Italy: A Tale of Path-Dependent Public-sector Shrinkage

Di Mascio, Fabrizio; Galli, Davide; Natalini, Alessandro and Ongaro, Edoardo (2017). Italy: A Tale of Path-Dependent Public-sector Shrinkage. In: Sørensen, Eva Moll; Hansen, Hanne Foss and Kristiansen, Mads Bøge eds. Public Management in Times of Austerity. New York: Routledge.



This chapter describes the Italian contextual background focusing on the political, fiscal and economic dimensions of the post-2008 crisis. It deals with the response to the crisis in terms of austerity packages in the period 2010-15. The chapter outlines cutback management in central government, with a focus on a selection of three line ministries. It identifies the major effects of cutbacks on public management. The chapter analyses public personnel policies adopted at the level of cabinet decision-making. It investigates different patterns of cutback management across ministries displaying different features. It assesses the effects of cutback management in terms of changing composition of the expenditure side. The chapter analyses how cuts in the domain of public employment have contributed to expenditure reduction. It focuses on patterns of governance in their organisational forms. The chapter examines how the use of performance management techniques has been affected by cutback management.

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