government reform in italy: state of the art franco bassanini cabinet minister for public...

48
GOVERNMENT REFORM IN ITALY: GOVERNMENT REFORM IN ITALY: STATE OF THE ART STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC COUNCIL - Rome November 13, 2000 www.funzionepubblica.it

Upload: luke-brewer

Post on 26-Mar-2015

218 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

GOVERNMENT REFORM IN ITALY:GOVERNMENT REFORM IN ITALY:STATE OF THE ARTSTATE OF THE ART

Franco BASSANINI

Cabinet Minister for Public Administration

Italy Today: Public Administration Issues

AD HOC COUNCIL - Rome November 13, 2000

www.funzionepubblica.it

Page 2: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy2

The need for ReformThe need for Reformin the early ninetiesin the early nineties

An An obsoleteobsolete administration: no government-wide administration: no government-wide reforms since 1865reforms since 1865

An An inefficientinefficient administration: islands of administration: islands of excellence in a sea of general inefficiencyexcellence in a sea of general inefficiency

A A costlycostly administration: crucial need to balance administration: crucial need to balance the budget and reduce public debtthe budget and reduce public debt

Page 3: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy3

The need for ReformThe need for Reformpublic debt up to 1994 (% of GDP)public debt up to 1994 (% 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

Page 4: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy4

Calls for ReformCalls for Reform

The need for change drives large calls for The need for change drives large calls for Reform and consequently a large consensus Reform and consequently a large consensus among:among:

PublicPublic

BusinessBusiness

LaborLabor

Parliament Parliament (a bipartisan reform)(a bipartisan reform)

Page 5: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy5

The Tools of ReformThe Tools of Reform

A broad A broad “delegating law” (“delegating law” (legge delega)legge delega) n. 59 of 1997: n. 59 of 1997:Parliament delegates Government the power to adopt “legislative decrees” (primary level regulation) in defined areas, pursuant to the principles set by the law

The The “delegislation” (“delegislation” (delegificazione)delegificazione) mechanism: mechanism:Parliament authorizes Government to substitute primary laws with Governmental decrees (secondary level regulation) in two main sectors: administrative procedures and organization of public offices

Page 6: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy6

The Main Areas of ReformThe Main Areas of Reform Devolution, outsourcing Devolution, outsourcing

and “administrative and “administrative federalism”federalism”

Reorganization of Central Reorganization of Central GovernmentGovernment

Civil Service ReformCivil Service Reform

A performance-oriented A performance-oriented public sector managementpublic sector management

Simplifying regulatory and Simplifying regulatory and administrative burdensadministrative burdens

The new Public BudgetingThe new Public Budgeting

A more transparent and A more transparent and comprehensible Governmentcomprehensible Government

ee-Government-Government

Page 7: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

7 F. Bassanini - Government Reform in Italy

DevolutionDevolutiona leaner but more efficient Statea leaner but more efficient State

Horizontal subsidiarity - focusing Horizontal subsidiarity - focusing Government on its core business:Government on its core business:

closingclosing unnecessary Government activities unnecessary Government activities outsourcingoutsourcing and/or privatizing activities that can and/or privatizing activities that can

be more efficiently undertaken by the private sector be more efficiently undertaken by the private sector (business and non-profit organizations) (business and non-profit organizations)

liberalizationliberalization of public utilities of public utilities

Page 8: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

8 F. Bassanini - Government Reform in Italy

DevolutionDevolution liberalization and privatizationliberalization and privatization

Liberalization. Three examples:Liberalization. Three examples: 110 fixed 110 fixed telecommunicationtelecommunication licenses and 86 operators instead of licenses and 86 operators instead of

Telecom Italia Telecom Italia monopolymonopoly unbundling of local loop from end 2000unbundling of local loop from end 2000 ENELENEL control of control of electricityelectricity market: from 90% in 1990 to less than market: from 90% in 1990 to less than

40% in 200340% in 2003

Privatization of Privatization of public utilitiespublic utilities: : ENI, BNL, INA, ENEL, ENI, BNL, INA, ENEL, Telecom, Alitalia, AutostradeTelecom, Alitalia, Autostrade … …world largest privatization program (total revenue up to end 1999: world largest privatization program (total revenue up to end 1999: approx. 87 billions US Dollars)approx. 87 billions US Dollars)

