GOVERNMENT REFORM IN ITALY
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Transcript of GOVERNMENT REFORM IN ITALY
F. Bassanini Government Reform in Italy
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GOVERNMENT REFORMGOVERNMENT REFORMIN ITALYIN ITALY
Franco BASSANINIMinistro della Funzione Pubblica
della Repubblica Italiana
F. Bassanini Government Reform in Italy2
The calls for ReformThe calls for Reformin the early ninetiesin the early nineties
No government-wide reforms since 1860
Islands of excellence in a sea of general inefficiency
Crucial need to balance the budget and reduce public debt
F. Bassanini Government Reform in Italy3
The calls for ReformThe calls for ReformPublic debt (% of GDP)Public debt (% 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
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Consensus on ReformConsensus on Reform
Public
Businesses
Labor
Parliament
F. Bassanini Government Reform in Italy5
The Tools of ReformThe Tools of Reform
The main “legge delega” n. 59 of 1997:Parliament gives Government the power to legislate in defined areas, pursuant to the principles set by the law
The “delegificazione” mechanism:substituting primary laws with Government decrees in two main sectors: administrative procedures and organization of public offices
F. Bassanini Government Reform in Italy6
The Areas of ReformThe Areas of Reform Regulatory Reform
Devolution to Local Authorities
Reorganization of Central Government
Civil Service Reform
Performance-oriented public sector management
The new Public Budgeting
A more transparent and comprehensible Government
e-Government
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Regulatory ReformRegulatory Reform1 - the problems1 - the problems
Regulatory inflation:over 35,000 primary laws
Regulatory costs:unnecessary burdens on the public, on businesses and even on the public administrations
Regulatory pollution:ambiguity, contradictions, overlap, layers of rules
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Regulatory ReformRegulatory Reform2 - the Simplification strategy2 - the Simplification strategy
Reducing red tape: a broad strategy of “delegificazione”, deregulation and simplification- more than 180 procedures to be abolished or streamlined,
downgrading the level of regulation- annual “simplification laws”
Simplification tools (examples):- notification- self-declarations- reduction of the number of public Authorities involved in a
procedure- fixed terms to end a procedure- use of “silent consent” mechanism- “conferenza di servizi” (combined services conference)
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Regulatory ReformRegulatory Reform3 - other Better Regulation tools3 - other Better Regulation tools
Codification
Regulatory Impact Analysis
Consultation:the new “Osservatorio per la semplificazione”
(Advisory Body on Simplification)
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Regulatory ReformRegulatory Reform4 - the structures4 - the structures
The Legislative Department in the Prime Minister’s Office:a stronger coordination of each Ministry’s regulatory activity
The new “Regulatory Simplification Unit”:a Central Government specialized Office, exclusively monitoring “regulatory quality”
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Regulatory ReformRegulatory Reform5 - the example of the “One Stop Shop 5 - the example of the “One Stop Shop
for Business”for Business” Since 1999 a single procedure to start up a new business,
replacing 43 authorizations previously needed
Before: 2-5 years to get a final answerNow: normally no more than 3 months, max 11 months
The “conferenza di servizi”: a system to bring together in a single forum all the public Authorities involved in a procedure
The leading role of the Municipality. A new relationship “Municipalities-SME”
An e-structure
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Regulatory ReformRegulatory Reform6 - the international context6 - the international context
Need for coordination at EU level
OECD Regulatory Reform Reviews
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DevolutionDevolution1 – Reconsidering Government’s tasks1 – Reconsidering Government’s tasks
Rethinking Government’s tasks: focus on core-business
The so-called “administrative federalism”
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DevolutionDevolution2 - “horizontal subsidiarity”2 - “horizontal subsidiarity”
Closing unnecessary activities
Outsourcing and/or privatization of activities that can be more efficiently undertaken by the private sector (business and non-profits)
Liberalization of public utilities
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DevolutionDevolution3 - “vertical subsidiarity”3 - “vertical subsidiarity”
Mandatory list of State tasks
Transferring all other tasks to Authorities nearest to citizens and businesses. Local Authorities play an active role in civil and economic growth
Years 1997-1998: identification of tasks to be transferred from central to local Government (Regions, Provinces, Municipalities)
Years 1999-2000: devolution of tasks together with related human and financial resources
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Reorganization ofReorganization ofCentral GovernmentCentral Government1 - the general strategy1 - the general strategy
The first government-wide Reform since 1860: a system up to now grown by “adding layers”
Merging bodies with similar missions; eliminating duplication and segmentation
Reducing the Ministries from 22 (in 1995) to 18 (now) to 12 (in April 2001)
Functions assigned by law; internal organization established by secondary regulation
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Reorganization ofReorganization ofCentral GovernmentCentral Government
2 - reform of the Office of the Prime Minister2 - reform of the Office of the Prime Minister Transferring executive tasks to “sector” administrations
Making the roles of stimulating, guiding and coordinating more effective
Additional specific responsibilities: reforms, regulation, P.A., dialogue with supra- and intra- national Authorities (EU, Regions, Municipalities)
A slimmer but stronger (and more flexible) structure
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Reorganization ofReorganization ofCentral GovernmentCentral Government3 - from 18 to 12 Ministries3 - from 18 to 12 Ministries
I 4 “TRADITIONAL” MINISTRIES
PRESENT ORGANIZATION AFTER THE REFORM
1 - Ministry of Foreign Affairs 1 - Ministry of Foreign Affairs
2 - Ministry of the Interior
- PMO Emergency Management Dept.2 - Ministry of the Interior
3 - Ministry of Grace and Justice 3 - Ministry of Justice
4 - Ministry of Defense 4 - Ministry of Defense
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Reorganization ofReorganization ofCentral GovernmentCentral Government 4 - from 18 to 12 Ministries4 - from 18 to 12 Ministries
II 3 “ECONOMIC” MINISTRIES
PRESENT ORGANIZATION AFTER THE REFORM
5 - Ministry of the Treasury and Budget
6 - Ministry of Finance
5 - Ministry of Economy and Finance
7 - Ministry of Industry, Trade and Crafts
8 - Ministry of Foreign Trade
9 - Ministry of Communications
- PMO Tourism Dept.
