THE CONCEPT

New Public Management (NPM) deals with improvements in public administration. The values of NPM are lean state, free markets and performance orientation. Important tenets of NPM are:

1. Principle of Subsidiarity: The local government is not the third tier of the government, but the first one. Only those functions not possible to be carried out by the local government should be given to the state government. The national government should be entrusted with only those functions that the state government is unable to do justice to. This also applies to taxes. The local government should collect taxes and after retaining as much as they need, should pass them on to the state and national government. Instead the reverse process is followed today.

This helps government is focusing on their core competencies thereby improving the quality of their services.

2. Separate Provision from Production: The government can provide subsidy through food stamps or education vouchers, but need not be in the business of producing food or providing education. These activities can be best left to the markets.

3. Expand Choice and Competition: Competition pushes up quality and pushes down prices. The telecom industry in India is an excellent example of the power of markets. The Delhi electricity distribution privatisation which created two private monopolies is a bad example.

4. Give Clean Subsidies: Subsidies on items like kerosene distort prices. They create a perverse incentive to adulterate petrol with kerosene. There is little reason for farmers to economise the use of electricity when it is free. A more effective method is to provide subsidy on the output i.e. is the income .

5. Outcomes, not Outlays: This simple means that the output is more important than the process. The current administrative setup does exactly the opposite. Its lays emphasis on procedure and has little regard to the output. Outcome-based budgets are very uncommon.

CCS’ EFFORTS IN NPM

BOOK: HANDBOOK ON NEW PUBLIC GOVERNANCE

The book has an excellent collection on the most important literature written on NPM. It includes case studies from India and abroad that show the actual working of the NPM ideas.

The book launched by Mr. T.S.R. Subramanian, former Cabinet Secretary and the function was attended by Mr. K.C. Sivaramakrishnan, Visiting Professor, Centre for Policy Research and Dr. P.L. Sanjeev Reddy, Director, Indian Institute of Public Administration (IIPA). The program was in partnership with IIPA on 2nd March 2005.

Fig: Dr. Parth Shah, Mr. T.S.R. Subramanian and Dr. Sanjeev Reddy at the book launch

BOOK DISCUSSION ON THE HANDBOOK ON NEW PUBLIC GOVERNANCE

The former Delhi Municipal Commissioner and CMD, Transco Ltd., Mr. Rakesh Mehta, Mr. B B Pandit, Financial Advisor, NDMC and Dr. P L Sanjeev Reddy, Director, IIPA participated in the discussion on the various aspects of NPM discussed in the book on 15th June 2006 at IIPA, New Delhi.

Accomplishments
The program attracted academicians and students interested in learning about the various NPM initiatives taken by the Delhi municipalities. It helped popularise the book among institutions and civil society organisations.

Fig: Dr. Parth Shah, Mr. B B Pandit, Dr. Sanjeev Reddy, Mr. Rakesh Mehta and Dr. Sujata Singh at the book discussion