems (1998, 19).
The external reasons can be summarised in the social, political and economic change
within Western democracies during the 1980s. First, social change occurs within the change
2
Hood (1991) observes in addition to NPM four administrative megatrends: slow down or reverse government
growth, privatisation and quasi-privatisation, development of automation, and development of a more
international agenda.
3
For Germany, the local government association (KGst) established the concept of "Neue Steuerungsmodell"
(NSM) in 1993 which is regarded as an equivalent to NPM. The main objectives of NSM lie in the design of
new managerial structures, output, competition and customer orientation.
4
The characteristics of the bureaucratic State by Max Weber are: a) clear separation between politics and
administrations; b) the importance of rule of law; c) officials should be recruited on the basis of
qualifications; d) hierarchical arrangements and functional division of tasks and people; e) principle of
motivation should be the sense of public interest; f) resources should belong to the organisation (Minogue
2000, 2; Budäus 1998, 1).
Theoretical Classification: New Public Management and Governance
3
of values. Individuality, which replaced traditional values of duty and acceptance with
demands of more participation and increased claims toward public administrations, has led to
changed social structures (post materialism). The public administration was seen to be more
than a negotiating and informal operating one (Wollmann 2001, 21). Second, characteristics
of political change identifiable in the form of disenchantment of politics, seems to weaken the
legitimacy of institutions. Political problem solving fails, because politics are stamped by
electoral cycles and power maintenance. Furthermore, the European integration forces States
to deal with the debate of modernisation of public administrations. Finally, in the centre of the
debate is the end of the high growth period of the `Golden Post War Age' in the late 1970s
and early 1980s (Aucoin 1990, 115). As a result of economic constraints a paradigmatic shift
in economic policy from the keynesian welfare State to a liberalisation strategy by capitalistic
States with a neo-liberal paradigm evolved and roughly all public administrations came under
pressure due to capital shortages within public budgets and increased demands for lean public
management. Moreover, public administrations were recognised as a factor of competition for
private investments.
Due to structural inflexibilities, public administrations have increasingly been
challenged to cope with the above mentioned multifaceted changes caused by the social,
economic and political environment. Public administrations were deemed inflexible, because
of a tendency towards bureaucratic centralism, drawn out decision-making and co-ordination
processes, and low levels of transparency within competencies of participation and consents.
In addition, public management follows official orders and interventions. The division of
responsibilities of resources and departments, input orientation, and huge amounts of laws and
regulations led to dysfunctional structures within public administrations. As measured by
economic efficiency and effectiveness internal structures and patterns of behaviour within
public administrations were considered as not any longer functional.
b)
Objectives of NPM
Advocates of NPM regard it as the crucial universal solution to respond to these
overriding changes. NPM is rather a practitioner movement (Borins/Gruening 1998, 14) than
it follows a closed theoretical concept. Many authors stress the appearance of NPM as a
paradigmatic change (Budäus 1998, 1; Günter 2001, 1) within administrative science, but
Gruening (2001) emphasises that the theoretical origins of NPM are not new, but the mix of
those are, which do not establish a new paradigm for behaviour administrative science
Theoretical Classification: New Public Management and Governance
4
according to Kuhn's definition of paradigm shift. NPM comprises many theoretical
perspectives which cannot entirely mentioned here, but certain directional impacts are
important to illustrate.
5
There is a broad consensus that NPM is based on two theoretical or
conceptual origins: First, new institutional economics with their applications of public choice,
principal-agent, property rights, and transactions cost theories (Hood 1991, 5). Public choice
approach emphasises the calculation and aggregation of individual preferences for the
allocation of public goods with the help of certain decision-making procedures to organise
different relationships between related actors of public administrations. Thus, the point of
origin is an individual, who will always behave in a rational and profit oriented way. Certain
decision-making procedures are found in the principal-agent approach (avoidance of
hierarchical control and more efficient and effective output steering by contract management),
property rights approach (assumption that with privatisation new incentive structures could be
established which aim to bring about an efficient allocation of resources) and transactions cost
approach (besides the provision of production costs also costs for purchasing information and
measures of co-ordination and control). These theoretical approaches arise from ideological
motives of State cutbacks instead of State reconstruction which is a typical characteristic of
neo-liberal thinking in Anglo-Saxon countries with a traditional residual welfare State.
Another conceptual origin of NPM, which is held as important, is the influence of the so
called managerialism. It suggests, that new methods of management (successfully used in the
private sector) can help to make the management of public administrations more efficient.
