The New Public Management Is Not That Bad after All: Evidence from Estonia, Hungary and Romania

This article reviews the New Public Management (NPM) literature in Central and Eastern Europe, looking particularly at reforms in Estonia, Hungary and Romania. It finds that research that assessed changes in internal processes and activities within the public sector by far outnumber research that assessed changes in outputs and outcomes. Overall more studies have found positive than negative effects – especially in terms of processes and activities – though less so for outputs and outcomes. Significant challenges in assessing impacts make sweeping claims about whether NPM “works” difficult to support with solid evidence. The paper shows that NPM policy is still considered as an option for public sector modernization in Central and Eastern Europe and suggests that a number of components of NPM, if not the model as a whole, are likely to continue to exert influence on the public sector of the future.