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PUBLIC ADMINISTRATION REFORM IN ITALY Franco BASSANINI Minister for Public Administration Third Global Forum Naples, March 15-17, 2001 www.funzionepubblica.it

PUBLIC ADMINISTRATION REFORM IN ITALY

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PUBLIC ADMINISTRATION REFORM IN ITALY. Franco BASSANINI Minister for Public Administration Third Global Forum Naples, March 15-17, 2001 www.funzionepubblica.it. The need for Reform in the early nineties. An obsolete administration: no government-wide reforms since 1865 - PowerPoint PPT Presentation

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Page 1: PUBLIC ADMINISTRATION REFORM  IN ITALY

PUBLIC ADMINISTRATION REFORM IN ITALY

Franco BASSANINIMinister for Public Administration

Third Global Forum

Naples, March 15-17, 2001

www.funzionepubblica.it

Page 2: PUBLIC ADMINISTRATION REFORM  IN ITALY

The need for Reformin the early nineties

• An An obsoleteobsolete administration: no government-wide administration: no government-wide reforms since 1865reforms since 1865

• An An inefficientinefficient administration: islands of administration: islands of excellence in a sea of general inefficiencyexcellence in a sea of general inefficiency

• A A costlycostly administration: crucial need to balance administration: crucial need to balance the budget and reduce public debtthe budget and reduce public debt

Page 3: PUBLIC ADMINISTRATION REFORM  IN ITALY

The need for Reformpublic debt up to 1994 (% of GDP)

57,7 59,964,9

70

86,390,5 92,6

124,9

101,598

108,7

119,1

82,3

75,2

95,6

55

65

75

85

95

105

115

125

135

Source: Italy - Ministry of the Treasury

Page 4: PUBLIC ADMINISTRATION REFORM  IN ITALY

Calls for Reform

The need for change drives large calls for The need for change drives large calls for Reform and consequently a large consensus Reform and consequently a large consensus among:among:

PublicPublic

BusinessBusiness

LaborLabor

Parliament Parliament (a bipartisan reform)(a bipartisan reform)

Page 5: PUBLIC ADMINISTRATION REFORM  IN ITALY

The Tools of Reform

• A broad A broad “delegating law” (“delegating law” (legge delegalegge delega)) n. 59 of 1997: n. 59 of 1997:Parliament delegates Government the power to adopt “legislative decrees” (primary level regulation) in defined areas, pursuant to the principles set by the law

• The The ““delegislationdelegislation” (” (delegificazione)delegificazione) mechanism: mechanism:Parliament authorizes Government to substitute primary laws with Governmental decrees (secondary level regulation) in two main sectors: administrative procedures and organization of public offices

Page 6: PUBLIC ADMINISTRATION REFORM  IN ITALY

The Main Areas of Reform

• Devolution, outsourcing Devolution, outsourcing and “administrative and “administrative federalism”federalism”

• Reorganization of Central Reorganization of Central GovernmentGovernment

• Civil Service ReformCivil Service Reform

• A performance-oriented A performance-oriented public sector managementpublic sector management

• Simplifying regulatory and Simplifying regulatory and administrative burdensadministrative burdens

• The new Public BudgetingThe new Public Budgeting

• A more transparent and A more transparent and comprehensible Governmentcomprehensible Government

• ee-Government-Government

Page 7: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutiona leaner but more efficient State

Horizontal subsidiarity - focusing Horizontal subsidiarity - focusing Government on its core business:Government on its core business:

closingclosing unnecessary Government activities unnecessary Government activities

outsourcingoutsourcing and/or privatizing activities that can and/or privatizing activities that can be more efficiently undertaken by the private sector be more efficiently undertaken by the private sector (business and non-profit organizations) (business and non-profit organizations)

liberalizationliberalization of public utilities of public utilities

Page 8: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolution liberalization and privatization

• Liberalization. Some examples:Liberalization. Some examples: 110 fixed telecommunication licenses and 86 operators instead of 110 fixed telecommunication licenses and 86 operators instead of Telecom Telecom

Italia Italia monopolymonopoly unbundling of local loop from end 2000unbundling of local loop from end 2000 ENELENEL control of electricity market: from 90% in 1990 to less than 40% in 2003 control of electricity market: from 90% in 1990 to less than 40% in 2003 Liberalization of commercial activities and 30 other productive activities (no Liberalization of commercial activities and 30 other productive activities (no

more licenses or authorizations)more licenses or authorizations)

