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Public Sector Reform Revisited in the Context of Globalisation

Executive Summary While only recently, some argued for the roll-back of the State to leave the field to the market and non-governmental organisations, it has now become clear that the public administration has a key role to play to preserve democratic values and promote equity for all. Rebuilding, strengthening or modernising the institutions of the State is a common strategy for all countries to be integrated in the global economy. At this point in the evolution of public sector reform, it appears now that " there are tensions between, on the one hand, concerns for efficiency, market-soundness, deregulation, competition and stabilisation and issues of accountability, representation, participation and equity, on the other. " The current globalisation movement reveals unprecedented levels of exchange (international trade and unparalleled technological innovations), fuelled by levels of consumer demand never previously known, carrying a potential for growth and prosperity transcending any that the world had ever recorded. True globalisation means the ability to study, understand and incorporate different and alternative cultural traditions into a common matrix, with respect for diversity and with an open mind. Such a perspective requires holistic and innovative strategies as well as increased sensitivity in many areas but in particular to look afresh at traditional approaches to public sector reforms which have proved more often than not either limiting in results or a lack of genuine commitment. This paper is divided into three parts. The first part takes stock of the present situation in the various cultural environments where public sector reforms have taken place. The New Public Management in developed English-speaking countries has tried to introduce efficiency, transparency and accountability in a traditional bureaucratic environment. At the same time, measures to monitor budget performance have provided ways to measure results and deliver better services to citizens. At the same time, the European Union has had success with an integration model which still leaves space for central and lower levels of Governments to function effectively. In Eastern and Central Europe, the transition to a market economy has been implemented in stages. Although institutions have gone through dramatic changes, it is already clear that social objectives have suffered in the process. The evolution in Africa has shown that the macroeconomic adjustment reforms of the mid-80s have not produced the expected results. In recent years, the focus has now shifted from retrenchment to capacity building for good governance. One of the most disturbing …