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Modernizing Public Administration in Croatia: Challenges and Recommendations

Explore the modernization efforts in Croatian Public Administration, analyzing key concepts, theoretical backgrounds, and the evolution of the public sector, with a focus on electronic government projects. The study delves into the impact of New Public Management strategies and the concept of Public Value in governance. Providing insights into the current state of PubAdm in Croatia, the text aims to offer conclusions and recommendations for future developments.

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Modernizing Public Administration in Croatia: Challenges and Recommendations

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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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