• Privatization of public utilities: Privatization of public utilities: ENI, BNL, INA, ENEL, Telecom, ENI, BNL, INA, ENEL, Telecom, AlitaliaAlitalia, , AutostradeAutostrade … …world largest privatization program (total revenue up to end 1999: 91 billion world largest privatization program (total revenue up to end 1999: 91 billion Euro)Euro)

Page 9: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutionrevenues from privatization in OECD countries

(1993 - 1999)89,1

61,6 60,0 57,5

35,028,7

22,1

7,0 6,8

US

billi

on $

Page 10: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutiontotal stock mkt cap/GDP

The privatization program has contributed fostering the growth of the Italian equity market

7766,4

45,7

30,8

20,618,417,915,111,5

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

(fe

b.)

Page 11: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutionstrengthening local Governments

• Strengthening Strengthening stabilitystability of local Governments of local Governmentsdirect election of Mayors (since 1993), Presidents of Provinces (1993), Presidents of Regions (2000)

• Strengthening Strengthening financial autonomyfinancial autonomy of local Governments: the of local Governments: the “fiscal “fiscal federalism”federalism”transformation of State financial transfers to Local Authorities into local taxation or participation in main State taxes (VAT, Income tax…)

• Strengthening Strengthening sovereigntysovereignty of Local Governments of Local Governmentstransferring general legislative powers to Regions (constitutional bill approved by the Parliament)

• Strengthening Strengthening efficiencyefficiency of Local Administrations of Local Administrationsreform of control mechanisms, “city managers”, local public managers chosen also from private sector, salaries linked to performance

Page 12: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutionthe “administrative federalism”

• 19971997: law n. 59 identifies a mandatory list of State tasks and : law n. 59 identifies a mandatory list of State tasks and plans the devolution of all other tasks to Regions, Provinces plans the devolution of all other tasks to Regions, Provinces and Municipalitiesand Municipalities

• 1997-19981997-1998: five “legislative decrees” identify in detail the : five “legislative decrees” identify in detail the tasks to be transferred from central to local Governmenttasks to be transferred from central to local Government

• 1999-20001999-2000: 97 Prime Minister decrees transfer groups of : 97 Prime Minister decrees transfer groups of tasks together with related human resources (23.000 units) and tasks together with related human resources (23.000 units) and financial resources (18.6 billion Euro)financial resources (18.6 billion Euro)

• January 1January 1stst, 2001, 2001: end of devolution process: end of devolution process

Page 13: PUBLIC ADMINISTRATION REFORM  IN ITALY

Devolutionopinions of the public

Has the “Bassanini reform” improved the efficiency of local Governments?

Yes 36,1

Yes, in part 31,7

No 24,9

Doesn't know

7,3

Page 14: PUBLIC ADMINISTRATION REFORM  IN ITALY

Reorganization of Central Governmentthe general strategy

• The first government-wide Reform The first government-wide Reform since 1865since 1865: a system up to now : a system up to now grown only by “adding layers”grown only by “adding layers”

• Merging bodiesMerging bodies with similar missions; eliminating duplication and with similar missions; eliminating duplication and segmentationsegmentation

• Functions assigned by law; internal organization established by a Functions assigned by law; internal organization established by a more more flexibleflexible secondary regulation. End of the traditional “pyramid model” for secondary regulation. End of the traditional “pyramid model” for MinistriesMinistries

• Reducing the MinistriesReducing the Ministries from 22 (in 1995) to 18 (present) to 12 from 22 (in 1995) to 18 (present) to 12• Introducing “Introducing “AgenciesAgencies”: non-ministerial bodies with technical and ”: non-ministerial bodies with technical and

executive tasksexecutive tasks

• ““Central Government Local Offices”: merging several State local offices Central Government Local Offices”: merging several State local offices into into a single “a single “interministerialinterministerial” body” body

Page 15: PUBLIC ADMINISTRATION REFORM  IN ITALY

Reorganization of Central Governmentreform of the Prime Minister’s Office

• Making the role of stimulating, guiding and coordinating more effectiveMaking the role of stimulating, guiding and coordinating more effective

• A leaner but stronger, more flexible structureA leaner but stronger, more flexible structure

• Additional specific responsibilities of P.M.O.:Additional specific responsibilities of P.M.O.:• Government reform, regulation, P.A., dialogue with supra- and intra- national Authorities (EU, Regions, Municipalities)