Page 9: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

9 F. Bassanini - Government Reform in Italy

DevolutionDevolutionrevenues from privatization in OECD countries revenues from privatization in OECD countries

(1993 - 1998)(1993 - 1998)

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

F D I E UK J US C AUS

Millions US Dollars

France (F) 48.530

Germany (G) 15.392

Italy (I) 63.473

Spain (S) 34.441

Un. King. (UK) 28.709

Japan (J) 46.721

USA (US) 3.100

Canada (C) 7.024

Australia (AUS) 45.000

Source: OECD

Page 10: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

10 F. Bassanini - Government Reform in Italy

DevolutionDevolutiontotal stock mkt cap/GDPtotal stock mkt cap/GDP

The privatization program has contributed fostering the growth of the Italian equity market

11,5 15,117,9 18,4 20,6

30,8

45,7

66,4

77

0

10

20

30

40

50

60

70

80

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

(fe

b.)

Page 11: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

11 F. Bassanini - Government Reform in Italy

DevolutionDevolutionstrengthening local Governmentsstrengthening local Governments

Strengthening Strengthening stabilitystability of local Governments of local Governmentsdirect election of Majors (since 1993), Presidents of Provinces (1993), Presidents of Regions (2000)

Strengthening Strengthening financial autonomyfinancial autonomy of local Governments: the of local Governments: the “fiscal “fiscal federalism”federalism”transformation of State financial transfers to Local Authorities into local taxation or participation in main State taxes (VAT, Income tax…)

Strengthening Strengthening sovereigntysovereignty of Local Governments of Local Governmentstransferring general legislative powers to Regions (constitutional bill presented by the Government)

Strengthening Strengthening efficiencyefficiency of Local Administrations of Local Administrationsreform of control mechanisms, “city managers”, local public managers chosen also from private sector, salaries linked to performance

Page 12: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

12 F. Bassanini - Government Reform in Italy

DevolutionDevolutionthe “administrative federalism”the “administrative federalism”

19971997: law n. 59 identifies a mandatory list of State tasks : law n. 59 identifies a mandatory list of State tasks and plans the devolution of all other tasks to Regions, and plans the devolution of all other tasks to Regions, Provinces and MunicipalitiesProvinces and Municipalities

1997-19981997-1998: five “legislative decrees” identify in detail : five “legislative decrees” identify in detail the tasks to be transferred from central to local Governmentthe tasks to be transferred from central to local Government

1999-20001999-2000: Prime Minister decrees transfer groups of : Prime Minister decrees transfer groups of tasks together with related human and financial resourcestasks together with related human and financial resources

January 1January 1stst, 2001, 2001: end of devolution process: end of devolution process

Page 13: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

13 F. Bassanini - Government Reform in Italy

DevolutionDevolutionopinions of the publicopinions of the public

Has the “Bassanini reform” improved the efficiency of local Governments?

Yes 36,1

Yes, in part 31,7

No 24,9

Doesn't know

7,3

Page 14: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

14 F. Bassanini - Government Reform in Italy

Reorganization of Central GovernmentReorganization of Central Governmentthe general strategythe general strategy

The first government-wide Reform The first government-wide Reform since 1865since 1865: a system up to now : a system up to now grown only by “adding layers”grown only by “adding layers”

Merging bodiesMerging bodies with similar missions; eliminating duplication and with similar missions; eliminating duplication and segmentationsegmentation

Functions assigned by law; internal organization established by a Functions assigned by law; internal organization established by a more more flexibleflexible secondary regulation. End of the traditional “pyramid model” for secondary regulation. End of the traditional “pyramid model” for MinistriesMinistries

Reducing the MinistriesReducing the Ministries from 22 (in 1995) to 18 (present) to 12 (in April from 22 (in 1995) to 18 (present) to 12 (in April 2001)2001)

Introducing “Introducing “AgenciesAgencies”: non-ministerial bodies with technical and ”: non-ministerial bodies with technical and executive tasksexecutive tasks

