Public sector reform in the Latin American and Caribbean region—issues and contrasts
| Published date | 01 October 1996 |
| DOI | http://doi.org/10.1002/(SICI)1099-162X(199610)16:4<397::AID-PAD896>3.0.CO;2-# |
| Date | 01 October 1996 |
| Author | MALCOLM D. ROWAT |
PUBLIC ADMINISTRATION AND DEVELOPMENT, VOL. 16,3974
1
(1996)
Public sector reform in the Latin American and Caribbean
region-issues and contrasts
MALCOLM
D.
ROWAT
World
Bank,
USA
SUMMARY
Public sector reform in both Latin American and Caribbean countries has become a high
priority for governments in their search for a new role for the state. Common principles have
included the objective to privatize,
or
contract out services
or
responsibilities where the private
sector has a comparative advantage while at the same time improving government efficiency in
areas that are considered core government functions at different levels of government. These
include integrated government financial management, social security and social safety nets, tax
administration, provision of basic services (education and health), legal/regulatory reform,
and judicial enforcement. Guiding principles in all countries have been predictability,
transparency and accountability. While the degree of reform has varied amongst countries,
there are a number of distinguishing features of the Commonwealth Caribbean that set its
public sector reform experience apart from that of Latin America. These include the legacy of
a professional civil service, long-standing democratic institutions and an active civil society,
the relatively small size
of
the countries, and the emphasis on rule of law that can help explain
some of the differences in the reform paths taken. Nevertheless, government ownership and
commitment to public sector reform has been shown to be the most important element in
determining results within the Latin American and Caribbean region.
INTRODUCTION
A majority of countries in Latin America have made major strides in effecting the
transition to market economies through economic liberalization and structural
reform, including rethinking the role of the state in economic development. In the
main development model pursued by Latin American countries after World War 11,
the state was the director of development, the protector
of
industry, the owner
of
enterprises, the dispenser of subsidies, and an important provider of jobs, needed or
not. While such state-directed development had a number of successes to its credit,
including the generation of a reasonably robust rate of economic growth in a number
of
countries, there is increasing recognition that the ability
of
central government to
deliver core services is declining, and that Latin American public sectors are
overextended, overly centralized, inefficient and ineffective.
State reforms can be divided into two stages. The first, driven by fiscal crises,
centres on macroeconomic and balance-of-payments adjustment, the restructuring of
Malcolm D. Rowat is Chief, Public Sector Modernisation Latin America and Caribbean Region, World
Bank, 1818
H
Street
NW,
Washington
DC
20433,
USA.
CCC 0271-2075/96/040397-15
0
1996 by John Wiley
&
Sons, Ltd.
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