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Mariana GHITOIEnterprise and IndustryB2-Europe 2020 and National Competitiveness Policies5 April 2013
Excellence in public administration for competitiveness
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 costs Duration
Fees Staff time Costs due to delays
Costs due to delays or long processing time
of public administration in the
context of interactions with firms
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
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 Outcomes
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
Lack of honesty & transparency
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 sourcesEPA-competitiveness link Unit Data source A) General governance 1) Government effectiveness Index range -2.5 to +2.5, higher values indicate better performance World Bank - Worldwide Governance
Indicators
B) Tools for administrative modernisation 1) Availability of 8 business related E-Government
services % of total of 8 services EC E-Government Benchmarking Reports
2) Use of Evidence-Based Instruments Index 0 to 10, high values indicate intensive reliance Bertelsmann Stiftung - Sustainable Governance Indicators
3) Post-bureaucracy Index Index 0 to 100, high values indicate intensive reliance Demmke and Moilanen (2010)
C) Corruption and fraud 1) Diversion of public funds Index on a scale from 1 (very common) to 7 (never occurs) WEF Global Competitiveness Report 2) Irregular payments and bribes Index on a scale from 1 (very common) to 7 (never occurs) WEF Global Competitiveness Report 3) Experience of corruption % share of respondents reporting an incident EC Special Eurobarometer
D) Starting a business and licensing 1) Fully operational one stop shop to start up a company does not exist =0, does exist = 1 EC - Monitor start-up procedures 2) Time required to start-up a company number of calendar days World Bank – Doing Business 3) Cost to start-up a company % of income per capita World Bank – Doing Business 4) Index of total licensing complexity range 1 to 26, high values indicate high complexity DG Enterprise - Business Dynamics
E) Public procurement 1) Total person-days per individual firm per competition authority days + (firm days * average number of bids) EC - Cost and effectiveness of Public
procurement 2) Typical cost of a competition for firms per competition % of per capital GDP EC - Cost and effectiveness of Public
procurement 3) Average delay in payments from public authorities days Intrum Justitia - European Payment Index
F) Tax compliance and tax administration 1) Time to prepare and file tax returns and to pay taxes hours per year World Bank - Paying Taxes 2) Administrative costs of taxation per 100 units of revenue collection OECD – Tax Administration in OECD and
Selected Non-OECD Countries
G) Efficiency of civil justice 1) Enforcing contracts: Time Calendar days World Bank – Doing Business 2) Enforcing contracts: Cost Percentage of claim World Bank – Doing Business 3) Resolving insolvency: Time Calendar days World Bank – Doing Business 4) Independent judiciary Index from 1 to 7, high values indicate independence WEF - Global Competitiveness Report
The assessment framework (2): links, indicators and data sources
EPA-competitiveness link Unit Data source A) General governance 1) Government effectiveness Index range -2.5 to +2.5, higher values indicate better performance World Bank - Worldwide Governance
Indicators
B) Tools for administrative modernisation 1) Availability of 8 business related E-Government
services % of total of 8 services EC E-Government Benchmarking Reports
2) Use of Evidence-Based Instruments Index 0 to 10, high values indicate intensive reliance Bertelsmann Stiftung - Sustainable Governance Indicators
3) Post-bureaucracy Index Index 0 to 100, high values indicate intensive reliance Demmke and Moilanen (2010)
C) Corruption and fraud 1) Diversion of public funds Index on a scale from 1 (very common) to 7 (never occurs) WEF Global Competitiveness Report 2) Irregular payments and bribes Index on a scale from 1 (very common) to 7 (never occurs) WEF Global Competitiveness Report 3) Experience of corruption % share of respondents reporting an incident EC Special Eurobarometer
D) Starting a business and licensing 1) Fully operational one stop shop to start up a company does not exist =0, does exist = 1 EC - Monitor start-up procedures 2) Time required to start-up a company number of calendar days World Bank – Doing Business 3) Cost to start-up a company % of income per capita World Bank – Doing Business 4) Index of total licensing complexity range 1 to 26, high values indicate high complexity DG Enterprise - Business Dynamics
E) Public procurement 1) Total person-days per individual firm per competition authority days + (firm days * average number of bids) EC - Cost and effectiveness of Public
procurement 2) Typical cost of a competition for firms per competition % of per capital GDP EC - Cost and effectiveness of Public
procurement 3) Average delay in payments from public authorities days Intrum Justitia - European Payment Index
F) Tax compliance and tax administration 1) Time to prepare and file tax returns and to pay taxes hours per year World Bank - Paying Taxes 2) Administrative costs of taxation per 100 units of revenue collection OECD – Tax Administration in OECD and
Selected Non-OECD Countries
G) Efficiency of civil justice 1) Enforcing contracts: Time Calendar days World Bank – Doing Business 2) Enforcing contracts: Cost Percentage of claim World Bank – Doing Business 3) Resolving insolvency: Time Calendar days World Bank – Doing Business 4) Independent judiciary Index from 1 to 7, high values indicate independence WEF - Global Competitiveness Report
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
Data source: World Bank – Worldwide Governance Indicators (2010; 2011)
Government effectiveness
Key areas for assessing the quality of public administration: (2) administrative modernisation
Source: Demmke and Moilanen (2010)
Post-bureaucracy index (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: [email protected]