Thereby executive managers should have professional management skills with a wide scope
of freedom and uncoupled from political coercion. Related management techniques are
management by objectives (MbO, output control), implementation of Total Quality
Management (TQM), efficient financial controlling, and the introduction of knowledge and
information management.
As a result of the above mentioned theoretical or conceptual origins, NPM embarks on
new strategic objectives within public administrations, which should be achieved with certain
characteristics and instruments of NPM. The objectives of NPM are more customer,
performance and impact, quality and competition orientation, summarised in a broad vision
for the public administration. Schedler (2001b) stresses certain characteristics and instruments
of NPM. The aim of decentralisation of management and organisation structures is to improve
5
An overview of characteristics of NPM and their theoretical approaches can be found in Gruening (2001, 18).
Theoretical Classification: New Public Management and Governance
5
the responsibilities of subordinate units and strengthen their autonomy towards superior
authorities. The alleged advantages are reduction of complexity, transparency, and
equalisation of cost and performance. Contract management and global budgets regulate
tasks, competencies, and responsibilities between the political leadership, chief executives and
subordinate units. Performance measurement and benchmark tests serve as quality control in
the same manner as citizen surveys relaying the needs and satisfaction of the public
administration's customers. With NPM business instruments will be implemented to assure
the strategic objectives. For example, new methods of financial accounting (performance,
impact and cost measurements), controlling to support the overall planning, public private
partnerships (co-operations between public and private sectors), new management techniques
and incentive structures, new human resource development and horizontal instead of vertical
reorganisation within public administrations. Furthermore, a clear cut between the role of
politics and public administrations is necessary which could have important impacts on the
political-administrative system. This means, that central competencies of legislative bodies
(councils and parliaments) will be shifted in the direction of public administrations. The
former are responsible for objective targets, the latter for the operative attainment of these
targets.
In sum, NPM can be regarded as a conglomerate of complex business methods,
techniques, and assumptions which are designed to fit in the present situation of modern
bureaucratic States and their political institutions. With regard to a huge number of
investigations about the impacts of NPM reforms in developed countries the question arises
how suitable is NPM for developing countries? It is of particular importance to ask which
environment, conditions or problems come across for the implementation of NPM in
developing countries?
c)
Raise the Issue of Internal Structures in Developing Countries
It is a prevailing opinion that many developing countries have adopted NPM-type
reforms or elements of them to reorganise their public sectors and to deal with similar
problems of an inflexible, opaque, irresponsible and unaccountable State. This movement was
and is promoted by multilateral and bilateral aid donors in the form of coercive policy transfer
or political conditionality (Minogue et al. 1998, 2; Common 1998, 34) as well as internal
forces (Batley 1999, 761) or voluntary transfer for example to defend decisions they have
Theoretical Classification: New Public Management and Governance
6
already made (e.g. privatisation) (Turner 1998, 41). Critical reflections about NPM reforms in
developed countries have not experienced direct or indirect a debate by advocates of NPM as
Minogue (2000, 15) carries out
"they [management schools in the UK, etc.] ignore or are unaware of, an extensive
critical literature produced by public policy specialists and political scientists"
and in another publication he amplifies it that
"existing commentaries on public management reform in developing countries give little
sign of being aware of the problematic nature of the NPM model" (Minogue 2001, 39).
Many authors (Dolowitz/Marsh 1998; Turner 1998; Polidano et al. 1998; Schick 1998;
Batley 1999; Minogue 2001; Clarke/Wood 2001; McCourt 2001; Polidano 2001) have
investigated the appropriateness of NPM reforms in developing countries. Their joint findings
are that a flexible adaptation of NPM doctrines with regard to cultural variations is a
precondition for a successful implementation. An argument, which corroborates this
assumption is, that NPM evolves in the surrounding of a modern bureaucratic State which not
or less exists in developing countries (Polidano et al. 1998, 286). Furthermore, Elsenhans
(1988) emphasises that differences in socio-cultural traditions are less important rather than
the differences of economic environments. Thus, it is important, that an investigation of
internal structures is a precondition for the implementation of public sector reforms under the
terms of NPM-type reforms. With the help of different approaches this assumption is to be
confirmed.
Schick (1998) emphasises the questionable NPM element of contract management.
