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Baltic Journal of Economic Studies „ „„,„ -J--Vol. 3, No. 5, 2017
DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-5-116-124
ADAPTATION OF DOMESTIC STATE GOVERNANCE TO INTERNATIONAL GOVERNANCE MODELS
Yulya Danshina1
University of Customs and Finance, Ukraine
Igor Britchenko2
State Higher Vocational School Memorial of Prof. Stanislaw Tarnowski in Tarnobrzeg, Poland
Abstract. The purpose of the article is to provide the evolving international trends of modern management models and authorial vision of model of state governance system in Ukraine, its subsystems, in particular, the system of provision of administrative services that is appropriate for the contemporary times. Methodology. On the basis of scientific and theoretical approaches to the definitions of terms "state governance" and "public governance", there was an explanation of considerable difference between them and, taking into consideration, the mentality of Ukrainian society and peculiar weak side in self-organization, the authors offered to form authorial model of governance on the basis of historically traditional for Ukraine model of state governance and to add some elements of management concepts that proved their significance, efficiency and priority in practice. Results. The authors emphasized the following two prevailing modern management models in the international practice: "new state management" and "good governance". The first concept offered for consideration served as a basis for the semantic content of state activity that reflects more the state of administrative reformation. Practical meaning. A practical introduction of management to the domestic model of governance creates the range of contradictions that do not allow implementing herein concept. Pursuant to authors, the second one allows in considerable measure to reform state governance, considering historically developed peculiarities of this model. Moreover, the involvement of concept herein into introduction of informational and communicational technologies in the process of governance eliminates the necessity of power decentralization, it allows to form real net structure and, at the same, to keep vertical power structure, to involve citizens for formation and taking of management decisions, to form electronic communicational channel of feedback, to provide citizens with electronic administrative services. All indicated advantages of the concept certify about the necessity to reform state governance exactly in this field. Meaning/ Distinction. This article raises a question about the significance of formation and sequence of state policy in Ukraine aimed at creating an information-oriented society, space, as well as informational and technological infrastructure.
Key words: public management, state governance, state management, model of governance, model of management, domestic state.
JEL Classification: H70, H79
1. Introduction
The process of European integration of Ukraine causes the necessity to conduct scientific researches directed to the studying of issues connected with the reformation of state governance, adaptation to the specific European state governance trends, and bringing to conformity a domestic model of governance to the requirements and standards of European Union. Thus, it is obvious that there is a necessity to conduct researches in order to define ways of state governance reformation in Ukraine under the modern conditions of development.
The issues of theory, practice and challenging issues of reformation of governance in Ukraine within the framework of European integration have been studied by such national scientists as V. Averianov, V. Bakumenko, S. Varnalii, V. Vorotin, V Holub, S. Dubenko, V Kniazev, B. Kravchenko, H. Nemyria, N. Nizhnik, V. Oluiko, Y. Surmin, A. Tkachuk, A. Chemeris.
Despite a significant quantity of works under this topic, the problematic of following notions and terms interpretation, such as state governance, public governance and management in the state governance is still not enough analysed and they are still of vital
Corresponding author:
1 Department of Public Administration and Customs Administration, University of Customs and Finance. E-mail: [email protected]
2 Faculty of Economic and Technical Sciences, State Higher Vocational School Memorial of Prof. Stanislaw Tarnowski in Tarnobrzeg. E-mail: [email protected]
importance. There is also a challenging issue of governance model formation that corresponds to the modern times, taking into consideration the possibilities of information-oriented society.
The modern state ofdomestic state governance requires analysis of international trends of development and reformation of the state governance, a comprehension of subject-matter, and peculiarities of dominant models of governance.
During last decades, the broad audience of Ukrainian scientists and researchers hold fierce discussions regarding the bureaucratic model of "state governance" that is considered to be inappropriate to the modern times due to the opinion of the overwhelming majority. One of the modern conceptions of the state governance is a "new public management", which supporters fight their corner of changing the state governance with a state management as its domestic state is being associated only with excessive concentration of power, hierarchical pattern, standard overregulation that is now improper within the framework of conduction of administrative reforms aimed at the implementation of the model of public governance and restriction of the role of state sector (Bovaird, Loffler, 2003). The second modern conception of the state governance is "good governance" that dominates the first one and represents a more modern variety of streams for development due to the opinion of the authors.
