United Nations

A/50/525-E/1995/122


General Assembly
Economic and Social Council

Distr. GENERAL  

11 October 1995

ORIGINAL:
ENGLISH


GENERAL ASSEMBLY  ECONOMIC AND SOCIAL COUNCIL
Fiftieth session  Resumed substantive session
Agenda item 12                                         of 1995
REPORT OF THE ECONOMIC AND SOCIAL                    Agenda item 6 (q)
  COUNCIL                   ECONOMIC AND ENVIRONMENTAL
          QUESTIONS:  PUBLIC
          ADMINISTRATION AND
          DEVELOPMENT


Report of the Group of Experts on Public Administration
and Finance on its twelfth meeting

(New York, 31 July-11 August 1995)

Note by the Secretary-General


  The Secretary-General has the honour to  transmit to the General  Assembly
and  the Economic and  Social Council  the report of the  twelfth meeting of
the  Group  of  Experts  on  Public  Administration  and  Finance  which, in
pursuance of  General Assembly resolution 49/136  of 19  December 1994, will
be  considered by the  Assembly at  its resumed fiftieth session  and by the
Council at its resumed substantive session of 1995.

















95-30660 (E)   011295/...
*9530660*

Annex

REPORT OF THE GROUP OF EXPERTS ON PUBLIC ADMINISTRATION
AND FINANCE ON ITS TWELFTH MEETING

(New York, 31 July-11 August 1995)


CONTENTS

  Paragraphs  Page

I.  INTRODUCTION .........................................    1 -17  4

II.  ROLE OF PUBLIC ADMINISTRATION IN DEVELOPMENT .........   18 -847

  A.  Role of public administration in sustained
    economic growth ..................................   28 - 3510

  B.  Role of public administration in promoting social
    development ......................................   36 - 4512

  C.  Role of public administration in facilitating
    infrastructure development and in protecting the
    environment ......................................   46 - 5813

  D.  Role of public administration in promoting
    partnerships .....................................   59 - 7115

  E.  Role of public administration in managing
    development programmes ...........................   72 - 7518

  F.  Role of public administration in establishing and
    maintaining the legal and regulatory framework ...   76 - 8419

III.  CAPACITY-BUILDING IN PUBLIC ADMINISTRATION ...........   85 - 14421

  A.  Enhancing policy development capacity,
    strengthening organizational structures and
    improving civil service systems ..................   98 - 11124

  B.  Strengthening financial management in the public
    sector ...........................................  112 - 12026  

  C.  Developing human resources in the public sector ..  121 -13128  

  D.  Improving efficiency and performance in the public
    sector ...........................................  132 - 13830  
CONTENTS (continued)

  Paragraphs  Page

  E.  Developing administrative capacities for
    post-conflict restoration and rehabilitation of
    government machinery .............................  139 - 14431

IV.  CONCLUSION ...........................................  145 -14633

V.  RECOMMENDATIONS ......................................  147 -16334

  A.  National Governments .............................  150 -15835

  B.  The United Nations ...............................  159 -16336

Appendices

I.  Consolidated recommendations arranged by topic ...................38

II.  Agenda ...........................................................55

III.  List of participants .............................................56
I.  INTRODUCTION


1.    Pursuant to  General Assembly  resolution 49/136,  the United  Nations
Department  for Development  Support  and Management  Services  (DDSMS),  on
behalf of the Secretary-General, convened the  twelfth meeting of the  Group
of  Experts on  Public Administration  and  Finance,  held under  the United
Nations  programme   in  public  administration   and  finance  (hereinafter
referred to as the  Programme) at United Nations  Headquarters from 31  July
to 11  August 1995.    This meeting  was  the  preparatory meeting  for  the
examination   by  the   General   Assembly   of  the   question  of   public
administration  and  development, to  take  place  at  its resumed  fiftieth
session.  The Group of Experts had the  following terms of reference,  which
were derived from the resolution:

  (a)   To  contribute, through  the  Economic and  Social Council,  to  the
resumed  session based  on  the experience  gained  in  assisting developing
countries and  countries with economies  in transition in  capacity-building
in public administration for development;

  (b)  To review the United Nations activities in public administration  and
finance;

  (c)  To make appropriate  recommendations for action at  both the national
and  international  levels, especially  for  strengthening  the role  of the
United Nations in this field.

2.  The report  of the Group of  Experts will be submitted  to the  Economic
and Social  Council (ECOSOC) at its resumed session in late 1995 and it will
be an  input  to the  preparation  of  the Secretary-General's  consolidated
report.  The report of the  Secretary-General on public administration  will
be discussed  by the  General Assembly at  its resumed  fiftieth session  in
April 1996.

3.   The  preparations and  coordination for  the resumed  session are being
undertaken by DDSMS  and began in January  1995 with a  departmental working
group which formulated  a draft plan.  A technical committee set up to guide
the process  comprised institutions  with significant  programmes in  public
sector  administration  and management.    This  committee  was composed  of
representatives  of the  United Nations  Development Programme  (UNDP),  the
World  Bank,  the International  Labour  Organization  (ILO),  the  Economic
Commission for Africa  (ECA), the International Institute of  Administrative
Sciences  and the  Harvard School  of  Government,  with DDSMS  chairing the
committee.   This committee first met on 10 March 1995, technically analysed
the  resolution  and derived  four  main  themes  for  consideration at  the
resumed session:   (a) strengthening  capacity in public administration; (b)
the  role of  public  administration  in promoting  social development;  (c)
development  of  infrastructure facilities  and protecting  the environment;
and (d) management of development programmes.

4.   The technical  committee further  developed specific  topics within the
main  themes.    The  specific  topics  are:    sustained  economic  growth;
promoting social  development; facilitating  infrastructure development  and
protecting  the environment;  promoting partnerships;  managing  development
programmes  and   establishing  and  maintaining   a  legal  framework   for
development;   enhancing   policy   development   capacity;   organizational
strengthening;  improved  civil  service  systems;  strengthening  financial
management  for  development; developing  human  resources  for  the  public
sector;  improving  efficiency and  performance in  the  public sector;  and
developing   administrative   capacities  for   post-conflict   restoration,
including crisis management and rehabilitation  of government machinery.   A

wide  variety  of public  administration activities  apply to  the peace-to-
development and  disaster-to-development continua,  for which  institutional
strengthening  and  capacity-building  are   important  aspects  of   peace-
building.

5.    Consultative  meetings  have  been  held  periodically,  including  of
representatives    of    Member    States,    United    Nations    agencies,
intergovernmental  organizations, non-governmental  organizations,  research
institutes and the private sector.

6.   Prior  to  the  commencement of  the twelfth  meeting of  the  Group of
Experts, the Department convened an  informal inter-agency working  group on
28  July 1995. The main objectives  of this working group were to review the
activities of the agencies under their respective public administration  and
finance programmes and to  consider common issues that the working group  as
a  whole could recommend to the Group of Experts for priority consideration.
The General Assembly, in the above-mentioned  resolution, also requested the
agencies to  contribute, through  the Economic  and Social  Council, to  the
work of its resumed session.

7.    The  inter-agency  meeting  was  attended  by  representatives  of the
Department  for   Development  Support  and   Management  Services  of   the
Secretariat (DDSMS), the Department for Economic and Social Information  and
Policy  Analysis  (DESIPA),  the  Department  for  Policy  Coordination  and
Sustainable  Development (DPCSD),  the Economic  and Social  Commission  for
Asia and the Pacific (ESCAP), the  International Labour Organization  (ILO),
the  United  Nations  Development  Programme  (UNDP)  and  the  World  Bank.
Written  statements were submitted  by the representatives of DESIPA, ESCAP,
ILO, UNDP and the World Bank.

8.    The  inter-agency  working  group   noted  the  importance  of  public
administration to development  and recommended that closer collaboration  on
specific programmes and projects be developed  among the agencies to achieve
maximum benefit for developing countries.   The group also recommended  that
DDSMS  contribute  to coordination  of  inter-agency  programmes  in  public
administration and  finance, specifically to serve  as a clearing-house  for
experiences  in  public   administration  reform  and  innovation,  and   to
facilitate  sharing  experiences   among  Governments,  as  well  as   among
agencies.   The  group  recommended joint  programme  formulation  missions,
consultation  in the  early stages  of programme  formulation  and follow-up
collaboration in the implementation and evaluation phases.

9.  Also, the  inter-agency working group noted that in many human resources
development  programmes, training  was  given insufficient  emphasis.    The
group  suggested   that  greater  attention  needed   to  be   paid  to  the
organizational context of the trainees and  the encouragement to utilize the
new skills  and knowledge obtained through  training programmes.   The group
also  noted the need  for effective  coordination of  central frameworks for
financial,  legal,  personnel,  planning  and  information  management  with
performance improvement programmes  in operational ministries and provinces.
The group  also recommended  emphasis on  "management of change"  programmes
and  establishing and  strengthening  appropriate  national institutions  to
lead these processes of change in public administration and finance.

10.    The  twelfth  meeting of  the  Group  of Experts  was  opened  by the
UnderSecretary-General  of  the  Department  for  Development  Support   and
Management Services.  He noted that  public administration and finance  were
the backbone  of development efforts, and  in particular  the foundation for
operationalizing at  the field level the  concepts and  plans articulated at
the  major  global  conferences.    He  noted  that  sound  institutions and
governance  systems in  accordance with  specific conditions  of  individual
countries  were   prerequisites  for   human  development  and   sustainable
development.

11.     The keynote  speaker, Mr.  Guy Braibant,  Section President  of  the
Conseil  d'Etat  of  France  and   former  President  of  the  International

Institute  of  Administrative  Sciences,  stated that  the  role  of  public
administration was often underestimated.  He  noted that the scope and focus
of  State  machinery might  be  changing,  but  cautioned  that without  the
effective  and  efficient   functioning  of  the  State's  operations,   its
development  programmes could not  be successful.  He  stated that while the
State machinery should  be modest, it  should be strong in  those activities
on which  it chooses to focus.  He further noted  that improvement of public
administration was less a problem of finances than a problem of will.

12.  Thirty-seven experts  were invited from different regions of the  world
to  attend the  twelfth  meeting  of the  Group  of Experts.    The  experts
participated  in their  individual capacity  and  not as  representatives of
their Governments or organizations.  In  addition, the meeting was  attended
by  representatives of  the regional  commissions and  other United  Nations
bodies, specialized agencies,  interregional and regional  institutions, and
non-governmental  organizations.    A  list  of  participants  is  given  in
appendix III to this report.

13.   The  Group of Experts  elected Ms. Juliette Bonkoungou (Burkina  Faso)
as  Chairperson;  Mr.  Luis  Garcia Cardenas  (Mexico),  Ms.  Maria Gintowt-
Jankowicz  (Poland)  and  Mr.  Clive  J.  Parry  (United  Kingdom)  as Vice-
Chairpersons and Ms. Corazon Alma De Leon (Philippines) as Rapporteur.

14.     The Group  of Experts  deliberated  its  agenda through  plenary and
working  group sessions.  Ten working groups were  constituted, one for each
topic, combining the first two subjects into one topic.  The subjects  were:
(a)  policy  development  capacity and  administrative  restructuring, civil
service  reform and management training; (b) financial management; (c) human
resources  development; (d)  public-private  interaction; (e)  public sector
efficiency; (f) social development; (g) infrastructure and the  environment;
(h) legal  and regulatory  framework; (i)  post-conflict rehabilitation  and
reconstruction of  government machinery; and  (j) management of  development
programmes.   The  agenda  adopted by  the  Group  of  Experts is  given  in
appendix II to the present report.

15.   The working  groups were  led by  the following  moderators: Mr.  Luis
Garcia Cardenas, Ms.  Corazon Alma De Leon,  Ms. Marie Helene Dumestre,  Mr.
Salman  Faruqui,  Mr.  Gerard  Marcou,  Ms.  Namane  Magau,  Mr.  Jose Oscar
Monteiro, Mr. Graham Scott and Mr. Selwyn Smith.

16.    The  Group  of  Experts  had   before  it  the  following  documents:
Strengthening     government     capacity     for     policy     development
(ST/SG/AC.6/1995/L.2),  Administrative  restructuring, civil  service reform
and  management  training (ST/SG/AC.6/1995/L.2/Add.l),  Financial management
for  improved   public  management  and  development  (ST/SG/AC.6/1995/L.3),
Strengthening   government  capacity  in   legal  and  regulatory  framework
(ST/SG/AC.6/1995/L.4), Improving efficiency  of the  public sector:  a  case
study of Malaysia (ST/SG/AC.6/1995/L.5), Improving efficiency of the  public
sector      (ST/SG/AC.6/1995/L.5/Add.1),      Public-private     interaction
(ST/SG/AC.6/1995/L.6), Human resources  development:  a case study of  South
Africa      (ST/SG/AC.6/1995/L.7),     Human      resources      development
(ST/SG/AC.6/1995/L.7/Add.1),   Modernization  of   the   State   for  social
development  (ST/SG/AC.6/1995/L.8),   Role  of   public  administration   in
developing     infrastructure     and     protecting     the     environment
(ST/SG/AC.6/1995/L.9), Complex systems  in crisis:  the development  process
under conditions  of urgent stress  (ST/SG/AC.6/1995/L.10), Restoration  and
restructuring government  administrative machinery  in post-conflict  peace-
building (ST/SG/AC.6/1995/L.10/Add.1) and  Role of public administration  in
the management of development programmes (ST/SG/AC.6/1995/L.ll).

17.   The  deliberations  and recommendations  of the  Group of  Experts are
recorded in the reports of  the working groups which  have been incorporated
into  a  final report.   All  experts  heard  all plenary  presentations and
participated  in  plenary discussions.    Each  expert participated  in  two
working  groups,  one on  the  role  of public  administration  and  one  on
capacity-building.   Each expert contributed  to an  informal discussion, in

an  area of his  or her expertise,  both for a  substantive topic  and for a
capacity-building topic.  Each working group  met for six hours and prepared
a report.  The reports of the working  groups were presented individually as
they were completed and  then compiled in  a final report, which is  divided
into the two main themes:  role of public administration in development  and
capacity-building.  The report of the Group of  Experts contains a total  of
103 recommendations for national Governments and  96 for the United  Nations
and  the international community.   Recommendations  were therefore  made at
different  levels  to include  the  numerous  socio-political  and  economic
stages in which countries are aligned.  In view of the length and  dimension
of styles reflected in the analysis of various topics, the Group of  Experts
requested  the   Secretariat  to  edit   the  report   and  consolidate  the
recommendations for consideration by ECOSOC.   The present report provides a
condensed  version  which  maintains  the  conceptual  integrity  with   the
stylistic uniformity  and intellectual thrust of the recommendations made by
the Group of Experts.


II.  ROLE OF PUBLIC ADMINISTRATION IN DEVELOPMENT

18.    Since the late 1980s,  global development strategies and  initiatives
have  been influenced less by perceived bipolarization  of the international
arena  and  more  by  three  emerging  factors:    a  demand  for  increased
participation in  governance; increased  economic  interdependence within  a
global market economy; and increased emphasis  on issues of social  justice.
Other fundamental  changes  influencing  development  dynamics  include  the
rapid  pace  of change  brought  about  by  technological  advances and  the
emergence of  non-governmental  organizations  and  cross-national  economic
ventures.  Within this context, there  is awareness of significant successes
and  failures  in  development  efforts,  an  understanding  that  effective
development  requires  attention  to  sustainability,  and  realization that
there  are no  quick and  painless strategies  for development.   Given  the
magnitude and  scale of  change required  in some  developing economies  and
economies in  transition, it  is recognized  that long-term,  comprehensive,
complex,  and multi-system  change processes  are required  for  sustainable
development.

19.  Under the changed global context which is impacting all countries,  the
traditional   configuration  of  the  relationship  between  Government  and
society  is no  longer relevant.    The current  structure and  processes of
governance are  questioned at two levels:  (a) the role of the State and (b)
the  role  of public  administration  in  development.    First, within  the
context of  increased  private  sector and  non-governmental  organizational
activity, many  Governments are attempting to redirect the role of the State
to that of regulation and creation of an  enabling environment.  Second, the
tasks  of  public administration,  which historically  had been  complex and
difficult,  are increasingly  so.   Greater complexity  and  interdependence
create  the  impression   that  many  development  problems  facing   public
administrations are unsolvable.  For example, with  significant vertical and
horizontal integration among  countries the assumptions underlying solutions
to  country-based  unemployment  have  changed  so  substantially  that  old
paradigms  for solving  unemployment can  no  longer  be utilized  by public
administration to remedy unemployment at the country level.

20.   The primary  challenge requiring  a redefinition  of the  role of  the
State arises from the  market-based economy.  The State, under conditions of
comprehensive market-based economy, redirects its role away from  production
functions  and  towards  policy  and  regulatory  functions.     This  shift
generally  results  in a  State  machinery  which is  less  heavy  and  less
bureaucratic.   The policy  and regulatory  functions put  strong demands on
information  gathering and  analysis  activities.   The  State machinery  is
required  to  develop  its  thinking  and   control  capacity,  that  is,  a
collective "brain" for society, thereby taking responsibility for  analysis,
planning and evaluation, with continuous feedback mechanisms.

21.  At the same time,  there are some fundamental functions  like peace and

social  justice,   environment  and   good  governance,   which  cannot   be
privatized. These serve as a reminder that society does expect the State  to
be responsible for certain functions through  its own State machinery,  that
is, the  public  administration.   Given  the  importance of  peace,  social
justice,  environment and  good  governance, public  administration  can  be
expected to thrive.  It  is equally certain that when  markets fail, as they
often do, even in  those countries with a strong market orientation, or when
markets  create an  unhealthy business  climate, the  public  administration
will have to maintain its role of policy-making, regulation and mediation.