Based on the fact of upcoming problems in developed countries he observes that contracting
depends on voluntary, self-interested action which defeats the government's collective
interests. Contracts in public administrations have no exit option when a contract is badly
executed as in the private sphere. Furthermore, contracting contains possible immense
transaction costs (e.g. for negotiating) which could not be affordable for small departments
with small operating budgets. Due to these critical questions concerning contract management
in developed countries he locates internal structures in developing countries, which do not
improve these problems. He addresses two impelling elements in developing countries. First
an informal economy that cannot enforce contract conditions, because of weak property rights
(ibid., 127). Contract management in developed countries depends on a robust market with an
acceptance of rule of law and prescribed rules and an effective monitoring process (e.g.
Theoretical Classification: New Public Management and Governance
7
formal management control systems). These conditions are absent or do not function properly
in developing countries which deteriorates the implementation of contracting in the public
sector. Polidano (1999, 12) supports this argument with the example of Ghana where political
connections of managers undermine rules of contracts to improve the performance of State-
owned enterprises. Second, the existence of informal State budgets in form of public budgets
(unrealistic and unachievable) and real budgets (facilitating macroeconomic stability) lead to
a persistent budgeting to align disbursements and resources. Corruption, inefficiency, and
widespread evasion of civil service rules and controls are possible outcomes (ibid. 128). It is
obvious that an investigation of internal structures and conditions could help to improve the
implementation of elements of reform strategies. With respect to Schick it raises the
assumption that there is a difference between written rule and constitutional behaviour of
related actors within public administrations. This should be considered for any public sector
reform.
Clarke's and Wood's (2001) conclusion in there analysis of public service reform in
Tanzania and Uganda is similar to Schick's observation. They point out, that the conditions in
developing countries are different to those in developed countries and therefore reforms `have
to be tailored to the local conditions and proceed at a realistic pace' (ibid. 88). They stress
their argument especially on examining decentralisation efforts for management autonomy
and freedom. They find a politically unacceptable and doubtful administrative practice for the
distribution of power downwards hierarchical and centralised structures. As an example, the
establishment of Uganda Revenue Authority to improve revenue collection was made
obsolete after a few years, because of corruption, mismanagement and collapse of
interrelations between the Uganda Revenue Authority and the Ministry of Finance (ibid. 83
ff.). They query reform elements such as contracting out, institutionalisation of executive
agencies, and privatisation, because of the loss of government control. Turner (1998)
examines central-local relations in Asian-Pacific countries. He finds, that there is a tendency
of reluctance to give up decision-making powers to the benefit on local levels. Where it has
happened, local élites were co-opted or strong political control and fiscal dependence were
imposed. Furthermore, there is a widespread and joint pursuance of NPM language but it is
influenced by political structures and institutional frameworks (ibid. 258).
Moreover Minogue et al. (1998) investigate that with regard to the transformation of
government units into quangos (quasi-non-governmental organisations) for decades NPM has
Theoretical Classification: New Public Management and Governance
8
legitimised the process of privatisation within public sectors. Thus, old habits and objectives
were also transformed such as the objective to build independent pay structures and incentives
to recruit skilled staff or to manage donor-financed projects by best qualified staff instead of
employing them in important positions of State departments. In addition organisational
fragmentation could intensify the difficulties of co-ordinated policies which already exist at
central level. Before using the language of NPM these problems already were facts in
developing countries. There is a significant difference between NPM objectives (like
improvement of managerial performance with the help of decentralisation of State
departments' responsibility and autonomy) and given objectives in that matter.
To resume these examples have illustrated the importance of structural conditions
within developing countries for the implementation of NPM-type reforms. It can be argued
that it acts as a precondition to bring NPM programmes or in general civil service reforms to a
successful level. Besides investigations about important institutional organisations, the
political structure of self-interests within public sectors, that is to say, the identification of
related actors e.g. reform élites is as important to know. Now it is necessary to validate this
precondition in relation to the question what conclusions are being made with regard to the
implementation of ICT in developing countries, especially within the public sector so far? Is
there a significant outcome that would validate the assumption of the importance of internal
structures in implementing civil service reforms?
d)
ICT as Driving Power for Civil Service Reforms in Developing
Countries?
It should be highlighted that e-government and e-governance are closely linked to ICT
and that with the emergence of both definitions a vast majority of publications favour the
possible reorganisation and restructuring potentials of ICT within public sectors. The same
situation is also present in developing countries. The rumoured nature of ICT as changing
factor of structures within public administrations in developing countries and their inflated
objectives are influenced by political and social structures as well as conditions.
