Randma-Liiv & Savi: The Impact of the Fiscal Crisis on Public Administration


The global financial, economic and fiscal crisis is undoubtedly the most important and urgent problem that Western states face today, and it will continue to be a challenging issue for several years to come. After the outburst of the crisis, governments all over the world have been challenged to react to and cope with the sharp economic downturn and related social effects. This has raised the question about the implications of the fiscal crisis on public administration on the research agenda, as many governments in Europe and elsewhere have initiated and implemented reform measures to cope with lower revenues. With the fact that the previous worldwide economic and fiscal crisis in the 1970s led to major public management reforms in many Western states as a background, it is intriguing to investigate the crisis-related dynamics in contemporary public administration. How governments, politics and administrations have responded to the global crisis and what impact the crisis has on public administration and governance is and will continue to be a challenging issue for years to come, because of the intricate linkages between states, markets and civil societies (Pollitt 2010; Thynne 2011).


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