Edited by Sabine Kuhlmann · Isabella Proeller Dieter Schimanke · Jan Ziekow Public Administration in Germany Governance and Public Management Series Editor Paul Joyce INLOGOV University of Birmingham Birmingham, UK IIAS Series: Governance and Public Management International Institute of Administrative Sciences (IIAS) – Setting the Governance Agenda Worldwide Website: http://www.iias-iisa.org Edited by Paul Joyce To cover the diversity of its members, the IIAS has set up four sub-entities: – The EGPA (European Group for Public Administration) – The IASIA (International Association of Schools and Institutes of Administration) – The LAGPA (Latin American Group for Public Administration) – The AGPA (Asian Group for Public Administration) Governance and Public Management Series This IIAS series of books on Governance and Public Management has a focus and breadth that reflects the concerns of the International Institute of Administrative Sciences. The Institute, which was set up in 1930, involves academics and governments from all around the world. The Institute’s work involves supporting both practitioners and academics, which it does by encouraging the production of relevant knowledge on public governance and public management and by facilitating its dissemi- nation and utilization. It is the intention of the series to include books that are forward-look- ing, have an emphasis on theory and practice, are based on sound under- standing of empirical reality, and offer ideas and prescriptions for better public governance and public management. This means the books will include not only facts about causes and effects, but also include ideas for actions and strategies that have positive consequences for the future of public governance and management. The books will offer a point of view about responses to the big challenges facing public governance and man- agement over the next decade, such as sustainable development, the cli- mate crisis, technological change and artificial intelligence (A.I.), poverty, social exclusion, international cooperation, and open government. All books in the series are subject to Palgrave’s rigorous peer review pro- cess: https://www.palgrave.com/gb/demystifying-peer-review/792492 More information about this series at http://www.palgrave.com/gp/series/15021 Sabine Kuhlmann • Isabella Proeller Dieter Schimanke • Jan Ziekow Editors Public Administration in Germany ISSN 2524-728X ISSN 2524-7298 (electronic) Governance and Public Management ISBN 978-3-030-53696-1 ISBN 978-3-030-53697-8 (eBook) https://doi.org/10.1007/978-3-030-53697-8 © The Editor(s) (if applicable) and The Author(s) 2021. This book is an open access publication. 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The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Editors Sabine Kuhlmann University of Potsdam Potsdam, Germany Dieter Schimanke Ministry of Labour, Women, Health, Social Affairs of the German Land Saxony-Anhalt Magdeburg, Germany Isabella Proeller University of Potsdam Potsdam, Germany Jan Ziekow German Research Institute for Public Administration Speyer, Germany v Governments act in an increasingly multilateral and international environ- ment. However, making this cooperation work still depends heavily upon the capacities of national administrations. In many cases, their basic pro- files have been shaped by long traditions, while others have undergone a process of transformation. In the context of the European Union, it is vital for member states to realize that European policies work effectively only when public administration is able to meet all new challenges. As an aid to understanding how we act, we decided to offer to the international public administration community an up-to-date edition of articles presenting and analysing the German system, including recent challenges and reforms. We have chosen the context of the European Public Administration Network (EUPAN), a forum for EU intergovernmental cooperation which includes member states and the European Commission, for launch- ing the open access version of the book. The fora and this book consider the basis and standards for an effective and efficient public administration that is citizen-oriented and fosters trust in public institutions. This can support European initiatives for improving the implementation of public programmes and cooperation in the first place between the EU and its member states. In the international community of public administration scholars and practitioners, there is a growing need for knowledge and information, analyses, reviews and evaluations of present-day Germany’s administrative system and recent reforms. German researchers and practitioners are often asked for a publication to meet this need, especially in the arena of the International Institute of Administrative Sciences (IIAS) and its regional F oreword vi FOREWORD institution, the European Group of Public Administration (EGPA), as well as in the world-wide public administration projects of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The pres- ent volume is intended to respond to research and teaching needs and to provide information on the actual practices and reforms. No English-language publication about the German administrative sys- tems has been on the market since 2001, when the German Section of the IIAS successfully met the demand for such a publication nearly 20 years after the first, published in 1983. However, as these two works were pro- duced before and after German unification, much of their content is now outdated and in need of major revision. 