Japan opts for UK model of public sector reform

Treasury's influence in making departments reach set performance targets is just one of the ideas to be copied by Japan as they ditch US-style performance and results scheme when new reforms are introduced in March

The Japanese government is planning major public sector reform in 2010, including implementing cross-government goals, similar to the UK's public service agreements (PSAs), in order to encourage inter-departmental cooperation.

The Democratic party, which came into power in Japan last year, has commissioned a report examining how cross-government cooperation has worked in the UK, Canada and the US.

The report, due out in March, is expected to recommend that Japan adopt performance measures and a multi-year public sector budgeting system similar to that which exists in the UK.

Since 2001, all Japanese government departments have been obliged to evaluate their own policies, using a system similar to the Government Performance and Results Act (GPRA) in the US. But the officials have agreed this system is not suitable. Departments have little incentive to evaluate their policies seriously and see evaluation as a burden, involving extra paperwork for little result.

Last October, the government decided to review the existing evaluation system and put in better links between evaluation and budgeting. As part of its overhaul of the present system, it is looking at the way the US, Canadian and UK government have attempted to link performance management and results in the public sector.

Masamichi Takasaki, a senior analyst with the public management group of Mitsubishi UFJ Research and Consulting, which is preparing the report for the government, says the Japanese government is particularly interested in both multi-year budgeting and inter-departmental performance management.

Takasaki has talked to several UK government departments, including the Cabinet Office, the Treasury and the Department for Work and Pensions, as part of his research. His conclusions are interesting for government-watchers in the UK.

Takasaki believes the strength of the Treasury is a real incentive to getting departments to reach set performance goals, but also sees the scrutiny role of MPs as a vital part of the evaluation process.

He says that in contrast in Japan there is little looking back over the success, or failure, of previous policies when new initiatives are implemented.

At a time when the UK government is keen to emphasise its credentials in continuing public sector reform, Japan is set to follow its example through the sincerest form of flattery, imitation.

The Japanese government is likely to implement many of the budget controls included in the PSAs as well as inter-departmental, outcome-based objectives, along with a greater emphasis on communicating policy intentions with the public.

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