How governments can boost efficiency, leverage technology and sustain progress amid rising public spending

Inform your discussions and decisions this week.?Government spending has risen steadily in the post-war era across big economies and today equates to around a third of GDP globally.

As societies face challenges such as ageing populations, climate change and labour market uncertainty, demand for public services and the cost of their provision will stay high. Every improvement in how effectively and efficiently the public sector operates– whether through leveraging new technology or adopting new ways of working – can benefit a country’s social welfare and its economic performance.

Public sector spending is a top priority for leaders as they seek to reduce inefficiencies. In America, President Trump created the controversial “Department of Government Efficiency” (DOGE) with the aim of reducing public spending. In the UK, Keir Starmer’s government recently announced its AI Opportunities Action Plan, seeking to harness AI to boost public growth. In numerous countries leaders are focusing on cutting red tape and pursuing deregulation. Yet boosting public sector productivity is no easy task.

Reimagining the future of public sector productivity?is a new report from Economist Impact, sponsored by SAS. It is based on a survey of more than 1,550 public sector employees in 26 countries across the Americas, Europe, Asia-Pacific and the Middle East and also contains in-depth interviews with an expert group. The study examines opportunities from public sector productivity reforms, as well as the challenges in making them happen.

Public-private partnerships (PPPs) can also play a role in driving public sector efficiency by leveraging private-sector expertise, innovation, and resources.?Our Infrascope index,? produced by Economist Impact and commissioned by the Inter-American Development Bank, is a resource and benchmarking tool that evaluates the enabling environment for public-private partnerships (PPPs) in constructing, upgrading or maintaining infrastructure needed to deliver public services. Our latest edition focuses on 26 countries across Latin America and the Caribbean and features a redesigned programme hub, country profiles and case studies.

Also in this issue, explore why governments must prioritise sustainable investments in urban infrastructure, transportation and green initiatives.

Our latest report examines the benefits that public sector productivity reforms can bring. Based on a survey of more than 1,550 public sector employees in 26 countries, it presents survey findings and qualitative insights, as well as recommendations to help stakeholders pursue ambitious, realistic productivity reforms in the public sector, including in healthcare.

This is a pivotal moment for our food system. By 2030, the world will add another 500m people to its population. Explore how free trade and regenerative agriculture, together with decarbonisation in shipping, can help create food security for an expanding planetary population.

Join the 10th anniversary of Sustainability Week on March 10th-12th in London to accelerate your sustainability strategy and reduce carbon emissions towards net zero.