6 - Ministry for Production Activities
10 - Ministry of Agricolture 7 - Ministry of Agricolture
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Reorganization ofReorganization ofCentral GovernmentCentral Government5 - from 18 to 12 Ministries5 - from 18 to 12 Ministries
III 2 MINISTRIES “FOR THE TERRITORY”
PRESENT ORGANIZATION AFTER THE REFORM
11 - Ministry of the Environment
12 - Ministry of Public Works (part)
- PMO “Servizi Tecnici” Dept.
8 - Ministry of the Environment and Territory
12 - Ministry of Public Works (part)
13 - Ministry of Transport
- PMO Dept. for Urban Areas
9 - Ministry of Infrastructure and Transport
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Reorganization ofReorganization ofCentral GovernmentCentral Government6 - from 18 to 12 Ministries6 - from 18 to 12 Ministries
IV 3 “SOCIO-CULTURAL” MINISTRIES
PRESENT ORGANIZATION AFTER THE REFORM
14 - Ministry of Employment and Social Security
15 - Ministry of Health
- PMO Dept. of Social Affairs
10 - Ministry of Employment, Health and Social Policies
16 - Ministry of Education
17 - Ministry of Universities and Scientific Research
11 - Ministry of Education, Universities and Research
18 - Ministry of Heritage and Culture
- PMO Dept. of Sport
- PMO Dept. of Entertainment12 - Ministry of Heritage and Culture
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Reorganization ofReorganization ofCentral GovernmentCentral Government77 - Other Reform parts - Other Reform parts
“Junior” Ministers (e.g.: Foreign Trade, Health)
“Agenzie”: non-ministerial bodies with technical and executive tasks
“Central Government Local Offices”: the “aircraft carrier” model
A more flexible, “delegislated”, internal organization: from the traditional “pyramid model” to Departments
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Civil Service ReformCivil Service Reform1 - distinguishing Politics from 1 - distinguishing Politics from
AdministrationAdministration
“Politicians are responsible for Policies”:no more direct involvement in administration
Tasks of political Authority:defining policies and strategies; assessing results; appointing directors general
“Managers are responsible for Administration”:managers are given broader powers, higher salaries but also greater responsibilities (see next)
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Civil Service ReformCivil Service Reform2 - the “privatization” of Civil Service2 - the “privatization” of Civil Service
Civil law for civil servants
Labor Contracts:since 1992-1993 collective bargaining (at national and local level) has progressively replaced law in determining employment conditions of civil servants. The “negoziazione integrativa”.
