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AN ASSESSMENT OF PUBLIC PRIVATE PARTNERSHIP AND THE NEW PUBLIC MANAGEMENT

ABSTRACT

The study identified the key bureaucratic features that affected public service delivery, evaluated the role of PPP in service delivery in Lagos State Civil Service and considered the effect of the new method on socio-economic development in the state. Primary and secondary data were used in the gathering of relevant information. The primary data was collected through the use of questionnaire and interviews to elicit information from the respondents in ministries of Finance, Transport, and Environment. The respondents were selected using the simple random sampling method. Secondary data were obtained from relevant official documents, academic journals and internet sources on Public-Private­ Partnership and the growth of New Public Management in Lagos State Civil Service. The data collected for the study were analysed using descriptive statistics, such as percentages, frequency distribution, tables chart and inferential statistics, such as correlation and correlation coefficient. The results showed that lack of transparency and accountability was responsible for the adoption of Public-Private-Partnership and new Public Management policies, while innovation and efficiency were the primary reasons for PPP involvement in the social service delivery in Lagos State. It was also revealed that using ideas from private sector had positive impact on the effective and efficient services on the service commission. The study concluded that Public-Private-Partnership served as an essential component in the establishment of a New Public Management in developing the public service in Lagos State.

CHAPTER ONE

INTROOUCTION

1.1       BACKGROUND TO THE STUDY

The emergence of the New Public Administration (NPA) as an alternative perspective to the traditional public administration theory, is fast gaining ground in the Lagos State civil service. In the 1960s, the government and its administrative arm came under heavy pressure from social and political forces for a range of issues like civil rights, higher education, social welfare, law and order, and urban infrastructure and condition. The capacity of government to respond to these problems were questioned, particularly by younger university-based members of the public administration community (Oladoyin. 2010).

Public administration as an academic discipline is changing rapidly under the impact of globalization, the changing ideology of government and the resultant changes in the agenda of public administration in all parts of the globe. Since World War II, the role and function of government had witnessed an unprecedented increase in both developed and developing societies. This was largely due to the fact that development was considered as a state activity. Since the 1980s, the world has witnessed a reverse swing; Globalisation is the name given to the paradigmatic shift of emphasis towards a market-driven, private sector led 'development model whose basic philosophy was to 'roll back the state.

Changes in public administration today is largely the reflection of the changing nature of the functions of government/especially in the developed world. (Oladoyin, 2010). The practices of the traditional public administration came under persistent attack from neo-liberal economists, interest groups, theorists and public choice scholars, who have spearheaded the philosophical arguments for reducing the size and spending of the public sector. New Public Management (NPM) has done a lot to shake­up the moribund and self-serving public organizations, often by using ideas from the private sector. It provides many options for trying to achieve cost- effective delivery of public goods, like separate organizations for policy and implementation, performance contracts, internal markets, sub-contracting, and much more to mention (Basu, 2010:37).). The catchphrase for this element is 'let managers manage'. It recognizes that there is a need for professional management at the very top and that those who hold these positions should be given substantive responsibility for management - the achievement of clearly specified goals- rather than being administrators whose function is primarily to administer rules. (Olowu, 2002:3).

Governance and national development is the end to which every government and civil society or organisation strives. It is a situation of societal equilibrium with the features of social equity, peace, existence of rule of law, free and fair election, legitimate government and the existence of space for productive activities. This explains why modern societies strive for good governance. Since the old public administration techniques have failed, focus has then shifted to the adoption of management concepts, theories and instruments such as were utilized in the private sector to achieve effectiveness, efficiency, responsiveness to citizens' needs; all with the view to promoting public value. (Sapru, 2008).

According to Wikipedia (2010), the Free Encyclopedia, NPM is a management philosophy used by governments since the 1980s to modernize the public sector. NPM is a broad and very complex4erm used to describe the wave of public sector reforms throughout the world since the 1980s. The main hypothesis in the NPM reform wave is that market orientation in the public sector will lead to greater cost- efficiency for governments, without having negative side effects on other objectives and considerations. (http://wikipedia.org /wikLnewpublicmanagement9/8/2010). Rather than continue to use old nomenclatures such as administration, directors and secretaries, the new paradigm suggests a change to public managers to describe those officials now saddled with the responsibility of managing government business.

