Paper for the 17th NISPAcee conference, Budva, Montenegro, May 14-16, 2009
Working group on Pubic Administrative Reform
Traditions of Public Administration in Lithuania
and New Public Management in Reforms of the Education System Management
Jolanta Urbanovič1
Introduction
In the last decade of the previous century, first in the Anglo-Saxon countries and later in other Western countries, a
new attitude of management began to develop, which integrated the best principles of business administration and
economics into the system of public management. In the countries of continental Europe, Lithuania including, this
new management attitude influences the development of reforms in public administration and still meets ambivalent
estimations. Pursuing systematic reforms in public administration, it is not easy to apply mechanisms of the business
sector. In the countries of continental Europe where the normative tradition of public administration prevails and
strong attitudes of administrative law dominate, it is difficult to disseminate New Public Management (NPM) ideas
that derive from the Anglo-Saxon countries and there is a big possibility to distort them. In the countries of Central
and Eastern Europe (further – CEE) post-socialist eastern patrimonial bureaucratic management is common; the
Soviet nomenclative tradition of administration causes a lot of problems when applying the principles of NPM in
conducting the reforms of public administration. The characteristics of the post-socialist countries are that the
principles of NPM settled later than in Western European countries. At the end of the 20th century when the
principles of NPM were spreading in the western countries, the essential changes took place in the countries of the
Central and Eastern Europe (also in Lithuania) – economics based on socialistic planning was transformed into the
capitalist market economy, liberal democracies were established. While evaluating the reforms of new politics in
Lithuania after the restoration of independence, it is possible to contend that both the privatization of public sector
enterprises and the reduction of the role of the state were rather the consequence of economic and social
transformation than the implementation of a certain ideology2. Thus, at present in Lithuania, like in other postsocialist ist European countries, there is a mixed public management system which has the features typical of postsocialist patrimonial and traditional - Weberian public administration as well as the concept of NPM. Moreover, in
the continental tradition of public administration while adapting the NPM principles based on the experience of
business management and taken over from Anglo-Saxon countries a new concept of the modernization of public
management becomes more evident, this concept being called “New Public Service”, “Co-participation of citizens in
public management”, etc. This new concept is like a milder variant of NPM.
During the last decades, modern concepts of public management also affected the changes of the education
system management. However, it is worth mentioning that the relationship between education and the process of
change is more complicated as education is one of the most conservative social institutions. Traditionally the role of
schools is to retain status quo but not to initiate the change. Therefore, education reformers confront the opposition
not only from society but also from education communities.
The present paper analyzes the reflections of the conception of new public management in management reforms
of the education system in Lithuania. In the process of the modernization of education, NPM principles are applied in
different spheres of management. This paper focuses on the implementation of the principle of decentralization in
management reforms of the personnel and financial resources. Thus, the main objective of the paper would be to
present management reforms of the personnel and financial resources of educational institutions of the last two
decades in Lithuania in the context of decentralization of management as well as to discuss the possibilities and
prospects of the application of the principles of New Public Management in the management of education. A stage of
general education of the education system has been chosen as the object of research. To serve the purpose, an
analysis of legal acts, a survey of theoretical statements and practice as well as an analysis of statistical data have
been chosen.
1. Education reforms in Central and Eastern European countries
During the last decades Lithuania, like other CEE countries, had to transform post-socialist public administration into
the Western one. One of the prevailing reformist ideologies was liberalism which highlighted the significance of the
reduction of the state power, deregulation, privatization and the image of the free market. Such ideological choice
1
lecturer of Public Administration Department, Mykolas Romeris University, Vilnius, Lithuania.
Židonis Ž. 2007. Pokyčiai Lietuvos valstybės tarnyboje. Demokratinis valdymas versus vadybinė valstybė (Changing of the Civil Service in
Lithuania. Democratic Government Versus Management State). Kn. Valstybės tarnyba Lietuvoje (in: Civil Service in Lithuania) (sud. K. Masiulis
ir A. Krupavičius). Vilnius, p.346
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was determined not only by certain provisions of values but also by the necessity and/or the pressure of certain
interest groups and international organizations.
One of such international organizations which possibly had the greatest influence on the reformation of
Lithuania’s public sector was the European Union. However, while evaluating the influence of the European Union
on the tendencies of public management, it should be emphasized that, on the one hand, European integration
processes encourage the modernization of public management in Central and Eastern Europe, on the other hand, the
transposition of legislation of the European Communities, the formation of institutions implementing this law and the
implementation of recommendations of the European Union experts on the formation of these institutions determined
the takeover of the traditional Weberian model typical of public administration tradition in continental European
countries. It is imperative to stress that such a mixed public management system having features typical of both
traditional-Weberian public administration and NPM is characteristic not only of post-socialist countries but also of
numerous states of continental Europe.
Specific nature of post-socialist transformation in Central and Eastern Europe becomes manifest in its
comparison with other great examples of changes of stable social systems. While speaking about the peculiarities of
post-socialist transformation in Central and Eastern Europe, L. Balcerowicz3 primarily turns his attention to the
enormous extent of changes. Both political and economic systems experienced transformation and the changes of
these systems in their turn influenced the social structure. Cases of radical transformation of other countries/other
types merely affected either the political system without changing the economic system or the economic system
without transforming political (usually non-democratic) regime.
Due to these reasons, from the point of view of systemic reconstruction, it would be problematic to compare the
system of public administration as well as the situation of education in the last decade of the 20th century in
Lithuania with Western European or world countries. Therefore, it would be appropriate to choose other CEE
countries which experienced transformation orientated towards the capitalist market economy. While analyzing
education reforms in different CEE countries, it should be noted, however, that the diversity of CEE countries does
not form a homogeneous bloc either historically, culturally or geo-politically. Greater differences often exist between
them than those within Western Europe. These differences must always be taken into account when trying to draw
more general conclusions concerning the various factors of the reform process and its outcomes. In order to simplify
the research and comparison of education reforms in CEE countries, L. Cerych classified those countries into four
groups4:
(1) The Visegrad group - Hungary, Poland and the Czech and Slovak Republics - to which Slovenia and
probably also Croatia should be added. Historically, they are of Roman Christian culture and, maybe more
importantly for present development, were part of the Austro - Hungarian Empire. In several of these
countries, industrial and economic development began in the 19th century, literacy levels were often
already relatively high well before the First World War and their education systems and legislation were
greatly influenced by the Austrian and, more generally, Germanic system.
(2) The countries of South-Eastern Europe (Romania, Bulgaria, Albania and the former Yugoslav republics
other than Slovenia and Croatia) are primarily part of the Orthodox Christian tradition, with some Islamic
influences. Economically and educationally they developed relatively late, mainly after the Second World
War, and followed the Soviet influence. Of course, highly educated elite existed well before but it was
quantitatively rather restricted in contrast to the rural masses.
(3) The three Baltic Republics are of similar size and constitute a relatively homogenous group having a
historical past greatly influenced by German and Russian - or Soviet - domination. Since their new
independence regained in the early 1990s, close contacts have been established with Scandinavian
countries; thus, their education systems presently combine Nordic and Central European characteristics.
L. Cerych‘s typology was confirmed by the process of education reforms in Lithuania as in fact education
reformers in Lithuania focused their attention on Scandinavian countries, especially Sweden and Norway. The Baltic
countries, as well as Lithuania, had only a decade to model and create a new concept of educational objectives,
structures, contents of development, methods or strategies whereas Western European countries spent decades while
changing, improving or transforming their education systems 5. The Lithuanian education system had to be essentially
reconstructed and reformed, not merely altered or improved in one respect or another. Perhaps due to extremely
speedy reforms, the society finds it hard to advance with education which is constantly improved, to adapt itself to
Balcerowicz L. 1998. Socializmas, kapitalizmas, transformacija (Socialism, Capitalism, Transformation). Vilnius: Algarvė, 119.
Cerych L. 1997. Educational Reforms in Central and Eastern Europe: Processes and Outcomes. European Journal of Education, Vol. 32, No. 1,
Secondary Education: State and Prospects, p. 80.
5
Nacionalinis švietimo plėtotės raportas (Report of the National Development of Education),
http://www.smm.lt/old/svietimas/RAPORTAS_(taisymai).doc>, (accessed June 5, 2006)
3
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suggested novelties, to discard established values within a short time or to change its strong opinion. Therefore,
education reformers have frequently encountered and still encounter the opposition of society. While evaluating the
reforms of educational policy after the reconstruction of independence in Lithuania, it is possible to contend that
occasionally elements of modern public management were being implemented, however, this choice was determined
not only by certain provisions of values but also by the traditions of the management of education of a chosen
country which served as a model for reformation of certain spheres of education in Lithuania.
2. Stages of education reforms in Lithuania
In order to draft and implement a systematic reform in Lithuania, legal and conceptual instruments of education were
being parallelly created. The ideas of a systematic reform were based on two stages: two laws which modelled all the
concepts of the education system and gradually entrenched their provisions.
The Concept of National School (1988)6. In 1988 the concept of secondary schools of the SSR of Lithuania
was drafted and proclaimed. It discarded the dependence of the Lithuanian education system upon the education
system of the USSR and modelled national school, therefore, it is known in Lithuania as the Concept of National
School. Its provisions had to be entrenched by the Draft Law on Education which was proclaimed in January 1990,
however, political events suspended the adoption of this law, and after the restoration of Independence it was
imperative to amend the law in such a way that it would legalize the creation of the education system of the
independent state.
The Concept of Education in Lithuania (1992)7. The Concept of Education in Lithuania, proclaimed in 1992
and approved by the Ministry for Education and Culture, tendered a model of the education system of the
independent state of Lithuania. This concept thoroughly detailed and grounded the education system legalized by the
Law on Education. It also indicated the guidelines of the creation of education, motivated the tendencies of its
development and presented a specific programme of the activities of the reform until 1997.
In 1997, the time until which the Concept of Education in Lithuania had presented a consistent programme of
the activities of the systematic reform terminated. Conditionally, this time is called the first stage of the reform. The
programme of the first stage was not fully implemented as there was a shortage of material resources and people,
especially their readiness for such a scope of the reform and completely new educational goals, as well as the lack of
consistent approval of politicians. In 1997-1999, there were discussions on a further course of the reform, its trends
and priorities. Essential trends of the reform defined in the Concept of Education in Lithuania in 1992 and its
orientation of values have not been changed. Three priorities8 of the conditionally called second stage of the reform
have been distinguished: the modernization of training and studies and the improvement of the quality of education;
the improvement of social and pedagogical conditions of learning and studies; the harmonization of the system of
education.
