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Efficiency is an increasingly core component of gov-ernment reform. However, reviews of governmentproduction costs and productivity in OECD countriesindicate that governments may be getting less effi-cient over time. Governments are actively addressingthe topic of efficiency through the introduction ofnew practices in various areas of public service. Ourresearch shows that opportunities for improvementexist to create meaningful and sustainable efficiencygains.In order to continue to improve efficiency in the pub-lic sector, governments should focus on four key ar-eas: pursuing innovative practices linked to efficiency;scaling the use of efficient practices; improving theuse of established measurement and analytical toolsto generate actionable insights; and strengtheningmanagement incentives to become more efficient.The Government Summit Thought Leadership Series03 Executive Summary 06070813Contents04The Government Summit Thought Leadership Series IntroductionMethodologyContextUAE Government Efficiency in International PerspectiveThe Public Sector’s Commitment and Experience with Efficiency ProgramsThe State of Government EfficiencyThe Characteristics of InefficiencyFour Key Driversof Government EfficiencyInnovateScaleMeasureIncent Conclusion:Achieving SystematicGovernment EfficiencyReferencesAnnexThe Government Summit Thought Leadership Series05 IntroductionEfficiency is about doing more for less.It involves maximizingoutputs such as the volume of services provided, minimizinginputs such as the amount of resources or capital required toproduce those services and maintaining or improving quality.Efficiency can be measured by how much it costs to deliver aprogram compared to previous years or compared to peers, orthe relative outcomes that governments obtain from a certainlevel of expenditure. Rising citizen expectations, ageing popula-tions and global economic volatility have put pressure on gov-ernments to increase the value for money of public services.Against this backdrop, the UAE public service is tasked withdelivering policy and programs to meet the Government’s ambi-tious Vision 2021 agenda to improve healthcare and education,strengthen social programs, grow the economy, enhance publicsafety, promote environmental sustainability and improve itsglobal standing.According to the IMF World Economic Out-look, government expenditures are projected to hold steadyat approximately 22 percent of GDP. As such, the governmentneeds to ensure that existing programs are efficient and effective.and future investments represent good value for moneyThis study is an independent review of government efficiency.Although the focus is on efficiency in the Government of theUAE, the content is developed for the High Level GovernmentForumbringing together senior government officials fromaround the world.Unless otherwise stated, when the study re-fers to “government” it is referring to governments around the.world rather than any specific government entity06The Government Summit Thought Leadership Series This paper is divided into several sections:•Sectiontwodescribesthemethodologywhichinvolvedaseries of interviews with senior UAE Government officials,analysis of data on public sector expenditure and perfor-mance, meetings with subject matter experts in Deloitte’sGlobal Public Sector practice and reviews of leading initia-tives in several countries.•SectionthreedescribestheUAEGovernment’sefficiencyininternational perspective. It highlights that the UAE Govern-ment spends less than many other high income countries,but doesn’t get a high score on an international assessmentof government effectiveness.It reviews the increasing im-portance of “efficiency” in public sector organizations andlooks at governments’ track record on efficiency using avail-able international evidence and concludes that efficiency isdeclining over time.It also describes the characteristics ofgovernment inefficiency.•Sectionfouridentifiesthekeydriversofgovernmenteffi-ciency and develops a framework for improving governmentefficiency.•Thefinalsectionconcludeswithasummary. MethodologyDeveloping robust evidence on what drives efficiency is chal-lenging because of the absence of readily comparable data ongovernment inputs, outputs and quality. Drawing the links be-tween specific initiatives and overall efficiency is confoundedby time lags and other factors that influence efficiency but areoutside of government’s control.As such, this study has pur-sued a pragmatic approach. We have undertaken a brief reviewof leading practices in Australia, Canada, Singapore, and theUnited Kingdom. These countries were selected based on theirreputations as leaders in public sector management policy andpractice. The review involved selecting a set of key areas of gov-ernment activity which provide significant potential for efficien-cy gains and developing a set of assessment frameworks to guidethe investigation. The study is informed by a variety of sources:•Interviewswith