The Limits of New Public Management in the Process of the State Decentralization. The Case of Nicaragua

Abstract

This article shows that the concept of decentralization used in the New Public Management (NPM) discussion is neither applicable to the concept of state decentralization, nor can it be transferred to developing countries. The concept of state decentralization presented here is based on the devolution of competencies, resources and capacities to subnational governments, which supposes a simultaneous, coordinated and interdependent decentralization in the fields of politics, administration and finance in order to develop an efficient decentralization process. In the case of Nicaragua the proposed goal of the NPM strategy, to increase the state's legitimacy through its reduction and rationalization, serves to justify privatization and budget consolidation. The municipalities have far too few resources and capacities at their disposal to successfully carry out their legal competencies. NPM decentralization in Nicaragua has not yet made a decisive contribution to poverty reduction.