Note 3-57

(57) In the beginning of the 1980s, a "small government" policy was implemented in the United States under the Reagan administration and in the United Kingdom under the Thatcher administration. It represented the first attempt to use the concept of NPM in public administration. However, as a result of industrial liberalization, NPM produced adverse effects, such as excessive oligopoly. Based on the nearly 20 years of trial and error in various countries and backed by economic theories (trading cost economics, asymmetry of information, agent problems, moral hazard) that emerged during the period, the concept of NPM has brought about the comprehensive and systematic establishment of methods to achieve targeted goals.