Transferring all other executive tasks Transferring all other executive tasks to “sector” administrationsto “sector” administrations

Page 16: PUBLIC ADMINISTRATION REFORM  IN ITALY

Reorganization of Central Governmentfrom 18 to 12 Ministries

1 – Ministry of Foreign Affairs1 – Ministry of Foreign Affairs2 – Ministry of the Interior2 – Ministry of the Interior3 – Ministry of Justice3 – Ministry of Justice4 – Ministry of Defense4 – Ministry of Defense

5 – Ministry of Economy5 – Ministry of Economyand Finance and Finance

-- MinistryMinistry of the Treasury and Budgetof the Treasury and Budget- Ministry of Finance- Ministry of Finance

6 – 6 – Ministry for Ministry for Production ActivitiesProduction Activities

- Ministry of Industry, Trade and Crafts- Ministry of Industry, Trade and Crafts- Ministry of Foreign Trade- Ministry of Foreign Trade- Ministry of CommunicationsMinistry of Communications- P.M.O. Tourism Dept.P.M.O. Tourism Dept.

7 – Ministry of Agriculture7 – Ministry of Agriculture

Page 17: PUBLIC ADMINISTRATION REFORM  IN ITALY

Reorganization of Central Governmentfrom 18 to 12 Ministries

8 – Ministry of the 8 – Ministry of the Environment and Environment and Protection of the TerritoryProtection of the Territory

- Ministry of Environment- Ministry of Environment - Ministry of Public Works (part)Ministry of Public Works (part)- P.M.O. “Servizi Tecnici” Dept.P.M.O. “Servizi Tecnici” Dept.

9 – Ministry of Infrastructure9 – Ministry of Infrastructureand Transportand Transport

- Ministry of Public Works (part)Ministry of Public Works (part)- Ministry of TransportMinistry of Transport- P.M.O. Dept. for Urban AreasP.M.O. Dept. for Urban Areas

12 - 12 - Ministry of Heritage Ministry of Heritage and Cultureand Culture

10 - Ministry of Employment, 10 - Ministry of Employment, Health and Social PoliciesHealth and Social Policies

- Ministry of Employment and Social Security- Ministry of Employment and Social Security- Ministry of Health- Ministry of Health- P.M.O. Dept. of Social AffairsP.M.O. Dept. of Social Affairs

11 - Ministry of Education, 11 - Ministry of Education, Universities and ResearchUniversities and Research

- Ministry of Education- Ministry of Education- Ministry of Universities and Scientific ResearchMinistry of Universities and Scientific Research

- Ministry of Heritage and Culture- Ministry of Heritage and Culture- P.M.O. Dept. of Sport- P.M.O. Dept. of Sport- P.M.O. Dept. of Entertainment- P.M.O. Dept. of Entertainment

Page 18: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplificationthe problems

• Regulatory inflation:Regulatory inflation:over 35,000 primary laws (of State and Regions)

• Regulatory costs:Regulatory costs:unnecessary burdens on the public, on businesses and even on public administrations

• Regulatory pollution:Regulatory pollution:ambiguity, contradictions, overlapping, layers of rules generate uncertainty on the existing law

Page 19: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplificationthe tools

• ““Self-declarationsSelf-declarations”” replace more than 95% of the certificates replace more than 95% of the certificates

• “ “Notification of the beginning of an activity”Notification of the beginning of an activity” and and silent consentsilent consent (in 194 cases) replace authorizations and licenses(in 194 cases) replace authorizations and licenses

• One “One “conferenza di serviziconferenza di servizi”” ( (combined services conferencecombined services conference) ) replaces many administrative actsreplaces many administrative acts

• Few Few consolidated textsconsolidated texts replace thousands of laws and decrees replace thousands of laws and decrees

• Annual simplification lawsAnnual simplification laws enabling government to abolish or enabling government to abolish or simplify existing procedures, authorizations and licenses.simplify existing procedures, authorizations and licenses.

