Dispatch #101: Building better governments: Simplifying public sector capacity
This dispatch explores the concept of public sector capacity, breaking it down into three critical components: state capacity, organisational routines, and dynamic capabilities.
What is Public Sector Capacity?
In today’s world, governments face complex challenges and fast-changing situations. To meet these demands, the public sector needs the right skills, resources, and systems to do its job well. This is what is called public sector capacity — the ability of governments to deliver results and make a real difference in people’s lives.
This blog explains public sector capacity by looking at three important parts:
State capacity: The overall ability of governments to implement policies and manage resources.
Organizational routines: The daily processes and tasks that help public organizations work smoothly.
Dynamic capabilities: The flexibility to adapt to new challenges and opportunities.
A key idea discussed in the paper is the Public Sector Capabilities Index, developed by the International Public Policy Partnership (IIPP) with Bloomberg Philanthropies. This tool is designed to help city governments understand and improve their ability to handle complex problems and deliver better services.
Key Themes Explained
State Capacity: The Basics of Good Governance
State capacity refers to a government’s ability to carry out its plans, even when faced with opposition or tough circumstances. It depends on:
Having skilled civil servants who know how to get things done.
Being able to act independently without being controlled by powerful groups.
Raising and managing money effectively through taxes and investments.
Organizational Routines: The Daily Work of Governments
Organizational routines are the regular processes that public organizations use to achieve their goals. These include tasks like:
Analyzing data.
Making plans.
Coordinating between teams.
Evaluating performance.
Writing policies.
Engaging with stakeholders.
These routines provide stability, but they also need to evolve to handle new challenges.
Dynamic Capabilities: Adapting to Change
Dynamic capabilities help public organizations adjust to new situations. The paper highlights five key abilities:
Sense-Making: Understanding the environment and identifying opportunities or risks.
Connecting: Building better coordination within and outside the organization.
Seizing: Taking advantage of new opportunities and encouraging innovation.
Shaping: Adjusting resources to respond to changing needs.
Learning: Reviewing past experiences to improve future processes and decisions.
The IIPP's research shows how a few city governments used dynamic capabilities to adapt resources, processes, and skills to an ever-evolving environment.
Source: IIPP Partnerships: Working with Others
Governments often partner with external organizations like non-profits, private companies, and development banks to improve their capacity. For example:
Bloomberg Philanthropies supported Bogotá’s city government to improve its data systems.
The City of Seattle partnered with private companies to create the Affordable Seattle portal.
While these partnerships are helpful, they require careful management to ensure long-term success.
Public Sector Capabilities Index: A Tool for Improvement
The Public Sector Capabilities Index is a framework to help governments evaluate and improve their capacity. It offers actionable insights and encourages collaboration between cities. Key features of the index include:
Co-design with governments to ensure relevance.
Easy-to-use tools for learning and improvement.
Promoting collaboration over competition.
Ensuring transparency and reducing bias in assessments.
Conclusion: Why Public Sector Capacity Matters
Improving public sector capacity is essential for tackling the challenges of today and tomorrow. Governments can become more effective and resilient by focusing on state capacity, organizational routines, and dynamic capabilities. Dynamic capabilities, in particular, allow public organizations to adapt and innovate, ensuring that resources are used efficiently to achieve meaningful results.
Tools like the Public Sector Capabilities Index play a vital role in this process. They help governments measure their strengths and weaknesses, learn from each other, and build better systems. In the end, a strong public sector benefits everyone by delivering better policies, improving services, and enhancing the well-being of citizens.
Investing in public sector capacity will be key to creating a brighter future for citizens as governments move forward.
Here’s a lecture by economist Mariana Mazzucato explaining the relationship between innovation, economic growth and the role of the state.