22.  Moreover, as long as  there will be  a need for defining the future  of
the country  through the  development process,  balancing existing  societal
values  and  commitment  with  emerging  values  and   new  challenges,  and
responding to national consensus-building and global changes, there will  be
a significant role for the State and public administration.

23.   The more  likely scenario in  reshaping and redefining  the State  and
public   administration  will  be   one  in   which  the   State  will  more
comprehensively  involve  its   citizens  in   governance  through   greater
responsiveness  to citizen  needs and  demands and  greater transparency and
accountability.   The  public  administration system  will  re-engineer  its
management  system  for improved  efficiency.    The  public  administration
system will maintain its  core responsibility in the application of the rule
of   law,  and   programmatic   development   responsibilities  in   poverty
alleviation, infrastructure development  and social development, as well  as
contemporary responsibilities  in environmental protection and  facilitating
private sector development.

24.  If  public administration is to continue  to provide leadership in  the
process  of achieving sustainable  development, it  must earn  the trust and
confidence of the public in its ability to respond to the needs and  demands
of the  people.   In order to  earn this trust  and confidence,  Governments
need to improve service delivery, establish  an open, enabling framework for
socio-economic activities, and provide  an impartial and  fair framework for
social and economic interactions.

25.    Critical factors  for  restoring  public confidence  are  leadership,
commitment  to  change   and  flexibility.     Leadership  will  define  and
communicate a vision for the future, as well  as strategies through which to
reach openly stated and welldefined  goals.  Long-term thinking, both at the
national  and international  levels, needs  to  be  linked to  the immediate
needs of the people.  Commitment  to change is defined by the ability of the
public sector to respond  to changing circumstances by facilitating economic
growth, extracting  resources for current services  and new  demands and, at
the same time, maintaining current services  without increasing the cost  of
these   government   activities.     These   challenges   for   the   public
administration  system require  administrators  not only  to keep  pace with
change,  but  respond  to  and  anticipate  change.    A  responsive  public
administrative system needs to be modular and flexible.

26.   The knowledge and  skills needed for  administration and management in
this changing global context are different.   When information and  resource
exchanges  transcend national  boundaries and initiate  interactions between
individuals in  different nations, administrators are  required to be  open,
flexible  and  able  to deal  with  complexity.   No  longer are  societies,
Governments,  economies and  public  administrations isolated  and  impacted
only by national needs.  With  the conditions of global interaction changing
at a rapid pace,  public administration systems need  to be both  responsive
and pro-active.  Public administration systems in development must,  indeed,
be managers of change.

27.    The  role  of  public  administration  can  therefore  be  viewed  as
sustaining  economic  growth,  promoting  social  development,  facilitating
infrastructure  development  and  protecting   the  environment,   promoting
partnerships, managing  development programmes and  maintaining a legal  and
regulatory framework.

  A.  Role of public administration in sustained economic growth

28.    Public  administration  has  a  pervasive  influence  on  sustainable
economic  development.    The  concept  of  sustainability  is  increasingly
informing  interventions  by  national  Governments  and  their  development
partners.   The concept  has physical  aspects and  human aspects.   At  the
physical end, the United  Nations Conference on  Environment and Development
and  Agenda 21  have brought  concerns  for  natural resource  depletion and
degradation into  public  administration.   At  the  human end,  the  United
Nations  Secretary-General's  agenda  for   development  has  stressed  that
economic growth  is not  pursued for its  own sake, but  rather for  poverty
alleviation and  the progressive empowerment of  people to  make the choices
that shape  their lives.   It  is evident  that in  the new  market-oriented
paradigm  of  development, Governments  have  a  greater  responsibility  to
protect the poor and  disadvantaged and to seek  ways of bringing  them into
the  mainstream  through  adequate   access  to  productive  assets  and  by
strengthening social safety nets.

29.    Public  administration's  continued  role  in  sustainable   economic
development  will  be  defined  through  its  role  in  policy  planning and
management,  resource   mobilization  and   public  expenditure  programmes.
Policy is  strongly influenced  by administrative  capacity and  the set  of
institutional mechanisms  and processes within  which policy is  formulated.
As  the  role  of  public  administration  shifts  to  one  of facilitating,
promoting  and regulating rather  than providing,  there is  a need  for new
attitudes, new techniques and higher competencies.   Getting policy right in
an  increasingly  globalized  and  complex  world  requires  the  very  best
equipped   people  and  efficient   systems.    A  comprehensive  review  of
government may consequently become necessary in several instances.

30.   Sound  macroeconomic policies  underpin sustainable  economic  growth.
There is broad international  agreement today on a number of policy  issues.
Sustainable  economic growth  depends, inter  alia,  on  a clear  and stable
framework  of  government  policy,  particularly trade  policy,  competition
policy  and control  of  monopolies, labour  policy,  environmental  policy,
foreign  investment policy,  fiscal policy  including investment incentives,
monetary  and  foreign exchange  policies.   Governments  are shifting  from
being  interventionist and  Statemonopoly oriented,  and are  favouring  the
location of wealth-creating activities in  the private sector,  except where
there   are   transparent  and   demonstrable   reasons   for  public-sector
involvement.  Consequent  on deregulation and structural adjustment,  micro-
level reform is taking place in several countries.

31.   In the  area of resource  mobilization, there is  evidence that  while
global flows of foreign  direct investment tripled  in the 1980s, they  were
very  selectively oriented.   Commercial  flows to developing  countries are
very contingent on  investor perceptions  of domestic political, social  and
economic  stability  and  investment-friendly  policies and  conditions,  in
which public administration has  a critical role.  An important part of this
perception is the  liberalization of the domestic economy and its opening to
greater  international  competition.   This  does not  necessarily  mean the
removal of all restrictions or the complete  elimination of protection:   it
does mean  a major shift away from isolation and  towards active involvement
in global trade and investment opportunities.   The experience of successful
countries suggests the  possibility of exploiting foreign direct  investment
and trade linkages.   This can be done through a combination of  investment-
promoting,  productivity-enhancing   and  networking  policies  that  enable
domestic  firms to  upgrade  their production  through  product  and process
innovation and to penetrate new markets.

32.   Public  finance shapes  the course  of development.   Public spending,
taxes, user  charges and  borrowing affect  the behaviour  of producers  and
consumers, and impact  the balance of payments,  foreign debt and  the rates
of inflation, interest and  exchange.  The problem for many countries is how
to achieve macroeconomic stability without retarding long-term  development.
More  attention needs to be given  to the impact  of adjustment at the macro

budgetary level on those government sectoral  policies which are crucial  to
sustained  economic  growth  and  poverty  alleviation.    Careless   fiscal
austerity, such as across-theboard cuts in  budget allocations, can lead  to
recession  and disproportionate  burdens  on  the  poor.    Governments  are
placing greater reliance  on user charges as a  source of revenue.  In  some
countries, proceeds of  sale of public assets  are giving a short-term boost
to revenue.  Tax systems are being restructured to be  more neutral in their
allocative  effects, and simplified  to reduce  the costs  of compliance and
enforcement and to improve yields.  In  many countries, the focus is  on the
reform of  the banking  system and  the development  of a capital  market to
mobilize  funds,  especially domestic  savings,  for productive  investment.
Bank supervision is being tightened up.  Central  banks are being made  more
independent  in order to  insulate the  currency from  popular pressures. In
all  these  areas  the  role  of  public  administration  will  increase  in
importance.

33.   In  public  expenditure  programmes,  public  administration  will  be
involved  in  rationalizing  and streamlining  the  medium-term  development
planning process (including aid planning and coordination), and  integrating
this with the annual budgeting process.  Public administration  will have to
utilize budgets  not  only as  instruments  of  accountability but  also  as
instruments  of management.   An appropriate  balance must  be found between
development expenditures and  recurrent expenditures.  The public sector  in
many countries  has underutilized and undermaintained capital assets.  These
needs will also have to be addressed.

34.    Other  areas  of  concern  for  public  administration  will  include
remedying  the  scarcity  of  well-developed  project  proposals  which  are
acceptable to financiers. The main issues  of project selection in  practice
are:   how to design  the project development  process so  that bad projects
(and  projects  that could  be  undertaken by  the  private  sector)  can be
identified at an early  stage and weeded out without the negative  political
and bureaucratic  fallout that accompanies  outright rejection; how to apply
consistent criteria  of  project  appraisal  across a  number  of  agencies,
especially  in the context  of administrative  decentralization; and  how to
ensure the sustainability of  projects in terms of  capacity to meet  future
recurrent costs.  In  countries where a large part of the development budget
(or even all of  it) is financed by external donors, there is a real problem
of exerting national control over the  selection of projects and reconciling
the national development planning  process with the  procedures of  multiple
donors.

35.   At the  implementation stage,  both capital  and recurrent expenditure
programmes diverge  significantly from  plans and  budgets, thus  nullifying
many  of   the  planned  synergies  and   linkages.     Many  countries  are
experimenting   with  the   potential  of  modern   information  technology.
However,  project management  still  tends to  be identified  with financial
monitoring; the  usual indicator  of achievement  is the  rate of  spending.
There  is relatively little effort  to identify the sources of project delay
and  to break  bottlenecks in  implementation.   The cost  of delay  is  not
brought to account so  no one is held accountable.   On the  financial side,
accounting  data are commonly  late and unreliable;  they are  prepared on a
cash basis which does not match with physical progress or outputs.


B.  Role of public administration in promoting social development

36.  The social situation in many parts of the world has reached a  critical
level at which  whole societies are at  risk of becoming socially  unstable.
The  costs in  terms of  human suffering  in  broad  sectors of  the world's
population are of  such magnitude that the  search for social solutions must
be at the  centre of public attention over  the next three or more  decades.
The  World Summit for  Social Development has  given renewed  impetus to the
social development  theme  and has  called  upon  societies to  establish  a
framework for social development which builds  upon a culture of cooperation
and partnership.

37.   Public expenditure  cut-backs in  recent years have  had a detrimental
effect on the development of social services in several parts of the  world.
There is  a  causal relationship  between the  weakening  of  the State  and
public administration  and the decline of  both social  service delivery and
social policy-making in several countries.   The need for building  capacity
for social policy development is particularly acute.

38.   Trends  observed in  both  developing  and developed  countries reveal
accelerating poverty:   growing numbers of  families live  below the poverty
line  and  there  are  increasing  instances  of  extreme  poverty  in which
families are  unable to satisfy their most basic necessities.  Large numbers
of  trained  and  skilled  workers  are  also  losing  their  economic base,
regressing   down  the   socio-economic  scale.     Moreover,   poverty   is
particularly focused on children, women and youth.

39.   There  is  a growing  acknowledgment that  the role  of  the State  in
promoting social development  is crucial because  it is only the  State that
can  conceive and  formulate social  policies  on a  broad scale  and ensure
their  effective coordination.   Public administration should  be capable of
addressing the  root  causes of  poverty  and  inequity, and  improving  the
social situation  of  societies which  have  reached  a critical  level,  by
narrowing the gaps and  promoting social equality.   This key role falls  to
the public administration sector, in part,  because it serves as coordinator
for  the provision  of  basic  social  services  that  the market  will  not
provide.   Also, there is a shift in  development priorities towards greater
investment in people.

40.  Thus,  Governments have to provide  leadership for a collective process
of massive and sustained long-term  investment in the social  sectors.  This
question is linked  to government decision-making and priority-setting  with
respect  to public expenditure.   In  Latin America,  for example, countries
have in fact been decapitalizing their  educational and health systems, thus
widening the  gap between social groups.  On the other  hand, the example of
some  South-East  Asian   countries  demonstrates  what  is  possible   when
investment in the social  sectors is supported.  In many countries, even  if
additional resources  for social development could  be assured,  it is still
questionable  whether the  present government machinery would  be capable of
delivering  the desired  level of  social programmes.   Capacity-building is
needed not only for policy formulation but also for implementation.

41.    Public  administration  must  also  generate  higher  quality  in its
policies. At  present, social  policies often  aim solely  at resolving  the
"casualties" of economic policies.  Public  administrators need to develop a
coherent  social  development  policy,  which  implies  better  articulation
between  economic and  social  policies  and instruments.    Designing  such
policies is a complex and technically  difficult activity, but is  extremely
necessary.

42.  Concurrent  with this leadership role, there  is a strong need for  the
State to  modernize itself  and increase  its efficiency  to deliver  social
programmes and  services as  well as  to redefine  the manner  in which  the
State coordinates its functions with civil society.

43.  Modernizing the  State in the social  field is of  strategic importance
for the  future of  developing and  developed countries.   Much will  depend
upon the State's  ability to generate a new  perception of how  to deal with
social  development policy  and  its  willingness  and capacity  to  achieve
efficient management at both macro and micro levels.

44.       Social  programmes  require  a  high  degree  of  cooperation  and
collaboration among  large numbers  of agencies  and organizations  and call
for active  participation of  the community,  grass-roots organizations  and
NGOs.  They  must promote  transparency and  accountability.   This has  its
political and technical complexities and requires  innovation on the part of
the  State  and  a  break  from  the  traditional  relations  between public
administration and the community.

45.  In sum,  public administration must  be capable of much more  audacious
and innovative  thinking and  action in the  light of the  magnitude of  the
social issues and  problems that it  faces.   Whether or  not societies  are
willing  and  able to  improve  significantly  the  levels  of their  social
management  will  determine to  a large  degree  the extent  to which  these
societies  will  survive. The  question  is  how  best  to modernize  public
administration  to carry  out effectively  its  role  as promoter  of social
development, mobilizer  of social investment and  innovator in  the field of
social management.


C.  Role of public administration in facilitating infrastructure
development and in protecting the environment          

46.  As the twenty-first century  approaches, public administration faces  a
number  of goals as providers  of infrastructural services.  Among these are
improved   efficiency,  increased  reliability,  cost-effective  management,
integration  of  environmental concerns  in infrastructural  development and
maintenance,  reducing  the  growing  dichotomy  between  urban  and   rural
infrastructural services, and sustained economic growth.
  47.    Historically, the  combination  of  a  society's  primary need  for
services  and its technological potential has been  the fundamental catalyst
for  the formation  and execution  of large-scale  physical works  projects.
Investment   in   transportation,   energy,  telecommunication,   water  and
sanitation continues to be a basic  measurement of societal development  and
the public sector's efficacy.

48.  Five  critical issues that  confront public administration in  the area
of  infrastructure  are  coordination,  economic  development,  maintenance,
finance and environment protection.

49.   With  regard to  coordination,  public  administrators seek  a correct
balance  between  competitive  and  monopolistic  provision.    Competition,
though apparently expensive in terms of  duplication of capacity, may reduce
overall costs  and  also  provide  more  back-up  facilities  for  essential
services.

50.   Public administration  will continue  its important  role in  economic
development and growth through infrastructure  development in such  areas as
transport,  water  and   electricity,  which  are  intermediate  inputs   to
production.  Any  reduction  in  the  costs   of  these  inputs  raises  the
profitability  of  production, thus  permitting  higher  levels  of  output,
income and employment.

51.   The linkages between infrastructure  capital and  economic growth have
generally  produced a  significant, positive  effect on economic  output and
growth. But  it  is difficult  to  capture  all possible  externalities  and
spillover  effects  of investment.    Infrastructure  promotes  growth  most
effectively  in situations  where a  substantial level  of  activity already
exists.  It makes significant contributions  to growth through the reduction
in costs for services.  But in many  developing countries there is  dramatic
evidence of  the negative  impact of  inadequate infrastructure  services on
economic growth  and social welfare.   It  is the  responsibility of  public
administrators to  ensure access to services,  particularly at the  regional
and local levels.   Without such a  commitment, in many cases, the  economic
and social development of large segments of the public would be prejudiced.

52.  A severe  barrier to sustainable development  in nearly all  developing
countries has  been the  consistent failure of  infrastructure providers  to
support   facilities   through  adequate   maintenance   programmes.     The
consequences  of inadequate  maintenance severely  limit efficiency  in  all
sectors of infrastructure.  Over time,  poor maintenance results directly in
reduced service quality and increased costs for users.

53.   Unavailable resources,  unskilled staff,  inadequate project  planning
and lack  of  coordination are  the  obvious  factors for  poor  maintenance

programmes. But  perhaps the most significant  reason has  been a systematic
bias in favour  of new construction at the  expense of maintenance and  even
efficient operations. The current nature  of donor financing reinforces this
bias.

54.  Inadequate  maintenance remains a serious challenge.  Allowing roads to
deteriorate, irrigation  canals  to leak,  water  pumps  to break  down  and
sanitation systems to  overflow results in  lost capacity,  declining output
and/or a  substantial increase  in additional investment  needed to  sustain
existing levels  of service.  An  indifference to  maintenance is associated
directly with  poor  infrastructure  policies which  in turn  absorb  scarce
fiscal  resources and  compromise macroeconomic  stability.   Poor  policies
lead to low-quality unreliable services, thus alienating users.

55.   Three strategies will  characterize the maintenance of infrastructure.
These  are:  (a) the  wider application of commercial principles to generate
more recurrent  income;  (b)  the broader  use of  competition  in order  to
reduce the  cost of construction contracts  and maintenance programmes;  and
(c)   the  increased  involvement  of  local  communities  and  users  where
commercial and competitive behaviour is constrained.

56.  The three critical financial  issues facing public administrators  are:
(a)  the financing  of  new  projects and  the effective  management  of the
resource allocation process; (b) the financing  of maintenance and the issue
of  prioritization according to  the scope  of projects  and the urban-rural
mix;  and (c)  how to  ensure environmental  sensitivity in  all aspects  of
infrastructure  financing, and  the potential  additional cost  that may  be
incurred.