““Central Government Local Offices”: merging several State local offices Central Government Local Offices”: merging several State local offices into into a single “interministerial” bodya single “interministerial” body

Page 15: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

15 F. Bassanini - Government Reform in Italy

Reorganization of Central GovernmentReorganization of Central Governmentreform of the Prime Minister’s Officereform of the Prime Minister’s Office

Making the role of stimulating, guiding and coordinating more effectiveMaking the role of stimulating, guiding and coordinating more effective A leaner but stronger, more flexible structureA leaner but stronger, more flexible structure Additional specific responsibilities of P.M.O.:Additional specific responsibilities of P.M.O.:Government reform, regulation, P.A., dialogue with supra- and intra- national Authorities (EU, Regions, Municipalities)

Transferring all other executive tasks Transferring all other executive tasks to “sector” administrationsto “sector” administrations

Page 16: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

16 F. Bassanini - Government Reform in Italy

Reorganization of Central GovernmentReorganization of Central Governmentfrom 18 to 12 Ministriesfrom 18 to 12 Ministries

1 – Ministry of Foreign Affairs1 – Ministry of Foreign Affairs2 – Ministry of the Interior2 – Ministry of the Interior3 – Ministry of Justice3 – Ministry of Justice4 – Ministry of Defense4 – Ministry of Defense

5 – Ministry of Economy5 – Ministry of Economyand Finance and Finance

-- MinistryMinistry of the Treasury and Budgetof the Treasury and Budget- Ministry of Finance- Ministry of Finance

6 – 6 – Ministry for Ministry for Production ActivitiesProduction Activities

- Ministry of Industry, Trade and Crafts- Ministry of Industry, Trade and Crafts- Ministry of Foreign Trade- Ministry of Foreign Trade- Ministry of CommunicationsMinistry of Communications- P.M.O. Tourism Dept.P.M.O. Tourism Dept.

7 – Ministry of Agriculture7 – Ministry of Agriculture

Page 17: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

17 F. Bassanini - Government Reform in Italy

Reorganization of Central GovernmentReorganization of Central Governmentfrom 18 to 12 Ministriesfrom 18 to 12 Ministries

8 – Ministry of the 8 – Ministry of the Environment and Environment and Protection of the TerritoryProtection of the Territory

- Ministry of Environment- Ministry of Environment - Ministry of Public Works (part)Ministry of Public Works (part)- P.M.O. “Servizi Tecnici” Dept.P.M.O. “Servizi Tecnici” Dept.

9 – Ministry of Infrastructure9 – Ministry of Infrastructureand Transportand Transport

- Ministry of Public Works (part)Ministry of Public Works (part)- Ministry of TransportMinistry of Transport- P.M.O. Dept. for Urban AreasP.M.O. Dept. for Urban Areas

12 - 12 - Ministry of Heritage Ministry of Heritage and Cultureand Culture

10 - Ministry of Employment, 10 - Ministry of Employment, Health and Social PoliciesHealth and Social Policies

- Ministry of Employment and Social Security- Ministry of Employment and Social Security- Ministry of Health- Ministry of Health- P.M.O. Dept. of Social AffairsP.M.O. Dept. of Social Affairs

11 - Ministry of Education, 11 - Ministry of Education, Universities and ResearchUniversities and Research

- Ministry of Education- Ministry of Education- Ministry of Universities and Scientific ResearchMinistry of Universities and Scientific Research

- Ministry of Heritage and Culture- Ministry of Heritage and Culture- P.M.O. Dept. of Sport- P.M.O. Dept. of Sport- P.M.O. Dept. of Entertainment- P.M.O. Dept. of Entertainment

Page 18: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

18 F. Bassanini - Government Reform in Italy

Civil Service ReformCivil Service Reformdistinguishing Politics from Administrationdistinguishing Politics from Administration

«Politicians are responsible for Policies»:«Politicians are responsible for Policies»:Ministers define policies and strategies, assess results, appoint general directors but have no further direct involvement in administration

«Public managers are responsible for Administration»:«Public managers are responsible for Administration»:public managers are given broader powers but also greater responsibilities, and higher salaries linked to results and performance