A strong U.S. position in the global market place depends upon a strong partnership between the private sector and the Federal/State governments, particularly when it comes to standards and standards development (data wordiHp/Novl.02doc.January (2003). In response to these issues, Lagos State Government has defined a transport sector strategy with the overall objective t improve the provision of transport services in the Lagos Metropolitan Area in particular for the public transport users and the poor. The strategy rests on the following six pillars, creation of organizational and institutional capacity for the planning and management of the state’s transport system; raising the level of cost recovery in the: transport system; promotion of affordable public transport services; reduction of adverse external impacts of transport through the provision of safeguards; creation of a conducive environment for the private sector provision of transport services; and making the best use of the existing transport capacity.

Lagos State Internal Revenue Service (LSIRS) is the operational arm of the Lagos State Board of Internal Revenue (LSBIR). The agency came into being through the passage of a bill which was presented to the Lagos State House of Assembly and assented to, by the then Governor of Lagos State. His Excellency, Asiwaju Bola Ahmed Tinubu on the 13hl of March, 2006. Lagos State Internal Revenue Service (LSIRS) makes provision for the Administration and Collection of Revenue due to the state government and local councils. The use of tax consultants by government cannot be said to be an entirely new development. For instance the Federal Inland Revenue Service has been engaging the services of consultants in such specific areas as training, monitoring, evaluation, public enlightenment, systems development etc. The argument had been in their use by state government, for the functions of assessing, collecting and accounting for taxes. Prior to the appointment of the consultants in the various states such as Edo, Osun, Lagos and Ekiti both the tax officials and the taxpayers had a field day in the interpretation and application of the existing laws. (Oladoyin, 2010).

Lagos Waste Management Authority (LAWMA) has a remarkable story in the history of Lagos State, and till date, it still continues to make visible and contributory impact in the metamorphosis in Lagos. As an organization created to achieve, LAWMA has not only put to fore the cleanliness of Lagos but also unconsciously imparted self- discipline in the lives of Lagosians. In addition, LAWMA amply contributed economically by created job opportunities with over 25,000 staff that assures the environment of good health. The importance of a strong partnership between the private and public-sectors was strengthened in 1999 by the lively debate over revision to privatization. The circular, which guides Lagos State government agencies in their implementation of the State Technology Transfer and Advancement Act, has helped to reinforce government participation in the voluntary standard system. Strong working relationships continue with the Departments of Finance, Transport and the Environmental Protection Agency demonstrated their support for voluntary standards. Primary reasons for private sector involvement include: innovation and efficiency savings; a means of attracting new technical expertise and capacity: access to new capital and investments that would not otherwise be available to finance costly infrastructure investments, and an increase in revenue from a privatization that can be utilized to retire debt and save interest (Brown, 2000:3).

The theory of New Public Management (NPM) is not only an economic-based but also a consumer-oriented approach (Naidu, 2006:39). The term 'management is preferred to 'administration' because management implies a decisiveness and proactiveness that appear lacking in governmental administration. The term 'management' has some aggressive action-orientation and is much more proactive-oriented than the term, administration (Polinaidu, 2004:80).

1.2       STATEMENT OF RESEARCH PROBLEM

A lot of development and changes have taken place in the management of Lagos State civil service and conduct of government business in general. Innovations involving the synergy between public and private sectors, methodologies and the setting of a more proactive template for managing the activities within the public sector have now taken place. The traditional public administration system which places emphasis on hierarchy, continuity and stability, authority and centralization of control, monopoly of service delivery by government and budget-driven programmes that has failed to guarantee effective provision delivery and welfare is now being gradually jettisoned. This failure of bureaucracies in post-independence Nigeria has encouraged the emergence and popularity of the New Public Management (NPM).

Lagos State unquestionably has been the cynosure of all eyes as far as the fusion of public and private competencies are concerned. In the areas of maintenance of public utilities, transportation, security, catering and procurement of equipment and materials, Lagos State government has demonstrated effective engagement of the private sector organizations and individuals in partnership with the state as far as the issues mentioned above are concerned. The attempt to unravel the peculiar dynamics of the operations and challenges of these methodologies captured within the concept of PPP and NPM constitute the focus of this study.

