Unformatted text preview: d the upgrading of Public Administration
The two reserves (4% and 6%) are based on the same general principles. They are thought to be complementary in
addressing a complex set of objectives all aiming at upgrading the effectiveness of public administration action and
quality of public spending. As provided for in Regulation n.1260/99, the performance reserve of 4% is assessed against
financial, management and effectiveness criteria.
The Italian system, approved by the Commission, rewards those who reach a benchmark set exogenously and which is
common to all programmes, below which access to the performance reserve is denied.
4 A few indicators of the Commission proposal have been substituted or integrated in order to make the Italian
performance reserve mechanism more coherent to the model and the set of rules that govern the Italian CSF. The
reward is obtained if at least 6 out of 8 indicators are satisfied.
The complete list of indicators of the Italian 4% reserve is presented in annex A. Most of the indicators are directly or
indirectly linked to the effort of upgrading the quality of programming and screening public investments and deepening
the capacity to interpret the socio-economic conditions of the territory on which those investments will perform.
Expanding and improving the quality of public investment is the crucial factor which is expected to trigger growth rates in
the economy of Mezzogiorno regions in the 2000-2006 period. The upgrading of the quality of public investment is the
direct result of an overall effort of public action enhancement, in which a significant role is played by factors such as
detailed knowledge of the functioning of the socio-economic system, a mechanism based on trust for the implementation
of the public investment program, careful methods of investment selection (to choose only those investments which
better enhance endogenous development factors).
The national reserve of 6%5 is designed to create proper incentives to achieve conditions such as a) specific aspects of
the modernisation of the Public Administration, which are deemed to be essential to reach the expected results and b)
concentration of funds on a few priorities and integration of actions to reach defined objectives.
The mechanism design is different from the 4% and varies between the first and the other two blocks of indicators. The
first block, relating to institutional enhancement, includes 10 indicators for Regions and 4 for Central Administrations,
which measure the modernisation process of the P.A, the diffusion of institutional innovation and the degree to which
reforms are being implemented in some of the sectors crucial to the achievement of the defined development objectives.
The device rewards the Administration for each indicator reaching the minimum standard, which, as for 4%, is set
exogenously. As for the other two blocks of indicators, integration and concentration,6 they both include only one
indicator. In this case, the mechanism is based on benchmarks resulting from the average of the performance of all
regional administrations, so as to create a competition among them.
As for the choice of 6%...
View Full Document