## Lessons from Two Public Sector Reforms in Italy

_IMF Working Papers, February 21, 2020_

## Source details

**Canonical URL:** [Lessons from Two Public Sector Reforms in Italy](https://www.imf.org/en/publications/wp/issues/2020/02/21/lessons-from-two-public-sector-reforms-in-italy-49034)

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## Bibliographic details
- Authors: Nazim Belhocine, La-Bhus Fah Jirasavetakul
- Published: February 21, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513529714.001

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### Summary
- 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.

### Key findings
- 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.

### Policy implications and recommendations
- 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.

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2020/02/21/lessons-from-two-public-sector-reforms-in-italy-49034_