1 I am grateful to all the authors represented in this volume, who are leading academics and practitioners in the field and who cooperated with great enthusiasm to bring forth the new edition within a short period of time. They all take full responsibility for the content they have contributed. The German Section of the International Institute of Administrative Sciences is deeply grateful to Professor Sabine Kuhlmann (Potsdam), Professor Isabella Proeller (Potsdam), State Secretary Dieter Schimanke (ret., Magdeburg/Hamburg) and Professor Jan Ziekow (Speyer) for developing the idea for this publication and realizing it together with a group of high-level experts in the German public administration. State Secretary, Federal Ministry of the Interior, Building and Community President, German Section of the IIAS Hans-Georg 1. See König, K., von Oertzen, H.J., Wagener, F. (eds.) (1983). Public Administration in the Federal Republic of Germany. Deventer: Kluwer. König, K., Siedentopf, H. (eds.) (2001). Public Administration in Germany. Baden-Baden: Nomos. N ote vii We would like to thank the German Section of the International Institute of Administrative Sciences (IIAS) for their confidence in the editors in launching this book project and for their support throughout the process of writing. We very much enjoyed working with the twenty-seven contrib- uting authors and would like to express our appreciation to all of them for their dedication and enthusiasm in bringing this volume together. The fact that we were able to finish this project in less than two years is a testament to their commitment and discipline. Our gratitude also goes to the German Corporation for International Cooperation ( Deutsche Gesellschaft für Internationale Zusammenarbeit— GIZ) for their generous support in the publishing of this book. GIZ is a state-owned service provider in the field of international cooperation for sustainable development in all continents. It is specialized, inter alia, in public sector reforms, administrative transformation and civil society par- ticipation. This publication is also intended to support the activities of GIZ and serve as a possible reference model for institution building and policy advice in different country contexts. Furthermore, we owe special thanks to the German Federal Government, specifically the Federal Ministry of the Interior, Building and Community ( Bundesministerium des Innern, für Bau und Heimat— BMI). Besides co- sponsoring the publication project (Open Access version), some of the contributing authors are also affiliated to the ministry. The twenty-two chapters of the book, though each taking a specific perspective topic-wise, are based on a common understanding of the main characteristics, attributes and approaches as well as the most relevant A ckNowledgemeNts viii ACKNOWLEDGEMENTS reforms of German public administration. To achieve this understanding and develop a coherent framework for the chapters required intensive communication and interaction between the editors and the authors. In this regard, we would like to extend our thanks to the German County Association ( Deutscher Landkreistag— DLT) for hosting an authors’ work- shop, which provided an opportunity for in-depth discussion of the book concept and the individual chapters. Editing is a hard job and bringing the manuscripts into their final for- mat for publishing is not an easy task. The editors relied very much on the excellent support of Tomás Vellani for overall publication management and Pearl Wallace for language editing. They are deeply indebted to them. Finally, we would like to express our gratitude to the IIAS, particularly to Fabienne Maron as the IIAS Scientific Director, to our publisher, Palgrave, and above all to Paul Joyce as the IIAS Publication Director, for their interest and unwavering support in publishing this book in the ‘Governance and Public Management’ series. Hamburg, Potsdam and Speyer Sabine Kuhlmann, Isabella Proeller, Dieter Schimanke, Jan Ziekow “Public Administration in the Western sphere, and beyond, wouldn’t be what it is without the German legal tradition of the ‘Rechtsstaat’, or Max Weber’s ‘bureau- cracy’. This book shows not only the foundations of the German system. It also explains, comprehensively and convincingly, how the German ‘model’ is trans- forming and adjusting to current and future challenges, while keeping solid prin- ciples of rule of law, democracy, and welfare state. Therefore, this book is a lighthouse for all those studying PA and reforming systems.” —Geert Bouckaert, Professor, Public Governance Institute, KU Leuven, Belgium, and Past-President of the International Institute of Public Administration (IIAS) “Everything you always wanted to know about public administration in the coun- try which fathered modern bureaucracy! This book is the indispensable reading for those students, scholars and practitioners who seek to understand the fascinating administrative engine under the hood of the political, social and economic success of contemporary Germany.” —Jean-Michel Eymeri-Douzans, Professor, University Science Po Toulouse, France. President of the European Group of Public Administration (EGPA) “This book is an awesome attempt, covering such significant issues as the historical underpinnings, inter-governmental relationships and other pragmatic policy prob- lems that Germany is currently facing. We ought to congratulate German academ- ics for their successful compilation of this outstanding volume.” —Akira Nakamura, Distinguished Professor Emeritus, School of Political Science and Economics, Meiji University, Tokyo, Japan, and Past-President of the Asian Association for Public Administration (AAPA) “Our global understanding of public administration begins one country at a time. I am therefore pleased to welcome publication of this book. It is an authoritative resource for anyone seeking to understand German systems, particularly ‘outsid- ers’ like me. This book will be the standard reference for German administrative systems for decades.” —James L. Perry, Distinguished Professor Emeritus, Paul H. O’Neill School of Public and Environmental Affairs, Indiana University, Bloomington, USA Praise for Public Administration in Germany xi 1 German Public Administration: Background and Key Issues 1 Sabine Kuhlmann, Isabella Proeller, Dieter Schimanke, and Jan Ziekow Part I German Public Administration in the Multilevel System 15 2 Constitutional State and Public Administration 17 Karl-Peter Sommermann 3 Administrative Federalism 35 Nathalie Behnke and Sabine Kropp 4 Europeanisation and German Public Administration 53 Hans Hofmann 5 Federal Administration 61 Julia Fleischer 6 The Federal Administration of Interior Affairs 81 Hans-Heinrich von Knobloch c oNteNts xii CONTENTS 7 The Peculiarities of the Social Security Systems (Indirect State Administration) 91 Dieter Schimanke 8 The Administration of the Länder 105 Ludger Schrapper 9 Local Self-Government and Administration 123 Kay Ruge and Klaus Ritgen Part II Politics, Procedures and Resources 143 10 Politics and Administration in Germany 145 Werner Jann and Sylvia Veit 11 Administrative Procedures and Processes 163 Jan Ziekow 12 Control and Accountability: Administrative Courts and Courts of Audit 185 Veith Mehde 13 Civil Service and Public Employment 205 Christoph Reichard and Eckhard Schröter 14 Public Finance 225 Gisela Färber Part III Redrawing Structures, Boundaries and Service Delivery 251 15 Transformation of Public Administration in East Germany Following Unification 253 Hellmut Wollmann xiii CONTENTS 16 Administrative Reforms in the Multilevel System: Reshuffling Tasks and Territories 271 Sabine Kuhlmann and Jörg Bogumil 17 Institutional Differentiation of Public Service Provision in Germany: Corporatisation, Privatisation and Re-Municipalisation 291 Benjamin Friedländer, Manfred Röber, and Christina Schaefer 18 Participatory Administration and Co-production 311 Stephan Grohs Part IV Modernizing Processes and Enhancing Management Capacities 329 19 Digital Transformation of the German State 331 Ines Mergel 20 The Federal Ministerial Bureaucracy, the Legislative Process and Better Regulation 357 Sabine Kuhlmann and Sylvia Veit 21 Human Resource Management in German Public Administration 375 John Siegel and Isabella Proeller 22 Public Management Reforms in Germany: New Steering Model and Financial Management Reforms 393 Isabella Proeller and John Siegel Glossary 411 xv N otes oN c oNtributors Nathalie Behnke is professor and head of the working group ‘Public Administration, Public Policy’ at the Institute of Political Science, Technical University of Darmstadt. Her research is located at the intersec- tion of public administration, comparative federalism and multilevel gov- ernance with a focus on coordination within and among governments. Friederike Bickmann is research associate at the German Research Institute for Public Administration. Her areas of research comprise, inter alia, public participation and regarding open government especially open government data. Jörg Bogumil is Professor of Public Administration, Local and Regional Politics at the Ruhr University in Bochum and member of the Council of Administration of the International Institute of Administrative