1

New Public Management (NPM)

NPM is originated from conservative philosophy that argues for: The rule of market, decentralization, privatization,

entrenchment, and deregulation. In a word, less and smaller government.

NPM-style government started from the reform in Anglo-Saxon countries like New Zealand, Australia.

It was presented by Reinventing Government in the US.

2

Civil service under NPM

1. Results-oriented rather than process-oriented 2. Entrepreneurial government 3. Market-based government

Market engagement Customer-driven

4. Cutting back to basics 5. Restructuring of civil service as administrative

and productive components

3

Civil service reform in China: A gradual and zigzag process On the one hand, cadre personnel management has been

in a process of reform according to the principles of modern civil service

On another hand, the emerging Chinese civil service has been in a process of reform according to the principles of NPM

China is in a difficult situation to accommodate these two sets of conflicting ideas and practices We want law-abiding, rational, and transparent bureaucracy Meanwhile, we want them to be innovative, entrepreneurial,

result-oriented, and responsive.

4

Civil service reforms in the 1980s

In 1980 Deng Xiaoping proposed 4 General Principles of cadre team building as revolutionary, young, knowledgeable, and professional (革命化、年轻化、知识化、专业化 ).

Job responsibility system was adopted in mid 1980s. Performance evaluation and accountability systems were

introduced.

In 1987, 13th Party Congress proposed to divide officials as political and career civil servants.

In 1988 the Ministry of Personnel was founded. In 1989, the central government started State Civil Servant

Examination for non-leading administrative positions The labor allocation system was ended.

5

Civil service reforms in the 1990s The 1993 Provisional Regulations on State Civil Servants

(PRSCS), with a focus on scientific management. Systematical prescription of basic civil service institutions like

recruitment exam, training, appraisal, promotion, compensation, retirement, occupational rights and obligations, and rewards and punishments.

This led to a significant development of professionalization. Develop a new framework of personnel management Formally introduce a new category of positions, namely, non-leading

positions, which enlarges officials’ promotion spaces Develop a more rational wage system which ensures regular wage

adjustments according to CPI and one’s working experience Develop a more complete set of rules and regulations governing

personnel management According to this regulation, only state employees in the

governmental agencies are state civil servants. The regulation does not clearly touch the relation between the

bureaucracy and the party. It did not reflect the essential role of the Party.

6

Civil service reforms in the new century In 2000, the Outline to Deepen the Cadre Personnel Institution Reform was

issued by the Party, providing comprehensive guidelines for cadre personnel reforms. It emphasizes three principles: 1) A dual emphasis on virtue and talent (德才兼备 ) 2) Party manages cadre (党管干部 ) 3) Rule by law (依法办事 ).

The 2005 Civil Service Law was enacted by the Standing Committee of National People’s Congress, to replace the PRSCS. 1) It legally recognized the principle of “Party manages cadre ” . 2) It expanded the scope of civil servants. The CSL highlighted a dual emphasis on political loyalty and

technical competence. In 2009, the Outline of the Plans to Deepen the Cadre Personnel Institution

Reform between 2010 and 2020 was issued by the Central Party Committee. It requires cadres to have both virtue and talent, and virtue first (德才兼备，以德为先）

7

Civil servants according to the CSL Personnel who are

1. Brought into an established post, 2. Are paid by state funds, and 3. Exercise policy making, executive, and supervisory powers in

state and public affairs. Personnel other than manual workers in the following six types of

entities are civil servants Party organizations and democratic parties People’s congresses Administrative agencies People’s political consultative conferences Judicial agencies Procuratorial bodies

In 2010, China had 6.89 million civil servants Central government accounts for about 6%. 0.88 million employees in social groups and public service units

were managed “as” civil servants.

8

New trends of development

1. A dual emphasis on exam performance and previous working experiences.

2. Job classification Flexible contract-based employment

3. Compensation reform: sunshine income reform. 4. More competition, democracy, and transparency in

cadre selection. 5. Rising outsourcing and the shadow of government

Essentially, China has been introducing a hybrid civil service system as a mixture of its previous cadre personnel management, the modern civil service, and the NPM ideas.