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Crisis and State Reform: voltage productive or unproductive?



Last week I attended the conference manager Echebarría Koldo Inter-American Development Bank (IDB) delivered at ESADE and echoed by some media .



then transcribe the notes I took during the same to share them with you. Obviously reflect their views, not mine.



Crisis, "cyclical or structural?

What seems clear is that accelerating trends, eg GDP moving to emerging countries.

1. We face a long process of debt reduction, with the added difficulty that depends greatly accelerate "expectations" that are not good.


2. has been a failure in some policies (eg heating of the housing sector) and a failure to articulate the relationship between state and market.


3. There is a lack of global governance, the G20 is a timid step forward, but do not expect great results from him by nature.


4. fiscal constraints that are devoted developed in Spain is complicated by the impact of health and pension.


5. Reforms should be oriented to grow.


6. Markets are more concerned with the quality (reliability) of "politics" in countries where the functioning of their institutions.

What is our business public in this context?

1. We have a medium sized public sector-low (data provided in this regard, especially those comparing% of public employees labor force or total population).


2. The% of spending in Chapter I on public expenditure is the highest in the OECD, ie, public salaries (average) in Spain are relatively high (later clarified that this result came from the impact of the civil half numbers was In connection with high salaries to other countries.


3. hours agreed in agreements and working arrangements have been significantly reduced in recent years ..


4. addition, according to World Bank studies (09) have a lower administrative effectiveness than would be expected by our level of wealth.


5. Other diseases (according to Government at a Glace , 09 OECD) in terms of people, little delegation (flexibility), management closed and reinforced (usually with access to top career), without institutionalizing professional leadership role.


6. His conclusion: Not a problem the size of our public sector, but their productivity, efficiency and management structures.

reform models

a) Reform via adjustment (non-reform). Different possibilities:

• "package" of measures for costs and / or income (which is made in Spain) is the most primary. It is shown that a 1% reduction in expenditure on GDP implies a reduction of 0.5% growth. Settings


• selective about spending less efficient (which is done in UK) is more complex politically because the choice of those items to cut is subject to a government strategy. Freeze


• sustained wear items and purchasing power of families (eg inflation).

problems: weak state capacity, discourages the public and undermines the professional.

b) Reform "efficiency":

• deepen fiscal governance. Set


• regulatory limits on spending.


• establish independent bodies of budgetary control. Settings


• expense in terms of policy outcomes.

Problem: The usual rules establishing its cyclical low adaptive capacity.

c) Market Reform:

• partially privatized, in the strict sense of selling public assets.


• Establish copayments (increase revenues, and streamlining the application)

Problem: the difficulty of defining clearly the role of the state to transfer some of its functions to the market and the risk of replacing public monopolies monopolies / oligopolies

private

d) Reform of public sector internal workings:

• Agencialización: standardize results, resource allocation, accountability. Institutionalization


• professional public address.

coalitions necessary actors

Faced with the ongoing confrontation between the coalition that is making the adjustment (governments, markets, tax bureaucrats-actors-part global opinion makers) and opposing to it (public-voters-professional users, some creators of User Input) claimed as necessary to cross that brings together coalition governments, fiscal bureaucrats on one side with a citizen-user-voters more "empowered" by one of chief and sub-coalitions public professionals who want a change and believe this is possible.