In 2003, the 2003-2012 National Strategy of Education9 was approved. In this document, the strategy of
education was divided into five strategic trends: the improvement of governance (the implementation of the
principles of subsidiarity and finance); the improvement of infrastructure (the development of the network of
educational services and programmes); the improvement of support (national and individual support for students and
schools if they meet certain criteria); the improvement of contents (the enhancement of contextuality of programmes,
individualization of teaching/learning); the improvement of the personnel (the reorganization of training of teachers
and improvement of professional skills, training of school principals).
Table 1. Stages of education reforms in Lithuania:
Year
Strategic Decision
1988 - 1991
The Concept of National School
1992 - 1997
The Concept of Education in Lithuania
1998 - 2002
Priorities of the second stage of the
reform
2003
The National Strategy of Education
2003-2012
Documents of Implementation
Programme of education reform
Programme of the implementation of the priorities of
the second stage of the education reform
Programme of the implementation of the 2003-2012
National Strategy of Education
In the above table we can see the main dates of the present education reform denoting the most significant
strategic decisions and the documents of the implementation of those decisions. It is worth paying attention to the fact
Tautinė mokykla. Lietuvos vidurinės mokyklos bendrojo lavinimo mokyklos koncepcija (National School. The Concept of the School of General
Development of the Secondary School in Lithuania). Vilnius: Žinija – 1989.
7
Lietuvos švietimo koncepcija (The Concept of Education of Lithuania). - Vilnius. 1992.
8
Dėl antrojo švietimo reformos etapo prioritetų vykdymo. Švietimo ir mokslo ministro 1999 07 23 įs.Nr.951 (On the Implementation of the
Priorities of the Second Stage of the Education Reform. The 1999 07 23 Order the Minister of Education and Science. No 951).
9
Valstybinės švietimo strategija 2003-2012 m. (The National Strategy of Education 2003-2012).
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that when a systematic education reform was taking place in Lithuania, in numerous Western countries education
organizations were being orientated towards the methods of business management, the proportions of private and
public sector were being discussed. Therefore, it is also possible to discern the reflections of the elements of
management attitude in the processes of education transformation in CEE countries.
3. New public management in the reformation of education in Lithuania
In Lithuania the elements of NPM were first reflected in the provisions of legal acts, programmes and strategies
adopted by state institutions. They contained practical attempts to introduce novelties which could be referred to as
NPM. Manifestations of NPM in the public sector of Lithuania could be the implementation of internal audit, the
organization of open contests, the implementation of strategic planning of the budget, the “one-window” principle,
the expansion of providers of non-state public services – educational institutions, health care institutions,
organizations providing social services as well as the expansion of e-government, rendering of public/administrative
services on-line, etc.
NPM and the concepts related to it are more and more frequently used not only in the publications on economics
but also on education. In the educational policy, management ideas are manifest in two main forms 10:


Education organizations more frequently offer their services, thus, the market of education services is being
formed;
There are attempts to reorganize education organizations so that business management principles could be
applied in them.
Speaking about the formation of the market of education services, to begin with, the participants of the market
have to be established. The participants of the market of education services are usually divided into the producers of
education production, providers and users of education services. Thus, what constitutes the system of the market of
services?
Enterprises providing teaching materials, the authors of programmes and textbooks, teacher training institutions,
national and international agencies responsible for health and treatment in educational institutions, even building
organizations, etc. could be the producers of education production. Educational institutions, teachers and their
professional organizations, parents’ associations, authorities of educational organizations as well as founders could be
providers of education services. Meanwhile, pupils, parents, students, employers, even the state and government
could be named as users of education. All the society is connected with the consequences of the quality of education
services.
The issue of decentralization is significant in the implementation of management ideas in educational
organizations. Territorial authorities should have to have sufficient freedom of making decisions while schools
should be rather autonomous in order to be able to apply the principles of business management.
3.1. Decentralization of the education system
Decentralization and centralization usually evolve as essential political problems of the present. These problems are
very significant in the educational policy. No essential education reform can avoid deliberations on the issue of
centralization or decentralization of the education system. In the International Dictionary of Education the term
“decentralization” became as popular as the concepts “cooperation”, “equal possibilities”, “autonomy of schools” and
“education reform”. Decentralization has become a means which would ensure that in education the requests of all
interest groups would be taken into consideration11.
After the collapse of Communist regimes, all the countries of the region moved towards decentralization.
International surveys of education refer only to Hungary’s education system as decentralized. Poland’s and the Czech
Republic’s education systems are defined as partially decentralized while Bulgaria’s, Estonia’s, Latvia’s, Lithuania’s,
Slovakia’s and Slovenia’s systems are considered to be centralized12.
Speaking about the extent of centralization and state regulation in post-socialist countries, it is worth analyzing
an erroneous attitude which is frequently expressed in debates on the issues of transformations (though such an
attitude can also be encountered in the West) and is grounded on several faulty principles of interpretation. One of
them is based on the assumption that if certain measures are used in Western countries, it means that they are good;
R.Želvys. 2003. Švietimo organizacijų vadyba (Management of Education Organizations), Vilnius, p.17.