Taking into consideration the abovementioned, the issue of formation of te model of the state governance that corresponds to international standards assumes a significant importance. The unsettled abovementioned issue makes actual a necessity to conduct researches within the framework of the article.
The purpose of this research is a formation of the authorial model of state governance on the basis of two modern management concepts. In order to achieve this purpose, there were set the following tasks: 1) to analyse the available theoretical approaches in the scientific literature to the determination of definitions of "state governance", "public governance" and management in "state governance"; 2) to create an authorial model of state governance on the basis of positive aspects of modern management concepts and to offer the ways for the development of national model of state governance.
2. Theoretical approaches to the determination of definitions of state and public governance
During the last seven centuries, from the moment of writing system origin and till the appearance of the information-oriented society, the history of the development of the state governance passed several management revolutions.
Ukraine, like many other ex-USSR countries, proclaimed a course to create the information-oriented society and infrastructure, protecting it from the cyber-threats and integrating it into the European society.
A new reference point connected with a formation of information-oriented society makes actual a range of social and economic issues that correspond to the transformations in all spheres of public life, for example: the processes of preparation and taking the decisions, the subjects and forms of education, structure of labour market, notion of human rights and liberties, national and private security, evaluation of strategic resources and appearance of new forms of multinational relations.
The set forth causes the necessity to reform a subject-matter of the domestic state governance. According to the speech of the President of Ukraine, "the insufficient effectiveness of the system of state governance is still one of the biggest problems of Ukraine that prevents proper development of our state" (Pro vnutrishnie ta zovnishnie stanovyshche Ukrainy v 2012 rotsi: Shchorichne Poslannia Prezydenta Ukrainy do Verkhovnoi Rady Ukrainy, 2012), accentuating that "during the implementation of ambitious administrative reform, it is necessary to remember its main purpose -the enforcement of rights of the human being and a citizen. A solution to this important problem, in particular, involves the settlement of social relations appeared during the process of administrative services provision to the legal entities and sole proprietors, the improvement of the quality of their provision" (Pro vnutrishnie ta zovnishnie... , 2012).
It is worth noting that there is a certain dichotomy due to the ambiguity of the translation of the term "public" into the Russian language that may be perceived as "state governance" and "public governance". As a result, all scientific practices connected with a practical application of the term "public" are rather controversial, taking into account the non-conformity of the available interpretation in the national scientific literature to the real conception of their essence, meaning, and integral features of the concept of public governance.
It is also worth to pay attention to the notion "management" in itself that is much narrower than state governance and management in itself.
Taking into account the abovementioned, we offer to carry out the differentiation of terms - state governance, public governance, and management in order to provide the correct semantic meaning of the practical activity of the system administrative services provision in Ukraine
(Fig. 1).
Nowadays, there is no agreed-upon definition for the term of public governance in Ukrainian scientific society (Bakumenko, 2002) and, as a result, its meaning is being interpreted in different ways. Thus, the encyclopaedia (Bevir, 2007) interprets the term "state governance" as activity and concerted actions of government. Thus, the notion "activity" may be defined as an activity of authorities of state governance and way of their collaboration through the development and implementation of state policy.
Fig. 1. The ambivalence of translation of the term "public management"
Source: own development
According, to I. Rozputenko, the state policy means actions of authorities of state governance in conformity with specific purposes, directions, foundations in order to settle the aggregate amount of the interdependent issues in the specific area of public activity (Rozputenko, 2010).
The state policy was defined by V. Rudik and T. Brus as "relatively stable, organized, and purposeful activity of government regarding the certain matter or subject of consideration that is being fulfilled by it directly or indirectly through the authorized agents and it influences the life of society" (Romanov, Rudik, Brus, 2003).
A. Karpenko (2013) considers the state governance as a series of steps defined by bodies of government in order to settle social issues. The scientist grounds his opinion on the following facts: the first thing is that a policy is a sphere of cooperation of civil society with the usage of bodies of state governance to implement socially significant interests and own necessities; the second thing is that policy is certain tactics of action that are being accepted and followed by authorities pursuant to the chosen direction.
A clarification of the main point of the state policy and public policy has a crucial meaning for the further understanding of their essence in the state and public sectors, as a consequence.
