Public And Private Sectors Have Converged Since 1979

1587 Words 7 Pages
Outline why it is sometimes argued that the public and private sectors have converged since 1979 and consider to what extent you agree that this is the case
Since 1979, there has been a global shift in the provision of public services, from solely public sector, to a greater involvement of the private sector. Until just over thirty years ago, the public sector was to abide by strict rules and codes of conduct with regards to management, known as Public Administration. However, it was recognised by some that this traditional, possibly out-dated style, proved particularly ineffective and inefficient and so from the mid to late 70’s, a new, more ‘managerial’ approach was brought about, which was heavily influenced by the private sector management techniques. This new approach was known and referred to as New Public Management, and there were a number of factors which initiated this change, of which included
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NPM was result of anti-public sector promotions. Jackson said 2 things gave rise to NPM, the first being the libertarian ideology (laissez-faire, power to the people .. Thatcher) and the second being the Left ideas and peoples demand for the providers of public services to be held more accountable. Therefore, NPM characteristics included a higher focus on output as opposed to being too heavily focused on administering input, i.e concentration on performance. Highlights competition for customer choice, privatization and contracting out. All in all, this basically meant a shift from Public Administration to Management. Owen E Hughes highlights the significance of this change by stating “a new model of public management has taken over and will totally change the way the public sector

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