ABSTRACT
Public sector reform is, if generally defined, change within public sector organisations (PSOs) that seeks to improve their performance. There is no consistent menu of elements that make up a programme of public sector reform. Typical components, however, include:
increased efficiency: improving the input:output ratio within the public sector. The rationale of such reforms is to address the large size of public sector expenditure and/or the inefficiency of many of its processes;
decentralisation: the transfer of decision-making to lower, more localised levels of the public sector. The rationale of such reforms is to reduce the costs of centralised decision-making, and to create more flexible and responsive decision-making.
increased accountability: making public sector staff more accountable for their decisions and actions. The rationale of such reforms is to increase the pressure on staff to perform well, to make them more responsive to recipient groups, and to reduce corrupt practices;
improved resource management: increasing the effective use of human, financial and other resources. The rationale of such reforms is clear from their definition;
marketisation: increasing the use of market forces within the workings of the public sector. The rationale of such reforms is that market relations will drive costs down and increase efficiency and/or effectiveness.