Page 19: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

19 F. Bassanini - Government Reform in Italy

Civil Service ReformCivil Service Reformthe “privatization” of Civil Servicethe “privatization” of Civil Service

Civil law for civil servantsCivil law for civil servantspublic administration has the same powers as private sector employers

Jurisdiction for civil service disputesJurisdiction for civil service disputessince 1998 transferred from the Administrative to the Civil Courts

Page 20: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

20 F. Bassanini - Government Reform in Italy

Civil Service ReformCivil Service Reformthe “contractualization” of Civil Servicethe “contractualization” of Civil Service

Labor Contracts:Labor Contracts: collective bargaining (at national and local levels) replaced the law in

determining employment conditions, salaries and tasks. The “integrative negotiation”

promoting efficiency and professionalism through individual integrative contracts

«A.R.A.N.»«A.R.A.N.»an Agency created to represent the State in labor negotiations in place of the Minister (but following Government guidelines)

Reform of labor representationReform of labor representationfor each public sector (Ministries, Education, Health …) bargaining with the State is allowed only to those Unions having more than 5% of the consensus in that sector

Page 21: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

21 F. Bassanini - Government Reform in Italy

Civil Service ReformCivil Service Reformthe Resistancesthe Resistances

Strong contradictions and incoherencies remain in:Strong contradictions and incoherencies remain in:

The behaviour of Trade Unions:The behaviour of Trade Unions: the choice, in principle, in favour of professionalism and merit, responsibility

and decentralisation is sometimes contradicted

The behaviour of Politicians, administrators and public The behaviour of Politicians, administrators and public managers:managers: no global vision in salary increases strong defence of privileges and of the “maze of charges”

Parliament choices:Parliament choices: The choice, in principle, in favour of collective bargaining, meritocracy and

quality is contradicted by the constant enactment of rules creating favouritism: “ope legis” promotions, permanent hiring without concours of pro-tempore workers etc.

Page 22: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

22 F. Bassanini - Government Reform in Italy

A performance-orientedA performance-orientedpublic administrationpublic administration

the new approachthe new approachBeforeBefore: a formal/juridical approach to government:: a formal/juridical approach to government:

compliance with laws and procedures without regard to quality and results

NowNow: a consumer-oriented approach: a consumer-oriented approach quality service and customer satisfaction new performance control complementing traditional legal control public service charters promoting professional growth: a special training program

Public administration “close to citizens and businesses”:Public administration “close to citizens and businesses”: favors the allocation of investment capital acquires relevance “beyond the national borders” partially sheds its authoritative nature

Page 23: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

23 F. Bassanini - Government Reform in Italy

A performance-orientedA performance-orientedpublic administrationpublic administration

the new public managementthe new public management An interministerial body of public managers, with few An interministerial body of public managers, with few

exceptionsexceptions

AAccess by ccess by concours, concours, a formal competitive examinationa formal competitive examination((no more than 5% of managers may be chosen from outside the Civil no more than 5% of managers may be chosen from outside the Civil Service for a fixed term)Service for a fixed term)

No more “jobs for life”: individual contracts (fixed term: 2-No more “jobs for life”: individual contracts (fixed term: 2-7 years) determine assignment, duties and salaries7 years) determine assignment, duties and salaries

Managers’ salaries vary depending on responsibilities and Managers’ salaries vary depending on responsibilities and performancesperformances

Page 24: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

24 F. Bassanini - Government Reform in Italy

A performance-orientedA performance-orientedpublic administrationpublic administration

the Resistancesthe Resistances

Administrations and judges still show a legalistic and Administrations and judges still show a legalistic and statist culturestatist culture

The defence of irremovability and irresponsibility of top The defence of irremovability and irresponsibility of top civil servants in the name of administrative neutralitycivil servants in the name of administrative neutrality

The fear of the spoils system (it exists in the USA, but not The fear of the spoils system (it exists in the USA, but not in Italy…)in Italy…)

The refusal of the culture of evaluation and meritThe refusal of the culture of evaluation and merit

Page 25: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

25 F. Bassanini - Government Reform in Italy

SimplificationSimplificationthe problemsthe problems

Regulatory inflation:Regulatory inflation:over 35,000 primary laws (of State and Regions)