Page 20: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplificationsome initial results

207207 procedures ruled by primary law have already been “delegislated” procedures ruled by primary law have already been “delegislated” (ready to be abolished or simplified by Government decree)(ready to be abolished or simplified by Government decree)

9191 procedures already simplified by Government (50% in the year procedures already simplified by Government (50% in the year 2000, with the support of the new central unit). They include the one-2000, with the support of the new central unit). They include the one-stop-shops for: new productive plants, car drivers, import-export tradestop-shops for: new productive plants, car drivers, import-export trade

88 consolidated texts drafted (on local Governments, cultural heritage, consolidated texts drafted (on local Governments, cultural heritage, administrative documentation, building activities, expropriations, administrative documentation, building activities, expropriations, university, civil service, justice expenses); 4 of them already in forceuniversity, civil service, justice expenses); 4 of them already in force

relevant progress in regulatory capacity shown by the draft report of relevant progress in regulatory capacity shown by the draft report of the OECD regulatory reviewthe OECD regulatory review

Page 21: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplification# of certificates issued per year

Source: Italy – Department f Public Administration

70.641.741

51.661.396

31.800.000

1996 1998 2000

Page 22: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplification# of certified signatures issued per year

38.200.000

5.900.000

1996 2000

Page 23: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplification annual savings for certificates and certified signatures

1128

544527

savings 1998 savings1999 savings2000

mil

lio

n e

uro

s

Page 24: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplificationa specific policy on regulatory reform

• Regulatory impact analysisRegulatory impact analysisto measure the cost of new regulations on the public and business

• A central “Regulatory Simplification Unit”A central “Regulatory Simplification Unit”a task force of 65 experts and staff in P.M.O., exclusively monitoring “regulatory quality”, drafting simplification decrees and consolidated texts

• ConsultationConsultationthe “Osservatorio per la semplificazione”: a consultative body with representatives from Ministries, Regions, Local Authorities and social parties

Page 25: PUBLIC ADMINISTRATION REFORM  IN ITALY

Progress in regulatory capacity indicators, 1998-2000

0

20

40

60

80

100

Transparency Use ofRegulatory

Impact Analysis

Structureddecision

processes

Index of reviewactivity

Communicationof regulatoryrequirements

ITA-1998

ITA-2000

Source: OECD, Public Management Directorate, 2000.

Page 26: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplificationthe opinion of the public

Do you know that in most cases all you need is a self-declaration?

Do you think it is useful?

92%

8%

yes

no

92%

8%

yes

no

Source: ISPO

Page 27: PUBLIC ADMINISTRATION REFORM  IN ITALY

Simplification – the one-stop-shop example“not only a single access, but also a single answer”

• Since 1999Since 1999 a single procedure to start up a new business, a single procedure to start up a new business, replacing 43 authorizations previously needed replacing 43 authorizations previously needed

• BeforeBefore: 2-5 years to get a final answer: 2-5 years to get a final answer

• NowNow: normally no more than 3 months in most cases, max 11 : normally no more than 3 months in most cases, max 11 monthsmonths

(average time: 57 days in a sample of 100 operational one stop shops)(average time: 57 days in a sample of 100 operational one stop shops)

• One single office to deal with businesses and a new role for One single office to deal with businesses and a new role for Municipalities in the development of their territoryMunicipalities in the development of their territory

• An An ee-structure, accessible through the net-structure, accessible through the net

Page 28: PUBLIC ADMINISTRATION REFORM  IN ITALY

One stop shops

• Average duration of proceedings in 100 one stop Average duration of proceedings in 100 one stop shopsshops

56,6 days from the presentation of the request

• one stop shops realised one stop shops realised (data by 30/06/2000)

37,8% of Municipalities with 59,5% of residents

• Turn-key contract for the supply ofTurn-key contract for the supply of 109 one stop 109 one stop shops shops serving 785 municipalitiesserving 785 municipalities

Page 29: PUBLIC ADMINISTRATION REFORM  IN ITALY

One stop shops The difficultiesThe difficulties• Half of the municipalities is not equipped with it (40%

of the Italian population)• Lack of collaboration of many central and local

administrations

The answersThe answers• Simplification, acceleration, a unique proceeding and a

unique person in charge• Government action plan for spreading and improving

one stop shops

Page 30: PUBLIC ADMINISTRATION REFORM  IN ITALY

A performance-orientedpublic administration

the new approach• BeforeBefore: a formal/juridical approach to government:: a formal/juridical approach to government:

compliance with laws and procedures without regard to quality and results

• NowNow: a consumer-oriented approach: a consumer-oriented approach quality service and customer satisfaction new performance control complementing traditional legal control public service charters promoting professional growth: a special training program

