Governments worldwide face persistent challenges in improving public sector productivity, despite increasing investments in public services. A study estimates that closing the productivity gap could unlock over $5 trillion per year in value by 2024. However, productivity in the public sector has been declining for decades, particularly in the UK, where it has fallen by about 20 percent since 1995. In contrast, private
A structured approach to improving productivity involves clear goal-setting, better resource allocation, and technology adoption. Governments must encourage innovation, invest in workforce skills, and streamline processes to improve efficiency. Departments should reassess existing activities, optimize asset usage, and tailor services to citizens’ needs. A phased approach, including assessing potential improvements, prioritizing key initiatives, and ensuring accountability, can drive meaningful change. With a commitment to efficiency and service quality, governments can better meet public needs while addressing fiscal challenges.
