Public sector reform: an overview of recent literature and research on NPM and alternative paths

Purpose – The purpose of this article is to discuss the idea that new public management (NPM) would be passé . Design/methodology/approach – The article is based on a review of existing theories. Findings – The article argues that NPM has two dimensions, namely the minimization of the role of government vis-à-vis society and the improvement of the internal performance of the public sector. Whereas the first dimension is indeed more and more disputed nowadays this does not imply this also goes for the second dimension. The conclusion of this article calls for explanatory empirical research in order to explain the increasing variance in reforms among countries, by investigating which factors are determinative for decisions by governments to turn one way or the other. Practical implications – It is far from certain which way the public sector is heading in the so-called post-NPM era. Some countries are still implementing NPM-kind of reforms, either by downsizing or by introducing performance management. Other countries have chosen alternative paths. All this implies an increased variance between countries in the direction public sector reforms take. It requires quite different support from administrative sciences compared to the one-size-fits-all recommendations for public sector reforms – in conformity with the maxims of NPM – as witnessed in the past decades. Originality/value – The article contributes to the discussion about the role of NPM today. It presents original conclusions about diverging developments based on the unique comprehensive literature review on the topic.