Sciences. His areas of research include public administration, local government and regional politics, specially the modernization of the public sector. Gisela Färber is Professor of Public Finance at the German University of Administrative Sciences and Senior Fellow and Director of the Research Centre for Civil Service at the German Research Institute for Public Administration in Speyer. Her areas of research include all fields of public finance, particularly civil service reforms, fiscal federalism and impact assessment. Zarina Feller is research associate at the German Research Institute for Public Administration. Her main areas of scientific interest are economic sociology and digital media. xvi NOTES ON CONTRIBUTORS Julia Fleischer is Professor and Chair in German Politics and Government at the University of Potsdam. Her research addresses comparative public administration and governance, particularly organizational behaviour and the digital transformation of public sectors. Benjamin Friedländer is postdoctoral researcher at the Institute of Public Administration and Management at the Helmut Schmidt University/University of the Armed Forces Hamburg. His areas of research include local government, local public sector reforms and the coordination of public and third sector organizations. Stephan Grohs is Professor of Political Science at the German University of Administrative Sciences Speyer and Senior Fellow at the German Research Institute for Public Administration. His areas of research include comparative and international public administration, local government and policy implementation in different policy areas (welfare, planning and environment). Hans Hofmann is Director-General (‘Ministerialdirektor’) for Public Law, Constitutional Law and Administrative Law at the Federal Ministry of the Interior, Building and Community. He is Honorary Professor at the Law Faculty of the Humboldt-University, Berlin. He is co-editor of com- mentaries on the German constitution and on the Chancellery and Federal Government. Werner Jann is Professor Emeritus of Political Science, Administration and Organization at University of Potsdam. His main areas of research and teaching include public sector organization, administration and public policy, governance and better regulation. Sabine Kropp is Professor of Political Science at the Freie Universität Berlin. Her areas of research include German and comparative federalism, public administration, parliamentarism and regional politics in Eastern Europe, especially in Russia. Sabine Kuhlmann is Professor of Political Science, Public Administration and Organization at University of Potsdam, Germany, Vice President of the IIAS for Western Europe and Vice-Chair of the National Regulatory Control Council of the German Federal Government. Her areas of research include comparative public administration, public sector reforms, better regulation and local government. xvii NOTES ON CONTRIBUTORS Veith Mehde is Professor of Public Law and Administrative Science at the Law Faculty of Leibniz University Hannover. His research interests include administrative law as well as administrative reforms and their legal aspects. Ines Mergel is Professor of Public Administration at the University of Konstanz and a fellow of the National Academy of Public Administration (NAPA, Class of 2018). Her research focuses on digital transformation and innovation management in government. Jan Porth is a research associate at the Institute for Regulatory Impact Analysis and Evaluation within the consultancy branch of the German Research Institute for Public Administration. His areas of research include the digital transformation of the public sector, public finance and local government. Isabella Proeller is Professor of Public and Nonprofit Management at the University of Potsdam. Her areas of research comprise public manage- ment reforms, strategic management and performance-oriented control in public administration. Christoph Reichard is Professor Emeritus of Public Management at the University of Potsdam. His research covers for instance public personnel management, public financial management and performance management. Klaus Ritgen is Head of the Division of Constitutional Law at the German County Association. Manfred Röber is Professor Emeritus of Public Management at the University of Leipzig and Professor of Business Administration at the Andrássy University Budapest. His areas of research include public man- agement, organization theory and administrative reform. Kay Ruge is Head of the Department of Administrative Organization and Deputy (‘Beigeordneter’) at the German County Association. Christina Schaefer is Professor of Public Administration and Management at the Helmut Schmidt University/University of the Armed Forces Hamburg. Her areas of research include public financial management, public decision-making and public corporate governance. Dieter Schimanke was