57.  Environmental  impacts have  rapidly become  a central  concern in  the
development  of infrastructure policies and  agenda in all nations.   It has
been evident for some time that externalities of infrastructure  development
have taken  their toll on the  environment.   Negative environmental impacts
have often  resulted from a failure  to take  into account interdependencies
among infrastructure sectors, and the fact  that public agencies  themselves
can be polluters.

58.   In many countries, unfortunately, there is an absence of environmental
sensitivity at  the various tiers of  government, particularly  at the local
level.  If regional  and  local  planning are  to  be effective,  it is  the
responsibility of public administrators to address these issues  thoroughly.
Another  challenge  for  public  administrators  is  to  change  traditional
thinking at regional and municipal levels  regarding the environment.   This
could  be done  by integrating  environmental protection  requirements  into
general administrative procedures.


D.  Role of public administration in promoting partnerships

59.    The public  administration  role  in  private  sector development  is
threefold:  stabilization,  promotion  and  regulation.    First  and   most
fundamental  is stability in  all its  aspects -political, social, economic.
Without stability, there  is no confidence  in the future  and no  long-term
economic activity.

60.  In  public-private interactions there has been  a shift of thinking  on
the role of Government and on forms and  modalities of interaction with  the
non-State  sector.  The production of an increasing  range and proportion of
goods  and services  is being  taken  on by  private profit  and  non-profit
organizations  and individuals, while Governments are increasingly involving
customers and beneficiaries in  the design, implementation and evaluation of
government  programmes.   Governments  want  to  mobilize  the  information,
energy and  resources of private  firms, non-governmental organizations  and
private  individuals  to meet  social needs.    In promoting  public-private
partnerships,  such  as public  joint  ventures  and  build-operate-transfer
projects,  public administrators  will  be responsible  for  protecting  the

public interest.

61.    The limitations  and  constraints  on public-private  interaction are
attitudinal/cultural,  organizational,  market related  and  administrative.
In some countries,  the public sector and the  private sector think of  each
other  as  essentially  different,  not  just  in  managerial  style  but in
underlying  goals and  values.   Where antipathy  is extreme,  there will be
little productive interaction.   What is needed, in  the first place, is  an
awareness  of common  development goals,  and  a  willingness to  listen and
understand on  both sides. Process consultancies  can help  to catalogue new
productive relationships.

62.   For  each service, the  Government needs to  consider whether it  is a
public  or  private  responsibility, whether  it  needs  public  or  private
financing and  whether  public or  private production  is more  appropriate.
However,   Governments  often   lack  the   capacity  to   structure   their
relationships  with private sector  partners and  to ensure  that the public
interest  is served.   Public  administrators  will require  a new  sense of
direction and new skills.

63.   Business  promotion raises  complex  issues  of strategy  and  policy.
However,  most  countries   are  promoting  their  small  and   medium-sized
enterprise sector,  which  has  been  found to  play  an important  role  in
promoting economic  development.   Private enterprises should have  the same
access to  credit from State  banks and from  donors as  public enterprises.
In  some countries, new  forms of  partnership between  branch banks, mobile
banks, informal  savings and  investment schemes, grass-roots  organizations
and other  sources of credit, such  as village  moneylenders, are increasing
the range of access to  credit.  Public administrators exercise a leadership
role in putting together these arrangements.

64.   Privatization is  the most striking  economic phenomenon  of the  last
decade.   Governments   are   putting   many   of   their   micro-management
responsibilities  into  private  hands.    There  is  a  strong  trend,  now
observable in practically  every country, to  trust the  market more.   Many
clear  successes  have been  scored.  However,  there  have  also been  many
mistakes and  lack  of transparency  in  the  design and  implementation  of
privatization  programmes; in  some countries,  privatization has  become  a
dirty word.  Governments  need to pay more  attention to the  achievement of
efficiency  gains through  competition and  the transparent  structuring  of
each  privatization  so   that  all  parties  gain  -customers,   investors,
employees  and  the  Government.   Governments  should  resist pressures  to
privatize which will compromise the realization of efficiency gains.

65.    Few  countries  so  far  have  undertaken  independent  and  in-depth
evaluation  of  the results  of their  privatization programmes,  even after
several years of  implementation.   Without evaluation against the  original
objectives,   there   is   a   risk   that   privatization   is    evaluated
inappropriately.  It is  important to include all the criteria of success in
an evaluation, not only the financial  criteria.  Governments should  ensure
independent evaluation of the impact of their programmes.

66.  Every country  has a number of State-owned enterprises which cannot  be
privatized  in  the  immediate  future.    Many  of  these  are  large   and
inefficient,  but cannot  be discontinued  because the social  and political
consequences would be  unacceptable.   Governments are trying, with  varying
success, to improve the performance  of such enterprises, particularly their
efficiency and financial  performance, by restructuring, by hardening  their
budgets, by  corporatization and self-financing  regimes, and by  separating
ownership functions from management.  Separation  is sought by using holding
companies  to manage portfolios  of similar  enterprises and/or by contracts
which make  management  fully accountable  by  pre-defining  their goals  in
objective terms,  discontinuing procedural constraints  and interference  in
their  authority  to achieve  the  goals,  and  by  rewarding or  penalizing
managers  according  to   their  measured  performance.  Social  goals   are
separated from commercial goals and  explicitly financed by  the Government.

Contracts  made  with   outside  managers  (management  contracts)  or   the
incumbent management team  (performance contracts) will place heavy  demands
on public administrative skills in the future.

67.    In  some countries,  there  are  major potential  benefits  from  the
conversion of  defence industries  and budgets  to civilian  purposes.   The
process of  conversion  requires  political  will and  a  pragmatic  market-
oriented approach at the enterprise level.   The key resource and  advantage
of  military  enterprises  is  usually  their  advanced  technology.     The
government role  here  will  be  to use  its  leverage  as the  customer  to
pressure military  industry  to plan  conversion  so  as to  mobilize  these
resources for development.  Joint ventures  with civilian partners are  used
to introduce new technology, product ideas,  managerial skills and access to
foreign  markets.  Enterprises  may be  privatized before  or after physical
conversion.    Alternatively,  particular operations  may  be  spun off  and
purchased by the managers and employees.

68.   Regulation  starts with  a  market-friendly  legal environment.   This
requires   not  only  laws  and  regulations  on  property,  bankruptcy  and
insolvency, formation  and management of  companies, partnerships and  joint
ventures, securities,  banking, insurance,  taxation, accounting  practices,
etc. but also the courts and  administrative personnel to support, implement
and enforce them (see sect. F below).

69.   Many developing countries  still have a  high level  of administrative
regulation  of business.   Several Governments  have examined  the rationale
for  their administrative  controls  and simplified  and  streamlined  them,
often creating a  one-stop agency to reduce the cost and delay, particularly
to  foreign  investors.     Administrative  deregulation  has  the   further
advantage that it attracts more enterprises into the formal sector.

70.  Regulation  of business activity by  Governments serves to correct  for
market weaknesses  and to protect vulnerable groups where they are unable to
look  after themselves.    The respective  groups  are  customers/consumers,
investors/creditors, users of the physical environment and employees.

71.   Consumers  have been  a  vocal  pressure group  against privatization,
since  they fear price  increases from the ending  of consumer subsidies and
from unrestrained  monopoly sectors.   They  also fear  lowering of  quality
standards by firms having only  bottom-line criteria, and loss  of access to
services which cost  more in remote areas.   These fears relate to  monopoly
industries where  the consumer has  no choice  of supplier.   In  developing
countries, even  after deregulating  industries formerly  reserved to  State
enterprises,  monopoly  is  widespread  -domestic  markets  are  small   and
economic plant  sizes are  relatively high.   In  practice, many  developing
country  products and services  are de  facto natural  monopolies long after
they  have  been   demonopolized  in  more  advanced  countries.    Consumer
protection and  other forms  of regulation will  be a  continuous and  major
role of Government in the development process.


E.  Role of public administration in
   managing development programmes

72.   The role  of public  administration in the  management of  development
programmes  has  many  facets.     Some  of  the   issues  in  which  public
administrators will continue to be involved include:

  (a)  The need  for the absorptive capacity of implementing agencies to  be
taken into  consideration during the planning and programming of development
activities;

  (b)  The  importance of transparency and  exchanges of information  in the
course of development programmes;

  (c)  The need to utilize fully and  build on existing national capacities,

e.g. governmental systems  and institutions, national human resources,  non-
governmental organizations and the private sector;

  (d)    The  importance of  South-South  collaboration  and  interaction in
formulating country-relevant development programmes;

  (e)  The potential for  the development partnership concept to be expanded
by including  institutions from  all levels  of society  in the  development
planning process;

  (f)   The  need for  the State  to provide  an enabling  environment  that
encourages  the  highest  level  of   civil  society  participation  in  the
formulation and evaluation of development programmes;

  (g)    The  need for  a  genuine  level  of  government  "ownership"  over
externally financed development programmes;

  (h)  Realizing that technical  assistance should not direct the outcome of
development  programmes, but  support  them; Government  needs  to  exercise
leadership  in  ensuring  that  wider  economic  and  social  goals  will be
realized by externally funded development programmes;

  (i)   Societal, cultural  and economic  constraints must  be recognized by
both host  Governments and  donors alike  if external assistance  programmes
are to  be formulated in a  way that results  in successful  delivery of the
intended outcomes; and

   (j)  All  government development programmes need to be structured in such
a  way that  the greatest  multiplier  effect  possible is  generated during
implementation, thereby maximizing the benefits to society.

73.    In  many countries,  government  proprietorship  of  the  development
programme, including  externally assisted  components, needs  reinforcement.
The  ability  to  ensure  that  the   national  development  plan  is  being
implemented in  a  harmonized way  by  all  players, governmental  and  non-
governmental alike,  requires  effective  management of  the  implementation
process.

74.  The  exercise of effective management requires that Government take the
lead  in articulating  a clear  role  for all  parties participating  in the
development process.  Included in this articulation can be

  (a)  The role  and scope for any technical cooperation activities, and the
outcomes anticipated with respect to skill transfers and sustainability;

  (b)   The role  and responsibilities of non-governmental organizations and
private sector entities;

  (c)   The responsibilities  of Government  as concerns  monitoring by non-
governmental organizations and private sector entities;

  (d)    A  definition  of  the  process  by  which  expert  negotiation and
evaluation of any  bids to be solicited will  be conducted, in the  interest
of enhancing the transparency of the implementation process; and

  (e)  Government policy on the  multiplier effects sought from  development
programmes.

75.   Critical to the management  of development programmes  is the role  of
public administration  in  the utilization  and building  of domestic  human
resource  capacities.   Existing  national  human  resource  capacities  are
frequently  overlooked   when  formulating,  implementing,  monitoring   and
evaluating   development    programmes.       Further,   opportunities    to
comprehensively  reinforce national skill  bases through training need to be
pursued  far  more  vigorously  by national  Governments  and  donors alike.
Particular  reference  is made  to  the  need  for  enhancement of  national

technical  skills in  the complex fields of  banking, international finance,
capital formation and comprehensive cost/benefit analyses.


F.  Role of public administration in establishing and
 maintaining the legal and regulatory framework

76.   The legal framework of  public administration is  a central aspect  of
public administration and development; however, it  is too often absent from
discussions of modern public administration.

77.  In many  countries the legal framework  of public administration cannot
play  its role for a number  of reasons.  In some cases it is not adequately
sensitive  to critical  elements of  the  culture,  e.g. in  those countries
which have  legal  structures of  foreign  origin  from colonial  times,  or
because   critical  laws   regarding  public   administration  have   become
antiquated.  Law  is a major component and  result of the cultural  heritage
of any nation.  Compliance  with law requires that legal rules be rooted  in
social values and  traditions.  Thus the  law of public  administration must
be sensitive to this cultural foundation.

78.   The so-called implementation deficit  is a  widely recognized problem.
It is due  to:  the lack of  resources for implementation; the  imperfection
of legal  drafting; the lack  of an appropriate administrative organization;
and the instability of  laws.  It can also  result from lack  of consistency
between some structural reforms (e.g. decentralization) and requirements  of
the law that central  Government can no longer  control.  Lastly,  a deficit
of implementation can result from a  lack of will to comply with law when in
some  cases, as  a result  of  social  fragmentation, informal  linkages and
norms overrule the legal rules established by  law.  These difficulties  are
harmful to the morale and performance of civil servants.

79.   There is the ironic problem that while we  see underapplication of the
law, we  also see systems paralysed by what appears to be an excess of legal
constraints  which  are  perceived  to  stand  in  the  way  of  innovation,
effectiveness  and  efficiency.     They  are  also  seen  to   characterize
Government as excessively large, complex, and  impersonal.  At the  societal
level  these tendencies  seem to  inhibit efforts  at enhanced participation
and democratization.

80.   Public administration  in the  twenty-first century  should be charged
with  the  establishment  of an  appropriate and  effective  legal framework
which is  a prerequisite to  creating an enabling  environment and which  is
conducive  to promoting sustainable  development.   It is  also essential to
the competency of the civil service to support the development effort.

81.   The interrelationship between law  and public  administration has been
overlooked  and  neglected in  the  current  study  and  practice of  public
administration.    This has  been  particularly  detrimental  to  developing
countries and  countries with  economies in transition,  as their  inherited
legal  frameworks may not  reflect the  culture of  the country sufficiently
and  are not as  flexible or responsive as needed  to meet the rapid changes
of our times.

82.  Law  is one of the central  foundations upon which society is organized
(i.e.  constitutionally).   It provides  instruments which  are essential to
empower, regulate and control public  administration.  A primary distinction
between  public administration  and  other endeavours  is  that  officers of
Government are created by and  act within the authority of  law.  Thus,  the
legal  framework  offers the  basis  for  public  administration.   It  also
ensures rights,  security and  stability.   It is  both the  means by  which
Governments  regulate and  provide services  to  citizens  and the  means by
which those citizens may  protect their rights.   It is also a  vehicle with
which  to address problems  of corruption  or abuse of power.   It regulates
the ongoing  operation  of  public administration  in terms  of  regularity,
opportunities  for participation,  fairness, and  the essential  aspects  of

management in  the public  sector.   It provides  means for controlling  the
public  sector in the  sense of  providing mechanisms  of accountability and
responsibility.

 83.   In terms of the  challenge of development, law  is essential for  the
guarantee of  property rights (private and  public), the  stability of which
is necessary  to economic  development.   Appropriate regulatory  frameworks
are   vital   to   stimulating   participation   in  economic   development.
Appropriate legal frameworks are necessary for enhancing the development  of
civil  society,  encouraging the  participation  of  local  communities  and
indigenous people, and guiding the effective implementation of  governmental
goals through public administration.

84.   In providing  for all  of these  tasks, the legal  framework of public
administration provides a foundation for virtually  all aspects of the  task
of governance.


III.  CAPACITY-BUILDING IN PUBLIC ADMINISTRATION

85.   In  the  1990s, public  administration  systems are  faced  with  many
challenges. Dramatic  changes in the  global political environment,  dynamic
changes in  communication technology, critical  common global problems,  and
heightened  emphasis  on  social justice  and  poverty  alleviation are  all
trends  that  reinforce  the  need  to  have  public administration  systems
capable of responding to multiple concurrent challenges.

86.    These   challenges  animate  both  centralizing  and   decentralizing
tendencies.  Common  global   economic  issues  require  synchronization  of
macroeconomic  and   social  policies,   thereby  reinforcing   centralizing
tendencies  for   public  administration   systems.     Addressing   poverty
alleviation  and  social  justice  requires  deconcentrating  authority  and
decision-making to  the  point of  service delivery  and further  encourages
decentralizing trends for the public administration system.

87.   Knowledge  and skills  needed to  operate in  and manage  each of  the
levels in the overall  system are different.   Complexities and the rate  of
change  are   different  at   each  level   as  well   as  performance   and
organizational  success  measures.   Also,  administrators  who work  at the
conjunction  of   different  levels  and   systems  of  administration   are
confronted by even greater complexity and are  required to possess ever more
complex sets of  knowledge and skills in order to function at a higher level
of  productivity  and  performance.     For  example,  global  movements  of
financial  resources  have  become  almost  instantaneous  as  a  result  of
technological  advances.   Public administrative  systems are  required  not
only to be able  to understand such new  practices, but  also to be able  to
set  and  monitor policies  and  regulations  within  this  new and  complex
context, if national financial systems are to be integrated into the  global
system while continuing to maintain domestic control.

88.     While   responding  to   these  new   challenges,  national   public
administrative  systems continue to  be responsible  for social and economic
programmes.   One  aspect  of response  to these  challenges  may be  a  re-
examination of  core functions, which may  be streamlined, thereby  deleting
some  existing functions  and assuming  newer core responsibilities.   Also,
national public  administrative systems have  become increasing  responsible
for developing national plans, policies  and programmes and for coordinating
external aid flowing into  the system.  These  functions demand that  public
administrative systems acquire advanced capacities and capabilities.

89.    Building  capacity  in  the  public  administrative  system  involves
preparing it to better perform  its functions at all levels.  At the  grass-
roots level, the administration is required  to perceive changes in existing
needs and activities. At the intermediate  level, for example the provincial
level, the  administration is required  to respond to  changes at the  grass
roots while anticipating changes at  the national and  international levels.

At the  highest level,  the  administration is  required to  respond to  all
levels and  complexities of changes in  governance, and to  be pro-active in
anticipating  long-term   developments  and   in  designing  future-oriented
strategies.