The ARAN:An Agency to represent the State in labor negotiations
Reform of labor representation
Jurisdiction for civil service disputes:since 1998 has moved from the Administrative to the Civil Courts
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Performance-orientedPerformance-orientedpublic sector managementpublic sector management
1 - the new approach1 - the new approach
Before: a formal/juridical approach to government:compliance with laws and procedures without regard to quality and results
Now: a consumer-oriented approach- service quality and customer satisfaction- new performance control to complement traditional legal control- managers salaries vary depending on position and performance
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Performance-orientedPerformance-orientedpublic sector managementpublic sector management
2 - no more “jobs for life”2 - no more “jobs for life” All managers will be appointed for a fixed term (2
to 7 years)
Managers may be removed for poor performance
5% of all State managers may be chosen from outside the Civil Service
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Performance-orientedPerformance-orientedpublic sector managementpublic sector management
3- the new performance evaluation system3- the new performance evaluation system An annual definition of objectives
An Internal Audit Unit in every Ministry or Agency Strategy and Performance Evaluation
A Central Unit for assessing policy and programme effectiveness
Database with Ministers’ directives and performance indicators
Public Service Charters
Towards quality standards and performance evaluation at European level
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The new Public BudgetingThe new Public Budgeting1 – from financial to economic 1 – from financial to economic
budgetbudget
Before: a segmented spending model
Now: financial allocations matching each Ministry’s targets and responsibilities
Definition in terms of “economic function of expenditure”: clearer justification for spending
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The new Public BudgetingThe new Public Budgeting2 - new expenditure units2 - new expenditure units
The “unità previsionali di base” - new basic budget units
Only one administrative office responsible for each basic unit
New economic budget showing the link between use of resources and achievements
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The new Public BudgetingThe new Public Budgeting3 - spending procedures3 - spending procedures
Drawing up the budget: no more traditional criteria of incremental spending
An effective cost analysis to back the annual finance law and the spending legislation
More effective constraints on Government expenditure bills and parliamentary amendments
New spending procedures
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A comprehensible A comprehensible GovernmentGovernment
The “Manuale di stile” (Style Manual):a practical tool for employees involved in written communication
Simplifying administrative jargon:proposals for the standardization and simplification of the most common official forms
The Bill on “Institutional Communication”
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A transparentA transparentGovernmentGovernment
Since 1990
Administrative Procedure Law n. 241:
access to administrative acts is the rule,
secrecy is the exception
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ee-Government-Government
IT: the best resource for a step change in quality
Electronic signature
Electronic management of administrative documents, procedures and archives
Electronic ID card
An Single Administrative Network
The “Portale Unico”: a single gateway for public administrations
Towards electronic public procurements
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First AchievementsFirst Achievements
Reduction of deficit and public debt Downsizing of the Government Increased efficiency and effectiveness Launch of innovation and simplification strategies Reduction of certificates and bureaucratic
formalities Representation and transparency in labour
negotiations
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First AchievementsFirst Achievements11- personnel cost (% of GDP)- personnel cost (% of GDP)
12
11,6 11,5 11,4
10,810,6 10,5 10,4
10,110,2
12,5
12,712,712,8
10
10,5
11
11,5
12
12,5
13
Source: OECD and Italy DPEF 2000-2003
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First AchievementsFirst Achievements2 - Public Administration deficit (% of GDP)2 - Public Administration deficit (% of GDP)
11,110,1
9,68,5
9,2
7,76,6
2,7 2,71,9 11,5
0,6 0,10
2
4
6
8
10
12
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Source: Italy - DPEF 2000-2003
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First AchievementsFirst Achievements3 - Public debt (% of GDP)3 - Public debt (% of GDP)
Source: Italy - DPEF 2000-2003
98
101,5
108,7
119,1
124,6122,4
118,7114,9
124,9
125,3
100
104,6
112,9109,4
95
100
105
110
115
120
125
130
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First AchievementsFirst Achievements4 - Public Administration revenues4 - Public Administration revenues
and primary expenditures ( and primary expenditures (% of GDP)% of GDP)
35
37
39
41
43
45
47
1990 1998
35
37
39
41
43
45
47
1990 1998
ItalyEU
CURRENT REVENUES TOTAL PRIMARY EXPEND.
Source: ISTAT and EU Commission
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First First AchievementsAchievements 5 - Certificate decrease per year5 - Certificate decrease per year
19961998
1999
68.630.268
49.884.104
34.797.235
0
10.000.000
20.000.000
30.000.000
40.000.000
50.000.000
60.000.000
70.000.000
Source: Department of Public Function
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First AchievementsFirst Achievements
6 - Certificate decrease in 17 cities : Jan/1996-Jan/20006 - Certificate decrease in 17 cities : Jan/1996-Jan/2000
-28,57%
-42,52%
-48,43%-53,25%
-54,71%-56,57%
-65,8% -66,23%-70%
-55,98%-56,28%
-68,92%-67,18%-66,48%-71,54%
-79,85%
-85,93%
-62,21%
0
10
20
30
40
50
60
70
80
90
100
Source: Department of Public Function
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First AchievementsFirst Achievements
7 - Certified signature decrease per year7 - Certified signature decrease per year
19961998
1999
35.186.550
20.199.919
7.426.909
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000
Source: Department of Public Function
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First AchievementsFirst Achievements
8 – Reform knowledge8 – Reform knowledge
Source: Department of Public Function
No - 15,1
Yes - 84,9
Do you know Bassanini’s reform?
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First AchievementsFirst Achievements
9 – Reform evaluation9 – Reform evaluation
Source: Unicab - Sole 24 Ore 6.3.2000
No 24,9
Yes Partially
31,7
Yes 36,1
Don't know 7,3
Has the Bassanini’s reform improved the functionality of the local government?
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The Future of the ReformThe Future of the Reform The crucial phase of implementation
Communicationinformation sharing and involvement to maintain a general consensus on the Reform
Trainingto improve awareness among the main interpreters of the Reform: Regional and Local Government, public managers and employees
The “EURO example”Italy is a country capable of finding hidden human resources to face the most difficult tasks. The “Maastricht approach”