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Reforming the Public Sector in Eastern European and Former Soviet Union Countries: A Systematic Literature Review


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Fig. 1:

Search, identification, and selection of records for review (adopted from Moher, Liberati, Tetzlaff, & Altman, 2009)
Search, identification, and selection of records for review (adopted from Moher, Liberati, Tetzlaff, & Altman, 2009)

Fig. 2:

The framework for analysis of the PSM reforms trajectories in EE and FSU
The framework for analysis of the PSM reforms trajectories in EE and FSU

Categorization of papers according to their type

Number of papers Percentage of total
Research paper 30 66%
Viewpoint 2 4%
Conceptual paper
Literature review 1 2%
General review 13 28%
Total 46 100%

Framework for descriptive analysis of eligible papers

Dimension Elements
1 Types of paper a. Research paper
b. Viewpoint
c. Conceptual paper
d. Literature review
e. General review
2 Research methods a. Empirical qualitative research
1) Exploratory
2) Explanatory
3) Descriptive
b. Empirical quantitative research
1) Exploratory
2) Explanatory
3) Descriptive
c. Mixed methods
d. Papers with inexplicitly defined methodology
3 Theories and scientific paradigms a. Single paradigm
1) Positivistic tradition (economic theory and other objectivist and functionalist theories)
2) Interpretive tradition (institutional or neo-institutional, stakeholder, behavioristic approach, or others)
b. Several paradigms
c. No explicit reference to the theory
4 Geographical location a. Single country
b. Multiple countries
1) Two countries
2) Three or more countries
5 Focus of reform(s) a. Financial management
b. Human resource management
c. Organization
d. Performance measurement and management
e. Transparency and open government
f. Mixed reforms

Categorization of papers according to research method

Number of papers Percentage of total
Qualitative 21 46%
Exploratory 9
Descriptive 9
Explanatory 3
Quantitative 7 15%
Exploratory
Descriptive 5
Explanatory 2
Mixed 4 9%
Not explicitly stated 14 30%
Total 46 100%

