The Rise and Demise of the New Public Management, 28 10
business principles of efficiency. NPM is based on the understanding that all human
behavior is always motivated by self-interest and, specifically, profit maximization.
Epistemologically, it shares with STE the quantification myth, i.e. that everything
relevant can be quantified; qualitative judgments are not necessary. It is popularly
denoted by concepts such as project management, flat hierarchies, customer
orientation, abolition of career civil service, depolitization, total quality management,
and contracting-out.
NPM comes from Anglo-America, and it was strongly pushed by most of the
International Finance Institutions (IFI's) such as the World Bank and the IMF. It
originates from the 1980s with their dominance of neo-liberal governments
(especially Thatcher and Reagan) and the perceived crisis of the Welfare state, but it
came to full fruition in the early 1990s. NPM is part of the neo-classical economic
imperialism within the social sciences, i.e