Computerisation of public administrations in developing countries do not have the
envisaged positive effects. As Berman/Tettey in the case of African States observe that the
`introduction of computer does not produce anticipated improvements in public
administration' (2001, 1). Computers emerged in Western countries to endorse centralisation
in bureaucracies and reinforce centralised control to reduce uncertainty in organisational
Theoretical Classification: New Public Management and Governance
9
operations (ibid. 2 ff.). In the context of African countries the development of bureaucratic
institutions differ internally and externally with those of Western countries. Authoritarianism,
clientelism and the bureaucratic culture are conditions where computers were used by senior
officials as symbolic power to establish resistant political and administrative structures.
6
Calhoun et al. underline this assumption in the context of the potential for microcomputer
technology to decentralise the planning and decision-making process, but `computing does
not so much modify or redistribute power as reinforce the existing power structure' (1987,
370). Peterson (1998) agrees and accentuates the illusion of ICT for reforming organisational
structures, especially when these structures provide rents.
7
He observes the existence of few
government reformers (saints), many critiques (demons) and inappropriate technicians
(wizards) within African bureaucracies which fail to install information systems. Furthermore,
Heeks (1998, 18) finds, that the implementation of ICT for information systems within public
administrations does `undermine accountability more easily than increasing it'. He concludes,
that for an effective implementation of computer-based information systems, changes in
political, organisational and bureaucratic structures are necessary.
To conclude, there are some examples which emphasise the assumption that ICT is not
a driving power for civil service reforms in developing countries. Furthermore, ICT in
developing countries validates the assumption of the importance of internal structures in
implementing civil service reforms. In the context of public administrations it can be
concluded, that technological determinism should be rejected, because of the fact, that internal
structures, respectively actors with self-interests (maintaining power and authority) within
public sectors could make ICT their `servant'. ICT is more used to intensify existing
conditions in developing countries. The analysis of NPM emphasises, that critiques about the
nature of NPM reforms and the implementation of ICT within public administrations in
developing countries, were largely ignored. The analysis of internal political and social
structures within and outside public administration is a precondition for the implementation of
ICT and civil service reforms.
6
Grill (2002, 20) claims that mobile phones and computers were recently exploited by the ruling elite in African
States `to organise their deprivation, whereas the mass is still waiting ... for trickle-down effects'.
7
Rents can be defined as `a person gets a rent if he or she earns an income higher than the minimum that person
would have accepted, the minimum being usually defined as the income in his or her next-best opportunity'
(Khan et al., 2000, 21). Further, Khan et al. (2000) point out that rents are existent in different types, as
monopoly rents, natural resource rent, etc.
Theoretical Classification: New Public Management and Governance
10
II. The Concept of Governance
The theoretical concept of Governance is present in the international debate since the
end of 1980s. Its emphasis lies on the reform of the role of the State and emerged first in
Third World policy by the World Bank (see World Bank 1989, 1992, 1994, 1997). It
originated from works by Oliver Williamson on corporate governance and governance
structures in companies, whereas Brown (2001) points out that it is a metaphor from politics,
which has experienced a new interpretation in the scope of new institutional economics,
especially within business policy of companies. In short, corporate governance, prevalent in
the business sector, can be defined as new responsibility assignments between and within all
stakeholders (Board of Directors, Management and Stockholders) to ensure shareholder value
of and confidence in the company. Translated into the concept of Governance new roles and
interrelations of the State (public sector management), the Civil Society (NGOs, etc.) and the
business sector must be defined and developed to ensure, in the light of developing countries,
the rule of law and the development of modern democracy. In the middle of the 1990s a
further shift towards developed countries came forward as a result of the Southeast Asian
Crisis in 1997/98 (Wade 1998; ADB 1999a; Ferdinand 2000) and the efforts of the European
Union to reform government structures and roles to meet the challenges of mistrust by the
public and hampered economic growth in Europe (CEC 2001a; CEC/EGT 2000).
8
With the
emergence of ICT a further development of the Governance debate can be observed, viz. the
concept of networking as a possibility to operationalise the concept of Governance by uniting
its principle elements.
a) The
Basics
International organisations were the precursors in defining the concept of Governance
whereas there is no single definition of Governance (Adam 2001, 272). It was first defined by
the World Bank Group (1989, 60) as a consequence of various governance failures by Sub-
Sahara African States in their efforts to enhance economic development. Thereby, the State,
its agencies and the management of activities, respectively from the content of policies to the
complex nature of the role of the State, were centred within development politics. Even the
World Bank Group changed its Governance definition (see World Bank 1989, 60 and 1994,
XIV). Consequently, the main emphasis of the dimensions of Governance by international
8
As Löffler (2001) emphasises in the title of her article according to German's public service modernisation
process `Governance: the new generation of modernising the State and public administration'.