R.Želvys ir kt. 2003. Švietimo politika ir monitoringas (Educational Policy and Monitoring). Vilnius, p.62.
12
Ibidem.
10
11
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they should be used in post-socialist countries as well13. It also refers to reforms of education management. For
instance, if a state resorts to intervention into a certain area in the West, it should also resort to such intervention in
the East. However, the mere fact that certain measures have spread in the West should not be the criterion for proper
quality and they should not be used in a post-socialist country without the initial analysis of critical evaluation. This
necessity is emphasized by the fact that in Western countries with the help of erroneous theories and group interests
numerous mistakes were made which could teach a lesson to the countries which are on the way of reforms. Yet, as
mentioned above, Lithuanian education reformers mostly took over the Scandinavian experience, especially the
Swedish one; thus, having in mind the social democratic model of Well-being of that state, considerable intervention
of the state into the sphere of education; however, in accordance with the data, in Sweden, educational institutions
have considerable autonomy. However, in Lithuania, (see further), state regulation of education is rather strong.
Decentralization - one of the most significant trends of reforms of management systems nowadays - could be
considered as a necessary prerequisite not only for the development of local government but also for a civil society.
Changes of management in the public sector are not a mere combination of occasional, peculiar phenomena. After the
era of Communist rule, the implementation of decentralization was progressing in two ways: while forming
democratic-political or administrative-professional system of management. The system of democratic-political
management highlights the role of democratic general elections and elections to the local government; the most
significant decisions on the regulation of the activities of the education sphere are made and leading education
managers are appointed by the political power which has won the elections. Such direction of decentralization has
been chosen by Bulgaria, Poland and Hungary. In the system of administrative-professional management, the greatest
attention is paid to professionalism and competence of leading employees of the education system while political
decisions concerning education are made by administrative structures of the education sphere. Such a way was
chosen by the Czech Republic, Slovenia and Romania. Lithuania first chose the way of strengthening the powers of
local government but later it chose the system of administrative-professional management14.
One of the features of “the entrepreneurial government” which was revealed in D. Osborne and T. Gambler’s
book „Reinventing Government“15, published in 1992, is „Catalytic government: Steering rather than rowing“. State
institutions have to generate decisions, to focus on the only goal. Policy formation and administration have to be
separated from the provision of services. The present general education system is made up of three levels: national,
e.g. the Ministry of Education and Science, institutions subordinate to the Ministry; local government, e.g.
educational institutions of local government; schools. Pursuant to the aforementioned NPM principle, the Ministry of
Education and Science, as the institution governing the national education system, should generate decisions (create
strategies, plans, objectives, tasks, requirements) and carry out supervision (supervise through authorized institutions
how the goals are achieved, programmes and legislation are implemented) 16.
It is stipulated in the National Education Strategy of Lithuania that the Ministry of Education and Science shall
establish the key requirements for general education, vocational education and training, and be responsible for
ensuring the quality of education, accessibility to education and the social justice in education, quality assessment
and provision of information about it to the society 17. Thus, the present reform is orientated towards two main tasks:
the formation and control of the national educational policy. After the reform of the system the Ministry of
Education, in cooperation with the Government and the institutions subordinate to it, has to set tasks regarding
education while local government and schools have to look for ways of better implementation of those tasks (see
Table 2). Such structure coincides with the views of the proponents of NPM who support the separation of the
formation of the educational policy from its implementation. However, a question on the rationality of such
separation should be raised at this point whether the policy formulated by politicians whose experience in the
educational sphere frequently is rather superficial and ideologized would not be too remote from the reality of the
educational process and real problems. In the formation of the educational policy the corporative model would be the
most optimal where representatives of the government, education administrators and providers of educational
services could all participate in the process of deliberation on decisions and making them on both the national and
local level.
Balcerowicz L. 1998. Socializmas, kapitalizmas, transformacija (Socialism, Capitalism, Transformation). Vilnius: Algarvė, p. 165.
Želvys R. ir kt. 2003. Švietimo politika ir monitoringas (Educational Policy and Monitoring). Vilnius, p.71.
15
Osborne J. and Gaebler T. 1992. Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector. Reading, MA:
Addison-Wesley Publishing Company.
16
Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga: (Guidelines for the
Improvement of the Organization of Education. General Education), http://www.nvv.lt/index.php?option=com_content&task=view&id=226
(accessed March 14, 2009)
17
Valstybinės švietimo strategijos 2003-2012 metų nuostatos (The National Strategy of Education 2003-2012).
13
14
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Table 2. Decentralization of education18.
Thus, while implementing the National Education Strategy, education is being slightly though gradually
decentralized and deconcentrated on the basis of the subsidiarity principle. Subsidiarity is an essential EU principle of
governance on the basis of which decisions are made as close to the place of their implementation as possible, i.e. it
is the lowest competence level of governance. Participation of local communities and citizens in decision making is
based on this principle. As the Lithuanian education system earlier was centralized, this principle is the most
imperative for decentralization. Education is decentralized for certain reasons: political and financial ones, also for
efficiency, equality, market and pressure. At present, each sub-system of education is differently solving issues of
decentralization. The Ministry of Education and Science is gradually giving more authority to administrations and
local governments of the counties.
Regarding both its own history and the present social, economic and political situation, each country has to set
adequate balance between centralization essential for the implementation of general national education objectives and
decentralization which creates prerequisites for the participation of a larger number of teachers, students, parents and
representatives of local community in governing education 19.