We offer to define a state policy as a complex ofbranch of governmental activities in order to create, to strengthen, and to contribute to the legislative, methodological environment, scientific and technical support, organizational, financial and material-and-technical, protective environment and to establish priorities of national scale of development of information-oriented environment and to create conditions for switching to the information-oriented society.
In accordance with the Law of Ukraine "On Administrative Services", the state policy in the system of administrative services provision is based upon the following ideas: supremacy, stability, equality, disclosure, and transparency, operational flexibility and effectiveness, availability, safety, justice, etc. (Pro administratyvni posluhy, 2012). The basis for abovementioned fundamentals means legal regulations of the Constitution of Ukraine (Konstytutsiia Ukrainy,
2016). They stipulate the key rules of government activity.
If we return to the term "state governance" and its definition as "cooperation of the government", national scientists O. Amosov and N. Gavkalova (2013) offer the definition as "mutual influence of management entity with a sovereign on the public processes and relationship pursuant to the socially significant functions and powers." This approach is being supported by T. Bovaird and he offers the following interpretation: "a way of cooperation of all engaged parties in order to influence the results of state policy" (Bovaird, 2003).
A national scientist V. Bakumenko considers the state governance to be the practical, organizational, and regulatory influence of the state on the social life of people, for which its power is a basis for its regulation, safety, and its transformation (2002). N. Nizhnik defines state governance as an activity that is restricted with legislative acts of public authorities and aimed at the practical implementation of social life and assurance of personal security of citizens, a creation of conditions for their financial, cultural, and spiritual development (1997) and "activity that has a character of executive control, the main direction of which is implementation of legislation and subordinate legislation" (1995).
All issues of interaction of public governance bodies, participation in legislative and regulatory development processes and in the formation and implementation of state policy were always called as state governance. No doubt, that is why the state governance in the mind of society is associated with bureaucratic hierarchy, dishonest activity, and absence of entrepreneurial spirit (Nyzhnyk, 1995).
Thus, we would like to pay attention to the opinion of scientist T. Zheliuk (2012) and the description of public governance in the White Paper of European Administration. Pursuant to them, public governance guarantees the realization of public policy that is a source of transformation from the policy of civil servants' responsibility directly to the participation of structures of civil society and citizens, where the obligations rest on the politically active part of society and, as a result, there is an individualization of public policy. It is impossible to say the same about a state policy that is a priori the power expression through the interests of
the nation, social classes, separate groups of population and, consequently, its efficiency implies rather extensive support of all active bodies, which activity is connected with such policy.
Thus, taking into consideration the abovementioned, it is fair to say that state and public governance do not possess definite similarities, as the second one has a much more extensive spectrum of activity that covers interests of the whole Ukrainian society.
So, in our research, we offer to understand the state governance as governance connected with the professional activity of the civil servants' activity that is directed to the implementation ofdecisions ofthe control bodies. Moreover, according to the Law of Ukraine "On State Service" (Pro derzhavnu sluzhbu, 2016) and "On Service in the Local Government Bodies" (Pro sluzhbu v orhanakh mistsevoho samovriaduvannia, 2001), the purpose of the professional activity is a quality provision of public services to citizens at the European level. Public governance is an activity that covers the implementation of functions of control bodies and is directed to the serving of interests of the whole society.
3. Management in the state governance
Scientists T. Boverd and Y. Loffler (2003) consider management in the state governance as an approach, where management methods are applied in order to use funds efficiently for the provision of public services. In return, this notion covers the implemented types of activity by civil servants in two rather different areas: in the organizations of state sector; in the organizations that provide state services (state, non-commercial and private).
The analysis of the range of foreign scientific works allow to acknowledge that state governance and public governance are being interpreted in different ways, moreover, state management possesses the traits, which are unusual for the state governance.