90.  The  single most important  factor in public administration  systems is
people.   Competent and  motivated  people constitute  the most  significant
difference  between successful  and unsuccessful  organizations.   The  most
important  organizational capacity  is that  of recruiting,  motivating  and
retaining  highly qualified  staff.   Public administration systems  need to
attract a fair share of the total quality workforce available in the  entire
workforce. At the same time, the  public administration needs to  strengthen
the  capacity  of those  who are  already employed  in the  system.   A two-
pronged strategy of optimal utilization of existing capacity and  systematic
build-up  of  those  areas  in  which  shortages  exist  will  promote human
resource capacity-building in the public service.

91.   A  variety of  management  tools and  technologies can  accelerate the
capacitybuilding process in public administration.   Many of these tools can
be easily  integrated  into a  wide  range  of administrative  systems,  for
example, office automation technologies, budgetary and financial  management
record-keeping,  and  personnel   management  information  systems.    Other
management  tools  such   as  performance  appraisal,  strategic   planning,
professional development and training have to  be adapted to the  context in
which  these  systems  will  operate.    Still  others,  like  transparency,
accountability, devolution and decentralization, or participatory  decision-
making  have  to be  negotiated  to  the  satisfaction  of all  stakeholders
involved in the process of capacity-building.

92.    While  each  public  administration  system  identifies  its specific
capacitybuilding  needs, there  are some  recognizable trends  in  capacity-
building.  The first key area is building capacity of public  administration
systems  in  knowledge  generation and  creativity  in  defining the  future
strategies, which  are core  responsibilities of  public administration  for
governance.  Some of the subcomponents  are:  thinking strategically for the
future; designing  new ways  of creating and  appraising leaders;  examining
the  process  of  policy-making  and  especially  the  relationship  between
different levels of  policy makers; and  establishing an interactive network
of  political leaders, top  officials and  other leaders  outside the public
administration system.

93.  Second,  there is a need to develop skills in dealing with multi-system
and  system-wide complexities  and  rapid change,  which  require  universal
perspectives,  while  at the  same  time  developing  specialization,  which
requires  focused knowledge  and skills.    Within  the context  of managing
complexity  and change,  there are  fundamental issues of  core competencies
for  different  levels  of  public administration  and  governance,  and the
nature of the changing demands  for performance within  public institutions.
At  one level of  complexity and  change is the issue  of rehabilitation and
restoration  of  public  administration  systems  afflicted  and  beset   by
conflict.  Management during times of conflict or  peace may not require the
same  types   of  skills   and   knowledge,  personnel   or  tools.   Public
administration  systems facing conflict  will need  a capacity  to establish
programmes  of restoration  and rehabilitation  within  special constraints.
At another  level of complexity, the  public administration  system may need
to respond to  a natural disaster and therefore  must be prepared to  manage
the multiple  systems that can malfunction  during disaster  situations.  In
both  conflict and disaster circumstances, there are  many different systems
that affect each other:  transport,  energy, economy, natural resources  and
communications,  as  well as  the possible  damage to  the social  fabric of
communities.   Public  administration systems  need  to  be able  to animate
cooperation and coordination among its various  subsystems and with relevant
systems in society.

94.   The third  area of capacity-building  involves the  massive volume  of
information   required  for   effective   public   administration  and   the

development  of  means of  properly utilizing  the processed  information to
undertake  swift   and  dependable  decisions   which  affect  many   lives.
Understanding  of   modern  communications   technology  for   research  and
information  gathering,  as  well  as  decision-making,  will   be  a  basic
requirement for personnel in public administration systems.

95.   Designing new  public organizations  and restructuring existing public
organizations in  order  to improve  and  monitor  service delivery  is  the
fourth area of capacity-building.  Service delivery is especially  important
in the  1990s, as the  demand for effective  and efficient service  delivery
increases  while  the  resources  available  to  deliver  the  services  are
severely reduced or at best maintained at the same level.

96.   The  fifth  area of  capacity-building  is  that  of transparency  and
accountability.    It  is essential  that public  administration  systems be
capable of  monitoring the use of  resources in  conformity with established
standards  and  procedures and  in  terms  of  results  achieved with  those
resources.    Because  external financial  resources  are  involved  in  the
overall   management  of   financial  resources,   this  capacity   has   an
international dimension.   While accurate financial  accountability is a key
to  appropriate  use  of  resources,  it  is  equally  important  to  ensure
transparency of accounting of resources as  they relate to programme  output
and  performance.   Financial management  systems which  meet  international
standards need  to be  put  in place,  and  personnel  need to  be  properly
trained to supervise and manage these systems.

97.    When  administrators  have  high-quality  training,  work  within   a
structure  which motivates and rewards them, utilize modern management tools
and enjoy reasonable conditions of  work, they can be expected to contribute
to  organizational  productivity and  performance.    Public  administration
systems  can  achieve   their  objectives  if  capacity-building  leads   to
improving  the total  quality of  public  administrative systems,  within  a
framework of clear policy goals and dynamic leadership.

  A.  Enhancing policy development capacity, strengthening
     organizational structures and improving civil service
systems                                        

98.  Over the  past decades, the State  has been increasingly  challenged in
the performance  of its  major functions.   It  has had to  face fundamental
changes in the social, economic and international  fields.  The issues  have
become  further aggravated because  of political  and financial  crises.  In
some situations  there  are problems  of  security  and maintenance  of  the
rights of  citizens.  In some  cases, the problem of  the legitimacy of  the
State has  given rise  to  the collapse  of  the  State itself.    Developed
countries are not necessarily immune from  this risk, while some  developing
countries  and  some countries  in  economic  transition  are  in fact  more
exposed to it.

99.    All  State  and  government  institutions  have  to  respond  to  the
challenges.  The  parliament  and the  Government  must  bear the  political
responsibility  for the  implementation  of  fundamental reforms.   In  this
sense, the role  of public administration  is of paramount  importance.   In
many cases  the  failure  of  the  State  is  also  the  failure  of  public
administration.   In  extreme cases, restoring the  State's authority cannot
be   achieved   without   building   or   rebuilding   a   reliable   public
administration.   More  generally,  development programmes  carried  out  by
international organizations or by other States have failed  or did not fully
meet their objectives because public administration  could not cope with the
implementation tasks  generated by  the programmes.   Similar problems  have
arisen, to some extent, in countries in  transition.  It is axiomatic that a
sound public administration  is a precondition  for political  stability and
development.   More  importantly,  building a  sound  public  administration
requires  political   stability.      Good  governance   implies   political
responsibility  and responsiveness  to  the people,  norms and  standards in
transparent and accountable public administration.

100.  Therefore,  strengthening government capacity, reorganizing government
structures,  civil service reform  and training  are now  being given higher
priority in most countries and international organizations.

101.  In  most countries, strengthening government capacity in  continuously
changing conditions has to  be focused on two  basic issues:   reviewing the
functions  performed by  the State  and  public  entities and  improving the
decisionmaking capacity.

102.   In the  context of  limited resources,  it is  the responsibility  of
Government to  be able  to review the  scope of public  responsibilities and
decide whether new tasks  require to be taken over  by the public  sector or
provided for within the wider society.   This review is  extremely difficult
and   requires  long-term   strategic  policy-thinking   and   policy-making
capacity.

103.  The policy-making capacity itself has to  be improved.  In most  cases
it is weakened  by the overload of routine  affairs or lack of expertise  to
take  strategic  decisions.   Policy-making capacity  requires:   (a) highly
qualified expertise in the higher civil  service and links with  independent
research  institutions  which can  provide  relevant  information;  (b)  the
involvement of  these resources in the policy process at the relevant stages
to enhance  decision-making; (c) the establishment  of reliable and  readily
available statistical information; (d)  long-term considerations in  policy-
making  informed  by  policy   research  and  forecasting  and  calling  for
creativity; (e) the capacity  to prepare policy choices and to enforce  them
when adopted.

104.   The renewed interest in  administrative restructuring  results from a
number of  factors, interlinked  in a  variety of  combinations.   Prominent
among  them   are:  changes  in  the  world  economy  and   the  process  of
globalization   and    competitiveness;   rising    demand   for    economic
liberalization;  delivery  of  social  services;  the search  for  the  most
effective  modalities   and   processes  for   promoting  productivity   and
modernization including  the call for the  use of  good management practices
to cut cost, waste and overlapping programmes and structures.

105.    Despite  the  importance  given   in  the  past  to   administrative
restructuring, those  measures have largely  failed because  of ambiguity in
objectives,  lack   of  political  support,   resistance  from  within   the
bureaucracy,  absence of  clarity in  focus  and  content, blind  copying of
foreign administrative models and sometimes poor judgement in timing.

106.   It is essential first  to mobilize political and bureaucratic support
for  restructuring  through  a  shared  vision   and  to  make  a  realistic
assessment of what is practicable in  terms of time, resources and personnel
components.   This  course  of  action  should  not  be  construed  to  mean
formulation of an approach  based on the lowest common denominator, but  the
consultative  process   should  aim  at   bringing  about  fundamental   and
meaningful changes.

107.   The prevailing  issues in civil  service reform  and public personnel
management are large and complex and should be closely examined so that  the
implications  may  be identified.    While  the civil  service  is  a  major
instrument for  managing public  affairs, most  Governments find  themselves
supporting   a   comparatively   low-paid,   oversized   and   over-extended
bureaucracy.   In some cases,  the excessive role  of the  civil service and
its weak  performance culture are  related.  The  system has  not adequately
addressed  the issues  of performance  standards, procedures  of  selection,
promotion  and  discipline.    The goal  of  a  good  civil  service  reform
programme   should  be  to   examine  the   issues  of  professionalism  and
confidence-building  with   citizens,  as  well  as  high-level  competence,
motivation, attitude and creativity in the service.

108.  Structural  adjustment programmes have emphasized civil service reform
from  the   perspectives  of   cost  containment,   downsizing,  issues   of

performance and effective management of human  resources.  These issues  are
difficult to put on a sustainable track unless they are viewed  with a long-
term perspective.  The  problem of downsizing has  failed to work  uniformly
because of  poor recruitment practices, lack  of control  mechanisms and the
prevalence of  temporary posts.  However, promotion of  social services  for
sustainable  human   development  could  require   selective  increases  and
redeployment in the civil service rather than downsizing.

109.   It is  essential to  review the  longer-term policy  issues of  civil
service  management,  such as  the  merit-based  career service,  impact  of
political  patronage  on  promotions,  the continuance  of  large  number of
cadres,  and  the fragmentation  of  personnel  organizations which  lead to
uncoordinated management of human resources.

110.  Despite  necessary efforts made to  bring about effective training  in
the  public  service,  the need  still  exists  to upgrade  training  as  an
investment in  human resources  in the  civil service.   Three  constraining
factors have continued to hamper effectiveness of training organization  and
planning:  (a) lack  of a national training policy; (b) lack of well-planned
and  structured  training programmes  based  on  clear  and  well-identified
assessed training needs;  and (c)  lack of  competent training  institutions
and facilities.

111.   Overall, training  policy must  be designed so  as to respond  to the
actual  needs  of   managing  national  development,  which  is   constantly
changing.  It  is also essential to develop  a consistent framework for  the
retraining  of  administrators   at  different  levels  with  the   changing
realities  and requirements  of public  administration.    This needs  to be
reflected in civil service reform and public personnel management policy.


B.  Strengthening financial management in the public sector

112.    Financial  management  is  a  set of  techniques  and  processes for
planning,   programming,  budgeting,   budget  execution   and   accounting,
financial  reporting  and  auditing  and  evaluation.    The  objectives  of
financial  management are to  ensure that government financial resources are
used  lawfully, efficiently  and effectively,  and with  accountability  and
transparency by executive government to the legislature and the people.

113.  In many countries, financial  management capabilities have been eroded
by the  pursuit of  financial populism, ineffective and  distorted budgetary
mechanisms and the breakdown of existing financial management institutions.

114.   A central concern  for all  countries is how to  harmonize methods of
strategic  management and  control  of aggregate  financial  variables  with
processes for  changing expenditure  priorities and  enabling effective  and
innovative management of service delivery institutions.

115.   Improvements  in financial  management have  been and are  being made
over  the years  in many  countries.   The  continued persistence  of fiscal
deficits and the difficulties in moderating  the growth in expenditures have
compelled Governments  to  take a  more  strategic  view when  incorporating
institutional   reforms  and  improved  methods   of  financial  management.
Substantial  progress  has been  made  by  industrial  countries,  including
Australia,  Canada, New Zealand,  the United  Kingdom, the  United States of
America  and  others.   These  countries  have undertaken  several long-term
financial  management reforms  in the  restructuring of  the  public sector,
application  of  market discipline,  and  introduction  of  cost  accounting
methods.     Systemic  improvements   were  made   in  terms  of   increased
effectiveness in  public  administration  by  providing  budgetary  ceilings
within which executives are expected to accomplish output-based  performance
targets, thus enhancing transparency and accountability.

 116.   In their  endeavours to  restore financial  equilibrium and  promote
sustainable economic growth, public  administration in developing  countries

and  transitional  economies which  are  coping  with  unsustainable  fiscal
deficits,  unabating  debt  servicing  burdens, and  a  decline  in official
development assistance may have to  rely on resource mobilization strategies
aimed at:

  (a)   Overhauling the entire tax system  so as to adapt tax policy and tax
laws  to the  evolving  economic  and financial  situation, minimize  equity
distortion, ensure  that  taxes are  consistent  with  the privatization  of
State enterprises,  trade liberalization, increased financial intermediation
and other reform initiatives;

  (b)   Selecting  taxes that  are  administratively  practical and  can  be
implemented fully.

117.  In  the process  of reform and  with a  view to  creating an  enabling
environment  for  sustainable  economic  growth,  developing  countries  and
transitional  economies  are   focusing  on  improving  the  allocation   of
resources,  increasing  the  productivity  of  their  economic  system   and
strengthening the resource  mobilization and budgetary positions to  release
essential  resources  for   private  sector  development.    To  these  ends
Governments are enacting reforms and practices to:

  (a)   Create a  comprehensive set  of policies to  address large financial
imbalances and inherent structural weakness;

  (b)   Reform the  public enterprise,  finance, banking  and fiscal sectors
with a view to liberalizing trade  and exchange rate regimes,  decontrolling
prices  and reforming  investment incentives that would  make their domestic
markets more competitive;

  (c)  Adapt policies to address adverse exogenous developments;

  (d)    Promote  proper  reform  sequencing and  sustained  and  continuous
adjustment;

  (e)    Implement an  outward-oriented  market-based  strategy  that  would
promote financial stability; and

  (f)   Tailor  these reforms  to  their  specific circumstances  and secure
public acceptability.

118.  Whereas developing countries by  and large have implemented  financial
management  reforms in  budgetary  techniques and  processes  to  streamline
public expenditures,  or are in  the process of doing  so, the circumstances
in transitional, least  developed and adversely affected countries are  very
different.

119.     Transitional  economies  are  in   the  process   of  adjusting  to
decentralization  and price-based  mechanisms.   Their needs  for  financial
management improvement  relate to:   (a) delinking  public enterprises  from
the government  budget; (b) setting  up monitoring, evaluation and reporting
units to  enable central  Government (as  the owner/policy  maker of  public
enterprises) to manage fiscal policy; and  (c) creating new institutions  to
adopt  uniform accounting  and auditing  procedures applicable  to a  market
economy.    At  the  level  of  central  Government,  the  establishment  of
macroeconomic  analysis and  monitoring units  will be  required to properly
link  financial  management  with  general  economic  policy  and  planning.
Further, sound fiscal management will require strengthening  of the spending
control  capacities   of  line  ministries   by  installing  budgeting   and
accounting units.   Finally,  support for fiscal policy  implementation will
require  the clear delineation  of fiscal  responsibilities of  each tier of
government.

120.   Either in the  process of improving the  overall financial management
system,  or in  restoring financial  equilibrium, or  undertaking  financial
reform,  public administration will  continue to  play an  important role in

defining the  future. The direction of  changes in  the financial management
system will depend on the specific circumstances of each country.


C.  Developing human resources in the public sector

121.   There  is  growing  evidence  of the  importance  of human  resources
management  and   the  need   for  improved   capacity-building  in   public
administration,  especially in  an environment  of declining  resources  and
increasing needs and demands for government  services.  Integration into the
world economy, increased  competitiveness, a need  to deal with complexities
and  uncertainties,  and  a  focus   on  sustainable  economic   growth  and
development  underscore the critical  role of  the human  factor in steering
the  world towards  a new  era of  good governance  and sound  economic  and
social development.

122.  The development  of human resources in government is a strategic  tool
which political leaders and top officials must use  in order to equip  their
countries to take charge of continuous change.

123.  Leaders who recognize that human resources  are a strategic asset  are
more  successful  in  dealing with  change  and  uncertainty  resulting from
globalization, technological innovations and the management of crises.

124.   Capacity-building in the public  administration system  as it relates
to  development of  human  resources will  be defined  by  a number  of  key
issues.   The development of  strategic human resource policies is the first
key to  capacitybuilding.   This policy  should be  framed by an  attempt to
maintain  high standards of  professionalism and  impartiality as  well as a
commitment by  top management to development  of human  resources which must
be openly stated, genuine and visible.

125.    Investing  in people,  highlighting  the  attraction, retention  and
development  of quality  people,  focuses  on executive  development and  on
ongoing, innovative professional development.

