New Public Management through Public Private Partnership - Case Study of Emergency Management Research Institute

Academic Associates – IIM Academic Associates – IIM AhmedabadAhmedabad

KALPESHKUMAR GUPTAKALPESHKUMAR GUPTA

AKHILESH SHUKLAAKHILESH SHUKLA

National Seminar on National Seminar on Interdisciplinary Interdisciplinary Approaches Approaches to Knowledge, to Knowledge, April 4-5, 2013April 4-5, 2013

(C) K L GUPTA(C) K L GUPTA

Outline of the presentation

1.Introduction2.New Public Management3.Public Private Partnership4.EMRI5.Conclusion 6.Video on EMRI7.Q & A



Present paper will discuss concept of New Public Management, Public Private Partnership.

It will focus on how public private partnership helps to nurture New Public Management.

We have taken Emergency Management & Research Institute (EMRI) as a part of our case study. GVK EMRI is a pioneer in Emergency Management Services in India. As a not-for-profit professional organization operating in the PPP mode, GVK EMRI is the Largest professional Emergency Service Provider in India today.

Preface of the paper


Present research paper is based on field visit as well as secondary data in form of

- Published books

- Journal Articles

- Websites

- Written reports

- Newspaper clips

- Administrative documents etc.

Research Methodology



New public management (NPM), a term first

referred to by Hood (1991) denotes broadly

the government policies

…….that aimed to modernize and render more

effective the public sector.

New Public Management


Mongkol (2011) has defined NPM as “a set of particular management approaches and techniques which are mainly borrowed from the private sector and applied in the public sector”.

NPM is not a precise set of guidelines or a standard package that should be followed entirely;

instead, it is a combination of approaches and techniques that could be applied collectively or partially according to each country’s situation and needs

New Public Management


Characteristics of New Public Management – by Organization for Economic Co-operation & Development (OECD,2003)

-Decentralization

-Management by objectives

-Contracting out

-Competition within government

-Consumer orientation


The most common official explanations for

adopting the NPM model are the…

- Weakness or failures of traditional state

bureaucracy especially in terms of its

monopolistic nature

- Unmanageable size

- Managerial inefficiency

- Public inaccessibility

- Economic inertia

- Excessive corruption and self-service agenda.

Rationales behind adoption of NPM

Cont. .


In both developed and developing countries, the tarnished image of the public service was reinforced further as most governments began to hold the expansive public sector responsible for causing budget deficits and fiscal crisis and introduced market-driven policies and structural reforms in line with the NPM model.

Various forms of fiscal crisis, allegedly caused by an inefficient public bureaucracy, have been used as one of the most oft-cited rationales for adopting NPM as a more efficient model of governance.

(M Sahmshul Haque)

Cont. .


It is also believed that NPM was introduced due to increasing world demand for “good governance” as well as the changing role of the state.

NPM aims at avoiding the criticism directed towards traditional public administration through improving service delivery and efficiency, and applying accountability.

NPM strongly supports the involvement of the private sector and Non-Governmental Organization (NGOs) in the delivery of services, unlike traditional public administration that used to burden the government with implementing too many activities at the same time without any involvement of the private sector or NGOs.

Cont. .

New Public Management (Sharma, 2007)


Many characteristics are associated with NPM, such as

- de-bureaucratization,

- the wide use of the private sector,

- the implementation of Public-Private Sector – Partnership schemes,

- enhancing the provision of services through outsourcing, and

- the use of information and communication technology (Sharma, 2007)

Cont. .



Definition of PPP by Ministry of Finance

The Scheme and Guidelines for the India Infrastructure Project Development Fund, issued by Ministry of Finance, Government of India define PPPs as- Partnership between

a public sector entity (Sponsoring authority) and a private sector entity (a legal entity in which 51% or more of equity is with the private partner/s)

….for the creation and/or management of infrastructure for public purpose for a specified period of time (concession period) on commercial terms and in which the private partner has been procured through a transparent and open procurement system.