• Public administration “close to citizens and businesses”:Public administration “close to citizens and businesses”: favors the allocation of investment capital acquires relevance “beyond the national borders” partially sheds its authoritative nature

Page 31: PUBLIC ADMINISTRATION REFORM  IN ITALY

A performance-orientedpublic administration

the new public management

• An interministerial body of public managers, with few An interministerial body of public managers, with few exceptionsexceptions

• AAccess by ccess by concours, concours, a formal competitive examinationa formal competitive examination((no more than 5% of managers may be chosen from outside the Civil no more than 5% of managers may be chosen from outside the Civil Service for a fixed term)Service for a fixed term)

• No more “jobs for life”: individual contracts (fixed term: 2-7 No more “jobs for life”: individual contracts (fixed term: 2-7 years) determine assignment, duties and salariesyears) determine assignment, duties and salaries

• Managers’ salaries vary depending on responsibilities and Managers’ salaries vary depending on responsibilities and performancesperformances

Page 32: PUBLIC ADMINISTRATION REFORM  IN ITALY

The high civil service payment system

• BeforeBefore: no distinctions in the salaries of high civil servants considering the position and the performances

• Now: salaries taking into account the responsabilities and the achievement of the results.

Page 33: PUBLIC ADMINISTRATION REFORM  IN ITALY

Relationship between fixed and variable salary before and after the reform

(head officers of local administrations)

fixed 60%

variable 40%

fixed 95%

variable 5%

Before d.lgs 29/93 After the CCNL

Page 34: PUBLIC ADMINISTRATION REFORM  IN ITALY

A performance-orientedpublic administration

the Resistances

• Administrations and judges still show a legalistic and Administrations and judges still show a legalistic and statist culturestatist culture

• The defence of irremovability and irresponsibility of top The defence of irremovability and irresponsibility of top civil servants in the name of administrative neutralitycivil servants in the name of administrative neutrality

• The fear of the spoils system (it exists in the USA, but not The fear of the spoils system (it exists in the USA, but not in Italy…)in Italy…)

• The refusal of the culture of evaluation and meritThe refusal of the culture of evaluation and merit

Page 35: PUBLIC ADMINISTRATION REFORM  IN ITALY

Civil Service Reformdistinguishing Politics from Administration

• «Politicians are responsible for Policies»:«Politicians are responsible for Policies»:Ministers define policies and strategies, assess results, appoint general directors but have no further direct involvement in administration

• «Public managers are responsible for Administration»:«Public managers are responsible for Administration»:public managers are given broader powers but also greater responsibilities, and higher salaries linked to results and performance

Page 36: PUBLIC ADMINISTRATION REFORM  IN ITALY

Civil Service Reformthe “privatization” of Civil Service

• Civil law for civil servantsCivil law for civil servantspublic administration has the same powers as private sector employers

• Jurisdiction for civil service disputesJurisdiction for civil service disputessince 1998 transferred from the Administrative to the Civil Courts

Page 37: PUBLIC ADMINISTRATION REFORM  IN ITALY

Civil Service Reformthe “contractualization” of Civil Service

• Labor Contracts:Labor Contracts: collective bargaining (at national and local levels) replaced the law in

determining employment conditions, salaries and tasks. The “integrative negotiation”

promoting efficiency and professionalism through individual integrative contracts

• «A.R.A.N.»«A.R.A.N.»an Agency created to represent the State in labor negotiations in place of the Minister (but following Government guidelines)

• Reform of labor representationReform of labor representationfor each public sector (Ministries, Education, Health …) bargaining with the State is allowed only to those Unions having more than 5% of the consensus in that sector

Page 38: PUBLIC ADMINISTRATION REFORM  IN ITALY

Civil Service Reformthe Resistances

Strong contradictions and incoherencies remain in:Strong contradictions and incoherencies remain in:

• The behaviour of Trade Unions:The behaviour of Trade Unions: the choice, in principle, in favour of professionalism and merit, responsibility

and decentralisation is sometimes contradicted

• The behaviour of Politicians, administrators and public The behaviour of Politicians, administrators and public managers:managers: no global vision in salary increases strong defence of privileges and of the “maze of charges”

• Parliament choices:Parliament choices: The choice, in principle, in favour of collective bargaining, meritocracy and

quality is contradicted by the constant enactment of rules creating favouritism: “ope legis” promotions, permanent hiring without concours of pro-tempore workers etc.