Professor of Public Administration at the Helmut- Schmidt-University in Hamburg. He became Secretary of State in a state in East Germany after unification (Saxony-Anhalt). Since his retirement, xviii NOTES ON CONTRIBUTORS he is Senior Expert in projects of GIZ on reforms of Public Administration (mainly in Eastern Europe and Asia). Ludger Schrapper is Head of Legal Affairs and Teaching Personnel at the Ministry of School and Education of the German Land Northrhine- Westphalia. His special areas of interest are leadership and civil service law. Eckhard Schröter is Professor of Public Administration at the German Police University in Münster. His major research interests are in compara- tive public sector reform, administrative culture, the politics and adminis- tration of public security and representative bureaucracy. Patrick Schweizer is research associate at the Institute for Regulatory Impact Assessment and Evaluation of the German Research Institute for Public Administration in Speyer. His areas of research include impact assessment, especially cost impact assessment and the digitalization of the legislation process. John Siegel is Professor of Public Administration and Management at the Hamburg University of Applied Sciences. He also teaches public man- agement at the University of Potsdam. His areas of research include stra- tegic and resources management in public sector organizations, particularly organizational capabilities, routines and communication. Karl-Peter Sommermann is Professor of Public Law, Political Theory and Comparative Law at the German University of Administrative Sciences Speyer and Senior Fellow at the German Research Institute for Public Administration. His areas of research include German and European Constitutional and Administrative Law, Comparative Law and Protection of Human Rights. Sylvia Veit is Professor of Public Management at the University of Kassel, Germany. Her main areas of research include senior civil servants, bureau- cratic politicization, public sector reform and policy advisory systems. Hans-Heinrichvon Knobloch was Director-General (‘Ministerialdirektor’) for Constitutional and Administrative Law (until 2018) at the Federal Ministry of the Interior, Building and Community (BMI), Berlin xix NOTES ON CONTRIBUTORS Hellmut Wollmann is Professor Emeritus of Public Administration at Social Science Institute of Humboldt-University, Berlin. His main fields of research and publication have been comparative public policy and admin- istration, with a focus on subnational levels. Jan Ziekow is Professor of Public Law and the Director of the German Research Institute for Public Administration. He works on digital mod- ernization of the public sector, reform of local and ministerial administra- tion, citizen participation, sustainable development, better regulation, impact assessment and evaluation, public procurement, regulation of infrastructures, civil service, administrative law. xxi l ist oF F igures Fig. 3.1 Functional division of labour in the federal hierarchy 40 Fig. 5.1 Organisational chart of the federal chancellery as of April 2018 68 Fig. 7.1 The social budget according to the branches of social security (including the five branches of the social security system: illness, occupational accident, personal care, unemployment, pension) 98 Fig. 14.1 The German tax system 236 Fig. 14.2 Volume of loans and securities at the different levels of government 1970–2018 240 Fig. 14.3 Tax revenue, social contributions and public expenditure in relation to GDP 1970–2018 248 xxiii l ist oF t Ables Table 5.1 Chancellor’s organisational decree of 14 March 2018 64 Table 5.2 Federal ministries as of November 2019 67 Table 6.1 Executive agencies of the Ministry of the Interior, Building and Community 85 Table 7.1 Contents of the 12 books of the Social Code 93 Table 7.2 Personnel in administrations on social affairs 94 Table 7.3 Personnel of social security providers (‘indirect public administration’, ‘near governmental units’, Parafisci ) 95 Table 7.4 Social budget 2018—benefits by institutions 96 Table 9.1 Civil service staff 124 Table 9.2 Finances of the communes from 2017 to 2022 126 Table 13.1 Public employment (excluding soldiers) in full-time employment (FTE) by government level and employment category 209 Table 13.2 Public employment (headcount) by career classes or equivalent grades for public employees, excluding soldiers and staff in training 210 Table 14.1 Public expenditure at government level and social insurances in 2018 231 Table 14.2 Public revenue at government level and social insurances in 2018 234 Table 14.3 Distribution of tax revenue between the federal, Länder and local governments 238 Table 14.4 Tax revenue of the different government levels and the EU before and after distribution in 2018 (billion euro) 239 Table 14.5 Public debt tax revenue of the different levels of government and the EU before and after distribution as at end of 2018 242