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

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

Context

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

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

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

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

Assessing the quality of public administration: overall profile - Ireland

Assessing the quality of public administration: overall profile - Lithuania

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

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

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 2011. 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.

Where can you find more information? Report on Member States' Competitiveness Performance and Policies: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/monitoring-member-states/index_en.htm Study "Excellence in public administration for competitiveness in EU Member States": http://ec.europa.eu/enterprise/policies/industrial-competitiveness/monitoring-member-states/improving-public-administration/index_en.htm Report "Trends and Challenges in Public Sector Innovation in Europe": http://ec.europa.eu/enterprise/policies/innovation/policy/public-sector-innovation/index_en.htm Contact: ENTR-EU2020-AND-NATIONAL-COMP-POL@ec.europa.eu