A New Public Management in Mexico: Towards a Government That Produces Results by Esteban Moctezuma Barragán & Andrés Roemer

Author:Esteban Moctezuma Barragán & Andrés Roemer [Barragán, Esteban Moctezuma & Roemer, Andrés]
Language: eng
Format: epub
Tags: Political Science, General
ISBN: 9781351808590
Google: NmdQDwAAQBAJ
Goodreads: 36761449
Publisher: Routledge
Published: 2001-11-01T00:00:00+00:00

Reform

In 1984, the reform began in three overlapping stages. First the private sector was liberated from excessive government regulation; then the government’s commercial operations were restructured, bringing them into line with market mechanisms; and, finally, the public sector and job market were deregulated. Later, the State Owned Enterprise Act 1986 changed the structure and operation of parastatal companies, eliminating government control of the operations and separating them from the central government. These parastatal companies became what are now called Crown Entities, which are legally separated from the central government, although in many cases they belong to the crown, and act under the responsibility of one or more ministers. The Crown Entities are responsible for giving service and for operation, while the minister (or central government) is the one who establishes policy and fixes the prices and production volume of the Crown Entities. The relationship between the ministers and the Crown Entities is contractual, so that, in many cases, these compete with private sector companies, generating a pressure toward efficiency, which is typical of competitive, private industry.

These organizations were created to provide services that can be carried out more efficiently outside of the central government. Consequently, this reform brought an increase in the productivity and the competitiveness of the parastatals. Many of these parastatal companies (now Crown Entities) have been privatized, others are still public and others are mixed capital.

It was this success which motivated the guiding principle of the Crown Entities to expand to other departments of the central government, following a model similar to Next Steps; with the difference that the case of New Zealand is contractual and the Crown Entities are outside of the central government. At the present time, they represent one-third of public expenditure.

Another effect of the success of the principle that governs the Crown Entities was the emphasis on accountability to the central government. The reform of the human resources administration was similarly based on the maxim that managers cannot be held responsible for results if they are not granted freedom of action.

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