IMF Working Papers

The Role of the State and the Quality of the Public Sector

ByVito Tanzi

February 1, 2000

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Vito Tanzi. "The Role of the State and the Quality of the Public Sector", IMF Working Papers 2000, 036 (2000), accessed 12/20/2025, https://doi.org/10.5089/9781451845440.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper discusses issues to be considered in designing “second generation” reforms. These reforms should focus on improving the capacity of the public sector to implement economic policies. The paper contrasts these reforms with those known as first generation reforms, which essentially focused on macroeconomic policies. The paper discusses the role of rules and institutions. It concludes that a high–quality public sector is necessary to ensure that good policies generate desirable and durable effects. The creation of such a sector requires many second generation reforms.

Subject: Corruption, Crime, Economic sectors, Fiscal accounting and reporting, Labor, Public employment, Public financial management (PFM), Public sector, Revenue administration, Tax administration core functions, Tax incentives

Keywords: Australia and New Zealand, constitutions, controls, Corruption, Fiscal accounting and reporting, good government, government activity, government policy, government's policy, institutions, justice system, OECD report state, operation of the government, Public employment, public goods, public policy, Public sector, role of state, role of the State, rules, second generation, state intervention, Tax administration core functions, WP

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