The changing role of the state and reinventing institutions bring about new challenges. This article explores worldwide experience in tackling the combined goal of service improvement and fiscal responsibility. The existing threats to political stability have made that activities are designed to ensure stability rather than to meet social needs. Paradoxically, however, the expectations are rising, especially due to global communication networks. Therefore, services are placed under more pressure.
Service has to be improved by using the best techniques of the market and the state.
The private sector can, and should, absorb large shares of service provision from the state. This causes a dilemma for the state to reduce its own activities and on the other hand to face an ever-increasing public demand for services. Management requirements are needed as well to support service provision. A strategic analysis is needed to clarify what constitutes public services, who are their providers, their purchasers, and the end-users. Some argue that the state should loose its monopolies on not-well functioning social services, while others want to protect the institutions.