Background for the promotion of the term "management" in state governance was a book publication named "In Search of Good Governance". Pursuant to the results of conducted analysis of activity organization in the business sector, the researchers defined it as "height of perfection" and they defined general particularities that, in the opinion of many scientists, could be borrowed for reformation of state governance, for example (Dyakova, 1986): - the employees of business sector incline to the fast decision-making, but in the bodies of public governance, decisions are always analysed, amended and made after the situation of the enforced solution. Bodies of public governance should be more flexible, they should stand away from the traditional patterns of formal reactions, from solid and non-movable organized structures that just make their activity more complicated and, as a result, make it worse;
- in order to achieve efficient results in the business sector, it is necessary not only to listen to the requirements of clients but quickly to respond to inquiries. Thus, bodies of public governance, as a rule, are monopolists in the provision of certain services that gives them an opportunity to perform negligently their duties, which are aimed at customization of citizens;
- it is necessary to support all civil servants to manifest responsibility;
- in the business sector, employees are being encouraged to express innovativeness and creativity that may serve to the improvement and development of their activity and performance in general. Of course, there is a competitive environment in the organization that is based on the overclaiming among employees. In the area of public governance, the first important thing is the decrease of expenses, not the improvement of the quality of the provided services, thus, there is an atmosphere of innovations that makes people depressed.
- in the business sector, the unified system of values prevails for all employees and their motivation is only purposes of the organization. In the state sector, the dynamics of values that are followed by supporters of one party do not allow them to perform their duties efficiently if another party possesses the power. In order to fix this kind of situations, it is necessary to have a basis of professionalism and ability to concentrate on the certain requirements of citizens or local community;
- in order to achieve the effectiveness of the organization, it is important to fill own "niche" in the market, thus, the ability to get right direction in that kind of activity, for which it is suitable is the first step. But, the area of activity of bodies of the public governance that was fixed with legislation before cannot be restructured.
- business sector has a structure with several hierarchical levels. Such an approach contradicts the traditional hierarchic bureaucracy structure with many levels;
- the achievement of the main purposes in business sector is controlled vertically, but the choice of tools and methods of achievement of stipulated goals belongs to the lower levels;
The reforms that were carried out on the basis of such traits were directed to the enhancement of system efficiency of the state governance and efficient use of state funds through the creation of "small in sizes and competitiveness state sector, increase in the quality of services provided to the population and quick reactions of the state in order to satisfy needs of citizens" (Organization for Economic Cooperation and Development, 1993). Later, in order to "structurize scientific discussion about the modern changes in the organization and governance by the executive power" (Hood, 1991), the scientists started to nominate a concept of "new state management".
Despite the term "state management" has been used since 60-70th years of XX century, in accordance with
the conducted analysis by the British researchers S. Douson and S. Darhi, the word combination "New Public Management" (NPM) was firstly mentioned at the beginning of 90th.
Almost alongside with the concept of NPM, the model "Good Governance" has been gathering momentum. Its main idea supposes a creation of an environment for the stable development of human resources.
Firstly, it was mentioned at the beginning of 90th on the Annual World Bank Conference in the area of economic development (World Bank, 1992). In 97th the program of development of the United Nations Organization "Governance" for the stable development of human resources has been a basis for the creation of separate concept, in terms of which there is understanding of "involvement, transparency, efficiency, equality of rights and supremacy of statute law."
The creation of model "Good Governance" was influenced with disadvantages of management approach to the state governance that is "one way commitment towards effectiveness" (Kolodii, 2008).
In other words, all set forth above information may be expressed with principles that characterize these conceptions:
- "New State Management" - decentralizations-transfer of set of functions in the area of state services provision; the introduction of budgeting system directed to the result; democratization; optimization-competitiveness; efficiency; adaptation of the state apparatus to inquires of business sector and civil society, protection of interests of individuals;
- "Good Governance" - involvement in the process of state decision-making; consensus during the taking of decisions; long-term vision; feedback; efficiency during the conduction of state policy; responsibility of all participants of this process; transparency; equality of rights; supremacy of statute law.
4. The adaptation of domestic state governance to international governance models
Taking into consideration the relatively developed problematic of governance, as well as world trends in the management and possibilities of information-oriented society, for example, involvement of civil society in the management area, there is an actualization of usefulness of the authorial model of management that has been formed on the basis of borrowed positive traits of concepts "New Public Management" and "New Governance".
As a basis for the formation of the authorial model of management (picture), there were used criteria of comparison emphasized by a famous researcher of administrative reforms M. Barzelay (2002):
Thus, the first criterion is a focus of the attention. The conducted analyses by the experts of World Bank allowed forming the main purposes of conducted
administrative reforms (Menning, 2003), for which implementation the bodies of state governance have to make the process of management more economical, energetic, and efficient (Peters, 2003).
