Managing executive decision-making from the Prime Minister’s

							  Managing executive
decision-making from the
Prime Minister’s Office
Hungarian experiences
                       by

      Dr. István Stumpf
       Századvég Policy Research Institute,
    Former Head of the Prime Minister’s Office
   Topic of Presentation


       New role of the PMO
The third reform of the Civil Service
  New center-right government
              1998-2002
        Political background
 Socialist-liberal coalition replaced by
  three party center-right coalition
 coalition forming parties:
     Fidesz (Alliance of Young Democrats)
     MDF (Hungarian Democratic Forum)
     FkgP (Smallholders’ Party)
New recruitment strategy of state secretaries
  and ministerial bureaucracy
    Structure of Prime Minister’s Office

                                     Prime Minister


 Cabinet of the Prime Minister             Head                     Ministers without portfolio
                                  of Prime Minister’s Office


                                   Administrative State Secretary     Political State Secretary
Governmental Communication Unit




                                         „Mirror” Ministries         Strategical Analizing Unit
   Improved the efficiency of
       Public Service I.
 harmonization    of the strong constitutional
  position of the Prime Minister and the
  government structure
 strengthening the PMO as a center
  coordinator of government activity
 establishing a portfolio referential system
  in the PMO to enhance the operational
  efficiency of the line ministries
      Improved the efficiency of
          Public Service II.
 sought  to revise the functional division
 to apply preliminary efficiency studies in
  policy making
 to use modern management methods to
  improve professionalism
 clear commitment to elevate the prestige
  of public administration
Enhancing the performance of civil
             service
•   making civil service career attractive to young
    professionals
•   introducing performance-based salaries of civil
    servants
•   establishing adequate training system
•   setting up a life-long career model
•   taking measures against corruption
•   compulsory property declaration of key-
    employees
•   Drawing up a „Code of Ethics”
    New Approach to Executive
          Governance
 further centralization of center-
  government machinery
 effective coordination of government
  policy
 preparation of government strategies
 securing proactivity of government
  communication
 strengthening the preparatory role of
  administrative state secretaries
          Main features of PMO’s
          organizational reform
1.   Establishment of a cabinet responsible for direct advice
     to the PM
2.   Head of PMO: first in the rank of ministers
3.   Forming of Political State Secretariats responsible for
     strategic planning and management of gov.policy
4.   Forming of „mirror structures” (Ministers Desks) to
     supervise government policy
5.   Setting up a Governmental Communication Unit
6.   Organizing regular preparatory meeting for coalition
     fraction leaders in PMO
            Key role of
    Public Administration Unit
       Civil Service reform prepared by PA Unit

Introducing new Senior Civil Service Corps
    - extending the recruitment basis
    - creating a network of experienced and
      well-trained sen.civil servants
    - providing a 5-year-long job security
    - new training system
    - clarifying professional and political
      criteria of recruitment
Do you think that an overall reform
 of public service is necessary in
            Hungary?
                     9%
       13%



                                                      55%
       23%



     necessary due to demands of EU accession
     necessary due to out of date situation of civil service
     not necessary, permanency is more important
     don't know
   Replacements of civil servants
 every four years from the nation’s
          point of view ….

      11%
16%                  are bad decisions
                     are good decisions
                     don't know


                  73%
      Struggle around the
   Third Civil Service Reform
     joint responsibility for preparation:
              Ministry of Interior
            Prime Minister’s Office

      Conflict between the two players
          → securing the status quo
                      or
professional reorganization of public service ?
               Outcome
 new   legal framework was passed

 two-pierlife-long career path system
 introduced

 createdpermanent and professional
 executive civil service corps
          As a result…
        A political compromise:
     Retaining political discretion
                  and
 De-politicization at the same time
             In order to
→ strengthen the expertise basis of the
            administration
    After the elections of 2002
 Reform slowed down…
 Re-politicization under way….

 However, new the government not only
  kept the reorganized system of the PMO
  but expanded it as well….
 Role of center of government will
  definitely increase after EU accession.
Thank you for your
    attention !