With the opening-up of world markets, many OECD Member countries have come to recognise that governmental efficiency, prudent fiscal policy and rational regulatory processes are prerequisites for competitive economies. Fiscal pressures have forced countries to raise the question of how much of society should be controlled or influenced by government. However, retrenchment of government programmes is extremely difficult, with proposals far exceeding actions. Many countries restrict the growth of programmes rather than question their basic purposes or effectiveness. But such examples are rare.
Sustainability is also a problem.
A number of OECD Member countries have conducted successful deficit elimination efforts, and later let structural budget deficits re-emerge. With differing emphases, keynote speakers from Portugal, the United Kingdom and New Zealand discussed how these problems were being seen and had been addressed. The focus here has so far been primarily on financial management and on budget cycles, on utilising some of the information now becoming available to critically review existing programmes, on the identification of real costs of policies and programmes, on prioritising, on approval processes that place clear limits on expenditure and set clear expectations and outcomes, and yet that allow medium-term planning to occur. Second, the organisation of the actual delivery of services has been reformed to get greater accountability for outcomes against pre-set objectives . The focus on results, on efficiency, effectiveness and quality of service has led to much greater devolution of responsibility on programme managers, regular review of programmes, greater flexibility in ways of achieving outcomes, and, generally, more stringent reporting and accountability arrangements.