But, the essence of the state sector, firstly, supposes the focus on the observation of laws and order, solution of social issues, increase ofwelfare level. The activity of state apparatus is directed to the tax liability processes, not to the levy of payment for the provision of administrative services, it is not under the laws of competitiveness, and thus, there are no any factors for a decrease of expenses and optimization. Ukrainian government corresponds to the support facilities where there is paternalism more towards than a competitiveness that is an integral part of the sphere.
Admitting the opinion of A. Zadoja and Y. Petrunja (2013), who consider competitiveness as a "rivalry of economic entities for the best realization of their economic interests" and without taking into consideration normal state of market system, where the producers are involved in competitiveness, it may be researched among consumers (stakeholders) as a method of mutual coordination of personal actions of entities without state interference in the process of their activity. But, it is likely that such process will have a meaning of rivalry.
Supporting the opinion of some scientists, we should note that the concept of state management towards government may be implemented in full extent only in countries, where the executive power before the introduction into the activity of management approaches was behind the structure and ideology of limitation in rights and responsibilities.
The second criterion is a type of structure and relations. Such methods of public governance as privatization of state services and decentralization of state governance lay the groundwork for the transition from bureaucracy to cooperation in mutual work. Thus, such a composition supposes the formation of unique team atmosphere only within the framework of one body of state governance that means a subsystem of state governance. Much more interesting and perspective is a direction of model GG - the involvement of society into management, like a forming of unique stakeholders' atmosphere that prevails over management approach to a great extent.
The third criterion is the estimation of own activity. The desire to rationalize management activity causes its estimation that was going pursuant to the volume of implemented resources and quantity of fulfilled works (Lyubliyner). The domestic model of state governance is characterized with management decision-making on the basis of the idea "now and for all time" to the stipulated procedure that can be considered as a sign of stability, permanency, and efficiency. The offer of the supporters of management concept to put the economic meaning of efficiency is seen by authors as a misplaced
DOMESTIC MODEL OF STATE GOVERNANCE AUTHORIAL MODEL OF MANAGEMENT MODEL OF MANAGEMENT NEW PUBLIC MANAGEMENT MODEL OF GOVERNANCE GOOD GOVERNANCE
Focus of the attention
The focus on bureaucratic procedures Maintenance service
Extension of participation area of society in management, electronic \ management
Type of structure and relations
Hierarchical structure and ctear division of \ responsibititias / Decentralization The organization hat been operaung as one team
Network structure and trusl - based relations, coopération
Estimation of own activity
Pursuant to Iht results of management aclivlly ^Ê Punjuaíit to !he results oí positive feedback from citizens
Pursuant to the results of participation of citizens
Flexibility of structure
Pursuance of the permanency h adm inistrative procedures / The algorithm or ?Ct«sns çhgngei whenever the requiiements twinge
Mobility in management of administrative procedures
Feedback
] Formal - EffecWe communication
Ûnline commun itatrrw
Structure of differentiation of labor
Hierarchical management Decentralization oí management
Integration of individual possibilities of the citizens
Fig. 2. The authorial model of management
Source: formed by the author on the basis of (Barzelay, 2002)
belief due to the fact that state governance is not aimed at profit maximization.
We suppose that it is rather appropriate to estimate the activity of state sector "aimed at result", where the result should be considered as a process of services provision for the citizens and business after which they are satisfied with the functioning of state apparatus (Piters, 1986; Osborne, 1992).
The fourth criterion is the flexibility of the structure. Pursuant to the world practice, the concept of management is directed to the displacement of the traditionally administrative state governance created on the principles of bureaucracy, hierarchy, centralization, stability of state service organization.
The NPM ideas served as a basis for the formation of social-political nets, where the basis of resources integration witnesses cooperation of state and private institutions in the area of provision of administrative
services for the achievement of consensus during the solving of issues, in which both parties are interested. Thus, the case is a governance, which idea is "governance without government". It means the provision of more freedom in the coordination of actions to the public institutions with minimum interference of the centralized government (Bezverkhniuk, Sakhanenko, Topalova, 2008).