126.   A third element of  capacity-building is  establishing flexible human
resources   systems   and   practices   concentrating   on   defining   core
competencies,  ensuring professional development  and training programmes to
meet specialized and changing needs,  on the skill mix  required for keeping
pace  with global  changes,  and  on improving  recruitment  and  deployment
processes  to allow greater mobility  within the public sector  and with the
private/non-governmental sectors.

127.  A performance management system  which allows for improving conditions
of  service, e.g.  market-competitive wages and career  progression, as well
as an environment in which leaders  improve internal communication in  order
to enhance staff motivation, will also build capacity.

128.   For human  resources development  to take  place there  is a need  to
improve the  process  of decision-making  to  make  it more  consensual  and
horizontal, and to upgrade decision-making skills.

129.  Effective human resources systems and practices should:

  (a)   Be merit- and  performance-based, accountable, flexible,  responsive
and transparent;

  (b)    Empower,  challenge  and  motivate  individual  civil  servants  to
contribute to the work of the public sector;

  (c)  Be benchmarked against best practices.

  For effective capacity-building:

  (a)  Leaders should  accord the same priority  to human resources  as they

accord to the other leadership tools at their disposal;

  (b)  Human resources strategies should be focused  and, ideally, should be
based  on partnership and collaborative arrangements both  within the public
sector and with society at large;

  (c)   Both political leaders  and top  officials should ensure  that human
resources strategies  are  an integral  part  of  nation-building and  their
"business plan".

130.    Effective  leadership  for  building  capacity  in  human  resources
requires  that leaders  invest in  people  in  order to  generate innovative
solutions and to provide responsive and quality services.

131.    Effective  investment  in  people  is  contingent  upon  top leaders
themselves being  learners.  Research shows  that when  leaders are learners
themselves,  a number of  positive developments  take place  including:  (a)
their  organizations  will  work  better;  (b)  they  will  gain  an overall
positive return  on investment in  training throughout their  organizations;
(c) they will create effective networks; (d) they will  improve the position
of the public service in a competitive global  environment; (e) they will be
better   able  to  lead,   manage  and   accommodate  the   kind  of  public
participation required for promoting national development.


 D.  Improving efficiency and performance in the public sector

132.    With  increasing  pressure  from   the  global  economy  and  rising
expectations from the  population, Governments are  faced with the challenge
of  providing  more  and better  services  to  the  people  at  a time  when
resources appear to  be shrinking.   Efforts to improve  performance in  the
public sector rest on the following premises:

  (a)   The performance of the public  sector has an important impact on the
well-being of the people;

  (b)    Performance is  a  function  of  three  important and  interrelated
conditions,  which  involve   both  central  policy  institutions  and   the
operational ministries, agencies and provincial administrations:

  (i)  Clarity of purpose;

    (ii)  Authority and responsibility;

   (iii)  Coordination;

  (c)  Organizational  performance depends on effectiveness (doing the right
task)  and  efficiency  (doing  it  at   least  cost),  thereby  leading  to
achievement  of  results, and  continuous  improvement  of  performance  and
results;

  (d)  Information technology is a key to improving performance;

  (e)   Monitoring  of organizational  performance requires  evaluation  and
measurement  -  both quantitative  and qualitative  - of  performance, using
performance   indicators,  whose   measured  values   provide  feedback   to
administrators;

  (f)   Strong organizational task performance  requires the "right"  people
with  the  "right"  degree  of  authority and  responsibility,  the  "right"
systems and procedures  (differentiated for each organization in  accordance
with organizational needs  and capacities), attention to providing  adequate
types  and levels  of resources  and regular  accountability, with  personal
consequences for high and low performance, as well as for non-compliance.

133.    Performance  in  the  public  sector  is  multi-faceted  and  multi-

dimensional.   A performance  measurement and monitoring system will provide
the  Government with feedback  on how  government policy  and public service
systems work.  It will contribute to improving government policy.

134.   Instilling effectiveness  and efficiency  in the  public sector  must
become a sine  qua non in the  establishment of government strategic policy-
making and service delivery.   Objectives, goals, use of the private sector,
the voluntary sector and the community,  addressing the relationship between
centralization  and   decentralization,  and  the   better  utilization   of
information are vital components that must  be addressed in the  development
of any  national  policy for  improving performance.   The  key issues  that
impact  on  performance   are  the  clarification  of  objectives,   result-
orientation,  linking of  results and  costs,  the  time dimension,  and the
instillation of values that promote performance.

135.    Central   decision-making,  budgeting  and  personnel  systems   and
processes  which are  performance-oriented are  the first  precondition  for
effective performance at the organizational level.  The second  precondition
is that there are effective coordinating mechanisms  in place to address the
linkages between  sectors both at the  level of  strategic policy-making and
at the  point of service  delivery.  Within  this framework  provided by the
centre, the central elements of performance orientation  at the organization
level   are:    clarity   of  purposes;   authority  to  do   the  job;  and
accountability for the effective and efficient  use of the authority  in the
achievement of results.

136.   An effective and  efficient public sector  must be  composed of three
essentials:     qualified  personnel  and   incentives;  workable   systems,
structures  and  procedures  of  public  administration  and  services;  and
appropriate  modern  technologies  and  tools,  in  particular,  information
technology (IT).   Government policies for achieving development  objectives
of the  country can  play a  critical role  in stimulating  and guiding  the
establishment  of a  public sector  performance measurement  and  monitoring
system.

137.   In the last  decade, public administration  and civil  service reform
have experienced  an  important conceptual  evolution.    The core  of  this
evolution is  to  foster a  more  efficient  and responsive  public  sector,
including a  greater citizen  orientation through  the use  of IT  so as  to
encourage  more  effective  control  of  public  resources  while  achieving
results.  In industrial countries, economic and  social evolution has led to
a  changed relationship between  the civil  service and  the general public.
The increased  emphasis on "service management"  in the  public sector, such
as "no-stop  service" and "one-stop service", has also led to more extensive
use  of  tools for  measuring  effectiveness  and  efficiency.   Today,  the
concept  has produced a  trend towards  reorganization of  the public sector
more  along  the  lines  of  a  private  business  which  provides important
services in an efficient and cost-effective manner.

138.    Adequate   performance  information  is  critical  for   performance
measurement  and  management  accountability.    An  information  management
strategy  needs to be  developed.  The  key is  to prioritize organizations'
information  needs  and  carefully  analyse  the   costs  of  reporting  and
organizing information.  It should also be noted  that there are many causes
of misreporting  or  falsifying data.    To  avoid misreporting,  a  genuine
working   relationship  between   managers   and  implementers   should   be
established.   This requires personal  visiting, training,  several forms or
channels of reporting, and stimulating the  will to conform with  management
policy.


      E.  Developing administrative capacities for post-conflict
       restoration and rehabilitation of government machinery

139.  National rehabilitation  in countries in a state of conflict or  post-
conflict peace requires, among other  things, the re-establishment  of sound

government.     Current  approaches  and  efforts  tend  to  concentrate  on
peacebuilding,  relief,  demilitarization, and  the  holding  of  elections.
Such  approaches and efforts stop short of ensuring  that the conditions for
selfsustaining   administrative  machinery  are  created  at  minimal  cost.
Moreover, the  current range  of external support  efforts lacks  sufficient
coordination.   This latter  problem is  exacerbated by  the typically  weak
absorptive  capacity  of   national  public  administrations  in   countries
recovering from trauma.

140.    These countries  find  themselves  in situations  which  necessitate
contextually  relevant  solutions.    Some  countries  have  basic   working
administrative structures;  others face a  total collapse of  administrative
structures and  depletion of human resources.   Another  situation may occur
in  countries which are dealing with a grave  natural disaster; for example,
national institutions  may be intact  but local administrative machinery may
be severely damaged.

141.  What is required is an assessment of the specifics of each  situation:
the  roots of the  problems; the short-term  and long-term  means to address
these problems  and prevent their recurrence;  and foresight  as to eventual
restructuring and  development.  Early  assessment of  needs will facilitate
strategic   planning  and  a   quick  response   so  as   to  contribute  to
sustainability in the  long run.  Such an  assessment will also ensure  that
all  actions  form  part  of  a  continuum  which  will  lead  to  effective
government.

142.   Although  the experience  of international support  in this  field is
limited,   some  common  trends  drawn  from  positive  experiences  can  be
identified:

  (a)    Continuation  of the  process  of  political  stabilization through
consensus and confidence-building.  This means that everyone, including  the
former  contending  parties,  should  meet  with  each  other  and  discuss.
Optimally, the  country needs processes  of communication and  opportunities
for interaction which will lead ultimately to consensus;

  (b)  Inclusion in the emerging political, economic, and social systems  of
all existing or emerging political and  social forces and movements  through
processes of dialogue, forums and processes of consultation;

  (c)  Urgent and immediate attention  to prerequisites for investments  and
restoration of production  systems, for example, property rights,  financial
services and harmonious labour-management relations;

  (d)   Internal stability  through the  development of  a political culture
based upon  the rule  of law,  respect for  human rights, and  protection of
individuals  against  the  internal  lawlessness  and  banditry  that  often
accompany the end of conflicts;

  (e)  A stable regional environment supported by international guarantees.

143.   Before  a  national  Government begins  an administrative  rebuilding
process it  is essential  that its  priorities be  well defined.   Cases  of
countries in  the process of recovering  from trauma  have yielded effective
strategies  for both  initiating immediate  restoration mechanisms  and  for
sustaining   the   transitional    long-term   period.      Two    important
characteristics  of  any   immediate  strategy  are   comprehensiveness  and
flexibility.    It  should  conclusively  define  policy  issues  and  draft
national public  policies, and provide for  the restructuring and  operation
of  key administrative components.   The  priority of  a transitional/ long-
term strategy is to rebuild public  organizations and revitalize the economy
while being  adaptable  to changing  conditions.    Any practical  long-term
strategy  must  take  into  account  that  complex  networks  influence  the
relationship  among  different tiers  of government.   However,  its primary
goal of social and economic rehabilitation should not be compromised.

144.    The  lessons  above,  drawn  from experiences  of  extreme  crisis -
resulting from  man-made or from natural  causes - may  also be relevant  to
apparently stable situations.  As many  countries undergo processes of  non-
violent  radical  change,  they  require  a  high-quality  crisis-management
capacity for  handling trauma and  quick reaction as  part of a  new set  of
public administration capabilities  before such societies collapse or  break
up.


IV.  CONCLUSION

145.   What are the main  ingredients which will  define the  role of future
public  administration?  Where will critical capacity-building  have to take
place  in public  administration systems?   What  will be  the role  of  the
United Nations? These were the three central questions that served as  guide
to the  recommendations of  the Group  of Experts.   While  country-specific
systems will  differ,  there are  three  central  ideas which  guide  public
administration in  developed, developing  and transition  economies.   These
are:

  (a)   Rapidly changing domestic  and international  conditions and demands
for  services will require  innovative policies  at the  strategic level and
improved service delivery systems at the operational level.   Innovativeness
defined by creativity and flexibility to respond to  rapid change will be  a
main "core requirement" for development administration and governance;

  (b)  Public administration will continue  to fulfil critical functions  in
development,  moving  from  supporting  measures  for  economic  growth   to
protecting  the environment,  to determining  the relationship  between  the
public and  private sector,  to reducing  poverty and  illiteracy and  other
social development  activities, thereby achieving  the goals of  sustainable
development.   Therefore, exceptional capacities  to govern for  development
are essential for public administration;

  (c)   To fulfil critical  future-shaping functions, public  administration
must   bring  about   dynamic  people-oriented   systems  through  strategic
restructuring and  outstanding  professionalism  by  attracting  top-quality
people  into  administration.    Public  administration  as  the  centre  of
administrative and management  excellence will require radical thinking  and
corresponding changes  in service conditions,  career patterns,  and in  the
ethos of public service.

146.    The  imperatives   of  development  require   bold  and  imaginative
initiatives  to  strengthen   the  capacity  of  public  administration   in
developing  countries and economies  in transition  if development  is to be
realized.  The allocation of adequate  staff resources and financial back-up
is essential to  undertake and  encourage innovations at the  organizational
and governmental  levels in different fields  of administration.   A missing
component  in  new  areas  of  sustainable  development,  including   social
services,  requires   renewed  emphasis   on  strengthening   administrative
capacity at different levels.   Sound administrative capacity is  a sine qua
non  for all sectoral  programmes.  The  recommendations made  in the report
will  provide  the  basis  for  action  in  different  components  of public
management  at national  and  international  levels.   Specifically,  it  is
essential to  strengthen and renew the role of the United Nations, including
the  central role of the  Programme so that  it can  assist Member States in
improving  various parts  of their  administrative  systems on  a continuing
basis.  It is hoped  that the resumed  session of the General Assembly  will
be  able  to pass  a  powerful  resolution to  enable  the  United  Nations,
including the  Programme, to  work with  interested countries in  initiating
and implementing public  administration reforms, to monitor developments  in
public  administration, reform  and change,  and  serve  as a  repository of
expertise  and  knowledge  on  a  global   basis  and  help  coordinate  the
components of public administration within the United Nations system.

V.  RECOMMENDATIONS

147.  The report  approved by the Group of  Experts contained a total of 103
recommendations for national Governments and 96 for the United Nations.   In
adopting  the report,  the Group  of  Experts  requested the  Secretariat to
consolidate  the recommendations,  highlighting the  critical ones,  and  to
prepare   a  plan  of   action  in   submitting  these  recommendations  for
consideration  by  ECOSOC and  the  General  Assembly.    In following  this
request, the  Secretariat has identified below  the main  thrust and content
of  these   recommendations,  and  consolidated   and  rearranged  all   the
recommendations topically  within two  broad groups  - national  Governments
and the  United Nations.  The  complete set  of consolidated recommendations
is contained  in the annex to this  report.  The plan of action is presented
in the consolidated report of the Secretary-General.

148.    In making  the  recommendations, the  Group  of Experts  was  keenly
interested  in maintaining  the  momentum achieved  by the  Group.   In that
context  the  Group  of  Experts  recommended  that  national  and  regional
examination of the role and capacity  of public administration be undertaken
prior to  the beginning of the  resumed session of  the General Assembly  in
the spring of 1996.  The  report of the Group of  Experts and the Secretary-
General's consolidated report  on public administration and development  can
be used as working documents for the national and regional meetings.   These
meetings  should   be  used  to   develop  country  experiences,  needs  and
innovations in development administration.

149.    To institutionalize  the follow-up  to  the resumed  session and  to
ensure  that public  administration  and finance  issues  are  appropriately
incorporated  in the debate  of the  United Nations  legislative bodies, the
Group recommended that the body, which is a  subsidiary body of the Economic
and Social  Council but  serving only  in an  ad hoc  advisory capacity,  be
converted into  the United  Nations Committee on  Public Administration  and
Finance, reporting  to ECOSOC, with members  of the  Committee being experts
on public  administration and  finance  nominated by  their Governments  and
elected by ECOSOC.  This representative  intergovernmental body will provide
a   more  stable   platform  for   follow-up  and   implementation  of   the
recommendations  of  the  resumed  session  on  public  administration   and
development.


A.  National Governments

150.   In making  the recommendations  at the  national level  the Group  of
Experts realizes  that countries differ in their pattern, stage and level of
development and public administrative systems, and that recommendations  may
therefore  not be equally applicable.  The recommendations apply differently
to  (a)  those  countries  which  are  at  the  forefront  of administrative
transformation; (b) those countries where  the administrative system,  for a
variety of reasons including system breakdown (natural  and/or man-made) and
system  transition, is  in  the process  of being  started from  scratch and
which require basic public administrative processes and structural  guidance
and directions;  (c)  those  middle-range  countries which  have  made  some
advances  but  still require  assistance  for  development  of their  public
administrative systems.  The entire set of recommendations, which  addresses
all three categories of  countries, is included in the annex to this report.
The  recommendations  listed  below  are condensed  to  provide  the overall
essence, tenor and direction of thinking of the experts.

151.  As public  administration will operate in an increasingly complex  and
rapidly  changing  external  environment,  there  is a  need  for  excellent
development  capacity and analytical  skills.   Establishing policy units at
the highest  levels  of governance  and  disseminating  such capacities  and
skills through  the public  administration system is  an essential  priority
for all  Governments.  Public  administration must  not only  draw upon  its
best  talent  to  give  its  policy  capacities  a  quantum  push;  it  must
concurrently include private  think tanks, citizen groups and  organizations

and  non-governmental organizations  in its effort to  strengthen its policy
development role.

152.   The Group  recommended that  optimal managerial  capacity that allows
for managerial flexibility be encouraged by structuring government units  so
that  they  are   responsible  and  accountable  for  outcomes/delivery   of
services. Transparency  of management  style and  greater access  to citizen
participation in  public  administration  decision-making will  enhance  the
Government's role as a protector of public interest.

153.  It was recommended that swift and  rapid effort be made to bring about
maximum utilization  of information  technology.   This is  imperative to  a
forwardlooking public  administration system.   Access and integration  into
the world communication system can jump-start efforts towards excellence  in
the  public  administration  system  and  may  help  to  propel  the current
development  stagnation   into  a   new  era   of  growth   and  sustainable
development.

154.   It was recommended  that the  most intensive effort would  have to be
made in a  forward-looking public administration system to orient government
activities towards citizens, providing quality services based on  acceptance
and  placement  of citizens'  needs  first  and  institutionalizing  citizen
feedback on delivery of all services.

 155.   It  was  recommended  that top  leaders  in both  the political  and
administrative cadres  must become  learners before  they  can expect  human
resources  development  efforts to  pay any  dividend  in the  form of  good
governance  and sustained  development.  Therefore, beginning  with the top,
core  human resources  need to  become  "learners"  and permeate  the entire
public administration system.

