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

1. Managing executive decision-making from thePrime Minister’s OfficeHungarian experiences by Dr. István Stumpf Századvég Policy Research Institute, Former Head of the Prime Minister’s Office

3. Topic of Presentation New role of the PMO The third reform of the Civil Service New center-right government1998-2002

4. 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

5. Structure of Prime Minister’s Office

6. 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

7. 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

8. 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”

9. 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

10. Main features of PMO’s organizational reform • Establishment of a cabinet responsible for direct advice to the PM • Head of PMO: first in the rank of ministers • Forming of Political State Secretariats responsible for strategic planning and management of gov.policy • Forming of „mirror structures” (Ministers Desks) to supervise government policy • Setting up a Governmental Communication Unit • Organizing regular preparatory meeting for coalition fraction leaders in PMO

11. 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

12. Do you think that an overall reform of public service is necessary in Hungary?

13. Replacements of civil servants every four years from the nation’s point of view ….

14. 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 ?

15. Outcome • new legal framework was passed • two-pier life-long career path system introduced • created permanent and professional executive civil service corps

16. 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

17. 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.

18. Thank you for your attention !