Definition of PPP by GIBD Act, 1999

The Gujarat Infrastructure Board Development Act covers within its purview contracts in the nature of concessions.

Accordingly it defines concessions….

to mean means grant of financial assistance or conferment of right on Government property and public assets to a person………

other than the State Government, Government agency or specified Government agency, as per the terms specified in the concession agreement.


Definition of PPP by OECD

Organization for Economic Co-operation & Development (OECD) defines a public-private partnership as an agreement between

the government and

one or more private partners (which may include the operators and the financiers)

according to which the private partners deliver the service in such a manner that the service delivery objectives of the government are aligned with the profit objectives of the private partners and where the effectiveness of the alignment depends on a sufficient transfer of risk to the private partners.


Why we need PPPs?

Development of infrastructure and provision of basis civic services has always been considered a very important public sector activity for the following reasons:

a. Governments have recognized the crucial role of infrastructure in fostering economic growth andreducing poverty.

b. Because of its ‘public good’ and ‘essential’ nature, Governments have attempted to ensure availability of basic civic services irrespective of market conditions.

c. For a number of economic, social and political reasons, private sector involvement in these important areas was slow to develop and thus uneven.


Definition of PPP by IMF

According to International Monetary Fund (IMF 2006: 1 and 2004: 4) public-private partnerships (PPPs) refer to arrangements where the private sector supplies infrastructure assets and services that traditionally have been provided by the government.

In addition to private execution and financing of public investment, PPPs have two other important characteristics: there is an emphasis on service provision, as well as investment, by the private sector; and significant risk is transferred from the government to the private sector.

PPPs are involved in a wide range of social and economic infrastructure projects, but they are mainly used to build and operate hospitals, schools, prisons, roads, bridges and tunnels, light rail networks, air traffic control systems, and water and sanitation plants.


Reasons to go for PPPs?

PPP




GVK Emergency Management and Research Institute (EMRI)

GVK EMRI is a pioneer in Emergency Management Services in India. As a not - for - profit professional organization started in year 2005 operating in the Public Private Partnership (PPP) mode, GVK EMRI is the Largest professional Emergency Service Provider in India today.

GVK EMRI handles medical, police and fire emergencies through the "1-0-8 Emergency service". This is a free service delivered through state-of-art emergency call response centres and has over 4535 ambulances across the India.

With a vision is to respond to 30 million emergencies and save 1 million lives annually, GVK EMRI is set to expand fleet and services set to spread across more states.


Dr. GVK Reddy is the Founder Chairman & Managing Director of GVK, a diversified business conglomerate within interests across energy, resources, airports, transportation, hospitality and life sciences sectors.

He has been recognized for his dynamism, outstanding brilliance and invaluable contribution to the field of entrepreneurship and social upliftment.

He was conferred with one of the highest civilian honours’ of Padma Bhushan by the Government of India in 2011 and has been bestowed with the honorary title, “Doctor of Philosophy” by the renowned Jawaharlal Nehru Technological University, India.


SENSE

Communication Officer collects the facts

Dispatch Officer scopes emergency & assign strategically located vehicle (Ambulance/Police/Fire)

REACH

Vehicle reaches the site

CARE

EMT provides pre-hospital care while transporting patient/victim to appropriate hospital

Process

Cont..


Cont.. 99% of the calls are picked up at first ring99% of the calls are picked up at first ring


No States Ambulances

1 Andhra Pradesh 802

2 Gujarat 525

3 Uttarakhand 140

4 Goa 33

5 Tamil Nadu 606

6 Karnataka 517

7 Assam 285

8 Meghalaya 46

9 Madhya Pradesh 229

10 Himachal Pradesh 112

11 Chhatisgarh 239

12 Uttar Pradesh 988

13 Dadra Nagar Haveli & Diu Daman 13

Accessibility of GVK EMRI-108 in India

4535


Emergency Medicine Learning & Care (EMLC)

1.Paramedic Training2.First Responder Training Programme3.General Practitioners’ Training4.Emergency Room physician training


108 better than US’s 911

GVK Emergency Medical Research Institute (EMRI)-led 108 emergency service is fast emerging as a leading organization in emergency health sector worldwide owing to its cost-effective method and public- private partnership model.