Regulatory costs:Regulatory costs:unnecessary burdens on the public, on businesses and even on public administrations

Regulatory pollution:Regulatory pollution:ambiguity, contradictions, overlapping, layers of rules generate uncertainty on the existing law

Page 26: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

26 F. Bassanini - Government Reform in Italy

SimplificationSimplificationa specific policy on regulatory reforma specific policy on regulatory reform

Regulatory impact analysisRegulatory impact analysisto measure the cost of new regulations on the public and business

A central “Regulatory Simplification Unit”A central “Regulatory Simplification Unit”a task force of 65 experts and staff in P.M.O., exclusively monitoring “regulatory quality”, drafting simplification decrees and consolidated texts

ConsultationConsultationthe “Osservatorio per la semplificazione”: a consultative body with representatives from Ministries, Regions, Local Authorities and social parties

Page 27: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

27 F. Bassanini - Government Reform in Italy

SimplificationSimplificationthe toolsthe tools

““Self-declarationsSelf-declarations”” replace more than 95% of the certificates replace more than 95% of the certificates

“ “Notification of the beginning of an activity”Notification of the beginning of an activity” and and silent consentsilent consent (in 194 cases) replace authorizations and licenses(in 194 cases) replace authorizations and licenses

One “One “conferenza di servizi”conferenza di servizi” ( (combined services conferencecombined services conference) ) replaces many administrative actsreplaces many administrative acts

One-stop-shopOne-stop-shop (on line): a single procedure to start up a new (on line): a single procedure to start up a new productive plant, replacing 43 previously needed authorizations (productive plant, replacing 43 previously needed authorizations (see see specific slidespecific slide))

Few Few consolidated textsconsolidated texts replace thousands of laws and decrees replace thousands of laws and decrees Annual simplification lawsAnnual simplification laws enabling government to abolish or enabling government to abolish or

simplify existing procedures, authorizations and licenses.simplify existing procedures, authorizations and licenses.

Page 28: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

28 F. Bassanini - Government Reform in Italy

SimplificationSimplificationsome initial resultssome initial results

180180 procedures ruled by primary law have already been “delegislated” procedures ruled by primary law have already been “delegislated” (ready to be abolished or simplified by Government decree)(ready to be abolished or simplified by Government decree)

7171 procedures already simplified by Government (50% in the year procedures already simplified by Government (50% in the year 2000, with the support of the new central unit). They include the one-2000, with the support of the new central unit). They include the one-stop-shops for: new productive plants, car drivers, import-export tradestop-shops for: new productive plants, car drivers, import-export trade

88 consolidated texts drafted (on local Governments, cultural heritage, consolidated texts drafted (on local Governments, cultural heritage, administrative documentation, building activities, expropriations, administrative documentation, building activities, expropriations, university, civil service, justice expenses); 3 of them already in forceuniversity, civil service, justice expenses); 3 of them already in force

relevant progress in regulatory capacity shown by the draft report of the relevant progress in regulatory capacity shown by the draft report of the OECD regulatory reviewOECD regulatory review

Page 29: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy29

Progress in regulatory capacity indicators, 1998-2000

0

20

40

60

80

100

Transparency Use ofRegulatory

Impact Analysis

Structureddecision

processes

Index of reviewactivity

Communicationof regulatoryrequirements

ITA-1998

ITA-2000

Source: OECD, Public Management Directorate, 2000.

Page 30: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

30 F. Bassanini - Government Reform in Italy

SimplificationSimplification# of certificates issued per year# of certificates issued per year

19961998

2000 *

70.641.741

51.661.396

30.658.516

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

Source: Italy – Department of Public Administration

* Data 2000: 8-monthprojection of the year 2000

Page 31: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

31 F. Bassanini - Government Reform in Italy

SimplificationSimplification# of c# of certified signatures issued per yearertified signatures issued per year

19961998

2000 *

38.871.110

20.199.919

7.116.993

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: Italy – Department of Public Administration

* Data 2000: 8-monthprojection of the year 2000

Page 32: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

32 F. Bassanini - Government Reform in Italy

SimplificationSimplificationthe opinion of the publicthe opinion of the public

Do you know that in most cases all you need is a self-declaration?

