On New Public Management Reform In Sri Lanka

This thesis explored and explained the challenges of introducing and implementing the New Public Management(NPM)policies and practices on organizational performance in Sri Lanka(SL).The central research question was what are the challenges of introducing and implementing the NPM policies and practices in SL?Answers to critical questions investigated were sought through qualitative and quantitative research.Using the combination of official documents and interviews with senior political elites,public officials,and academics,this thesis analyzed the challenges of introducing and implementing NPM reforms in SL.The 1996 Government NPM package was central to this analysis,and the study period was confined between 1996-2020.The study was explicitly guided by the Van Meter and Van Horn model of policy implementation(1975).They have emphasized a combination of six factors:policy standards and objectives,policy resources,Inter-organizational communication and enforcement activities,the characteristics of implementing agencies,economic,social,and political conditions,and the disposition of implementers.The study derived its independent and dependent variables based on the model.The dependent variable was the extent of implementation of the NPM reforms in SL.The independent variables were the institutional capacity,multiple accountabilities,institutionalized social and cultural values,norms and civil service morale,stakeholders’ participation,and the degree of legitimacy.The study tested several hypotheses;The extent of implementation of the NPM reforms may depend on the capability of implementing institutions,The successful implementation of the NPM reforms may depend upon the multiple accountabilities;institutionalized social and cultural values,norms,and civil service morale are the decisive factors which are affecting to the implementation process,The successful implementation of the NPM reforms may depend on the disposition of stakeholders’ participation.This thesis confirmed that NPM reforms in SL from 1996-to 2020 were isolated,impromptu,and reactive to crises,not proactive.Such changes lacked adequate examination of their effects on the administrative system.This resulted in more problems and even greater complexity,with the 1996 NPM recommendations not fully implemented.The study confirmed that the lack of a constitutional or administrative mechanism to coordinate between the Centre and the Provincial Councils(PCs)and between PCs was a significant bottleneck in implementing NPM reforms in SL.The PCs were highly dependent on Central Government funding.According to the annual report(2019)of the Central Bank of SL,80%of the PC’s expenditures were from the Central Government.The Central Government transfers to PCs increased gradually.Besides,the total capital expenditure of PCs was increased,exceeding their total revenue.PC suffers from not only financial but human resources.The incoordination between the Centre and PCs caused several ambiguities in some devolved tasks,leading to conflict between the Centre and PCs.The study confirmed the nonexistence of multiple accountabilities as barriers to implementing NPM reforms in SL.There was no political,administrative,or financial accountability in implementing these NPM practices.The large-scale political base recruitments to public service,recruitment of unqualified personnel to run public offices,lack of a performance measurement system for secretaries of Ministries,ineffective performance appraisal on other officials,lack of performance-based promotional and human resource development systems,input-oriented budgetary system,the excess cadre in the public administration,increased of unnecessary salary bills and pension payments,loss-making public enterprises were the main study findings that destructed the process.The next challenge identified was the absence of stakeholders’participation.Lack of participation of the private sector,bureaucratic,professional associations,and citizen support was the central issue for not fully implementing the NPM reforms.The senior bureaucrats prevented many NPM attempts because they were reluctant to introduce competitiveness and expected to keep the ongoing political patronage bureaucratic system.Due to the insufficient transparency and entry to information for citizens in service delivery,local people have almost no participation in the decision-making or the delivery of goods and services.The reform’s agenda failed to mobilize public interest and support,which countered the implementation inertia.Trade unions and other agitation activities resisted many attempted reforms.The study further found the existence of various norms,attitudes,practices,and perceptions embedded in the Sri Lankan culture,the influence of politics,and insufficient information about the NPM reforms as significant challenges.The study confirmed that;SL lags far behind on many issues such as governance effectiveness,voice,accountability,political stability,absence of violence,regulatory quality,and the rule of law and control of corruption.The study found that corruption and malpractices had risen to a high level in many Government institutions.Therefore,based on these findings,this study concluded that reform implementation might lead to an unproductive project absent situation of necessary support and compliance of implementers.Therefore,there should be a capable institutional structure with flexible and protective legal provisions,sufficient resources,and compatible stakeholders’ participation for successful NPM reforms implementation.