Management consultants are brought into government to model public organizations after what is perceived to be the corporate sector's more legitimate or superior management model. This chapter uses the “varieties of capitalism” approach to study the management consulting industry. In making government more “business-like,” consultants in “liberal” market economies transfer into the public sector governance arrangements and practices different from those found in “coordinated” market economies. Consultants assume a greater share of public management functions in “liberal” than in “coordinated” market economies, and New Public Management ideas intended to make government more “business-like” have had more impact in countries associated with the former than the latter model of capitalism. This link is not a mere coincidence but, rather, a reflection of the institutional complementarities between managerial practices in business and government organizations in modern political economies.
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