Page 39: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgetingfrom financial to economic budget

• BeforeBefore: a segmented spending model with more than : a segmented spending model with more than

6.000 expenditure units6.000 expenditure units

• NowNow: about 1.000 basic budget units, matching each : about 1.000 basic budget units, matching each Ministry’s target and responsibilityMinistry’s target and responsibility

• Only one administrative office responsible for each Only one administrative office responsible for each basic unitbasic unit

• New economic budget showing the link between the use New economic budget showing the link between the use of resources and achievementsof resources and achievements

Page 40: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgeting new spending procedures

• Drafting the budget: no longer the traditional criteria of Drafting the budget: no longer the traditional criteria of incremental spendingincremental spending

• An effective An effective cost analysiscost analysis to back the annual financing law to back the annual financing law and the spending legislationand the spending legislation

• More effective More effective constraintsconstraints on Government expenditure bills on Government expenditure bills and parliamentary amendmentsand parliamentary amendments

• An An electronic mandateelectronic mandate

• Towards a permanent electronic market for public purchases Towards a permanent electronic market for public purchases

• Planning hiringPlanning hiring of civil servants of civil servants

Page 41: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgetingpublic sector personnel cost (% of GDP)

12

11,6 11,5 11,4

10,8 10,710,5

9,1

10,2

9,5

9,8

12,5

12,712,712,8

9

9,5

10

10,5

11

11,5

12

12,5

13

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: OECD and Italy DPEF 2000-2003

Page 42: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgeting public deficit (% of GDP)

-11,1

-9,2

-7,7-6,6

1,3

-8,5

-9,6-10,1

-1,9-2,8

-2,7 -1-1,3 -0,70,2

-12

-10

-8

-6

-4

-2

0

2

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: ISTAT and Italy DPEF 2000-2003

Page 43: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgeting public debt (% of GDP)

98

101,5

108,7

119,1

124,6122,4

118,7

95

114,9

124,9

125,3

99,7

103,5

112,1

106,6

94

99

104

109

114

119

124

129

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Source: ISTAT and Italy DPEF 2000-2003

Page 44: PUBLIC ADMINISTRATION REFORM  IN ITALY

The new public budgeting primary expenditure in Italy and EU (% of GDP)

37

38

39

40

41

42

43

44

45

1990

37

38

39

40

41

42

43

44

45

1998

ItalyEU

Source: ISTAT and European Commission

Page 45: PUBLIC ADMINISTRATION REFORM  IN ITALY

e-Government

• IT: the best resource for a leap forward in quality changeIT: the best resource for a leap forward in quality change

• 6,2 bill. Euro for investments in 2000-20026,2 bill. Euro for investments in 2000-2002

• Electronic ID card (under experiment)Electronic ID card (under experiment)

• electronic public procurementselectronic public procurements• «Electronic Revenue Service»: 100% income tax returns (33 «Electronic Revenue Service»: 100% income tax returns (33

millions per year) are filed and reviewed electronicallymillions per year) are filed and reviewed electronically

• Land Register (80% of documents Land Register (80% of documents are filed and reviewed are filed and reviewed electronically)electronically)

• Electronic signature (having legal value from 1998): more than Electronic signature (having legal value from 1998): more than 1 million signatures already certified by 8 companies1 million signatures already certified by 8 companies

Page 46: PUBLIC ADMINISTRATION REFORM  IN ITALY

The Italian Action Plan fore-Government

• Citizens will obtain any public service by simply Citizens will obtain any public service by simply applying to any front-office administration in chargeapplying to any front-office administration in charge

• Citizens will communicate variations in their personal Citizens will communicate variations in their personal information to the administration only onceinformation to the administration only once

• Each administration will be able to gather the Each administration will be able to gather the information needed, wherever stored (all public information needed, wherever stored (all public services on line)services on line)

• All the public services for which it is technically All the public services for which it is technically possible will be delivered on linepossible will be delivered on line

Page 47: PUBLIC ADMINISTRATION REFORM  IN ITALY

Action Plan points

• Information portals

• Portals for supply of services

• National networks

• Local administrations on line

• Integration of personal data

• National index of personal data

• Exchange of information system for local land-registries

• Electronic identity cards• Promotion of digital

signatures• Informatic Protocols• e-procurement• Foundation courses• Specialist courses

Page 48: PUBLIC ADMINISTRATION REFORM  IN ITALY

Global Forum On Reinventing Government

• Italy organises the III Global Forum On Reinventing Government.