3.1.1. Competence of the Ministry of Education and Science
In accordance with the provisions of the National Education Strategy 2003-2012, in order to ensure efficiency and
sustainability of the education development, functions, powers, obligations, responsibility and accountability of the
state, municipalities and schools shall be redistributed and clearly defined, and the procedure of co-operation between
the schools shall be described; management shall be decentralised and de-concentrated according to the principle of
subsidiarity; the Ministry of Education and Science shall gradually abolish the functions that are not typical to the
state governance; at the same time, however, the state’s overall responsibility for leading the education improvement
process shall be strengthened. On the national level, the Ministry of Education and Science shall establish the key
requirements for general education, vocational education and training, and be responsible for ensuring the quality of
education, accessibility to education and the social justice in education, quality assessment and provision of
information about it to the society20. Thus, the provisions of the document reflect theoretical statements of NPM.
However, having analyzed the Law on Education of the Republic of Lithuania, it is manifest that the powers of
the Ministry have not decreased. They are the formation and implementation of the State educational policy, strategic
planning, submittal of proposals to the Government, etc. All the powers of the formation of the contents of education,
setting standards, the organization of examinations, the requirements for textbooks and teaching aids, training and
improvement of qualification of teachers, the accreditation of the provisions of school activities and curricula remain
in the competence of the Ministry. Among new functions, the confirmation of the methodology and procedure of
school audits should be mentioned. In addition, it is a novelty that handling requests and grievances of residents and
accountability to society for the status of education of the country have been legitimised. Thus, all in all, it is possible
to contend that in the Law on Education the powers of the Ministry have not decreased – conversely, they have
increased to some extent (the confirmation of the methodology and procedure of school audits, etc.).
3.1.2. Competence of local government
The powers of local government are mostly related to the insurance of learning environment (the formation of the
network of schools, the organization of examinations, school buses, etc.) and the establishment of assistance
institutions (pedagogical psychological services, educational centres for teachers). Educational policy and strategic
planning are accentuated on the level of local government. Pursuant to the National Education Strategy, responsibility
According Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga:
(Guidelines for the Improvement of the Organization of Education. General Education),
http://www.nvv.lt/index.php?option=com_content&task=view&id=226 (accessed March 14, 2009).
19
Lietuvos švietimo raida ir valstybinė švietimo strategija: rytdienos uždaviniai (The Development of Education in Lithuania and the National
Education Strategy: Tasks of Tomorrow), www.smm.lt/naujienos/pranesimai (accessed September 25, 2008).
20
Valstybinė švietimo strategija 2003-2012m. (The National Strategy of Education 2003-2012). Valstybės žinios, 2003, Nr. 71.
18
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of local government for the accessibility and quality of education within their territories shall be strengthened. Local
governments and counties shall be vested with a big share of responsibility not only for general education, but also
for vocational education and training, for special education, continuing adult education. Every local government shall
be responsible for a register of children residing in their territories, and co-ordination of the number and flow of
pupils in the schools under their responsibility21. According to some authors, at present, local governments of
Lithuania perform many functions which could be transferred to schools, e.g. pursuant to the present strategy, local
government is responsible for a register of children residing in their territories, and co-ordination of the number and
flow of pupils in the schools; this could be performed by the school itself 22. Lithuania could find Sweden‘s
experience useful; in 1991-1994 Sweden after decentralization switched from regulation to the system of purposesresults and achieved considerable success. In 2005 Sweden‘s education system was evaluated as the best in Europe.
The laws of this country stipulate that local governments have all the rights to decide how educational services have
to be organized in order to achieve the objectives of the state 23.
3.1.3. Self-governance
During the last decade, while carrying out education reforms, more attention is paid not to the implementation of
methods of business management in the activities of education institutions but to governance based on the
participation of citizens’ communities. This trend of reforms is influenced by a milder NPM variant which is
frequently referred to as New Public Service, “co-participation of citizens in public management” and other names.
In addition, self-governance organizations of schools have greater influence on the governance of educational
institutions. On the one hand, self-governance of schools performs a significant role in the process of decentralization
as it strengthens society’s influence on the system of education. In the sphere of education, political and
administrative decisions are made with the help of consultations and coordination with social education partners and
other interest groups. Efficient mechanisms of accountability of education and its governance to society are
implemented. On the other hand, finding new partners in making decisions is one of major changes in education
management. Instead of centralized decisions, school communities, local governments, social partners, etc become of
greater significance. The councils of educational institutions are comprised not only of representatives of parents and
social partners but also of supporters though their role is not defined in many cases 24. However, it is worth
acknowledging that the main social clients of the education system are parents. Parents’ entitlement to choose is the
main prerequisite of the improvement and control of the education system. The school council is the school's highest
self-governance body, representing the students, the teachers, the parents and the local community 25. In general
provisions of laws, the parents of learners have certain powers and can be equivalent participants of development and
learning. The participation of parents in the teaching process is the official policy of the government. In the
programme of economic and social progress, the government and its social partners officially admit that the
encouragement of parents’ participation in the learning process of their children is an essential strategy of educational
policy and practice.