156.   It  was recommended  that  the  highest performance  standards,  both
organizational and individual, must guide public  administration if it is to
make a smooth transition  from its previous  dominating role in the  economy
and society to a redefined role of catalyst for private sector development.

157.  It  was recommended that public  administration enhance its role  both
in  social development  and  maintenance of  large, medium,  and small-scale
infrastructure.      The  Government   should   assume  responsibility   for
establishing environmental standards  and integrating  those standards  into
the  infrastructural and  social  development process.    Balancing  between
purely economic needs and  larger social needs will  be a critical  area for
public   administration.     Its  traditional   regulatory  role   must   be
restructured  and  redefined in  the  context  of  the  current function  of
economic growth and sustainability.

158.   It was  recommended that  the public  administration system  maintain
strong  linkages  to  the  international  economy  and  society.    In  this
capacity, Governments  must strengthen  their absorptive  capacities in  all
forms and  types of resource transfer  (technical assistance, financial  and
technological). Greater assimilative and adaptive ability within the  public
administrative system has to  be generated so as to maximize the benefits of
the development process.


B.  The United Nations

159.   As nations  continue to  address the  administrative challenges which
were identified  in the  report, a strong  and significant  presence by  the
United Nations in all areas of public administration  is needed.  While  the
experts had  some familiarity  with the  activities carried  out by  various
bodies  and  agencies of  the  United  Nations  system  and identified  some
specific  role  for the  system in  the  area  of public  administration and
finance,  they  directed most  of their  recommendations  at the  Programme.
However, it must be noted that several of those recommendations directed  at
the Programme  would also be  applicable to other United  Nations bodies and

specialized  agencies.  Specifically,  the United  Nations could  serve as a
global depository  for exchange  of information  and as  a central  research
clearing-house for public administration and  development.  By enhancing its
capacity in the provision  of advisory services, the United Nations and  the
Programme could assist  interested countries in initiating and  implementing
improvement  programmes  in  public  administration  or  rehabilitating  and
strengthening  basic  public  administrative  systems  in  a   post-conflict
situation.   To successfully  meet these  challenges, the  group of  experts
strongly  recommended  that  the Programme's  scope  be  broadened  and  its
resources augmented.

160.  The Programme should become  the central depository and clearing-house
for  worldwide excellence  in  public administration  practices,  using  the
latest  technology.  The effectiveness of the Programme  will continue as it
maintains and  enhances its role in  supporting and  assisting the reshaping
of the civil service systems of Member States.

161.   Strengthening the Programme's capacity  in the  provision of advisory
services  (in the  critical areas of human  resources development, financial
management  and  information  technology),  support  for  the  training  and
professional  development  activities  of  Member  States,  and   conducting
upstream  research  in  administrative  reform  and  innovative  studies  in
rehabilitation  and reconstruction  of post-conflict  public  administration
systems are components requiring immediate attention for improvement.

162.   Special attention  should be  given to  significantly increasing  the
capacity  of the Programme in public administration in order to maintain its
credibility  as the lead  institution involved  in the  management of change
and responsiveness to demands on public administration systems.

163.   The role  of the  Programme in assisting Governments  to identify and
anticipate uncertainty and change and improve their risk-taking,  creativity
and entrepreneurial capacity should be enlarged.
APPENDIX I

Consolidated recommendations arranged by topic


  The  recommendations  are divided  between  those  addressed  to  national
Governments and those addressed to  the United Nations and  arranged in each
case under  nine topics:  (a)  strengthening government  capacity for policy
development,  administrative  restructuring,  civil  service  reform,  human
resources development  and  public  administration training;  (b)  improving
performance in  the public  sector; (c)  financial  management; (d)  public-
private interaction; (e) social  development; (f) developing  infrastructure
and  protecting the  environment; (g)  government legal capacity;  (h) post-
conflict  rehabilitation  and reconstruction  of  government  machinery; (i)
management of development programmes.


I.  RECOMMENDATIONS TO NATIONAL GOVERNMENTS

A.  On strengthening government capacity for policy development,
 administrative restructuring, civil service reform, human
resource development and public administration training

1.    Capacity  for  the  management  of  future-shaping  policy  should  be
increased by  setting up strong  policy development  advisory units,  having
cooperative relationships  with politicians  and senior  civil servants  and
with policy research and development institutions (think tanks).

2.    Restructuring  of  organizations,  functions  and  management  of  the
administrative  apparatus should  be treated  as  an  ongoing function.   In
order  to  successfully  maintain  a  restructuring  programme,  Governments
should strengthen  the  capacity of  units  responsible  for this  task  and
locate them where they can initiate and monitor reform measures.

3.  The use of information  technology is essential at the national level to
develop and  maintain personnel  records for  decision-making in  selection,
promotion and placement.

4.    Beyond  laws  and codes  of  ethics,  Governments  should  make  their
procedures transparent so as to combat and deter corruption.

5.   Leaders must  invest in  people in  order to  provide responsive  high-
quality  services.  Effective  investment in  people is  contingent upon top
leaders themselves being learners.

6.   Human resources  strategies are  an integral  part of strategic  plans.
They  should be  based on  partnership and  collaborative  arrangements both
within the public sector and society at large.

7.   To  meet the emerging  urgent responsibilities of  training in economic
management, people-centred development and  public policy analysis, adequate
resources need to be provided  to upgrade the capacity  of national training
institutions, to  develop  a core  group  of  professional trainers  and  to
prepare training  materials and  case-studies through independent  research,
consultancy and networking arrangements.

8.   Consideration  should  be  given to  establishing  training  programmes
addressed  to  the most  senior  levels  of  the civil  service  (e.g. chief
secretaries  or vice-ministers)  in different  sectors of  Government  (i.e.
Ministries of  Law, the  Interior, Public  Service, etc.)  at the  national,
subregional  or regional level to improve the capacity of Government to deal
with emerging issues of civil society for revitalization of civil services.


B.  On improving performance in the public sector

1.   Government activities should be oriented towards the citizens whom they
serve; for example, ease  of access for citizens  is more important than the
convenience of administrators; service quality should  be improved by  close
communication with  citizens to understand their  needs and preferences  and
to obtain feedback on their perceptions of services.

2.  Policies  and operational frameworks can be improved through analysis of
feedback  on past  organizational  performance and  through  innovation  and
experimentation with  operational systems  and information technology,  e.g.
in one-stop centres to speed application processing in relevant fields.

3.  Governmental  organizations - ministries, departments, provinces,  local
administrations, etc. - should be encouraged  to develop strategic plans and
indicators  for performance  improvement, to  experiment and to  monitor the
movement  of the indicators.   Mechanisms  should be  developed to encourage
these units to share their experiences.

4.  High  performance is encouraged by  (a) establishing clear, complete and
non-contradictory  goals and  policies and  indicators of  achievement;  (b)
minimizing  the rules,  standards and  norms  from  the centre  and allowing
maximum flexibility in operations; (c) measuring  results strictly; and  (d)
imposing  sanctions  for  non-compliance  or  poor  performance.     Central
Governments  should   utilize   performance  contracts   to  specify   those
activities  on  which  organizations  are  required  to cooperate  with  one
another.

5.  Specialists  should be trained in organizational performance  evaluation
and  the  development  and measurement  of performance  indicators,  and all
administrators  and employees  should be  trained in  utilizing  performance
indicators for performance improvement.

6.   A  central unit,  perhaps with  branches in  ministries  and provinces,
should be established as a "management  change unit" or "organization change
unit"  or "management  services unit".    This  unit could  usefully perform

consultancy  and  training functions,  as  well  as monitor  and  facilitate
change processes in Government.

7.  Needs assessment for computerization  should focus on actual utilization
needs by  organizations, give  sufficient attention to  training needs,  and
include  a   review  of   demands  on   electricity  and   telecommunication
facilities.    It  is   useful  to  develop  a  Government-wide  information
technology  (IT)  strategy, which  includes  a  full  assessment of  current
systems, hardware and software  in use and being  developed, as well  as the
human resources/skills currently  available in the various organizations  of
Government.

8.    Information  systems  such  as  payroll  and  personnel  management or
organizational performance indicators  and budget should be integrated,  and
other information  systems should be  linked horizontally and vertically, in
order to  achieve more transparent  and relevant decision-making  concerning
the operations of Government.

9.   To  accelerate the  development  of  advanced policy  capacity, special
attention  must be given  to core  learning programmes  and to collaborative
arrangements for decision- and policy-making (e.g. think tanks).

10.  Human resources systems and practices should be:

  (a)   Merit and  performance based,  accountable, flexible, responsive and
transparent;

  (b)  Empower, challenge and motivate  individual workers to contribute  to
the work of the public sector;

  (c)  Benchmarked against best practices.


C.  On financial management

1.   Governments contemplating  fiscal reform  should take  into account the
importance  of  concomitant   tax  administration  reform  since  weak   tax
administration will make it difficult to  achieve the objectives of  overall
fiscal reform.

2.     Governments  should   consider  endowing   tax  administration   with
administrative and personnel autonomy over recruitment, training and  salary
structure, with the aim of achieving maximum revenue collection.

3.   In least  developed countries, Governments  should emphasize  financial
management  systems  at the  grass-roots  level  to facilitate  delivery  of
services and  optimize expenditure control  mechanisms for the  disbursement
of development funds.

4.  In adversely affected countries, financial management procedures  should
be  minimal.   Core financial  management systems  need to  be simplified to
facilitate delivery of  humanitarian relief (e.g. requiring simple  receipts
and  expenditure  statements from  operational  managers  who  are  directly
accountable  for disbursement).    Where  possible, flows  of  external  aid
should  be  captured  by these  core systems.    Once normalcy  is achieved,
regular financial management practices can be reinstated.


 D.  On public-private interaction

1.  For  each service,  the Government  needs to  consider whether  it is  a
public or  private  responsibility,  whether  it  needs  public  or  private
financing  and whether  public or  private production  is more  appropriate.
Special attention  should be given to the development of  new services, e.g.
in recreation, health  and environmental protection,  and to the development
of reliable cost data.

2.    Governments should  seek independent  evaluations  and assessments  of
their  privatization policies  and programmes  from the  sectoral and cross-
sectoral agencies of the  United Nations.  Ex  ante evaluations should  seek
to   establish  the  appropriate  place  and  timing   of  privatization  in
structural   adjustment   programmes   and   the   administrative   capacity
requirements for  successful implementation.   Ex post facto  evaluations of
individual  privatization,   or  particular  impacts   of  a   privatization
programme,   such   as  the   impact   on   productivity,   efficiency   and
competitiveness,  should be obtained in  order to feed back  the findings to
the management  of the ongoing programme  and ensure  that the privatization
dividend is fully realized by the general public.

3.   Governments  need to  pay  greater  attention to  the possibilities  of
performance improvement in parastatals which are  not scheduled for sale  or
liquidation   and  seek   technical  assistance   as  necessary   from   the
international community,  including the enterprise  management component  of
the United Nations programme in public administration and finance.

4.    Before  a  Government  privatizes  or  gives  pricing  autonomy  to an
enterprise which has monopoly power over its customers, it should set up  an
independent regulatory apparatus to prescribe rules  of the game which  will
protect  the consumers  while maintaining  legitimate investor  returns.   A
clear policy  declaration  that the  terms  of  each privatization  will  be
transparently disclosed  for public  scrutiny  immediately after  completion
would result in major gains in many countries.

5.  Regulatory  policy should be  stable:   changes are  damaging, not  only
because of the additional learning costs  but also because instability  adds
to investment risk and  deters new investment.  There are many issues  which
arise  in the  organization  and  processes  of regulation:    international
experience should  be consulted  through bilateral  and multilateral  donors
and the United Nations.

6.  Governments should provide an  enabling and encouraging environment  for
small  and  medium-sized  enterprise  start-ups  and  expansion  by  special
programmes targeted at this sector.   These may include technical assistance
in  the choice  of technology,  modernization and quality  control, business
incubators, industrial  parks, export  development  zones and  collaboration
with   transnational   enterprises   in   joint   ventures,   subcontracting
arrangements, licensing and franchising.


E.  On social development

1.  Public administrators should monitor  the progress of social programmes,
assess their  impact, balance  local, national  and international  concerns,
and produce analytic  reports containing  long-term socio-economic  planning
and projections  regarding their social  development sector.   These reports
should examine what has already been accomplished,  establish benchmarks and
enable the development of strategies and programmes of action.

2.  Governments should ratify and  apply international standards which  have
already  been  approved   concerning  social  development  issues  such   as
Convention  No. 117  concerning Social  Policy (Basic  Aims and  Standards);
Convention No.  122  and Recommendations  No.  122  and No.  169  concerning
Employment Policy; Convention  No. 168 and Recommendation No. 176 concerning
Employment Promotion and Protection against Unemployment; Convention No.  87
concerning Freedom  of Association and Protection  of the  Right to Organize
of the International Labour Organization.

3.  Local authorities, NGOs, grass-roots  organizations and other members of
civil  society must  be involved  in  the  movement for  social development.
Community development  programmes must  be run  with the  help of  non-State
actors who can deliver social programmes effectively.

4.   Governments should provide more resources, prestige and power to social

agencies  to enable them  to attract  the necessary talent.   They should be
involved  in  top  Cabinet  decision-making  and  should ensure  that  funds
allocated for social development are not the first to be sacrificed.

5.   Governments should  also attempt to make  their civil service salaries,
incentives and  conditions of  service more  competitive with  those of  the
private sector  in order to  retain the  highly qualified people  needed for
the  new and  challenging tasks  in  social  development.   Accordingly, the
Government  should be a model  employer.  Public sector  employees should be
afforded  sufficient  job  security.    They  should  be  equipped  with job
competencies in  order to be  efficient and effective as  managers of social
policy programmes.


F.  On developing infrastructure and protecting the environment

1.  An integrated  approach should be adopted between all levels during  the
planning  stages.  Execution  and oversight  should also  be a collaborative
process  between the various  levels.  If  oversight committees  are weak or
symbolic, they should be empowered to execute the job they were mandated  to
do.   Where they do not exist,  they should be created either by legislative
act or administrative action.

2.   In many  countries the  level and  scope of  infrastructure development
cannot depend  too  heavily on  the  private  sector.   Accordingly,  public
administration must  take the  lead.   It must  guard against  bad or  risky
investments  of the  public's resources.   It must ensure  that the benefits
derived  from  the economic  activity of  infrastructure policies  reach all
segments of the  population.   When considering infrastructure planning  and
project evaluation,  it is recommended that:   first,  investments should be
based on  analysis of  the nature  of demand  for specific services,  not of
quantitative  projections  of physical  "needs";  second,  the  planning  of
supply should  take account  of all  possible alternatives  to generate  the
flow of  services demanded;  third, choosing  between potential  investments
within infrastructure, or between infrastructure and  other sectors, is best
done with the traditional tools of  benefit-cost (rate of return)  analysis;
fourth, utilization  of  a demand  orientation  in  both the  evaluation  of
investments  as  well   as  in  their   operation  and  regulation  requires
performance  indicators   which  reflect   quality  of   service  and   user
satisfaction.

3.  What is first needed in any  public administration is the  establishment
of  a good  workable system.   This  should include  good planning  efforts,
comprehensive plans,  support groups  including both  financial and  problem
solving,  periodic  on-site  visits  to  determine  the  need  and  level of
maintenance, and leaders who will demonstrate  they are committed.   Second,
a  level of  maintenance awareness  should  be  established that  would turn
maintenance projects and  policies into productive and efficient  programmes
for public administration and infrastructure.

4.  In many countries specialized development banks  are a conduit for funds
used in  infrastructure projects,  especially  for municipal  infrastructure
such  as water  supply  and solid  waste disposal.    Such  institutions can
complement a  municipality's local taxes  and central government  transfers,
and  can  cover fluctuations  in  expenditure  or  prevent  large shifts  in
revenue requirements.  There also  exist alternative  facilities that  offer
financing for  specific environmentally  sensitive infrastructure  projects.
Also, specialized infrastructure intermediaries could play a catalytic  role
in capital market development.

5.  Public administration  should assume the  responsibility of establishing
environmental   standards   for   all  infrastructure   policies.     Public
administration  and infrastructure  should not  be exempted  from rules  and
regulations that are applied to private sector and other  agencies.  Efforts
should be made to integrate environmental  considerations into all stages of
planning, construction  and maintenance  of public  infrastructure projects,

and  to incorporate  current costs into future  projections of construction,
operations and  maintenance. Where there is  an absence  of an environmental
culture at the local  level it is now  the responsibility of  the Government
to  introduce such  an awareness  and  to provide  the mechanisms  to  solve
problems  at the  local level.    Further,  old infrastructure  projects and
programmes shouldbe brought into line with current environmental standards.


G.  On government legal capacity

1.    An  ongoing review  of the  legal  framework of  public administration
should be organized in order to update legal  systems, to make them coherent
and to simplify legal  procedures.  This should be done with sensitivity for
the national culture of each country.

2.  Codification  of procedures  should be pursued as  a way to protect  the
rights of  legal subjects  in their  relations  with public  administration.
Codification of  laws must be  undertaken in  order to facilitate  access to
law enforcement  by  all citizens  and  support  full application  of  legal
rights and observation of legal limits by public administration.

 3.  Dissemination of information regarding  the entire range of alternative
dispute-resolution  techniques  (mediation, conciliation,  and arbitration),
including training  in their  application, should  be assisted  as a  way of
solving  potential  conflicts  between public  administrators  and  citizens
before they take steps in a judicial forum.

