Examine Key Challenges Faced by the Public Sector Management of the Global South?

2672 Words Mar 29th, 2013 11 Pages
* Examine the key challenges for public sector management in the global south. Illustrate your answer with contrasting country examples.

Most of the global south countries such as the African countries have attained their independence around the 1950’s and 1960’s. The public sectors which are known as the government sector have set of roles that need to be look after the welfare of the state such as the security, environment, health system, education and so forth. The public sector in the global south has some key issues that need to be tackled. Some of the key challenges that needs tackling is the reduction of poverty, corruption and aid which has been prevailing for a very long time.

Yet, it cannot be easily forgotten to mention
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The idea is to give the managerial department the freedom their unit in order to achieve the best output and also form a good corporate governance (Ferlie, 1996)

NIE are economic activities which embedded in framework of institution formally and informally. They determine the evolutions of institutions and existence of institutions as well as their impact on economic performance, distribution and its efficiency. (Stiglitz, 1987, hodgson 1988). There are 2 theories that involve NIE which are the agency theory and the transaction cost theory.

The first one is on the distribution property rights and focuses on cooperation between external effects as well as asymmetric information which has its advantages and disadvantages. Stiglitz (1987) suggests that agency theory shows the relationship between the principals and the agents where the latter can be the government and the other citizen. On the other hand the transaction theory focuses the costs which involves contract where the two parties engage contractual arrangements. Williamson (1986) highlights this process to be very costly as it consists of various in which each level has its terms such as structuring, monitoring, bonding where even there are costs involved in negotiations.

Eradication of poverty

Most of the global south countries are underdeveloped where majority of their population live below the poverty line. It is always easy to say why their government

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