1.3       OBJECTIVES OF THE STUDY

The general objectives of this study is to show how Lagos State government has been able to partner with private sector organization in fostering effective provision, delivery and maintenance of public goods and services toward statewide socio­economic development. However, the following specific objectives of this study an: to

(i)  identify the key bureaucratic features that affect public service delivery in Lagos State;

(ii) Evaluate the role of PPP in service delivery in Lagos State civil service;

(iii) Examine the effect of the new method on socio-economic development in the state; and

(iv) analyse the challenges and problems facing the adoption of the New Public Management strategies (NPM).

1.4       RESEARCH QUESTIONS

In this research attempt would be made to beam searchlight on the following questions

1. Are the bureaucratic features affect public service delivery in Lagos State?

2. Could one evaluate public-private partnership as an innovative management strategy in Lagos State civil service?

3. What is the effect of the new method on socio-economic development in Lagos State?

4. Is there any challenges and-problems facing the adoption of the New Public Management Strategies?

1.5       RESEARCH HYPOTHESES

This study is geared towards testing the following hypothesis.

1. H0: The key bureaucratic features do not affect public service delivery in Lagos State.

H1: The key bureaucratic features affect public service delivery In Lagos State.

2. Ho: There are challenges and problems facing the adoption of the Public-Private-Partnership and New Public Management Strategies.

H1: There are no challenges and problems facing the adoption of the Public-Private-Partnership New Public Management strategies.

1.6       SIGNIFICANCE OF THE STUDY

The study will enhance the understanding of the New Public Management (NPM) which has done a lot to shake-up moribound and self-serving public organizations, often by using ideas from the private sector. The study will also be an addition to the growing focus on private public partnership (PPP) in the public service, with its effects on effective and efficient service delivery in the Nigerian Public Service. The finding of this research will assist government and policy makers to formulate policy that can enhance the entrenchment of ethics and accountability, especially as it concerns service delivery and to achieve cost-effective delivery of public goods in the public service.

The study will be a benefit to the immediate community and the government/ research body by using its novel approach and data as blue print for policy formulation and implementation. Thus, this research will propose several new initiatives for policy and advocacy through which NPM can be achieved in the society and contribution to the development of theory. This study is also significant given the fact that it will provide new ideas and knowledge on deficiencies traditional public administration and the compelling need for a pragmatic alternative. Besides other researchers and students in higher institutions, most especially those in social sciences can derive various secondary data sources from this study. Since every research work aims at discovering problems and finding ways of solving them, this study cannot be an exception.

1. 7        SCOPE OF THE STUDY

Basically, this study is a theoretical and practical examination of Public-Private­Partnership and the growth of New Public Management in Lagos State Civil Service between 2002 and 2010. The study will be restricted to Lagos State civil servants in three strategic state ministries and parastatals/agencies in Lagos State, where it is assumed that New Public Management activities are practiced. These State Ministries include; Finance, Transport and environment. The various agencies under the state ministries will also be covered.

1.8       DEFINITION OF TERMS

The following key concepts are defined for the purpose of this study:

New Public Management: Is a management philosophy used by the governments to modernize the public sector.

Public Private Partnership: Is the fascinating features of contemporary economic development as we move into a new millennium is the way in which institutional reforms are breaking new ground.

Globalization: Is a process and a means to achieve the goals of globalism.

Civil Society: Third sector comprising of citizens and non-voluntary sector (first sector is Government and the second sector is the private/business sector; activities that engage individuals in recognizing their rights and responsibilities as citizens within a democracy.

Corruption: Is an unethical behaviour which runs counter to the accepted social norms and normal values.

Governance: Is the manner in which power is exercise In the management of a country's economic and social resources for development. Governance is an exercise of economic, political and administrative authority for managing a nation's affairs at both micro and macro levels.

1.9       LIMITATION OF THE STUDY

The study was faced with some constraints, which included time, financial and human constraints. Some of the people slated for interview were not available and in some cases those available were not forthcoming in discussing their views on the issues of public private partnership in Lagos State. There were some difficulties in having access to some of the records and documents, relating to the scope of study due to 'official secret' or "confidentiality" practices in the public service. The attitude of the respondents also constituted a serious limitation to the study, as a new theory and concept many respondents does not really understand the topic in order to give actual answer to it. the study overcame the constraints of the respondents through thorough explanation about the topic and through some countries who practicalized it and successfully gained the aims and objectives of the topic.

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