Missing pieces in each other's puzzles: Integrating the new public management and the new political economy

Although New Political Economy ideas have sometimes accompanied New Public Management ideas in programs of bureaucratic reform (especially outside the United States), the two schools of thought have remained separate. I argue that the problems of bureaucracy are largely political problems. Therefore, bureaucratic reform must be viewed in tandem with political reform. New Public Management can learn from New Political Economy's emphasis on the incentives of self-interested politicians, and New Political Economy can learn from New Public Management's normative approach and focus on citizens. I use an “exit and voice” framework to discuss and evaluate alternative approaches to reform.