We used to think of public services as activities outside of the competitive landscape. That’s maybe true in a country, but the new situation brought by the Fourth Revolution is that’s not true anymore: public services are in competition between countries.
Effectiveness, performance of public services is today the most important competition parameter when it comes to economic performance. Countries that are not good at it do already suffer on the global market. In addition this competition puts a lot of pressure on tax rates (in particular at the corporate level) impacting further those countries which public services are ineffective.
The problem is that because this competition is somewhat remote, public services often do not realize this new situation. Finding a way to show them how competition is impacting the national welfare should be a great incentive for improvement. Unfortunately, defensive reactions against globalization often impede these discussions.
Yes, public services are now on a competitive market. They need to increase their effectiveness for the sake of national welfare. Let’s not shrink from it, and just realize that this situation will be even more real in the Collaborative Age!