Categorization of eligible papers

# Author(s) Journal (year) Focus of reform Reform phases Main findings
1 Condrey, S. E. International Journal of Public Sector Management (1998) Organization Mix of several phases Research conducted by the Center for Public Management showed that the best way to address the issues faced by Eastern European countries may be the university-based public service model. The main idea of this model is a division of functions: consultation, policy research, technical assistance, and training activities are provided by the national university, and supportive activities are conducted by outside experts. As national universities are rooted in societal culture, they can play an important role in the process of reforming the public sector.
2 Condrey, S. E., Purvis, K., Slava, S. S. Public Management Review (2001) Human resource management Implementation The experience of Ukraine in conducting civil service reform is not completely synchronized with NPM ideas (the degree of a devolution of personnel authority considering rather low level of Ukrainian personnel and civil service systems’ maturation). It is important for Ukraine as well as other FSU countries to look selectively at western-type reforms; otherwise meaningful and substantive managerial reform may become delayed.
3 Nemec, J., Kolisnichenko, N. International Review of Administrative Sciences (2006) Financial management Mix of several phases The factors that contributed to failures connected with health reforms in the CEE countries: financial, i.e. start of reform during the decline of GDP per capita; healthcare “marketization” launched when potentially competitive markets in the CEE were still not well developed; reforms lacked conceptual understanding of existing problems, etc. The success of the reform depends on an effective combination of western and local expertise, as well as understanding of the specific local environment.
4 Yakovlev, A., Tkachenko, A., Demidova, O., Balaeva, O. International Journal of Public Administration (2015) Financial management Results achieved As the data from two Russian universities showed, a reduction in the level of competition at the auctions exists together with simultaneous improvement of the quality of contract execution (opposite effects).
5 Verheijen, T., Dobrolyubova, Y. International Review of Administrative Sciences (2007) Performance measurement and management Mix of several phases A combination of sufficient political support, a dedicated reform team, and a step-by-step introduction of performance management systems can bring a significant improvement in the effectiveness and efficiency of public management systems.
6 Jakobson, L. International Public Management Journal (2001) Mixed focus Content The problems in public sector management that Russia faces today have their roots in the past system. Administrative reform requires a set of shifts: (1) revision of written rules; (2) changes in public attitudes, which are affected by cultural and economic changes; (3) changes in institutional arrangements; and (4) changes in the functioning of the public sector (consistency of actions and written standards).
7 Puolokainen, T. International Journal of Public Sector Management (2017) Performance measurement and management Mix of several phases Estonia is more advanced than Georgia in applying performance indicators when managing the fire and rescue system. Despite European experience, both countries chose a centralized approach in reforming fire and rescue services.
8 Raudla, R. Governance: An International Journal of Policy, Administration, and Institutions (2013) Mixed focus Implementation The Estonian case showed that the contractualization of policymaking in the area of public sector reform can lead to inconsistent reform plans, hinder genuine deliberations on the content of the reform, and undermine its democratic legitimacy.
9 Jacobs, C. Public Administration and Development (2004) Mixed focus Mix of several phases Areas important for successful public administration reform: (1) strategic planning and policy improvement; (2) financial and budgetary management stability; (3) motivated, qualified, and honest staff. In the case of the Baltics, the reform process is at its beginning; progress has been made, though sometimes faltering.
10 Nakrošis, V., Budraitis, M. International Journal of Public Administration (2012) Organization Implementation The study of Lithuanian agencies in the period 1990–2010 showed that international pressures for change can be transformed by interacting state-specific factors related to the polity, politics, and policy in the process of organizational changes. Intensive organizational changes were experienced by Lithuanian agencies (i.e. establishment, reorganization, abolition of agencies).
11 Rinnert, D. Public Administration and Development (2015) Mixed focus Results achieved The Georgian case showed that a narrow focus on successful reform examples constrains effective countrywide implementation. Thus, legal adjustments, anticorruption measures, and context variables are necessary but insufficient conditions for successful reform, whereas political variables are crucial factors explaining within-country variance in reform outcomes.
12 Common, R. International Journal of Public Sector Management (2011) Human resource management Implementation In Georgia, human resource–based reforms were accepted and promoted. However, deep politicization of the administrative system constrained their implementation.
13 Kowalik, I. International Journal of Public Sector Management (2011) Organization Results achieved Polish local government units have a moderate (21%) level of market orientation. Factors that stimulate the development of market orientation are organization size, professional training of managers, and revenues in the medium-sized units.
14 Vakulchuk, R. International Journal of Public Administration (2016) Human resource management Mix of several phases Results of public administration reform in Kazakhstan are contradictory: some success was achieved in greater efficiency of public services, while weaknesses remained in spheres of public officials’ training, their rotation and promotion, and implementation of e-government.
15 Bhuiyan, S. H., Amagoh, F. International Journal of Public Sector Management (2011) Transparency and open government Mix of several phases Efforts of the Kazakhstani government to reform the public sector (decentralization, civil service reform, e-governance, and civil society) resulted in progress in public service delivery and enhancement of good governance.
16 Amagoh, F. International Journal of Public Administration (2011) Mixed focus Mix of several phases A history of Kazakhstan’s healthcare reform efforts showed that despite remaining problems in this sector, the government was trying to implement a comprehensive health reform highlighting the importance of long-term healthcare development.
17 Knox, C. International Review of Administrative Sciences (2008) Mixed focus Mix of several phases Despite a recognized argument that democratization in the sense of competitive politics promotes reforms though citizens’ participation, the results of a case study on the Kazakhstani experience showed that political stability through autocratic rule has actually enabled implementation of public management reforms.
18 Brinkerhoff, D.W. Public Administration and Development (2002) Organization Mix of several phases Review of the collaboration between the government and NGOs during health reform in Kazakhstan and Kyrgyzstan showed positive though preliminary results, including improved flexibility and performance of the health sector; more citizens’ participation in decision making, policy formulation and implementation through NGOs; and increased openness of government.
19 Österle, A. Social Policy and Administration (2010) Mixed focus Mix of several phases Several obstacles to development of long-term care exist: limited infrastructure, a lack of financial resources, an immature regulatory framework, and limited involvement of the private sector in care work. The reform agenda across the region should be focused on decentralization, clarification of responsibilities, pluralization in providing services, development of the provision of social services, and increased accessibility and efficiency.
20 Nemec, J., Merickova, B., Vitek, L. Public Management Review (2005) Organization Content Currently, the system of delivering local public services in Slovakia and the Czech Republic lacks systematic decisions and can potentially become corruptive. The following reforms are necessary to improve the situation: accrual and cost-center accounting in the public sector, creation of public–private mix; improvement of public procurement legislation, training and retraining of public servants, and overhaul of public sector control/auditing procedures.
21 Nemec, J., Sagat, V., Vitek, L. Public Administration and Development (2004) Organization Mix of several phases The comparative case study of telecommunications reform in the Czech and Slovak Republics showed (1) establishment of partnerships between political institutions and monopolistic providers of telecommunication services served private interests rather than the public interest; (2) foreign state ownership of monopolistic companies allowed did not reflect real privatization; (3) state regulatory bodies were unable to control pricing processes.
