1. New Challenges to Public Governance and the Restructuring of Government Roles - The German Experience Professor Dr. Dieter Schimanke Secretary of State (ret.), Senior Expert (GIZ, German International Cooperation) Hamburg/Germany Beijing, November 29th, 2012

2. Contents I.Phases of the Debate on State and Government over 50 years II.Empirical trends in Governance during the last 20 years III.The State is back

3. I. Phases of the debate on State and Government Democratic State Active StateSlim StateActivating State State ensuring services PeriodeSince beginning 50‘ies Mid of 60‘ies End of 70‘ies Since mid of 90‘ies Since late 90‘ies CatchwordsRule of Law (‚Rechtsstaa t‘), Demo- cracy Failure of market; reactive politics Failure of state and bureaucracy ; regulation in excess Governance; Civil society Delegating functions; Regulating and monitoring TheoriesParliamenta rism; Max Weber Macro- Economics; Corporatism Micro- Economics; New Public Managemen t Neo- institutionali sm; Social Capital The regulatory state; Neo- Weberianis m

4. Empirical indicator: Quota of taxes and contributions of the GNP Year196519751985199520002008200920102011 provis. Germa- ny 31.834.336.137.237.536.537.336.137.1 Sweden33.341.347.447.551.446.446.645.544.5 UK30.434.937.034.036.435.834.234.935.5. USA25.529.332.534.535.234.533.733.6n.a.

5. II. Trends in the last 2 Decades (1) (1)Decreasing trust in hierarchical top-down-steering (2)Increasing importance of net-work and net-work-management (3)Combination of different forms of steering (state, market, negotiating etc.) (4)Shift to the perspective of specific steering approaches in the single fields of policy (5)‘Renovating’ the macro-structure of the state organization/revision of the ‘institutional arrangements’ (multi- level-system; structures and processes of public administration and IT/E-Government) (6)Decentralization of problem solving; outsourcing of functions; agencification; using private forms of service delivery (7)Reducing public tasks (due to fiscal restrictions)

6. Trends in the last 2 Decades (2) (8) New distribution of functions between state, economy and civil society (9) Change of the leading concept of the state: from the active state to the state ensuring services (‘Gewaehrleistungsstaat’) (10) Trends in the single fields of policy and public administration into an international or supranational (Europe) orientation (11) Special challenge: the ageing of the population (12) Trend to open government (free access to information) (13) Crisis of legitimation of politics and new issues of participation (public communication)

7. The silent Revolution of the 1990-ies (Especially following points 6 and 9) Reducing the State (!?): The reform of the semi-state sector: telecommunication, post services (German Post), railway (German Railway), the social securities The sector of (communal) services: water, energy (electricity, gas), waste

8. III. The State is back  The increasing demand for public services, caused by demographic developments, the imbalance of income (increasing poverty), the failures of the markets  The demand for state interventions in crises (crisis management): the case of the financial crisis 2008 pp. (Governance of the financial markets)