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Public sector reforms aim to change the way government operates in areas such as welfare, healthcare, and administration. They can be initiated for budgetary, political, or ideological reasons. Cutting waste is a common goal, but reforms face opposition from political opponents, media, and interest groups.
Public sector reforms are where government seeks to change the way it operates. This tends to involve areas such as welfare, health care, government administration and other areas where the government has an interest. Such public sector reforms can be initiated for a variety of reasons. This includes budgetary reasons, political and ideological reasons and because of an event which renders the service unfit for purpose. Reforms can affect the entire government or specific areas of it.
The purposes for initiating reforms are manifold. These reforms are often led by politicians, which means that political ideology often plays a role. There are politicians who believe the public sector should be minimized and there are those who believe it should control everything; there is rarely a good balance between the two.
Ideologically driven reforms in the public sector are designed to impart the stamp of responsible political party or politicians to government services. For example, a government that believes in business would try to minimize public health care or try to allow companies to control things like unnecessary spending, immigration, and other areas of government. The reverse may also be true; a government could reform public services by creating a national health service or by nationalizing entire industries.
Governments must operate within a budget. If the government, like the Labor government in Britain between 1997 and 2010, borrows 25% of the money it spends, the debt will eventually become unmanageable. Such public sector reforms tend to focus on reducing as much waste as possible. The effectiveness of such reforms depends on who is implementing them, their policy and what they aim to cut.
Cutting waste is the holy grail of public sector reform. Such reforms tend to focus on reducing generous pensions or increasing pension contributions, cutting red tape, more efficient tax systems, and pushing out high-paid workers. In practice, however, such reforms tend to cut needed jobs while protecting superior management and inefficiencies.
When a service or institution is not fit for purpose, it needs to be reformed. This happens because of a huge internal bankruptcy or because it has failed to modernize itself in line with society. Such reforms seek to restructure a service, add new elements to it and improve its work. This includes new laws, budget increases, restructurings and new powers.
Public sector reforms of any kind are not easy. First, there is the political opposition from other parties, and often within the ruling party. Secondly, there is opposition from opponents in the media and interest groups. Vested interests within government will not want their privileges, wages or pensions cut. Such reforms often require a strong government majority to pass.