Regarding the issue of self-governance of schools, Lithuania has made really progressive solutions which are
entrenched in the Programme for the Improvement of Schools 2006-2009. It should be mentioned that especially
good results have been reached in the Czech Republic where the school council is comprised not only of teaching and
non-teaching staff of the school or recipients of services (learners) but also of community representatives who
comprise one-third of the school council. In Great Britain, everyone who is to some extent interested in the wellbeing of the school (from a learner to a local priest) can be involved 26. Thus, the community is understood in the
broader meaning than in Lithuania. In accordance with the Law on Education of Lithuania, self-governance
institutions of the school collectively discuss issues of school activity and funding and, within the scope of their
competency as defined in the by-laws (statute) of the school, adopt decisions and influence decisions of the Principal;
also they perform public supervision of the school's management 27. In reality, it happens only in exceptional cases.
The highest self-governance institution of the school -the school council - has no power to change the decisions of the
principal of the school.
While summing up this chapter, it could be mentioned, however, that decentralisation is a highly complex
phenomenon. An education system may be decentralised in one area (for example, the curriculum) while remaining
centralized in another (for example, financing). Sometimes, regional or local authorities became very powerful in
Valstybinės švietimo strategijos 2003-2012 metų nuostatos (The National Strategy of Education 2003-2012).
Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga: (Guidelines for the
Improvement of the Organization of Education. General Education), http://www.nvv.lt/index.php?option=com_content&task=view&id=226
(accessed March 14, 2009)
23
A boost to research and innovation. The Government and the Government Offices of Sweden, http://www.sweden.gov.se/ (accessed, March,
2009).
24
Cerych L. 1997. Educational Reforms in Central and Eastern Europe: Processes and Outcomes. European Journal of Education, Vol. 32, No. 1,
published by: Blackwell Publishing Secondary Education: State and Prospects (Mar., 1997), pp. 86.
25
LR švietimo įstatymas (Law on Education of the Republic of Lithuania). Žin., 1991, Nr. 23-593, str. 62.
26
Eurydice. School Autonomy in Europe Policies and Measures 2007.
27
Lietuvos Respublikos švietimo įstatymas (Law on Education of the Republic of Lithuania). Valstybės žinios, 2007 ,Nr.81-3325.
21
22
7
education although they operated under the direction of central government institutions. In fact, all systems are a
mixture of centralization and decentralisation. Lithuania’s education system remains to a large extent centralized;
major decisions are made at the level of the central government or with its approval. On the ground of the arguments
presented above, it is possible to contend that the aforementioned competences and responsibilities do exist but the
decisions are not sufficiently close to the users of education and decentralization.
3.2. Reforms of human resource management
One of theoretical grounds of NPM - the theory of rational choice - is based on the assumption that all individuals are
rational selfish persons. Each of us seeks selfish purposes; however, in proper surroundings these selfish purposes
may bear fruit beneficial for society. It is also characteristic of the personnel of the education system. Thus, in the
organization of education, the system of personnel management should function in such a way that the employees
would strive to provide better education services knowing that those attempts would be properly evaluated.
In Lithuania the principal of a school is appointed by open competition which is held by the local government.
Such practice is essentially most justified from the point of view of management; other ways are not common in the
world and have not served the purpose. The appointment of the principal of a school by open competition which is
held by the local government is an optimal management decision as the principal becomes accountable to the local
government and is well aware of the situation in the local government. In addition, the principal is not “a figure who
tries to please everyone” in case of the election of the principal in a school. However, in Lithuania, the requirement
for the candidate to the office of a school principal is to have three years of teaching experience. Such a requirement
precludes professional managers (who have management experience but do not have pedagogical education) from
becoming school principals. European and world countries discard such restrictions and while appointing school
principals pay more attention to administrative skills whereas in Lithuania it is important that a principal has three
years of teaching experience but his management skills are not among advantages. The Netherlands, Luxembourg
and Sweden are among the states where only management experience is important for school principals 28. On the
other hand, to listen to M. Weber, it is not good when “a political leader is made to feel “amateurish” when he is
confronted with “an expert” and faces a qualified administrator”. Having transferred this phrase to the education
system, it is possible to contend that “education experts” - teachers - may easily manipulate a manager whose specific
knowledge related to the education system is limited.
Another controversial issue is connected with the assessment of schools, teachers and their principals. The
assessment is carried out in accordance with a centralized list of indicators. Most indicators essentially do not provide
any useful information about resultativeness. One of such indicators is the number of assessed teachers and
principals. However, it is doubtful whether it is imperative to use the finance of society to assess principals and to
find out their number, moreover, this indicator does not create any surplus value (otherwise we would also find it in
calculations of business companies). If the principal implements the objectives he has set and the community and his
employer - higher authority - is satisfied with his work, he is valued as a good principal in spite of not having been
assessed29. The calculation of the percentage of assessed employees is the disclosure of the authorities’ orientation
towards the process, but not the results. A survey of needs and satisfaction of the community concerning educational
institutions is the confirmation of the orientated attitude towards the quality of services (results). Satisfaction of the
community with the quality of the provided services, inner culture of the personnel, the results of the work of a
leader, etc should become the main indicator.
