The New Public Management Reform of State-Funded Social Service Nonprofit Organizations and the Changing Politics of Welfare in Hong Kong

Abstract

What are the political impact and significance of New Public Management (NPM) reform on social service nonprofit organizations (NPOs) in Hong Kong? Social service NPOs have a long history as a significant part of Hong Kong’s ‘welfare mix’, not only in their role as state agents in the provision of service, but also because of their political and societal roles in affecting social policy making during the colonial era. The exercise of such agencies under an authoritarian setting was made possible through a governance regime historically formed under the peculiar situation of the old politics of welfare. The NPM reform and the associated governance regime change is a significant part of the new politics of welfare that has arisen with the dissolution of the old social pact. It facilitates the transition of the governance regime from strategic partnership to executive dominance, which maximizes the flexibility of the state in containing social spending and maneuvering the new distributive politics arising from the increasing societal demand for social care.