The welfare state emerged in the western democracies during the postwar era,where governments evolved and formulated policies to accumulate capital and sustain market profitability,while providing social and economic security systems for its citizens.In the late 1970’s,social and economic spending in the welfare state led to rapidly accelerated growth in government expenditure rising burdens of deficits causing an economic crisis in these countries.Changing demographics,globalization,and other economic and social factors were behind this fiscal crisis.Therefore,in the 1980s,many welfare governments started new retrenchment policies that aimed at decreasing spending through cutbacks by eliminating some programs and reformulating the existing policy design.There was no political consensus on these changes because politicians were not willing to accept the high political costs of policy reform.Another reason behind the unsuccessful reform in the welfare policies refers to the expected failure of institutional change due to path dependency.Therefore,governments in the Westminster democracies began reconsidering the current public management practices and shift towards building government that works better and cost less(Gore,1993).This resulted in the emergence of new public management practices.New public management with its managerialist character brought efficiency and effectiveness to public sector organization,while maintaining its welfare policies.New public management reform was also incremental;therefore,path dependency and institutional inertia have less impact on applying new public management practices in the public sector.