Do you think it is useful?

92%

8%

yes

no

92%

8%

yes

no

Source: ISPO

Page 33: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

33 F. Bassanini - Government Reform in Italy

Simplification – the one-stop-shop exampleSimplification – the one-stop-shop example“not only a single access, but also a single answer”“not only a single access, but also a single answer”

Since 1999Since 1999 a single procedure to start up a new business, a single procedure to start up a new business, replacing 43 authorizations previously needed replacing 43 authorizations previously needed

BeforeBefore: 2-5 years to get a final answer: 2-5 years to get a final answer

NowNow: normally no more than 3 months in most cases, max 11 : normally no more than 3 months in most cases, max 11 monthsmonths

(average time: 57 days in a sample of 100 operational one stop shops)(average time: 57 days in a sample of 100 operational one stop shops)

One single office to deal with businesses and a new role for One single office to deal with businesses and a new role for Municipalities in the development of their territoryMunicipalities in the development of their territory

An An ee-structure, accessible through the net-structure, accessible through the net

Page 34: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

34 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgetingfrom financial to economic budgetfrom financial to economic budget

BeforeBefore: a segmented spending model with more than : a segmented spending model with more than

6.000 expenditure units6.000 expenditure units

NowNow: about 1.000 basic budget units, matching each : about 1.000 basic budget units, matching each Ministry’s target and responsibilityMinistry’s target and responsibility

Only one administrative office responsible for each Only one administrative office responsible for each basic unitbasic unit

New economic budget showing the link between the use New economic budget showing the link between the use of resources and achievementsof resources and achievements

Page 35: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

35 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgeting new spending proceduresnew spending procedures

Drafting the budget: no longer the traditional criteria of Drafting the budget: no longer the traditional criteria of incremental spendingincremental spending

An effective An effective cost analysiscost analysis to back the annual financing law to back the annual financing law and the spending legislationand the spending legislation

More effective More effective constraintsconstraints on Government expenditure bills on Government expenditure bills and parliamentary amendmentsand parliamentary amendments

An An electronic mandateelectronic mandate

Towards a permanent electronic market for public purchases Towards a permanent electronic market for public purchases

Planning hiringPlanning hiring of civil servants of civil servants

Page 36: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

36 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgetingpublic sector personnel cost (% of GDP)public sector personnel cost (% of GDP)

12

11,6 11,5 11,4

10,8 10,710,5

9,1

10,2

9,5

9,8

12,5

12,712,712,8

9

9,5

10

10,5

11

11,5

12

12,5

13

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Source: OECD and Italy DPEF 2000-2003

Page 37: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

37 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgeting public deficit (% of GDP)public deficit (% of GDP)

-11,1

-9,2

-7,7-6,6

1,3

-8,5

-9,6-10,1

-1,9-2,8

-2,7 -1-1,3 -0,70,2

-12

-10

-8

-6

-4

-2

0

2

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Source: ISTAT and Italy DPEF 2000-2003

Page 38: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

38 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgeting public debt (% of GDP)public debt (% of GDP)

98

101,5

108,7

119,1

124,6122,4

118,7

95

114,9

124,9

125,3

99,7

103,5

112,1

106,6

94

99

104

109

114

119

124

129

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Source: ISTAT and Italy DPEF 2000-2003

Page 39: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

39 F. Bassanini - Government Reform in Italy

The new public budgetingThe new public budgeting primary expenditure in Italy and EU (% of GDP)primary expenditure in Italy and EU (% of GDP)

37

38

39

40

41

42

43

44

45

1990

37

38

39

40

41

42

43

44

45

1998

ItalyEU

Source: ISTAT and European Commission

Page 40: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

40 F. Bassanini - Government Reform in Italy

ee-Government-Government IT: the best resource for a leap forward in quality changeIT: the best resource for a leap forward in quality change

Electronic management of administrative documents, Electronic management of administrative documents, procedures and archivesprocedures and archives

12,000 billion liras (5,2 bill. USD) for investments in 2000-12,000 billion liras (5,2 bill. USD) for investments in 2000-2002 (11,000 already allocated, 1,300 coming from the 2002 (11,000 already allocated, 1,300 coming from the UMTS licenses)UMTS licenses)

