A governmental tradition is a set of beliefs about the institutions and his
tory of government. In this article I argue the Anglo-Saxon governmental tr
adition interprets public sector reform differently to the Rechtsstaat, par
ticipation tradition of Denmark, leading to different aims, measures and ou
tcomes. In the Introduction, I define NPM arguing that is has become everyt
hing and is, therefore a meaningless term. I identify six dimensions to pub
lic sector reform: privatization, marketization, corporate management, regu
lation, decentralization and political control. In section 2, I describe th
e six dimensions of public sector reform in Britain and Denmark. In section
3, I explain the idea of a governmental tradition and argue the idea is es
sential to understanding the differences between Britain and Denmark. In se
ction 4, I compare British and Danish governmental traditions, arguing the
key differences lie in beliefs about the constitution, bureaucracy and stat
e-civil society relations. Finally, I provide a summary explanation of the
differences and argue that traditions not only shape the aims, measures and
outcomes of public sector reform but also lead to different interpretation
s of reform and its dilemmas. In Britain, the key dilemma concerns central
steering capacity. In Denmark, the main dilemma is democratic accountabilit
y.