Pursuant to the concept of NPM, one of the conditions of the insurance of quality is the encouragement of
competition. Speaking about competition among schools, the greatest obstacle for competition among teachers is the
centrally planned salary for teachers. At present it depends upon the programme of professional development,
preparation for lessons, management of a group, the number of the hours of non-formal education and other
additional tasks. Competition among teachers could be created having changed the system of accounting salary and
having introduced the model applied in the business sector where the salary would depend on the agreement between
a teacher and the principal of an institution. On the one hand, having introduced this system, the planner of the salary
of a teacher would directly be the principal of a school who would allocate salaries in accordance with qualifications,
the load of work, the satisfaction and complaints of students, the application of innovative methods in the teaching
process, etc. On the other hand, there is the risk of the principal’s biased assessment. Thus, at present, school
principals lack authority to manage human resource while solving the issues of salaries and the allocation of work
time. The Ministry of Education and Science should be entitled to regulate the requirements for pupils, the
knowledge it expects from them and the control whether schools have managed to impart that knowledge. However,
the organization of work, i.e. the way how to achieve those results, should be the school’s priority.
Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga: (Guidelines for the
Improvement of the Organization of Education. General Education), http://www.nvv.lt/index.php?option=com_content&task=view&id=226
(accessed March 14, 2009)
29
Ibidem.
28
8
Summarizing this chapter, it could be mentioned, that during the last decades, modern concepts of public
management also affected the changes of the human resource management in education system in Lithuania. It is
reflected in Table 3:
Table 3. Reforms of Human Resource Management in Education System
Principle of NPM
Post-Comunist legacy
Activity Field
The Appointment of
the Principal of a
School
Open Competition for the The Requirement for the
Prinipal of a school
Candidate to have three
years of teaching
Expirience
The Motivation of
Personel
The Assessment of
Teachers, Principals
The assessment is carried
out in accordance with a
centralized list of
indicators
Teaching Quality
Assurance
The Encouragement of
Competition
The centrally planned
salary for teachers
3.3. Management of financial resources
Looking for manifestation of NPM in education finance reforms, it is worth analyzing the main objectives of the
2001 reform of funding general education schools 30:








While using the finds for education more efficiently, to improve the quality of education services, to provide
possibilities for education services for persons according to their abilities and needs;
To create the transparent system of education funding;
To provide the possibility for students and their parents to choose an educational institution and to create
conditions for the implementation of this right;
To more rationally organize the network of general education schools, to encourage competition among
schools, to create equal possibilities for rural and town students to obtain high quality education;
To strengthen financial independence of schools;
To create conditions for the expansion of the network of non-state schools;
To reduce the number of children who do not attend school;
To increase the responsibility of principals of educational institutions of all levels for the decisions based on
actual financial resources while implementing the educational policy.
It is manifest that the objectives of the reform correspond to the ideology of NPM; however, let us analyze the
results of the implementation of the reform.
Until the beginning of the aforementioned reform, educational institutions used to receive funding in accordance
with the number of sets of classes, regardless of the number of learners of the school. The reform of education
funding implemented the principle of “money follows the learner”. This reform creates conditions for competition
among institutions providing educational services. It corresponds to the NPM principle - competition of public
institutions.
In 2001-2002 in Lithuania a progressive principle “money follows the client” was begun to be applied in preschool, primary, basic and secondary, vocational and higher education stages (Table 4). Its implementation in the
education system began with the reform of funding basic education. Though the reform of funding higher studies has
not been completely discussed, the amount of funding obtained by a higher school depends upon the number of
students – which is a feature of the principle “money follows the client”.
Bendrojo lavinimo mokyklų finansavimo reformos nuostatos. Nutarimas. Lietuvos Respublikos vyriausybė (Provisions of the Reform of
Funding General Education Schools. Decision. The Government of the Republic of Lithuania). 2001 m. gruodžio 14 d. Nr. 1520. Vilnius. 1
skyrius.
30
9
Table 4. Spheres of the implementation of the principle “money follows the client” in 2008 31.
Pre-school education
Intended
applied
to
be
Pre-primary
education
Being applied
Basic education
Vocational Training
Higher education
Being applied
Being applied
Being applied but
the model is being
discussed
The essence of “pupils’ basket” is education fund allocation for one pupil. Its amount is established annually by the
Government of the Republic of Lithuania upon the adoption of the Law on the Approval of Financial Indicators of
the State Budget and Municipal Budgets. Substantiation of the implementation of the principle “money follows the
client” is the creation of the environment for competition among schools. Namely the possibility of the
implementation of the mechanism for competition is the main useful part of this principle. Educational institutions
whose amount of allocated funds depends upon the number of students should become interested in attracting more
students. Therefore, educational institutions have to aim at clients (students and their parents) and try to satisfy their
needs. Thus, the spectrum of services provided by particular schools and the education system in general comes up
close to society’s needs. Namely this situation is the goal as maximum satisfaction of the needs of the members of
society determines greater satisfaction with the level of the education system.
3.3.1. Financial autonomy of schools
Fund allocation “money follows the client” creates competition which itself solves numerous management issues;
however, the system of “pupils’ basket” has not been fully implemented as schools lack autonomy to allocate funds
themselves. All the money received by a school is divided into purposive parts. Thus, schools are precluded from
autonomy (financial, personnel autonomy, etc)32. Thus, the problem of “pupils’ basket” is that it is beaurocratically
detailed how schools have to use the funds of “baskets” – which part should be allocated to salaries and which to
learning materials. The needs of various educational institutions are different; therefore, educational institutions
themselves could decide how to make the best of financial resources 33.
