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  • 1 Institute for Legal Studies of the Hungarian Academy of Sciences H-1014 Budapest Országház u. 30 Hungary

The paper criticizes the ideology behind New Public Management movement that prefers market to government, private company to public institutions. The study sums up the main arguments of this ideology, based mostly on an overly simplified version of neoclassical economics and attempts to provide a structured inventory of counter arguments. Counter arguments first attack the myth of the general superiority of the market and the firm. Secondly, it is argued that government is different. Thus, even if market and firm were superior these mechanisms still cannot be applied in most parts of government business.

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