Public sector reform in the Latin American and Caribbean region—issues and contrasts

Public sector reform in both Latin American and Caribbean countries has become a high priority for governments in their search for a new role for the state. Common principles have included the objective to privatize, or contract out services or responsibilities where the private sector has a comparative advantage while at the same time improving government efficiency in areas that are considered core government functions at different levels of government. These include integrated government financial management, social security and social safety nets, tax administration, provision of basic services (education and health), legal/regulatory reform, and judicial enforcement. Guiding principles in all countries have been predictability, transparency and accountability. While the degree of reform has varied amongst countries, there are a number of distinguishing features of the Commonwealth Caribbean that set its public sector reform experience apart from that of Latin America. These include the legacy of a professional civil service, long-standing democratic institutions and an active civil society, the relatively small size of the countries, and the emphasis on rule of law that can help explain some of the differences in the reform paths taken. Nevertheless, government ownership and commitment to public sector reform has been shown to be the most important element in determining results within the Latin American and Caribbean region.