Fostering structural and resource flexibility in the public sector

This chapter examines the flexibility the governments of Estonia and Finland have in reallocating resources to address shifting strategic priorities. It provides an overview of the current state of structural and resource flexibility in the two countries and highlights recent successes at governance reform to address these challenges. It assesses for each country how joint action by the Centre of Government institutions is being pursued to enable coherence in policy making to meet shifting demands, and how nimbly or flexibly they can move human, financial and institutional resources across the government to respond to emerging strategic priorities. This chapter underscores the need to enhance flexibility in financial-resource allocation through tools such as contingency funds and spending reviews, while also enhancing flexibility in human resource management and in institutions, by breaking down institutional and regulatory barriers.