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Wettbewerbselemente in der öffentlichen Verwaltung : ein Kommentar aus wissenschaftlicher Sicht
(1998)
Verwaltungsreform
(2000)
IMPACT German municipalities have prepared performance budgets for over 10 years. The incorporation of performance information into the budget is, however, still work in progress. Local politicians perceive the usability of non-financial information in the budget as low and do not use such information intensively for budget composition or other purposes. German municipal budgets are usually voluminous because of their highly detailed structure and the large amount of displayed performance data which rarely informs about outcomes. Such information does not meet the needs of councillors, for example in their struggles with political opponents. Some options for improving the usability of budgetary information are presented.
This article discusses the challenges for providers of local public services to adapt to increasing marketization and competition in the public sector. Based on some empirical evidence from local government in Germany, the article describes different adaptive measures in the past and shows the legal restrictions to strengthening performance and particularly competitiveness. Furthermore, the article presents some findings from good practice cases of local service providers in Germany who have successfully exposed themselves to market mechanisms. Finally, the article discusses observed results of increased competitiveness in the local government sector, with special regard to quality, efficiency and public employment. The article concludes with describing necessary elements of a competitive regime for public services and with some general reflections about the role of competition in the public sector.