4.      Consideration  of   spoken  traditions   should  be   encouraged  in
relationships between  citizens and  the public  administration where  there
are significant issues of illiteracy or  where there are cultural traditions
that  emphasize the  spoken  word  rather  than  formal  written  documents.
Indigenous social norms  (customary law that may  not be consonant with  the
national legal framework) should also be considered in reform efforts.

5.  Judicial  supervision of public  administration should  be strengthened,
including liability  in tort, criminal  jurisdiction to address  corruption,
injunctive  remedies for  maladministration and  judicial review  (or  other
forms  of legal  review),  particularly  for alternative  dispute-resolution
techniques.  Judicial   reform  should  consider   possible  new  types   of
supervision  of  administration.    Additionally,  the  courts  need  to  be
strengthened  to meet  these challenges.    This  includes attention  to the
organization  and  operation   of  the  judicial  system,  with   sufficient
independence to protect the integrity of the judiciary.

6.   Non-governmental organizations  and the  media should  be supported  in
their role  of informing citizens and  helping them to  enforce their rights
before  administrative bodies  and  in judicial  procedures.   This requires
both legal provisions  to give them  the standing  to raise  issues and  the
financial means to make them capable of performing these functions.

7.  The  potential impact of  new laws  on public  administration should  be
considered  in the legislative  development process.   Care should therefore
be  taken to  formulate  laws in  terms of  general  rules,  avoiding overly
detailed provisions  that would deny  public administrators the  flexibility
to exercise their expert  discretion in the light  of their experience.  Any
new   statutes  and   regulations  should   include  provisions   concerning
evaluation  of  their  outcomes  and  should  periodically  be  reviewed for
improvement.   The law-making  process should  be open  to the  citizens and
groups affected  in order to  enhance the larger  sense of participation  in
the development  and operation of  the rule of law and  to increase both the
legitimacy and enforceability of legal norms.


H.  On post-conflict rehabilitation and reconstruction
of government machinery                      

1.  Rebuilding a public administrative  system requires that the Governments
define priorities.  These may include  the restoration and reorganization of
key ministries  and public organizations  which provide  basic services such
as finance, utilities, basic infrastructure, health, education, justice  and
public safety.

2.   Based on  the experiences  of the  countries that  are recovering  from
trauma,  immediate and  transitional/long-term strategies  may be developed.
The  immediate  strategy   would  include:    the  assessment  of   national
absorptive  capacities, both  human and capital; defining  policy issues and
draft  national policies;  the restructure  and operation  of key ministries
for implementation  of the defined  policies; the  restoration of management
systems and tools (e.g. personnel, audit, information);  the restoration and
management  of  justice  and  public  safety  systems;  the  retention   and
enlistment of  professional human resources; and provision of crash training
and retraining programmes.

3.   Transitional/long-term  strategies should  be committed  to  rebuilding
public   organizations   and  revitalizing   the   economy,   with  built-in
adaptability  to  changing  conditions.    Such  strategies would:  lay  the
foundations of  comprehensive and integrated  financial management  systems,
including  accounting, budgeting,  taxation, customs  and banking; establish
effective human resources development policies and personnel management  and
training  systems; address  the  relationships between  different  tiers  of
government  and  define substantive  competencies  for  each  level;  design
monitoring and accountability systems in public administration.


I.  On management of development programmes

1.    The interaction  between  political  decision-making  authorities  and
public  administration agencies responsible for formulating and implementing
development projects should  be strengthened by encouraging thorough  public
policy analysis. This is  crucial to ensure  that the development budget  is
not overburdened  with politically determined  projects without  appropriate
technical analysis.

2.  The incidence of cost  over-runs resulting from delayed  implementation,
due   to   unrealistic  project   budgeting,   procedural  complexities   in
procurement  of  materials   and  constraints   in  recruiting   appropriate
personnel,  is   quite  common.  Governments   should  undertake  systematic
examination of this phenomenon, using modern  management tools, with a  view
to effecting systematic improvements  to minimize the  problem.  Governments
need to reinforce an understanding at all levels of the society that aid  is
not budget  support,  and  promote  the  use  of  aid  as  a  stimulant  for
development and economic growth in the civil society.

3.     Governments  are   encouraged  to   develop  cross-sectoral,   multi-
disciplinary skills  which support all  phases of  the development  process.
This  can  overcome  compartmentalization  of  administrative functions  and
responsibilities which  is identified as  a major administrative  constraint
facing effective management of development programmes.

4.  Governments can support the use and  development of rosters of  national
experts  by encouraging  training  programmes which  make  skills  transfers
between   technical   assistance  and   national   counterparts   effective,
specifically promoting  the use of these  rosters by  donors seeking support
for  technical cooperation activities and making these  rosters available to
their regional partners for evaluation of potential candidates.

5.    National  Governments   must  strengthen  their  capacity  to  absorb,
assimilate and  adapt appropriate foreign  technology through insistence  on
having a  voice in the selection  of foreign  experts, designating qualified
national counterparts,  developing  systems  of internal  dissemination  and
building  relationships with  local research  and development  institutions.
Government negotiators need  to be  sensitized to  any national  constraints

that require  consideration  during  development programme  formulation  and
bring  them forward  during  discussions  with  donors.    In this  way  any
potential waste of resources through  inappropriate programme design  can be
prevented at the negotiation stage.

6.    Another dimension  to  the  effective  utilization  of national  human
resources is  the need  to monitor  and evaluate  development programmes  at
open  meetings  which include  all elements  of  the  society.   This multi-
participatory  approach  encourages all  beneficiaries  of  the  development
process  to communicate  their approval or misgivings  concerning the design
of  programmes,  modalities  of  implementation  and  compatibility  between
outcomes and expectations. Transparency, accountability  and policy guidance
in the  formulation of future  development programmes  can be  substantially
improved as a result of this participatory process.


II.  RECOMMENDATIONS ADDRESSED TO THE UNITED NATIONS

         A.  On strengthening government capacity for policy development,
             administrative restructuring, civil service reform, human
             resource development and public administration training

1.   The  United Nations  programme  in  public administration  and  finance
(hereinafter referred  to  as the  Programme) should  organize exchanges  of
experience,   preparation   of   case-studies   and   training   of   policy
professionals.   Comparative  studies   of  experience   on   administrative
restructuring should be undertaken by the  Programme.  These studies  should
be disseminated on a  regular basis.  Also, the Programme should support the
identification  of  outstanding training  institutions  in  each  region  as
models for replication by other member nations.

2.   The  Programme  should work  together  with the  Crime  Prevention  and
Criminal  Justice Branch  to put  forward  for  the consideration  of Member
States  the  draft  international  code  of  conduct  for  public  officials
considered by the Ninth United Nations  Congress for the Prevention of Crime
and the  Treatment of  Offenders held  at Cairo in  May 1995,  and have  the
draft code  of conduct brought  before the resumed  fiftieth session of  the
General Assembly.

3.   The Programme  should continue  to play  a major role  assisting in the
reorientation of  the civil  service in developing  countries and  countries
with economies  in  transition by  providing advisory  services and  through
technical assistance projects in administrative restructuring in support  of
economic liberalization, municipal reform and people-centred development.

4.  The Programme  should provide advisory services to build the capacity of
training  institutions,   conduct  training-of-trainers   programmes  on   a
regional/ subregional  basis, and  serve as  a centre  for dissemination  of
information  on training technologies.  There should be a declaration of one
day  each  year  as  "Public Service  Day"  to recognize  the  importance of
service  by  national government  administrations  to  the  common  citizen.
There should also be instituted by the  Secretary-General an annual award or
awards  for demonstrating  excellence  in the  public  service,  innovation,
entrepreneurship and training  for public administration.  This award  could
be  given to a  Government or  individual selected by an  appointed group on
the basis of established criteria.

5.     The  United   Nations  and   the  international   community  have   a
responsibility to  structure and  promote cooperation.   The United  Nations
must be  able to maintain and develop a capacity on which its credibility as
a lead organization  in this area depends.  Specifically, the United Nations
should:   create and sustain  a momentum for  dynamic worldwide exchanges of
information and ideas in the field  of public administration and governance;
sustain   and  support  networks  for  applied  research  in  those  fields,
including policy  studies and  the dissemination  of knowledge  on the  best
systems  and practices  worldwide; establish  guidelines and  promote  norms

which serve to  advance efficiency, effectiveness, integrity, responsiveness
and accountability  in  public  administration; assist  in the  creation  of
talent pools  in developing  countries and  countries in  transition from  a
command  economy to a  market economy,  in facilitating  a mentoring service
for top officials, in conducting training  needs assessments and, by  acting
as a broker, to provide access to the  best available technology systems and
practices and  help with  their  application, as  required; provide  special
assistance to  countries in post-conflict  situations and collapsed  States,
helping to restore the effectiveness of  public administration and, to  this
end,  reversing the  brain drain  from  which many  of them  have  suffered;
facilitate and develop  synergies throughout the public sector including the
promotion of adherence  to the  relevant international  labour standards  in
Conventions No. 142, No.  150 and No.  151 and Recommendations No. 150,  No.
148 and No. 159 of the International Labour  Organization on human resources
development,  paid  education  leave  and  labour  relations/public  service
respectively.

6.   A  special fund  for emergency  assistance to  rehabilitate/reconstruct
public administration in collapsed States should be created.


B.  On improving performance in the public sector

1.   The  Programme should  contribute  to  the development  of  "management
change" units.

2.  The Programme should also continue to  offer advisory services, based on
experience in a  wide variety of  countries, and especially with  teams that
are  interdisciplinary and  multinational.   This advice  should involve the
management of  change, performance management  and measurement,  information
technology, and strategic issues of governmental performance improvement.

3.   The Programme  should develop a  roster of "turn-around"  managers, who
are  innovative, creative  and  able  to be  of service  to  other countries
through  SouthSouth  cooperation  (technical  cooperation  among  developing
countries (TCDC)).

4.  The Programme  should also develop an on-line e-mail and, eventually,  a
real-time communications  network among innovative management professionals,
including the development of framework protocols and cyberspace  locationing
for this activity.  Discussions should be  held with other organizations  of
the United  Nations  system which  have  already  implemented this  type  of
networking activity among expert  professionals who are  involved in similar
issues  in  their  countries.   They can  become  a "virtual  institute" for
sharing information,  documents, experience and advice.   The Programme  can
facilitate this activity.


C.  On financial management

1.   The  Programme can  conduct  regional  preparatory surveys  to identify
specific  problems  experienced  in  the  shift  to  a  strategic  role  for
financial management, submit a plan for  improvement, and arrange regionally
based  financial  management  training  programmes   aimed  at  middle-level
operations officials,  professional accountants and the administrative cadre
of government.

2.    In  the area  of  institution-building  for  a  strategic  approach to
financial  management, it  is recommended  that the  United Nations  support
technical assistance  efforts to:   establish the new  national institutions
required;  enhance coordination among existing  national institutions; adapt
national institutions so that local conditions  are fully reflected; develop
appropriate  information technology  resources; and  establish the  capacity
within existing government financial management systems to properly  account
for external assistance.

3.  The Programme  should consult, or undertake with other providers, on the
preparation  and distribution  of country-oriented  training literature;  it
should  initiate  a   comprehensive  programme  for  its  translation   into
different languages.

4.  It should be  proposed to the General Assembly  to convene more frequent
interregional  meetings  for regular  and  more  comprehensive  coverage  of
technical  topics particular to  each group  of countries,  to integrate the
human resource development  element of improved financial management,  adopt
new  approaches to  training,  facilitate  consultation concerning  regional
financial   management   training  programmes,   and   harmonize   financial
management    technical    cooperation   initiatives    involving    donors,
international institutions and non-governmental organizations.

5.   The United Nations, in  cooperation with  regional economic commissions
and  donor   Governments  and   organizations,  including   non-governmental
organizations, should  expand its  regular budget  and technical  assistance
programmes in  support of  improving revenue administration  and reforms  in
the  fiscal,  financial,  banking  and capital  market  sectors  to  promote
private  sector development  and  mobilize capital  for  sustained  economic
growth.   Donor Governments and  agencies may  consider contributing through
substantive  and financial support to promote tax  administration reforms as
a prerequisite  to overall fiscal reform  and to  enhance domestic financial
resource mobilization.

6.  The United Nations should  consider:  organizing interregional  seminars
on  improving  revenue administration  with  special  emphasis  on  regional
groupings; establishing  regional training institutions  and programmes  and
conducting training on tax policy and  tax administration aimed at  training
of trainers  and operational  government officials  as well  as general  and
financial   management   specialists;   preparing   tax   policy   and   tax
administration  country-oriented training materials in the working languages
of the United Nations; promoting tax  policy and tax administration training
on  a multi-regional  and  TCDC  basis; acquiring  and providing  developing
countries with skills in management information systems.

7.   The United  Nations should  study, analyse  and disseminate information
and perform a  clearing-house function for improved accounting methods (e.g.
accrual  accounting)  in  Government and  emphasize  information  technology
training  to  enable  off-the-shelf  financial  management  software  to  be
evaluated,  acquired and  utilized as  considered appropriate.   The  United
Nations should  further undertake studies to develop guidelines and software
for core, minimal  financial management systems which  can be deployed as  a
temporary measure to remove any constraints  to quick disbursal of emergency
relief.


D.  On public-private interaction

1.   The Programme should stand  ready to help  Governments define the  role
and scope of the  public, mixed and private  sectors and to  suggest options
in the modalities of interaction in  accordance with the practical realities
in each country, especially  at the local and municipal levels, by means  of
specific  technical  assistance,  dissemination  and   exchange  of  country
experiences and research on the conditions  for successful replication.  The
United Nations  can orchestrate  Governments and  international agencies  in
addressing social  needs through public-private  interactions, and  act as a
facilitator in  the sensitization to  needs and in  stimulating the  flow of
resources.

2.  The  United Nations, including the Programme, should continue and expand
its assistance to the Member States  concerned with military conversion  by,
inter  alia,  collecting   and  analysing  data,  managing  an   information
clearing-house, developing  enterprise conversion  models from  case-studies
of  successes and  failures,  and providing  specific technical  support, as
required.

3.  The United  Nations, in collaboration with other agencies including non-
governmental organizations, should  provide assistance in strengthening  the
institutional development of the private sector.   The Programme might focus
on a  single issue  each year,  such as  export promotion, job  creation and
inter-ministerial  coordination.   The United  Nations  also  has a  role in
disseminating   the   concept   of   decentralization  to   non-governmental
organizations and the private sector,  by which the design and management of
government programmes are brought closer to the beneficiaries.

4.  The international donor community  should continue to provide  technical
assistance  in the  preparation of  State enterprises  for privatization, in
the  identification of bidders  and the  evaluation of  bids, in negotiation
with  large and  powerful buyers,  in  coupon  schemes and  broad basing  of
ownership and in the design and financing of social safety nets.   Countries
should  have  options,  for instance  the choice  between  authoritarian and
participatory models of privatization.


 E.  On social development

1.   The United  Nations  should focus  attention  on  the need  to  develop
capacities in  the social  sector of Government  as part of  a comprehensive
attempt to  rebuild and enhance national  capacities in  the formulation and
implementation of public policy at all levels.   Having regard for the  far-
reaching  implications  and  complexities  of  those  policies,  the  United
Nations system of  organizations and the  Bretton Woods  institutions should
promote consistent and closely concerted approaches on social issues.

2.   In  supporting  well-balanced programmes  in administration  of  social
programmes, the  United Nations must  take account  of historical, political
and  cultural diversity of Member  States.  The United  Nations should serve
as a  clearing-house for  information on  social development  administration
and should  analyse current  and future  trends in  order to  develop a  new
paradigm of  human development.  It  should assist  developing countries, at
their request, in developing long-term policy  instruments for dealing  with
social   concerns  and   implementing  the   goals  of   the   international
conferences.    The  United  Nations  should  also  contribute  to  national
capacity-building  in  planning  and  implementation  of  social development
programmes.

3.   Future  meetings of  the United  Nations and  the Group  of  Experts on
Public Administration  and Finance  should follow up the  recommendations of
the World  Summit for  Social Development,  as well  as other  international
conferences  (the  World Conference  on  Human  Rights,  the United  Nations
Conference on Environment and Development, the United Nations Conference  on
Population and Development, the Fourth World  Conference on Women, etc.), to
ensure  full  consideration   of  the  public  administration  and   finance
dimension.

4.   The United Nations should  deliberate creatively on  a new paradigm  of
development, taking  account of  the approaching  social development  crisis
due  to the  explosive growth of  population over the  next 20 to  50 years,
which reflects  the growing need for  solidarity and  interdependence at the
subnational level and among Member States.  It should give stronger  impetus
to the  far-reaching  measures which  must  be  adopted, especially  by  the
developed  countries,  and  further  assist  in  mobilizing  funds  to  help
Governments implement their social development programmes.

5.   The  United Nations,  as well  as the  international community,  should
significantly increase  their activities in  providing effective support  to
institution-building  efforts  in  developing  countries  and  countries  in
transition.    This  can  be  done   by  pooling  information,  facilitating
exchanges  of  worldwide  experience on  best  systems  and  practices,  and
advisory missions as required.  The  United Nations should also  disseminate
information on  the goals and  recommendations of international  conferences
and   assist  Governments,   at   their  request,   in   translating   these

recommendations into programmes of action.

6.    The  United  Nations  should  assist  developing  countries,  at their
request,   in   capacity-building  for   socio-economic  development.     In
particular,  it should promote  the training  of social  policy planners and
other  categories of  civil servants  dealing  with  social issues  (e.g. in
departments of finance, trade, etc.).   Furthermore, it should assist grass-
roots communities and train indigenous leaders  who can organize for  social
development.