• The Global Forum will be held in Naples from the 15th to the 17th of March 2001 and the delegations of more than 100 countries are going to participate.

• Following Italy’s proposal the theme of the Global Forum will be: Fostering democracy and development through e-government.

Page 49: PUBLIC ADMINISTRATION REFORM  IN ITALY

Towards “a common European space for public services”(the principles)

• the organization of different administrative systems is an exclusive prerogative of the EU Member States (the EC Treaties do not deal with public administrations)

• it is indispensable to establish homogenous standards of administrative actions at European level

Page 50: PUBLIC ADMINISTRATION REFORM  IN ITALY

Towards “a common European space for public services”

(the reasons)The quality of the regulation and administrative

action is relevant for:

• the competitiveness of Europe

• the effectiveness of the Internal Market (the competition can be altered by “bureaucratic costs”)

• the rights of the European citizens

Page 51: PUBLIC ADMINISTRATION REFORM  IN ITALY

Towards “a common European space for public services”(the first steps)

• Letter from the Italian and Spanish Ministers of Public Administration to their European colleagues (December 1997) Indication of a first set of themes: quality of regulation and simplification of the procedures; training of high civil servants; definition of performance indicators for public services

• Conference of Manchester on Better Government with a more effective regulation (March 1998)

• European conference of the Ministers responsible for administrative reforms and public administrations (November 1998) Decisions on: benchmarking; exchange of best practices; comparison of quality of administrations; European training of civil servants

Page 52: PUBLIC ADMINISTRATION REFORM  IN ITALY

Towards “a common European space for public services”

(recent developments)

• The European Council of Lisbon (March 2000):underlines that the administrative action and the quality of regulation are important factors of growth for the employment and for the creation of wealth

• The conference of Lisbon (May 2000): illustration of initiatives to activate mechanisms of benchmarking and exchange of best practices, as well as for the creation of a Common Assessment method

• The European Council of Feira (June 2000) underlines the role of public administrations and the importance of better regulation for the competitiveness of the Union and its Member States. The “eEurope 2002” is approved

Page 53: PUBLIC ADMINISTRATION REFORM  IN ITALY

The “common European space for public services(The Strasbourg meeting - November 2000)

The EU Ministers of Public Administration:• recognise the importance of a “co-ordinated modernisation effort”,

and the building up of a “European space for quality in public services”;

• agree on the necessity of organising regular ministerial meetings and participating in the Internal Market Council meetings;

• adopt specific resolutions on social dialogue, e-government, quality of regulation and quality and benchmarking of public services in the EU.

The European Council of Nice recalled the resolutions of Strasbourg encouraging their implementation

Page 54: PUBLIC ADMINISTRATION REFORM  IN ITALY

The Future of Reform

The crucial phase of implementationThe crucial phase of implementationthe Reform has almost been achieved in its laws the Reform has almost been achieved in its laws

and decrees, but laws alone cannot change citizens’ and decrees, but laws alone cannot change citizens’ liveslives

What are now the main challenges?What are now the main challenges?

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The Future of Reform

Changing the cultureChanging the culture

Acquiring and disseminating new approaches:Acquiring and disseminating new approaches: to technological and organizational to technological and organizational innovationinnovation to to simplificationsimplification (releasing unnecessary administrative (releasing unnecessary administrative

burdens)burdens) to quality of service and to quality of service and performanceperformance to citizen-to citizen-user satisfactionuser satisfaction to rewarding to rewarding professionalismprofessionalism and and meritmerit to promoting, encouraging and to promoting, encouraging and energizingenergizing citizens and citizens and

businessesbusinesses

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CommunicationCommunication

disseminating anddisseminating and

sharing information to sharing information to

explain to citizens their new rightsexplain to citizens their new rights

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Investing on Public AdministrationInvesting on Public Administration

in in trainingtraining, to improve knowledge and , to improve knowledge and awareness of the main interpreters of the Reformawareness of the main interpreters of the Reform

in in ITIT, to exploit the enormous opportunities of , to exploit the enormous opportunities of digital revolutiondigital revolution

in in financial incentivesfinancial incentives, to promote quality of , to promote quality of services and professional growthservices and professional growth

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The «The «MaastrichtMaastricht approach» approach»

EURO example: Italy is a country capable EURO example: Italy is a country capable of finding hidden human resources to of finding hidden human resources to

face the most difficult tasksface the most difficult tasks