Excellence in public administration for
competitiveness
Ruth Paserman
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
Uncertainty channel
(in interaction of firms with public administration
(in interaction of firms with public administration
Direct costs
Fees
Fees resulting
from all different
kinds of
application and
registration
processes and
compliance
Duration
Staff time
Costs due to delays
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
Direct costs
Duration
Outcomes
Lack of honesty
& transparency
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
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)
Cost of public
administration
Total amount
of taxes and resources
used by public
administration for
service provision
The assessment framework (1): links, indicators and data sources
EPA-competitiveness link
Unit
Data source
Index range -2.5 to +2.5, higher values indicate better performance
World Bank - Worldwide Governance
Indicators
% of total of 8 services
EC E-Government Benchmarking Reports
Index 0 to 10, high values indicate intensive reliance
Index 0 to 100, high values indicate intensive reliance
Bertelsmann Stiftung - Sustainable
Governance Indicators
Demmke and Moilanen (2010)
Index on a scale from 1 (very common) to 7 (never occurs)
Index on a scale from 1 (very common) to 7 (never occurs)
% share of respondents reporting an incident
WEF Global Competitiveness Report
WEF Global Competitiveness Report
EC Special Eurobarometer
does not exist =0, does exist = 1
number of calendar days
% of income per capita
range 1 to 26, high values indicate high complexity
EC - Monitor start-up procedures
World Bank – Doing Business
World Bank – Doing Business
DG Enterprise - Business Dynamics
1) Total person-days per individual firm per competition
authority days + (firm days * average number of bids)
2) Typical cost of a competition for firms per competition
% of per capital GDP
3)
days
EC - Cost and effectiveness of Public
procurement
EC - Cost and effectiveness of Public
procurement
Intrum Justitia - European Payment Index
A) General governance
1) Government effectiveness
B) Tools for administrative modernisation
1)
Availability of 8 business related
services
2) Use of Evidence-Based Instruments
E-Government
3) Post-bureaucracy Index
C) Corruption and fraud
1) Diversion of public funds
2) Irregular payments and bribes
3) Experience of corruption
D) Starting a business and licensing
1) Fully operational one stop shop to start up a company
2) Time required to start-up a company
3) Cost to start-up a company
4) Index of total licensing complexity
E) Public procurement
Average delay in payments from public authorities
F) Tax compliance and tax administration
1) Time to prepare and file tax returns and to pay taxes
2) Administrative costs of taxation
hours per year
per 100 units of revenue collection
World Bank - Paying Taxes
OECD – Tax Administration in OECD and
Selected Non-OECD Countries
Calendar days
Percentage of claim
Calendar days
Index from 1 to 7, high values indicate independence
World Bank –
World Bank –
World Bank –
WEF - Global
G) Efficiency of civil justice
1) Enforcing contracts: Time
2) Enforcing contracts: Cost
3) Resolving insolvency: Time
4) Independent judiciary
Doing Business
Doing Business
Doing Business
Competitiveness Report
The assessment framework (2): links, indicators and data sources
EPA-competitiveness link
Unit
Data source
Index range -2.5 to +2.5, higher values indicate better performance
World Bank - Worldwide Governance
Indicators
% of total of 8 services
EC E-Government Benchmarking Reports
Index 0 to 10, high values indicate intensive reliance
Index 0 to 100, high values indicate intensive reliance
Bertelsmann Stiftung - Sustainable
Governance Indicators
Demmke and Moilanen (2010)
Index on a scale from 1 (very common) to 7 (never occurs)
Index on a scale from 1 (very common) to 7 (never occurs)
% share of respondents reporting an incident
WEF Global Competitiveness Report
WEF Global Competitiveness Report
EC Special Eurobarometer
does not exist =0, does exist = 1
number of calendar days
% of income per capita
range 1 to 26, high values indicate high complexity
EC - Monitor start-up procedures
World Bank – Doing Business
World Bank – Doing Business
DG Enterprise - Business Dynamics
1) Total person-days per individual firm per competition
authority days + (firm days * average number of bids)
2) Typical cost of a competition for firms per competition
% of per capital GDP
3)
days
EC - Cost and effectiveness of Public
procurement
EC - Cost and effectiveness of Public
procurement
Intrum Justitia - European Payment Index
A) General governance
1) Government effectiveness
B) Tools for administrative modernisation
1)
Availability of 8 business related
services
2) Use of Evidence-Based Instruments
E-Government
3) Post-bureaucracy Index
C) Corruption and fraud
1) Diversion of public funds
2) Irregular payments and bribes
3) Experience of corruption
D) Starting a business and licensing
1) Fully operational one stop shop to start up a company
2) Time required to start-up a company
3) Cost to start-up a company
4) Index of total licensing complexity
E) Public procurement
Average delay in payments from public authorities
F) Tax compliance and tax administration
1) Time to prepare and file tax returns and to pay taxes
2) Administrative costs of taxation
hours per year
per 100 units of revenue collection
World Bank - Paying Taxes
OECD – Tax Administration in OECD and
Selected Non-OECD Countries
Calendar days
Percentage of claim
Calendar days
Index from 1 to 7, high values indicate independence
World Bank –
World Bank –
World Bank –
WEF - Global
G) Efficiency of civil justice
1) Enforcing contracts: Time
2) Enforcing contracts: Cost
3) Resolving insolvency: Time
4) Independent judiciary
Doing Business
Doing Business
Doing Business
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
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
120
Average number of days to obtain licences in Europe (2010)
100
80
60
40
20
0
CZ
UK
IT
LV
FR
BE
FI
SK
HU
NL
EE
PL
LU
EU
AT
SE
SI
IE
EL
DE
PT
DK
LT
RO
BG
CY
MT
ES
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-publicadministration/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