Electronic ID card (under experiment)Electronic ID card (under experiment)

The “Government Portal”: a single gateway for public The “Government Portal”: a single gateway for public administrationsadministrations

Towards electronic public procurementsTowards electronic public procurements

Page 41: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

41 F. Bassanini - Government Reform in Italy

ee-Government-Governmentsome first resultssome first results

«Electronic Revenue Service»: «Electronic Revenue Service»: 100%100% income income tax returns (40 millions per year) are filed and tax returns (40 millions per year) are filed and reviewed electronicallyreviewed electronically

Land Register (Land Register (80% 80% of documents of documents are filed and are filed and reviewed electronically)reviewed electronically)

Electronic signature (having legal value from Electronic signature (having legal value from 1998): more than 1998): more than 1 million1 million signatures already signatures already certified by 8 companiescertified by 8 companies

A A Single Single AdministrativeAdministrative Network Network

Page 42: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

42 F. Bassanini - Government Reform in Italy

The Italian Action Plan forThe Italian Action Plan foree-Government-Government

Citizens will obtain any public service by simply Citizens will obtain any public service by simply applying to any front-office administration in chargeapplying to any front-office administration in charge

Citizens will communicate variations in their personal Citizens will communicate variations in their personal information to the administration only onceinformation to the administration only once

Each administration will be able to gather the Each administration will be able to gather the information needed, wherever stored (all public information needed, wherever stored (all public services on line)services on line)

All the public services for which it is technically All the public services for which it is technically possible will be delivered on linepossible will be delivered on line

Page 43: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy43

Action PlanAction Plan pointspoints

Information portals Portals for supply of

services National networks Local administrations on

line Integration of personal

data National index of personal

data

Exchange of information system for local land-registries

Electronic identity cards Promotion of digital

signatures Informatic Protocols e-procurement Foundation courses Specialist courses

Page 44: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy44

The Future of ReformThe Future of Reform

The crucial phase of implementationThe crucial phase of implementationthe Reform has almost been achieved in its laws the Reform has almost been achieved in its laws

and decrees, but laws alone cannot change citizens’ and decrees, but laws alone cannot change citizens’ liveslives

What are now the main challenges?What are now the main challenges?

Page 45: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy45

The Future of ReformThe Future of Reform

Changing the cultureChanging the culture

Acquiring and disseminating new approaches:Acquiring and disseminating new approaches: to technological and organizational to technological and organizational innovationinnovation to to simplificationsimplification (releasing unnecessary administrative (releasing unnecessary administrative

burdens)burdens) to quality of service and to quality of service and performanceperformance to citizen-to citizen-user satisfactionuser satisfaction to rewarding to rewarding professionalismprofessionalism and and meritmerit to promoting, encouraging and to promoting, encouraging and energizingenergizing citizens and citizens and

businessesbusinesses

Page 46: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy46

The Future of ReformThe Future of Reform

CommunicationCommunication

disseminating anddisseminating and

sharing information to sharing information to

explain to citizens their new rightsexplain to citizens their new rights

Page 47: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy47

The Future of ReformThe Future of Reform

Investing on Public AdministrationInvesting on Public Administration

in in trainingtraining, to improve knowledge and , to improve knowledge and awareness of the main interpreters of the Reformawareness of the main interpreters of the Reform

in in ITIT, to exploit the enormous opportunities of , to exploit the enormous opportunities of digital revolutiondigital revolution

in in financial incentivesfinancial incentives, to promote quality of , to promote quality of services and professional growthservices and professional growth

Page 48: GOVERNMENT REFORM IN ITALY: STATE OF THE ART Franco BASSANINI Cabinet Minister for Public Administration Italy Today: Public Administration Issues AD HOC

F. Bassanini - Government Reform in Italy48

The Future of ReformThe Future of Reform

The «Maastricht approach»The «Maastricht approach»

EURO example: Italy is a country capable EURO example: Italy is a country capable of finding hidden human resources to of finding hidden human resources to

face the most difficult tasksface the most difficult tasks