Theoretical Classification: New Public Management and Governance
11
organisations lies in the inclusion of economic objectives (Ferdinand 2000, 11). However, as
Dethier (1999, 5) stresses, Governance `refers to processes that have complex historical,
cultural, social and political determinants' which `requires an inter-disciplinary approach'.
The World Bank Group emphasises four main principles to guarantee the implementation of
Good Governance for successful development (Adam 2000; Hirschmann 1999). Whereas,
especially these principles were already found within the NPM concept and favours the
assumption that NPM objectives are integrated into the Governance concept.
·
Effective and efficient public sector management
·
Responsibility and Accountability of controlling decision-making processes
within public sector
·
Improving the rule of law
·
Transparent public sector to increase the access to public information and
participation of Civil Society
Although the World Bank Charter prohibits the engagement into the dimension of the
State's politics, the concept of Governance refers to the fundamental model of development
State in form of a reorganisation of the political-administrative system, procedures and
political steering to execute State authority and the inclusion of external decision-making
processes, namely within Civil Societies.
This will be more clear with the definition of Governance by the United Nations
Development Programme (UNDP). Its Governance perception refers to the three sectors State,
market and Civil Society which are linked by interrelations and decision-making processes
(Adam 2000, 273). The definition is more comprehensive than of the World Bank Group
because the UNDP (1997) emphasises economic governance (economic activities and
procedures by the State), political governance (forms of decision-making within State
institutions), administrative governance (political implementation by efficient, responsible,
independent and transparent public services) and systemic governance (sum of all structures
and processes of private and public agents which strengthen the improvement of living
standards of all members of the society).
With the emergence of the Governance concept and as a proven fact of the underlying
corporate governance objective, the sphere of Civil Society has been arisen as an important
`stakeholder' of the Governance debate. In the broader sense it comprises all parts of interest
groups within a society and is definitely separated from the State (i.e. non-State or non-profit
as well as profit organisations or associations). The Civil Society has to be implemented
Theoretical Classification: New Public Management and Governance
12
within decision-making processes through greater participation to enhance the State's
legitimacy and trust in policy formulations. Furthermore, it is generally assumed that citizens
are given a voice in the process of formulating public policy through the advocacy efforts of
Civil Society organisations (USAID 1998, 15). Moreover in a more political-economic view,
particularly NGOs can be regarded as a useful channel and transformer where resources of
rents could be run to the poor and political power could be shifted to the poor as long as they
do not become a co-opted part or own developed class within political structures of a State
(Elsenhans 1995). This can be validated in the context of NGOs in Indonesia where huge
charitable trusts
9
were established by former senior officials to squeeze out development aid
and public funds, but lost their connection to the poorest with the objective to allocate rents
by using another way of channelling (Sinaga 1994).
b)
The Emergence of Networking within the Concept through ICT
The present stage of the Governance concept has left the debate on discussing the
Governance principles in detail, but rather emphasises the possibilities of its uniting
implementation through the emergence of network management through ICT. Governance is
the consequence of complex processes of interaction between a huge amount of
interdependent actors. Guided or voluntary, formal or informal co-operations are usually used
as a tool to achieve Governance. This is not new. What is new, is the rising emergence of
networking, as a key tool to specify the above mentioned Governance principles and their
management in the public sector. It comprises the externalisation, reorganisation, automation
and management of these complex processes of interaction within public administrations.
1.
Characteristics of Networking
The analysis of networking, i.e. strategic networks in business sectors (cf. Jansen 2001)
or policy networks in policy science (cf. Klijn et al. 1995) have attracted attention from the
mid 1980s until now. The underlying approaches to explain the benefits and emergence of
institutionalisation and co-ordination are split into two different camps, namely a micro-
economic and social science view. The micro-economic view with its approach of transaction
cost exposes that an efficient choice of institutionalisation and co-ordination is achieved when
both cost of production and transaction (costs of implementation, negotiation, control, etc.)
9
In Indonesia most NGOs are labelled as `Yayasan' - charitable trusts, that cover agricultural food and
development programmes (DSE 1989, 99).
Theoretical Classification: New Public Management and Governance
13
and uncertainty are minimised.