22 Schnell, S. Public Administration and Development (2015) Transparency and open government Implementation Implementation of transparency and anticorruption policies in Romania showed that with interplay of domestic and international factors throughout the policy cycle, pressures for mimicry facilitate rather than hinder domestic policy learning.
23 Robinson, R. Public Administration and Development (2006) Organization Mix of several phases Implementation of the evolutionary model of road sector reform on both central and local government levels in Romania showed a well-structured process on central level, yet local governments faced some problems during this process.
24 Vladetic, S. International Journal of Public Sector Management (2013) Organization Content Serbian communal services sector reform prescribed establishment of the Republic Directorate for Communal Services to improve the provision of these services, but unresolved questions of responsibility, legal status, and broad authorities were considered as the main drawbacks.
25 Klun, M. International Review of Administrative Sciences (2004) Performance measurement and management Content Focusing on performance measurement, the study demonstrated that the tax administration paid attention to improving the areas it assesses with its own indicators (number of appeals, number of inspections, discovered irregularities, etc.) and that it neglected its internal weaknesses.
26 Saner, R., Yiu, L. International Journal of Public Sector Management (1996) Human resource management Content Notwithstanding some issues in the public sector, Slovenia may be considered as one of the most successful states in transition. At the same time, efforts and investments are needed to develop internal change capacities within Slovenia’s administration on central level.
27 Footman, K., Roberts, B., Mills, A., Richardson, E., Mckee, M. Health Policy (2013) Performance measurement and management Content Population satisfaction measures may be one indicator of the success of health reforms. Satisfaction with the healthcare system is generally low across the FSU; some countries showed improvements, whereas the situation has deteriorated in others.
28 Dan, S., Pollitt, C. Public Management Review (2015) Mixed focus Results achieved Tracing the impact of NPM across Central and Eastern Europe, this review study demonstrated that NPM has worked. Even though reforms have not always been successful, the evidence showed that performance management, quality improvement, and the creation of agencies improved public services delivery across the region.
29 Nõmm, K., Randma-Liiv, T. Public Management Review (2012) Performance measurement and management Mix of several phases The Estonian case revealed that the presence of “transitional” factors (e.g., political and administrative instability, unsustainability of reforms, poor analytical skills in parliaments as well as in civil services, implementation gap, and foreign influence) may complicate the development of performance measurement in new democracies.
30 Fidler, A. H., Haslinger, R. R., Hofmarcher, M. M., Jesse, M., Palu, T. Health Policy (2007) Organization Implementation A decade of experience in Austria and Estonia in restructuring hospital care suggested that hospital incorporation and market incentives together with public ownership have the potential to introduce more cost-efficient and flexible management of hospitals and at the same time offer a politically acceptable solution to stakeholders.
31 Tambor, M., Pavlova, M., Golinowska, S., Sowada, C., Groot, W. Health Policy (2013) Financial management Mix of several phases Data from 35 European countries were used to analyze the formal–informal payment mix to outline factors associated with this mix. The authors concluded that obligatory cost sharing for healthcare services is driven from governance factors, while informal patient payments are a multicause phenomenon.
32 Atanasova, E., Pavlova, M., Velickovski, R., Nikov, B., Moutafova, E., Groot, W. Health Policy (2011) Financial management Results achieved Social health insurance in Bulgaria brought several improvements in the public healthcare sector; however, the overall social benefit of the reform is doubtful. The main triggers of the reform are ineffective organization of the healthcare sector and limited financial resources for healthcare.
33 Sagan, A., Sobczak, A. Health Policy (2014) Financial management Mix of several phases The change of the legal form of Polish public hospitals from public entity to for-profit company did not guarantee a better financial performance, unless internal changes in the hospitals’ operations were also made.
34 Kowalska, K. Health Policy (2007) Organization Mix of several phases The delegation of financial responsibility and risk management from the payer to Polish healthcare providers changed the nature of the agency relationship between primary care physicians and their patients.
35 Mussari, R., Cepiku, D. Public Management Review (2007) Mixed focus Mix of several phases The Albanian transition demonstrated how development achieved without paying attention to public administration and management (i.e., the scope, contents and sequence of reforms, and the role of international institution) might become hard to sustain.
36 Simic, S., Milicevic, M. S., Matejic, B., Marinkovic, J., Adams, O. Health Policy (2010) Mixed focus Mix of several phases The main goals of primary healthcare reform are to address expectations of citizens and to improve primary healthcare performance. The reform in Serbia is on the right path, yet the process demands additional time to demonstrate the real shift toward measurable improvements.
37 Savas, E. S. Public Administration Review (1992) Organization Content Privatization of state-owned enterprises in postsocialist countries encountered unique problems: current ownership, valuation and the process of transferring ownership. However, each country tried to advance at its own pace toward a market economy.
38 Witesman, E. M., Wise, C. R. Public Administration Review (2012) Human resource management Mix of several phases The article emphasizes that public administrators’ perceptions of the need for reform influence the success of the reform along with political and extranational factors.
39 Mikesell, J.L., Mullins, D.R. Public Administration Review (2001) Financial management Content Reforms of budget systems in FSU countries have mainly improved the budget processes, procedures, and institutions. Yet, much remains to be done to transform fiscal systems with persuasive and dynamic features.
40 Witesman, E. M., Wise, C. R. Public Administration Review (2009) Transparency and open government Content Conceptually, democratization and decentralization reform streams are contradictory, but in Ukraine they were launched simultaneously. The ordering of these two processes may affect the nature of the developing government (equilibrated). The best option is to implement democratization first and decentralization second.
41 Guess, G. M. Public Administration Review (2007) Mixed focus Mix of several phases Running fiscal decentralization programs in three social service programs in Romania and Bulgaria showed that a proper assignment of authority is required to match spending responsibilities with the policy and administrative capacity to carry them out.
42 Neshkova, M. I., Kostadinova, T., Gary J., Reid, G. J. Public Administration Review (2012) Human resource management Mix of several phases Administrative reform in Eastern European countries performed via depoliticization and professionalization creates more competent and predictable bureaucracies and thus encourages increase of foreign investments, and updated legislation on civil service increases the responsibility of civil servants.
43 Watson, D. J. Public Administration Review (2000) Transparency and open government Implementation Results of a “twinning” program between a Bulgarian city and an American city supported by USAID have made Bulgarian leaders committed to broaden efforts to involve citizens and groups in developing the strategic plan for the municipality, thus increasing the value of democracy on the local level of government.
44 Rice, E. M. Public Administration Review (1992) Mixed focus Content To transform government into a “servant” of the people, it is necessary to decentralize governmental functions, eliminate excessive agencies, redesign basic government systems, and conduct reforms of public finance and civil service.
45 Huddleston, M. H. Public Administration Review (1999) Human resource management Implementation The lessons learned during the consultancy practice in Bosnia and Herzegovina from the view of a foreign consultant showed that in attempting to implement a reform there is an apparent disconnect between the public administration consultant’s mission abroad and what this profession was thought to do.
46 O’Toole, L. J., Jr. Journal of Public Administration Research and Theory (1994) Organization Implementation In the Hungarian case neither creating the agency, restructuring its apparatus nor finetuning its policy instruments can solve the challenges of implementation (i.e., corruption; conflicting imperatives; and shift of sectors, levels, and the role of local governments).