3.3.2. Territorial division
Another aspect restricting competition among schools is territorial division. The Law on Education of the Republic of
Lithuania stipulates that the priority enrolment in a State-run or municipal general education school is granted to
persons living in the service territory assigned to that school: “Priority enrolment in a State-run or municipal general
education school is granted to persons living in the service territory assigned to that school by its founder. At the
request of parents (foster parents, guardians) and the child, a child may be enrolled in another general education
school subject to the availability of free places”34. It is peculiar consensus and guarantee that a pupil would not be
enrolled in a school at all. However, this principle may cause certain restrictions of competition.
3.3.3. Network of non-state schools
As mentioned above, one of the main objectives of the education reform was to create the conditions for the
expansion of the network of non-state schools. Opening and expansion of private schools was one of the most
significant institutional changes in education systems of CEE countries. It was complete novelty in post-socialist
countries. Speaking about the expansion of private schools in CEE countries, it is worth mentioning some aspects
pointed out by L. Cerych. First, regardless of speedy expansion of the network of non-state schools, they still
comprise a small part of all the schools35. Second, initially private schools were treated not as means of
demonopolization, but as an accelerant of the whole system – they became peculiar models of novelty. And third, yet,
private schools were frequently being created chaotically, disregarding long-term needs in adequate countries, simply
as a phenomenon of “fashion” or occasionally for commercial purposes.
The present education system of Lithuania partially discriminates private educational institutions. Private
schools occur in a more difficult financial situation as they receive (approximately one-third) less funding than state
Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga: (Guidelines for the
Improvement of the Organization of Education. General Education), http://www.nvv.lt/index.php?option=com_content&task=view&id=226
(accessed March 14, 2009)
32
Janišius G., Klaus Ch., Bileišis M. and Masiulis K.. Švietimo organizavimo tobulinimo gairės. Bendrasis lavinimas. Prieiga: (Guidelines for the
Improvement of the Organization of Education. General Education), http://www.nvv.lt/index.php?option=com_content&task=view&id=226
(accessed March 14, 2009)
33
Janyšius G., Klausas Ch.. Pažangos siekiama atgyvenusiais metodais (Achieving Progress by Outdated Methods), www.dialogas.com. (accessed
February 25, 2009)
34
LR švietimo įstatymas (Law on Education of the Republic of Lithuania), 29 str.
35
Cerych L. 1997. Educational Reforms in Central and Eastern Europe: Processes and Outcomes. European Journal of Education, Vol. 32, No. 1,
published by: Blackwell Publishing Secondary Education: State and Prospects (Mar., 1997), pp. 86.
31
10
schools. Private schools are also allocated funding according to the number of pupils but they do not receive
maintenance funds which should be used for the maintenance, heating, etc. of school buildings. The Law on
Education stipulates that maintenance funds are provided by the school's founder. It would be fair that maintenance
funds for the school environment would also be allocated by the local government. A discriminative system does not
enable to expand the network of private schools efficiently. In 2006 among 1502 general education schools there
were merely 25 private schools. Within five years in 2001-2006 only 6 new private schools were opened. However, it
is worth mentioning that the situation of general education is not very bad in comparison with other European states
but if we want to have a competitive education system which yields good results, we should follow the example of
Poland, Finland or Sweden and unify legal requirements for obtaining state support.
As is apparent, a suitable method of funding educational institutions “money follows the client” has been
chosen. This method could have become good grounds for administrative governance of schools; however, traditions
of centralized administration distort that idea. It is reflected in Table 5:
Table 5. Implementing of principle “money follows the client”
Distortion of
new public
management
Pos-socialist
legacy
New
public
managem
ent
Principle “money follows the client”
Territorial division
Different funding of state-run and
non-state schools
Restricted competition
Schools have no financial
autonomy
Restricted public choice
Conclusions
In Lithuania, like in other CEE countries, the system of education management has the features which are typical of
post-socialist beaurocratic governance as well as traditional - Weberian public administration and the NPM concept.
While combining different public management traditions, the ideas of the concepts coming from New Public Service,
New Public Governance, “co-participation of citizens in public management”, etc. are used more and more
frequently. They are more easily applied in the states of continental Europe as greater attention is paid to the rise of
the concepts of democracy, citizens and self-respect rather than to the concepts of client, market and competition.
While analyzing the development of education reforms in Lithuania during the last decades, the manifestation of
NPM principles is obvious, however, the tradition of post-socialist beaurocratic governance more frequently modifies
the ideas of the NPM concept. For instance, having encountered such obstacles as territorial division, discriminative
funding of non-state schools or centralized division into purposive parts, the progressive idea of “pupils’ basket”
partially loses its efficiency. There are other discrepancies, e.g. according to the proponents of NPM, there are
attempts to separate the formation of the educational policy on the national level from administration of educational
services and provision on the level of local government and the school which apparently contradicts to another NPM
principle – the participation of citizens in governance. Having separated the functions of policy formation and
implementation, the possibilities of the participation of school communities in the process of discussing school
problems and making decisions would still diminish. Thus, in Lithuania, like in other CEE countries, while applying
NPM and the principles of the concepts related to them, it is imperative to pay attention to the traditions of public
administration of continental Europe and to combine them in order to create the well-being of society.
11
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