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Public Administration in Croatia

Public Administration in Croatia. Modernization and Developments. Part I: Introduction The case for PubAdm modernization Part II: Understanding the concepts Theoretical background Evolution of the Public Administration Public Value. Part III: Electronic Government Basic Concepts

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Public Administration in Croatia

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  1. Public Administration in Croatia Modernization and Developments Miljenko Šimić, ZSEM

  2. Part I: Introduction The case for PubAdm modernization Part II: Understanding the concepts Theoretical background Evolution of the Public Administration Public Value Part III: Electronic Government Basic Concepts Croatian e-Government Projects Part IV: Conclusions recommendations Table of Contents Miljenko Šimić, ZSEM

  3. Methodology • Identify issues. • Compare global developments with Croatian experience. Miljenko Šimić, ZSEM

  4. Part I. The Case for PubAdm modernization Miljenko Šimić, ZSEM

  5. PubAdm ailments • Lack of procedural and data-processing standards • Ineffective HRM • Weak delegation of authority • Nepotism, patronage, favoritism • Weak Accountability Miljenko Šimić, ZSEM

  6. Regional and local self-government • Fragmentation: • 429 municipalities (151 non-viable) • 127 cities (33 non-viable) • 20 counties Miljenko Šimić, ZSEM

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  8. Croatian PubAdm numbers • About 60,000 Public Administration Employees (roughly 50:50 central and local-level government bodies). • Another 80,000 in the non-PubAdm public sector (e.g., health sector, education, etc.) Miljenko Šimić, ZSEM

  9. Breadth of the public sector • Above 50% share of public spending in the GDP, with 1994-2007 growth of 1.5% Miljenko Šimić, ZSEM

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  14. Part II. Understanding the Concepts Miljenko Šimić, ZSEM

  15. Theoretical Background Ronald Coase Theory of the Firm Enlargement of organisation, a function of cost minimisation Costs: Creation and distribution of products and services Information sharing Theoretical Background Miljenko Šimić, ZSEM

  16. Theoretical Background Hierarchies Herbert A. Simon: People break down problems into multiple components (bounded rationality) Hierarchies reflect man’s approach to problem solving (near-decomposability) Theoretical Background Miljenko Šimić, ZSEM

  17. “Wicked” solutions • “Wicked” organizational schemes • The role of ICT Miljenko Šimić, ZSEM

  18. Effects of ICT on the theories. • Bounded rationality no longer an alibi • Wicked problems must count on wicked solutions • Transaction costs of information sharing are minimized Miljenko Šimić, ZSEM

  19. Public Administration • A part of a wider system of governance • Internal dimension • External dimension Miljenko Šimić, ZSEM

  20. Evolution of the Public Administration • Weberian bureaucracy • New Public Management • Networked/Digital Age Governance Miljenko Šimić, ZSEM

  21. Weberian Bureaucracy • Public Administration as we know it • Internalised (Transaction Cost theory holds) • Hierarchies (bounded rationality) • Clearcut definition of: • Jurisdictions • Responsibilities • Roles Miljenko Šimić, ZSEM

  22. Weberian Bureaucracy • The role of the citizen: • Clients, but at the same time subjects • Virtues: • Reliability, consistency, predictability, accountability, compliance with rules and regulations. Miljenko Šimić, ZSEM

  23. Weberian Bureaucracy • Risks • All-pervasive control, • Rules applied in an unsuitable context • Perversion of values • Weakneses: • Corruption, inefficiency, abuse of power, bad decision making, political meddling, frustration, lack of creativity, etc. Miljenko Šimić, ZSEM

  24. New Public Management • The case for NPM: • Conservativism (Thatcher, Reagan..) • The starting point: • PubAdm per se is ineffective • Key Concepts • Marketization and disaggregation Miljenko Šimić, ZSEM

  25. New Public Management • Marketisation • Disaggregation • Incentivisation Miljenko Šimić, ZSEM

  26. New Public Management • Marketization • Public organisation should replicate the one in private sector • Outsource as much as possible • Public organisations should compete with each other Miljenko Šimić, ZSEM

  27. New Public Management • Disagregation • Agencies rather than departments Miljenko Šimić, ZSEM

  28. New Public Management • Key Role: Delivery of Services • The role of the citizens: clients/consumers • Virtues: • Fulfilled results (effectiveness) and cost efficiency • Risks: • Fragmentation • Information asymetry • Principle-agent problem • Size and ownership can’t cure all • Model’s Faults: • Silo Effect • Overabundance of agencies Miljenko Šimić, ZSEM

  29. NPM vs. Networked Governance • Not the question of whether to outsource or not to outsource. • NPM would exclusively privatize, Networked Governance might go for Public Private Partnership • NPM focuses on input/output efficiencies, Networked Governance focuses on Public Value. Miljenko Šimić, ZSEM