108 services has outpaced the US’ 911 service with its huge expansion model and innovation.

EMRI spent only 50 cents per person treated to build the infrastructure in India, compared to

$100 in the US.

The expense per ambulance visit is less than $15, vis-a-vis $600 to $800 in the US.


108 helped over 4 lakh women in Gujarat last year (Times of India March 9, 2013)

The 108 emergency services in Gujarat, paying tributes on the occasion of the International Women's Day, on March 8, called themselves the 'true friend of women in Gujarat' and said they had helped over 4 lakh women in the state, by providing them emergency services last year.

Releasing data to the media, GVK EMRI said 57% of the cases attended by 108 services were of female victims, out of which 79% hailed from tribal or rural areas of Gujarat. The employees wore 'I am a proud woman life saviour' badge on March 8 and went visiting government hospitals and orphanages to greet women inmates, a spokesman said.

Source :- http://timesofindia.indiatimes.com/city/vadodara/108-helped-over-4-lakh-women-in-Gujarat-last-year/articleshow/18880813.cms accessed on April 2, 2013


Angels in ambulances honoured for selfless service (Times of India January 9, 2013)

MADURAI: They work under enormous pressure, navigating through dense traffic snarls while administering life-saving procedures to the accident victims in their battle to survive. Through their timely action and speed, they save hundreds of lives that could otherwise be lost.

They are the pilots and staff of the 108 ambulance services, who were honoured on Tuesday during the National Ambulance Day organised by GVK EMRI.

Source :- http://timesofindia.indiatimes.com/city/madurai/Angels-in-ambulances-honoured-for-selfless-service/articleshow/17948069.cms accessed on April 2, 2013

Cont. .


37 staff members of 108 ambulance service from 12 southern districts coming under Madurai district were distributed with certificates and prizes.

They were selected on the parameters including

- highest number of cases attended- efficient documentation of the care- best maintenance of the instruments and the vehicles

said G Thanigaivel Murugan, Madurai district manager, GVK EMRI.

Source :- http://timesofindia.indiatimes.com/city/madurai/Angels-in-ambulances-honoured-for-selfless-service/articleshow/17948069.cms accessed on April 2, 2013

Cont. .


Visiit of EMRI Centre AhmedabadVisiit of EMRI Centre Ahmedabad


GujaratGVK Emergency Management and

Research Institute, Gujarat "Emergency Response Center",

Naroda - Kathwada Road, Naroda, Ahmedabad -382345,

Gujarat, India.http://www.emri.in



Public Private Partnership need of the hour

- PPP is need of the hour for NPM

- EMRI is a very good example of New Public Management through PPP mode.

- Main challenges before NPM is ineffective tendering process and corruption which can hinder progress of NPM concept.


Mangkol, K. (2011). “The Critical Review of New Public Management Model and its Criticisms” Research Journal of Business Management 5: 35-43.

Sharma, C. K. (2007) New public management challenges and constrains. Botswana: University of Botswana.

McCourt, W., and Minogue, M. (2001) The Internationalization of Public Management: Reinventing the Third World State. Cheltenham: Edward Elgar.

McLaughlin, K., Osborne, P. S., and Ferlie, E. (2002) New public management: current trends and future prospects. London: Routledge

Approach paper on Defining Public Private Partnership, Ministry of Finance, Department of Economic Affairs, Govt. of India, February 2010

Managing Decentralisation: A New Role for Labour Market Policy, Organization for Economic Co-operation and Development, Local Economic and Employment Development (Program), OECD Publishing, 2003, p 135, ISBN 9264104704, 9789264104709

Hood, C. (1991). A Public Management for All Seasons. Public Administration, 69 (Spring), 3-19.

www.emri.in

References :-

Kalpeshkumar Gupta - Akhilesh [email protected]

(c) K L Gupta