But, it is necessary to take into consideration that Ukrainian community possesses rather a low level of public self-awareness and self-control, thus the refusal in vertical power structure and formation of management horizontal with the provision of absolute rights and freedoms to the communities cannot be implemented. Moreover, domestic differentiation, the imperfection of regulatory and legal framework, and low supervision level of execution of the law aggravate formation of the efficient mechanism of public governance.
The fifth criterion is a feedback. A feedback with consumers was marked as a key idea of GG concept that allows speaking about its particular significance in this model of governance. A special effectuality and efficiency of its usage provide the involvement of communication technologies (Internet, electronic mail) during its process. The priority direction of GG is the informatisation of administrative-management activity and transition to the fully electronic documentation flow. It is impossible to say the same in case of management approach to the state governance, where the electronic communication channel was considered only as a supplement to the administrative processes. The authors support the position to full extent (Dunleavy, Margetts, Bastow, Tinkler, 2006) that provides an idea about "transformation of agencies into websites" that provides state electronic services. It is clear that integration of informational and technological resources into the governance activity requires the reformation of social norms.
The sixth criterion is differentiation of labour. Herein criterion reveals the issue of extremely big quantity of state servants in the bodies of state governance that leads to the improper execution of their functional responsibilities and buck-passing because of the duplication of professional duties.
The model of governance NPM limited the role of the state sector and assigned a responsibility for the development of extension strategy, execution of monitoring and regulating functions. The conceptual approach of "Good Governance" to the government, contrariwise, opens possibilities in front ofit and abilities to form "net structure" of the governance system. Within its framework, the state sector together with citizens generates and actualizes the effective, mutually agreed and task-oriented management. Many types of research emphasize that three parties of the model GG serve in the capacity of an equal partner and participant in the formation, acceptance, and implementation of the governance decisions.
5. Directions in order to develop a domestic model of state governance
The positive trends of evolution of management models, in particular, GG and processes of informatisation allowed electronic management to become an independent concept and it is able to mitigate disadvantages of management approach to the state governance. Through the integration of electronic management technologies, the process of provision of administrative services should become more transparent for parties who need them and all departmental barriers that prevent this process are neutralized.
In order to form and implement a high technology system of state governance, the Ukrainian government has to achieve enough economic, educational, scientific and technological opportunities.
The ability of the country to perform such transformations of state governance through the maximum usage of advantages of informational and communicational technologies should be defined pursuant to many parameters, for example:
- formation and sequence of state policy implementation regarding the processes of globalization, informatisation, and net creation;
- the available system of monitoring and analysis of electronic management development in the system of provision of administrative services;
- contribution to the promotion of literacy in the area of informational technologies in society and bodies of public governance that will allow the system to operate under the conditions of developed information-oriented society;
- correspondence with European standards of regulatory and legislative affairs of the latest forms of informational and communicational relations in the system;
- proper level of material-and-technical maintenance of the informational process in the bodies of state governance;
- level of investments in the priority directions of scientific, technical and economic development of the society, social norms of adaptation to changes;
- availability ofthe developed structures ofthe society -financial, management, investment, educational, trade, etc., which require a relevant informational and technological infrastructure.
6. Conclusions
Thus, the process of evolution of the modern management revolution experienced a range of transformations that is certified with simultaneous co-existence of several management models.
In general, in spite of authors' scepticism towards the introduction of management model, it contributed to the conversion of state governance system, it structured bureaucratic structure and contributed to their response to the requirements of society. In the authors' opinion, a management approach to the state governance within a framework of the mentality of Ukrainian society allowed increasing in a great measure an independence of regional bodies of public governance in the formation of the strategy of social and economic development, during the choice of mechanisms and tools of the regional budget formation.
Thus, taking into consideration a peculiarity of paradigm of the state governance in Ukraine, we offer to supplement a traditional model of management with a model "Good Governance" that at the present point of time is considered to be dominant on the market as it corresponds to the highest level of development of social and economic systems. Especially, it is necessary to concentrate on the model of the derived matter of the concept "electronic management" that firstly, will
most likely allow implementing a customer-focused management, defining its foundations, and involve citizens in the management process and, secondly, making the process of management transparent to the social supervision and regulated.
The further directions of modern scientific research are rather advisable to be concentrated on the directions specifications of observation and development of electronic channels of communication and cooperation among the state, business sphere, and citizens.
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