Microsoft Word - 00_Title_draft.doc

(Chris Devlin) #1

4.2.1. Public sector performance (PSP)


As regards public sector performance we have deviated in a few respects from our earlier study. In the
absence of reasonable data on public infrastructure we in particular focus on only three of the four
opportunity indicators and the three respective Musgravian indicators. Figure 5 shows how the sectorial
and overall indicators are put together (Annex Tables provide primary data).14


Figure 5 – Total public sector performance (PSP) indicator

We compile performance indicators from the various indices giving an equal weight to each of them and
the results are reported in Table 2.^15 The results for public sector performance show some interesting
patterns, with an overall very diverse picture for the new EU member states. Starting with the overall
PSP indicator, the best performers seem to be Singapore, Cyprus and Ireland. Other Asian emerging
economies and Malta follow this group of top performers while most new EU member countries and
Portugal and Greece post a broadly average performance. Brazil, Bulgaria and Turkey are placed at the
bottom end. The size of government per se appears to be a too crude instrument of differentiation, when
looking at the score for large public sector countries.


(^14) The choice of indicators is slightly different from that used in Afonso, Schuknecht, and Tanzi (2005). In addtion to
omitting public infrastructure, education is reflected only by a qualitative measure of education achievement (leaving out
secondary school enrolment) and economic performance excludes the level of per-capita GDP (which in this sample
would strongly bias in favour of the rich countries).
(^15) The relevant time period for the several sub-indicators varies a little according to the availability of data but is essentially
reported to 2001/2003 with some variables being used as an average of longer time spans (see the Annex for the precise
periods).

Free download pdf