ADMINISTRATIVE REFORM IN A CHANGING POLITICAL ENVIRONMENT - THE CASE OF HONG-KONG

Since 1989, the Hong Kong government has implemented a programme of public sector reform that is based on the principles of 'new public management'. The reforms initially focused mainly on financial management reform, including delegating responsibilities for resource allocation; re-defining the roles of the central resource branches; setting up trading funds in departments that provide services directly to the public; and instilling a new corporate culture of service throughout the government. Some progress has been made in implementing the reforms. In 1993, the government realized that further civil service reform was necessary to support the reforms. The government proposed to delegate more authority to department heads on personnel matters; give managers more freedom to manage personnel; and simplify personnel regulations and procedures. These 'new public management'-type reforms are usually associated with stable, relatively unchanging environments. In Hong Kong, however, the reforms have been proposed and carried out in an environment of considerable political turbulence which has both facilitated and hindered their implementation. Because of the declining legitimacy of the colonial government, British authorities may not have the political capacity to implement the reforms. Opposition from both department heads and civil service unions to aspects of the reforms has already emerged.