Assessing the Impact of New Public Management on Performance in Improvement in Public Administration: A Case Studies of Mongolia and Netherlands

Abstract

The advent of New Public Management (NPM) has revolutionized the principles and practices governing governance structures, advocating for a more decentralized, performance-oriented approach within the public sector. While prior research has delved into the theoretical foundations and implications of NPM, a gap exists in understanding its precise impact on the overall performance of public sector entities. This study addresses this gap by examining the relationship between NPM practices and performance improvement, focusing on Netherlands and Mongolia's unique political and economic context. The findings from Mongolia case study show that the positive outcomes included improved efficiency, enhanced accountability, and quality service delivery in areas such as healthcare and education. However, challenges like cultural resistance, capacity constraints, monitoring and evaluation issues, and corruption vulnerabilities were also identified. For Netherlands case study, The Dutch experience with New Public Management (NPM) highlights efficiency gains, enhanced service quality, and innovative practices, but also underscores challenges such as equity concerns, potential democratic accountability issues, and the importance of a nuanced, context-specific approach for effective public administration. This research serves as a catalyst for further inquiry into the intricacies of NPM implementation in the developmental trajectories of developing economies.