Public Sector Reform in Germany

Public Sector Reform in Germany had been adopted to adapt with the rapidly changing economic environment.

Reasons behind the Reform:
(1)During the year 2000, the German Government had not been able to go along with the international development in administrative reform. The double challenge of Europeanization and unification had an adverse effect on the German economy, and the government almost failed to adapt with the situation.

(2)Revenues were getting stagnant which increased the economic pressure. The fiscal resistance also added to this problem.

(3)New technical and social challenges had been coming and political situations were also unstable.
Areas and Options of Reform:
The German government started an incremental approach to reform in public sectors. The model of federalism, which had been very successful, couldn’t make an end to the disparities in the territorial reform process. So the German government had taken this as an area of public sector reform.
The German government saw the above mentioned problems as a temporary development that had to be taken as cyclical and short term. This was an option for reform which dealt with the minor reform initiatives. The government aimed to retain the positive effects of the stable economic systems through public sector reform. That’s why the German government adapted some institutions and procedures to combat the changing economic environment.

Another attempt to reform focused on the increasing public consensus for the need of public sector reform and tried to capitalize it. It aimed to preserve the economic stability by approaching the problem areas one by one.

Comprehensive public sector reform was also one type of reform option. This option aimed to go over the administrative machinery carefully for necessary corrections. According to this option, a mathematical approach to all the economic problem areas mentioned above could enable the government to open the scope of a set of mutually subsidiary reforms.
Effects of Public Sector Reform:
In Germany, through the public sector reform the fiscal policies had been made effective and fiscal consolidation was made possible. The rate of unemployment also reduced.

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Last Updated on : 26th June 2013

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