1. Excellence in public administration for competitiveness
Mariana GHITOI
Enterprise and Industry
B2-Europe 2020 and National Competitiveness Policies
5 April 2013

2. Content What is the context?
What is the link between public administration and competitiveness?
How do we assess the quality of public administration?

3. Context

4. What is the link between public administration and competitiveness?
Direct channels of transmission
Cost channel
(in interaction of firms with public administration
Uncertainty channel (in interaction of firms with public administration
Direct costs
Duration
Direct costs
Duration
Outcomes
Fees
Staff time
Costs due to delays
Lack of honesty & transparency
Fees resulting from all different kinds of application and registration processes and compliance
Costs through staff time induced by red tape, reporting obligations, complex bureaucratic procedures and in the case of appealings
Costs due to delays or long processing time of public administration in the context of interactions with firms
Effects of uncertainty due to the lack of prior knowledge about total inputs needed to obtain the desired service
Effects due to uncertainty about the total duration necessary to obtain the desired service
Effects of a lack of accountability of public officials and uncertainty due to the possible influence of corruption and lobbying

5. What is the link between public administration and competitiveness?
Indirect channels of transmission
Allocation of public funds
Efficiency in public goods provision
Cost of public administration
Efficiency in identifying needs and composition of provided public goods (for a given number of outputs and inputs)
Cost efficiency of public administration in provision of services and public goods (outputs relative to inputs)
Total amount of taxes and resources used by public administration for service provision

6. The assessment framework (1): links, indicators and data sources

7. The assessment framework (2): links, indicators and data sources

8. Assessing the quality of public administration: overall profile - Ireland

9. Assessing the quality of public administration: overall profile - Lithuania

10. Key areas for assessing the quality of public administration: (1) general governance
Government effectiveness
Data source: World Bank – Worldwide Governance Indicators (2010; 2011)

11. Key areas for assessing the quality of public administration: (2) administrative modernisation
Post-bureaucracy index (2010)
Source: Demmke and Moilanen (2010)

12. Key areas for assessing the quality of public administration: (3) starting a business & licensing
Data source: European Commission based on the pilot survey ‘Business Dynamics: Start-ups, Business Transfers and bankruptcy”, January This was carried out in 2010 with a limited number of respondents (2 in the case of Malta), which may have skewed the results. An extended survey will be carried out in 2013.

13. Where can you find more information?
Report on Member States' Competitiveness Performance and Policies:
Study "Excellence in public administration for competitiveness in EU Member States":
Report "Trends and Challenges in Public Sector Innovation in Europe":
Contact: