This paper argues that effective public administration, especially when development is the goal, requires "hybridity", that is the synergistic integration of three basic modes of control: 1) bureaucratic capacity built on meritocratic recruitment, professional norms, predictable, rewarding careers, and coordinated organizational structures; 2) "market signals" which convey costs and benefits, facilitate the efficient allocation of resources, and provide "fiscal discipline" to make sure that goals remains consistent with available means; 3) "bottom-up" democratic participation to ensure that administrative goals reflect the needs and desires of ordinary citizens and that administrative processes are transparent and accountable. Over the past three decades, State reform has focused mainly on escaping the perceived predominance of the first principle of control (classic bureaucratic capacity) by increasing reliance on the second principal of control (responsiveness to market signals), the balance necessary to maintain effective hybridity is being lost. In order to secure performance from public institutions that will reduce corruption, improve the delivery of essential collective goods and generate increasing well-being for ordinary citizens, re-balancing is essential. This entails more realistic assessments of the contribution of market signals, a greater appreciation of the gains that can be realized from investing in traditional bureaucratic capacity, and a search for innovative ways of increasing the ability of ordinary citizens to enforce transparency and accountability. The biggest (but potentially most rewarding) challenge to the "new public manager" is to find ways of collaborating in the construction of mechanisms for deliberative democratic control.