7.   The United Nations  should assist Governments by  focusing attention on
the policy/administrative implications  of the  recommendations advanced  at
various international forums and  indicate the needs  for knowledge,  skills
and values at the national level.

8.    It is  strongly recommended  that the  United Nations  assist national
Governments to analyse and determine, quantitatively and qualitatively,  the
need  for high-level skills  to implement  the recommendations  of the World
Summit  for Social Development  and other  conferences on  social issues and
social  policies  in  general;  assist those  Governments  to  elaborate the
personnel policy  framework needed to attract  and retain  those skills; and
assist those Governments in training and upgrading such personnel.


F.  On developing the infrastructure and protecting the environment

1.   Historically, the United Nations  has been  providing advisory services
in this area.   The Programme has the capacity to continue  this service and
to assist  in  the  planning stages  at all  levels.   This  role should  be
expanded.  The increased assistance of  the United Nations, particularly  of
the  Programme,  in  the  areas  of  administrative  capacity-building   and
infrastructure management support is encouraged.

2.    The  United   Nations  and  the  Programme  should  play  a  role  in:
establishing   procedures    for   assessing   environmental   impacts    of
infrastructure projects;  technical support and capacity-building; advancing
environmental  awareness; developing the skills of both managers and workers
and educating them in  the new technologies in order  for them to  carry out
their regulatory mandates.

3.   The  United Nations  should assist  in the  planning and  financing  of
infrastructure projects  by  providing the  expertise and  knowledge of  new
methods of non-linear analysis that are  currently emerging.  The  Programme
can   assist   in  the   development   and   execution   of   cost-effective
infrastructure development and maintenance  programmes, particularly at  the
local level.

4.  An international  trust fund, perhaps under  the guidance of  the United
Nations, could  be  established to  assist  in  the conversion  of  existing
infrastructure programmes to meet new environmental standards.


G.  On strengthening government legal capacity

1.   The United  Nations should  develop and support  research seminars  and
services,  at the  request of  interested  countries,  to improve  the legal
framework of  public administration,  advise on  codification, train  public
officials  and judges,  disseminate  experiences from  other  countries  and
regions, and provide a group of expert advisers who can  ensure a sharing of
expertise.   A critical  element of this effort  is facilitation of research
on   comparative  legal   issues.  Existing   international   and  regional-
intergovernmental   organizations    active   in   the   field   of   public
administration should be supported by the United  Nations in order to  allow
them to participate in this activity.

2.    The   United  Nations   should  highlight   and  disseminate   written

formulations  of general  principles of public administration  which are now
widely accepted  and which should be  presented in discussions  of the legal
framework as  references  for Governments  and  citizens  such as  on  legal
stability,  equality  before  the  law,  due   process  of  law,  access  to
participation opportunities, transparency and accountability.

3.   The United Nations  should offer assistance  to countries attempting to
modernize the legal  framework with respect  to human  resources management,
particularly as the laws relate to the civil service.

4.  The United  Nations should undertake to support research on the  complex
issues of accountability  and responsibility in developing and  transitional
countries  with  particular  concern  for  the  manner  in  which  the legal
framework of public administration can assist  the overall effort to enhance
accountability. Capacity-building will be necessary for many countries  that
wish  to  undertake this  task,  including  education  for  non-governmental
organizations   which   assist  citizens   in   their   claims   on   public
administration.

5.    The   United  Nations   should  encourage  international  groups   and
intergovernmental groups  such as regional  development bodies  to assist in
informing  national  public administration  groups  and  civil  servants  of
significant international  legal changes  and the manner  in which  feedback
can be  provided  for possible  future revisions  in international  accords.
The United Nations could undertake to  assist countries in incorporating the
principles of international  human rights accords  into the  legal framework
of public administration.

6.    The United  Nations  should  support  studies of  the  ways  in  which
anticipated  future  trends  in  the   context  and  challenges   of  public
administration  will require changes in the legal  framework, suggesting how
such forces  of change  can be  met.   For example,  the tendencies  towards
deregulation  alongside  new  regulatory  demands   from  the  international
community,  continued   efforts  at  decentralization   and  de-layering  of
Governments, and enhanced  use of marketoriented  regulatory tools  all call
for  adjustments in  contemporary  legal systems  and  capacity-building  in
civil  service systems.   These reform  efforts should  proceed with primary
attention  devoted  to the  stated  goal of  the  United Nations  to  assist
developing  and   transitional  nations   in  meeting   the  challenges   of
inequalities, poverty  and social cohesion in  pursuit of  the critical goal
of sustainable development.   Attention to the law  of the civil service  is
essential  to  secure the  competency,  neutrality  and  professionalism  of
public administration and therefore in governance.


H.  On post-conflict rehabilitation and reconstruction
 of government machinery                       

1.   To  maximize the  effectiveness  of  international efforts,  the United
Nations  should  strengthen   its  role  as  facilitator  and   coordinator.
Agencies  should  work  together  as  a  team,  complementing  each  other's
efforts.  The  United Nations should ensure  that it is  operationally ready
to  respond  to  requests  for  assistance   by  building  a  repository  of
experience,  by   planning  and  by  maintaining   a  roster  of   qualified
professionals  and  specialized  organizations.  There  should  be  new  and
innovative approaches  which include  the direct  funding of  reconstruction
projects to different levels of Government  as well as civic  organizations.
The United  Nations should monitor  and, where necessary,  follow up  on aid
commitments.

2.  The  Programme should play a pivotal role in assisting in  all phases of
restoration and  restructuring of  public administration  institutions.   It
should  strengthen the  professional  expertise and  other  capabilities  to
assess  needs,  design  action  plans,  mobilize  resources  and  assist  in
implementation.    The  United  Nations and,  in  particular,  the Programme
should develop the  concepts and  capabilities of  preventive management  of

potentially unstable situations.

3.   The United  Nations should  create an  interdisciplinary knowledge base
built  on a  computerized information  and communications  system  that will
support   inter-organizational   and   inter-jurisdictional   planning   and
operations  in  response  and  recovery.    Alternative  systems,  based  on
rearranging   existing  national   resources,  including  self-organization,
should be considered.

4.  Assistance by  the United Nations  should serve as a positive  influence
that facilitates national  consensus-building and the process of  political,
economic and social integration.


I.  On management of development programmes

1.  The institutional machinery for  evaluating consistency between  project
outcomes  and  macro  objectives  such  as  growth,  employment  and  income
distribution, both ex ante  and ex post facto, should be strengthened.  This
is an area  in which technical assistance from  the United Nations would  be
of great use to Member States.

2.  The United  Nations can assist countries to strengthen their negotiating
capabilities with donors  through training and better information  exchanges
between government agencies.

3.  The United Nations can assist by  providing support and collaboration to
existing  regional  institutions  to  convene  more  regular  regional   and
interregional seminars at  which effective exchanges  of regional and South-
South  information  can be  made.    The  United  Nations can  significantly
advance  collaboration and interaction of a regional  and South-South nature
by  launching and  supporting a  databank programme  located in  appropriate
regional institutions.   The  secretariat capacities  of these  institutions
could be mobilized to compile, and  subsequently update, databases which are
accessible  through  Internet  inquiry  facilities.    The  focus  of  these
databases  can vary,  depending  on  the information  that  regional  member
countries  elect  to promulgate  to  national,  regional  and  international
inquirers, e.g. a  roster of national  technical experts, national contracts
being  tendered,  pre-approved  contractors  for  technical  implementation,
development  projects being  implemented,  etc.    The  United  Nations  can
support  more extensive  utilization and  development  of this  resource  by
assisting  countries  to  create  and  promote  exchanges  of  comprehensive
national rosters of experts and technical contractors.

4.   Because there  exists  a critical  need for  an appropriate  individual
mechanism  to  sustain  the  important role  of  public  administration  and
development at the international level, it is recommended  that the Group of
Experts  be  changed  into  an  intergovernmental  body  as  a  full-fledged
subsidiary of ECOSOC. This will provide  direct linkages with Member  States
and other  institutions and  greater visibility,  leadership and  continuity
for public  administration and development that an intergovernmental body is
expected to provide at the global level.

5.   Because the need  for sustaining the  role of  public adminstration and
development  is such  an important one, regional  and interregional seminars
should be held  before the convening of the  resumed session of the  General
Assembly in the spring of 1996 to disseminate and discuss the report of  the
Group  of Experts  and  the consolidated  report  of  the Secretary-General.
Such  activities  should  be  geared  to   clarify  the  issues  of   public
administration in  development and  mobilize support from Member  States for
due  recognition of the  role and  significance of  public administration at
both the national and international levels.
APPENDIX II


Agenda

1.  Opening of the session.

2.  Remarks by the Director and Secretary of the Meeting.

3.  Election of officers.

4.  Adoption of the agenda and organization of work.

5.  Substantive items for discussion:

  (a)  Government capacity for policy development;

  (b)  Administrative reform, civil service reform and management training;

  (c)  Financial management;

  (d)  Human resources development;

  (e)  Public-private interaction;

  (f)  Improving the performance of the public sector;

  (g)  Role of public administration in promoting social development;

  (h)   Role  of  public  administration in  developing  infrastructure  and
protecting the environment;

  (i)  Government capacity in the legal and regulatory framework;

  (j)    Post-conflict  rehabilitation  and  reconstruction  of   government
machinery;

  (k)   Role  of public  administration  in  the management  of  development
programmes.

6.  Reviewof the UnitedNations programmein publicadministration andfinance:

  (a)  Programme review and future orientation;

  (b)   Coordination with  other United  Nations bodies  and the specialized
agencies.

7.  Adoption of the report of the twelfth meeting of the Group of Experts.
APPENDIX III

List of participants


Experts

Mr. Sam AGERE
Director-General
Zimbabwe Institute of Public Administration and Management
Zimbabwe

Mr. Mohammed AHERDANE
Director
Ministry of Administrative Affairs
Prime Minister's Office
Morocco

Mr. Mohammed ALIAT
Director of Administrative Reforms
Morocco

Ms. Angela De BARROS LIMA

Ministry of Public Administration
Sao Tome and Principe

Ms. Juliette BONKOUNGOU
Minister
Ministry of Public Administration and Administrative Modernization
Burkina Faso

Mr. Guy BRAIBANT
Commission superieure de codification
France

Mr. Luis Garcia CARDENAS
Director General
Secretaria de Energia
Direccion General de Asuntos Internacionales
Mexico

Mr. George CARRIAZO MORENO
World Economy Research Centre
Cuba

Mr. Steven COHEN
Associate Dean
School of International and Public Affairs
Columbia University
Director
Graduate Program in Public Policy and Administration
United States of America
  Ms. Louise COMFORT
Associate Professor of Public and International Affairs
Graduate School of Public and International Affairs
University of Pittsburgh
United States of America

Ms. Corazon Alma DE LEON
Chairman, Civil Service Commission
Philippines

Mr. Yehezkel DROR
Professor
Department of Political Science
The Hebrew University
Israel

Mr. William EIMICKE
Director, Program in Politics and Public Policy
Columbia University
United States of America

Mr. Alexei EMILIANOV
President
Academy for Public Administration
Russian Federation

Mr. Salman FARUQUI
Secretary to the Government of Pakistan
Ministry of Water and Power and Environment and Urban Affairs
Pakistan

Mr. H. FERNANDO ROJAS
Presidente
ILSA
Colombia

Mrs. Maria GINTOWT-JANKOWICZ

Director
National School of Public Administration
Poland

Dr. Muhammad Rais Abdul KARIM
Deputy Director General
Public Service Department
Malaysia

Dr. Klaus KONIG
Professor and Specialist of Administrative Sciences
Post-graduate School of Administrative Sciences
Germany

 Ms. LIANG Dan
Deputy Director General
The China International Centre for Economic and Technical Exchange
China

Ms. Namane MAGAU
South Africa

Mr. M. L. MAJID
Secretary
Economic Relations Division and Ministry of Finance
Bangladesh

Mr. Messuoud MANSORI
Minister Delegate to the Prime Minister in charge of administrative affairs
Morocco

Prof. Gerard MARCOU
Centre national de recherches administratives, politiques et sociales
France

Mr. Toshiyuki MASUJIMA
Professor of Policy Studies, Chuo University
Former  Administrative Vice  Minister  of the  Management  and  Coordination
Agency
The Prime Minister's Office
Japan

Mr. Jose Oscar MONTEIRO
Associate Professor, Law School
University Eduardo Mondlane, Maputo
Senior Lecturer, The Graduate School of Public and Development Management
University of Witwatersrand, Johannesburg
Mozambique

Dr. Hamed MUBARAK
Director
Civil Service Reform Programme
Egypt

Mr. Jorge OBANDO
Director, Proyecto Reforma Judicial
Costa Rica

Mr. Clive J. PARRY
Cabinet Office
Office of Public Service & Science
United Kingdom

Mr. Carlos Alberto REIS QUEIROZ
Ministry of Finance
Brazil

 Dr. Chung Hyun RO
President
Korean Institute of Public Administration
Republic of Korea

Mr. Graham SCOTT
New Zealand

Mr. Rajiv SHARMA
India

Mr. Selwyn SMITH
Head
Civil Service Commission
Office of the Prime Minister
Barbados

Mr. Manit SUM
Secretary of State (in charge of administrative reform)
Prime Minister's Office
Cambodia

Mr. Boon Huat TAN
Deputy Secretary (Policy)
Public Service Division
Prime Minister's Office
Singapore

Mr. V. V. VOLKOV
Deputy Chief of Administration of the President
Russian Federation

Mr. John WOOD
Office of the Vice-President for Policy
Canadian Institute for Development Administration
Canada


Representatives of United Nations bodies

Mr. Abdul Rahman ABDULLA
Management Development Programme
Sharjah Municipality
United Arab Emirates

Mr. Enrique AGUILAR
Representative to the United Nations
Director
UNIDO Office in New York

 Mr. Hassan H. BAHLOULI
Senior Officer
UNIDO Office in New York

Mr. Horacio BONEO
Director
Electoral Assistance Division
Department of Peace-keeping Operations

Ms. Laura CAMPBELL
Senior Legal Officer
Regional Office for North America
United Nations Environment Programme

Mr. Shabbir CHEEMA
Urban Development Programme

Bureau for Policy and Programme Support
United Nations Development Programme

Mr. Vincent M. DEL BUONO
Interregional Adviser for Crime Prevention and Criminal Justice

Mr. Keith HILLYER
United Nations Development Programme

Mr. Azizul ISLAM
Director
Development Research and Policy Analysis Division
Economic and Social Commission for Asia and the Pacific

Ms. Maaike JANSEN
External Relations Officer
United Nations Environment Programme

Mr. Peter KOUDAL
Macroeconomic and Social Policy Analysis Division
Department for Economic and Social Information and Policy Analysis

Ms. Roswitha NEWELS
United Nations Office of Project Services

Mr. Sadig RASHEED
Director
Public Administration, Human Resources and Social Development Division
Economic Commission for Africa

Ms. Chikako TAKASE
Economic and Finance Branch
Division for Sustainable Development
Department for Policy Coordination and Sustainable Development

 Mr. Manhbub UL HAQ
Special Adviser to the Administrator
United Nations Development Programme

Ms. Claudia VALENCIA
Consultant
UNESCO Liaison Office, New York


Representatives of specialized agencies

Mr. Hans GEISER
Director of Training Department
International Labour Organization Training Centre in Turin

Mr. Malcolm HOLMES
Poverty and Social Policy Department
International Bank for Reconstruction and Development
World Bank

Mr. N. PETROV
Chief
Vocational Training Systems Management Branch
International Labour Organization

Mr. Arigupudi PREMCHAND
International Monetary Fund


Representatives of interregional and regional institutions,
non-governmental and other organizations

Ms. Amelia L. ABAD
Eastern Regional Organization for Public Administration

Ms. Nancy ALEXANDER
Bread for the World

Mr. Daniel BURKE
Directeur general
Membre du Corps Professoral
Relations avec la Clientele/Communications et Marketing
Canadian Centre for Management Development

Ms. Joan CORKERY
Programme Director
European Centre for Development Policy Management

Mme Marie-Helene DUMESTRE
Institut international d'Administration publique

 Mr. P. J. GOMES
Executive Director
Caribbean Centre for Development Administration

Mr. Saiyid Muhammed HANIF
Permanent Representative in New York
World Association for Small & Medium Enterprises

Mr. Bill IWATA
Director
Project Finance - Latin America
AT&T Network Systems

Mr. Jeong-Seok KANG
Korean Institute of Public Administration
Seoul, Republic of Korea

Mr. Ravi KAPIL
Deputy Head
Public Management Service
Organization for Economic Cooperation and Development

Mr. Mohan KAUL
Director
Management and Training Services Division
Commonwealth Secretariat

Mr. Bernard KLIKSBERG
Inter-American Institute for Social Development

Mme Marie-Christine MEININGER
Deputy Director for Research and Publications
Institut international d'Administration publique

Ms. Turkia OULD DADDAH
Director General
International Institute of Administrative Sciences

Mr. Richard E. SCOTT
Permanent Observer
International Organization for Migration

Dr. Franz THEDIECK
Head, Office for Public Administration
German Foundation for International Development

Ms. Ann Marie WALSH

Institute of Public Administration

Mr. Peter ZIMMERMAN
Harvard University

 Secretariat of the Meeting

Mr. Guido BERTUCCI
Director
Division of Public Administration and Development Management
DDSMS

Mr. A. T. R. RAHMAN (Secretary)
Deputy Director
Division of Public Administration and Development Management
DDSMS

Ms. Carmen REID (Co-Secretary)
Senior Public Administration Officer
Division of Public Administration and Development Management
DDSMS


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