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SummaryThis paper argues that recent developments in practice and theory provide a more promising basis for public service reform in developing countries than we have had since at least the turn of the century. There have been significant instances of large‐scale reform success, such as Nepal's Public Service Commission and Malaysia's delivery unit, Pemandu, and also "pockets of effectiveness" in individual agencies in many countries. They contribute to a more fruitful and diverse repertoire of reform approaches than generally realized. Policymakers can draw on all those instances and types of reform, together with relevant rich country experiences, as they improvise and tailor responses to their always unique reform problems. Proceeding in this way helps reformers to expand the "reform space" available within the political economy. Donors can help reformers if they facilitate reform in the spirit of the Busan Partnership rather than impose their preferred models. In short, the new direction which this paper identifies can be stated as creative problem solving by local actors facilitated by sympathetic donors, building on examples of reform success and drawing on a repertoire of poor and rich country reform approaches.

AbstractThis article starts from a crux in Alan Thomas's model of development management: that values‐based development management may require the coercion of employees whose values are different. It uses a case study of Sri Lanka's attempt to inculcate the value of impartiality in staffing, focusing on the restoration of the independence of the Service Commissions. The article concludes that values‐based management is likeliest to succeed in the public sector, whose democratic legitimacy allows politicians to impose values in the form of behavioural norms. Ironically, such management is more complicated in the NGO sector, whose uncertain legitimacy means that managers must negotiate values with staff who may have competing values of their own. Copyright © 2007 John Wiley & Sons, Ltd.