Categorization of papers according to geographical location

Number of papers Percentage of total
Single country 29 63%
Multiple countries 17 37%
2 countries 6
3 or more countries 11
Total 46 100%

Categorization of papers according to research setting

Number of papers
Single country 1 country 29
Ukraine 4
Kazakhstan 4
Poland 3
Russia 2
Estonia 2
Georgia 2
Romania 2
Serbia 2
Slovenia 2
Bulgaria 2
Lithuania 1
Albania 1
Bosnia and Herzegovina 1
Hungary 1
Multiple countries 2 countries 6
Slovakia and Czech Republic 2
Estonia and Georgia 1
Kazakhstan and Kyrgyzstan 1
Estonia and Austria 1
Bulgaria and Romania 1
3 or more countries 11
Postsocialist countries 1
Eastern/Central and Eastern Europe/selected European countries 3
FSU (all ex-members/part of them) 2
Latvia, Lithuania, Russia 1
Latvia and the Baltic countries 1
Ukraine, Russia, Armenia, Czech Republic 1
Croatia, Czech Republic, Hungary, Romania, Serbia, Slovakia, Slovenia 1
Croatia, Czech Republic, Bulgaria, Romania, Macedonia, Slovakia 1
Total 46

Categorization of papers according to the focus of reform(s)

Number of papers Percentage of total
Financial management 6 13%
Human resource management 7 15%
Organization 12 26%
Performance measurement and management 5 11%
Transparency and open government 4 9%
Mix 12 26%
Total 46 100%

Categorization of papers according to theories and scientific paradigms

Number of papers Percentage of total
Single 11 24%
Positivistic tradition 8
Interpretive tradition 3
Multiple
No explicit theory 35 76%
Total 46 100%