Lessons from Two Public Sector Reforms in Italy

IMF Working Papers, February 21, 2020

Source details

The reform of the Italian public administration has been a priority for at least two decades, with several major initiatives undertaken toward modernization and simplification.
Notwithstanding laudable intentions, progress remains limited.
This analysis is a case study of two reforms since 2016—on the rationalization of state-owned enterprises and of public procurement.
It finds that original reform provisions were weakened or overturned, regulatory complexity and uncertainties in the application of the reforms blunted their impact, and enforcement mechanisms were inadequate.
Addressing these gaps will be essential for successfully modernizing Italy’s public administration.

Original reform provisions were weakened or overturned.
Regulatory complexity reduced the effectiveness of the reforms.
Uncertainties in the application of the reforms blunted their impact.
Enforcement mechanisms were inadequate to ensure implementation.
The two reform areas examined are:
- Rationalization of state-owned enterprises.
- Public procurement reform.

Strengthen and preserve core reform provisions to prevent weakening or reversal.
Simplify regulatory frameworks to reduce complexity and ambiguity in application.
Clarify implementation rules to remove uncertainties that limit reform impact.
Establish robust enforcement mechanisms to ensure compliance and follow-through.
Addressing these gaps is essential for successfully modernizing Italy’s public administration.