  30. Public Value • Value created by government through services, laws, regulation and other actions minus what the citizens are willing to give up for it. • The result is value added by the government, or the public value • How do you determine it? • Services • Outcomes • Trust • How do you measure it? • Tracking citizen preferences Miljenko Šimić, ZSEM

  31. Networking Governance • “Government without Government” • PubAdm model to replicate complexities of societal relationships • Merger of Joined-up government and outsourced government • Benefits: • Attainment of external specialized know-how • Innovative • Speed and Flexibility • Wider reach Miljenko Šimić, ZSEM

  32. Networking Governance • Key Activity: Creation of Public Value • Virtues: • Ability to garner support and mobilize resources from all sides in order to solve problem • Ability to flexibly manage, • Problem solving ability • Ability of constant conflict solving. • Risks: • Hard to follow and document • Too many conflicts • Great demands for transparency • Possible structural instability Miljenko Šimić, ZSEM

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  34. PubAdm Modernisation Efforts in Croatia • Incentive-based employee legislation introduced in 2007. (NPM) • Faster career movement • Performance evaluation • Remuneration schemes • Problem: not yet implemented into regulatory documents. • Red tape “optimisation” (NPM) • Screening of “redundant” regulation and legislation • PROBLEM: Agencification Miljenko Šimić, ZSEM

  35. FINA The “Hitro.hr” program • One-Stop-Shop • State Statistics Bureau • Checks for name availability • Application to start a business • Payments Intermediary (or a bank) • Opens up an account USER Establishing a company • Pension insurance Institute • Determining business commencement day • Determining insurance commencement day • Health insurance institute • Defining obligatory • Application for basic health insurance Miljenko Šimić, ZSEM

  36. PubAdm Modernisation Efforts in Croatia • Public Private Partnership (Networking) • Not simple public procurement but a negotiated partnership (tax revenue into investment, tax break, etc.) • PPP very much alive in Croatia • Schools • Hospitals • Grammar schools • Sports facilities • Problems: PPP draft law yet to be adopted • Current Public Procurement Law fallible • Wide discretion for direct agreement • Loose provisions on “business secrets” Miljenko Šimić, ZSEM

  37. Part II. Electronic Government Miljenko Šimić, ZSEM

  38. Definition • Process • Transformation • Public Value • Services • Citizen Participation • Better Policies Miljenko Šimić, ZSEM

  39. Gdje je e-Government danas? e-Government E-Business Izvor: Gartner, 2004. Miljenko Šimić, ZSEM

  40. U potrazi za definicijom • E-Government je • Proces • Transformacija • Javna korist • Kvalitetnije usluge • Participacija građana Miljenko Šimić, ZSEM

  41. Benefits and Challenges of e-Government • Intrinsic and extrinsic • Intrinsic coming from the internal dynamics • Extrinsic arriving from the external dynamics Miljenko Šimić, ZSEM

  42. Koristi i izazovi E-Governmenta • Intrinsic benefits: • Increased Efficiency • Cost reduction • Elimination of repetitive tasks and redundancies • Being able to turn to core competencies • Increased effectiveness • Better services • Greater accountability to citizens Miljenko Šimić, ZSEM

  43. Koristi i izazovi E-Governmenta • Extrinsic benefits • The development of info-society infrastructure • Spurs the wave of innvoative use of ICT Miljenko Šimić, ZSEM

  44. Koristi i izazovi E-Governmenta • Challenges • Security and Privacy of Citizens • Accessibility issues • Incompatibility of ICT systems • Interoperability Miljenko Šimić, ZSEM

  45. E-Gov 4-Stage Model Miljenko Šimić, ZSEM

  46. E-Government vs. E-Business • Differences • strategies • Basic business processes • interaction • technical issues Miljenko Šimić, ZSEM

  47. Agencies Business Citizen B2G C2G Public Exchange G2G Agencies Miljenko Šimić, ZSEM

  48. Overview of selected e-Government services • eVAT • Pension insurance administration • eREGOS (pension fund contributions acknowledgements) • ePensions (pension fund application) • Electronic Citizen Data handling • Voting Registries • Birth-Marriage-Death Certificates • Electronic Cadastre • Electronic Land Register • eCREW – registration of passengers and crew onboard vessels • Electronic Customs Office Miljenko Šimić, ZSEM

  49. Syntax Extensible Markup Language (XML) HTML: <b>Charles</b> XML: <name>Charles</name> Interoperability Miljenko Šimić, ZSEM

  50. Interoperability • Semantics • Data Standards XML schemes XSD (XML scheme definition) • Scheme definitions for various purposes/domains: • E-Business (ebXML – e-business XML) • Geospatial data (GML – Geography Markup Language) • Law and Legislation (LegalXML) • Business processes – Workflowdefinition (XPDL – XML Process Definition Language) Miljenko Šimić, ZSEM

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