10
Whereas social scientists underscore the importance of
forms of governance and their contribution to individual and organisational actions and
solutions of co-ordination problems (Jansen 2001, 5). The main concern lies on networks,
aroused by increased functional differentiation of the society (Mayntz 1993, 41). Networks
have the capability to achieve a common purpose without coercion but with trust by the co-
operative actors. While Scharpf (1993, 159) stresses the relevance that networks and
hierarchies are interlocked (hierarchies as positive co-ordination and considerateness as
negative co-ordination) , that is to say `network-like relationships are emerging within as well
as across the boundaries of hierarchical structures'. From this broader point of view networks
can be defined as stabilised and more informal organised structures of communication based
on interdependence, collaborative expectations of behaviour, and relationships of trust
between individuals or organisations with the objective to exchange information, co-operative
production of collective goods and formulation of interests (Benz 1995). Thus, actors are
interdependent in achieving their goals, this creates stable relationships with certain rules
which regulate the actors behaviour and generates closeness outside these networks (Kenis
2002).
2.
Tendencies so Far
The drive towards an efficient and effective network management within the
Governance debate can be circumstantiated on different political levels and is predominantly
propelled by the emergence and potential of ICT. The European Commission (2001a) initiated
the White Paper to reform the EU policy-making process in enhancing openness,
accountability and responsibility as well as participation of European citizens. On national
level some States have established new strategic programmes (Finland) or rules of internal
procedures for departments (Germany) to institutionalise new collaborative models for inter-
departmental and overarching networking. The objective is to empower all related actors to
participate on policy development at the preparatory stage in an open, transparent and
accountable matter (Ministry of Finance 2001; Bundesregierung 2000, 2001).
An efficient and effective network management within public administrations could
respond to the previous mentioned challenges and can reduce the often mentioned co-
10
Cf. various works by Oliver E. Williamson: (1975) Markets and hierarchies: Analysis and antitrust
implications, New York: The Free Press; (1979) Transaction Cost Economics: The Governance of
Contractual Relations, Journal of Law and Economics, 22, 233-261; (1985) The Economic Institutions of
Capitalism, New York: The Free Press.
Theoretical Classification: New Public Management and Governance
14
operation problem of networks. The emphasis lies on horizontal management, where top-
down levels are absent, effective and efficient use of resources could be attained and
externally oriented internal reorganisation (Juillet/Paquet 2001; Ministry of Finance 2001;
Löffler 2001). Furthermore, rules and regulations of co-operation, problem analysis and
solution finding are created with all involved actors during the decision-making. These actors
are all involved stakeholders, e.g. ministries, experts, interest groups and citizens. The
responsible actor in charge of the networking process, dependent on the respective level of
decision-making, could be a senior official who acts as mediator and ensures an effective use
of all channels of communication.
Government Relationship Management could steer these new forms of networks (Hill
2002). Its orientation towards the concept of Customer Relationship Management is prevalent
in the business sector and would design, develop and enhance relationships to maximise the
purpose of Governance principles within and outside the public sector. As relationships and
their management between public sector and its environment become more important
information-enabled systems must be integrated. The importance of broad access to
information is a necessary prerequisite to reap the full benefits of networking (Juillet/Paquet
2001) otherwise information-asymmetries could hamper efficient co-ordination and give
certain actors competitive edge in information, resulting in power advantages. Co-operation
requires quality and quantity of information and an effective sharing and communication of
information. The implementation of broad information policies is vital in order to gain from
the benefits of the already completed efforts to emphasise networking in legislation.
3. Critical
Issues
There are some crucial disadvantages of networking which have to be mentioned. Buck
(1999) emphasises the importance of networking as a survival strategy. In the context of local
governments in Russia inter-organisational alliances via networking are exploited to reinforce
old structures and interests which restrict changing efforts of different stakeholders.
11
Furthermore, Scharpf (1993) supports this argument when he points out that network
structures in policy networks strengthen rather than equalise differences between powerful
and weak interest organisations. In democracies policy-makers are subject to pressure from
11
Networking could consolidate corruption, clientelism, nepotism and patronage (Jansen 2001, 6) as many
examples around the world show, whether in developing or developed countries. Elsenhans observes that
networks between services and agencies must be established as a mechanism in which public administrations
in developing countries `are fragmented and fused in the ruling State-class' (1988, 24).
Details
- Seiten
- Erscheinungsform
- Originalausgabe
- Jahr
- 2002
- ISBN (eBook)
- 9783832459949
- ISBN (Paperback)
- 9783838659947
- Dateigröße
- 1020 KB
- Sprache
- Englisch
- Institution / Hochschule
- Universität Leipzig – Sozialwissenschaften
- Note
- 1,3
- Schlagworte
- verwaltungsinformatik public management indonesien entwicklungsländer politische ökonomie
