Public Administration Reforms in the Emerging Markets’ Era

This chapter promotes an original framework for the public administration reform and introduces the main characteristics of the public administration model to increase the efficiency of the emerging markets. This topic is chosen due to the difficulty of the governments to deal with the ambiguous mechanism behind institutional change, public administration reform, and continuity. The approach is based on new institutional theory and institution-based view, which is considered as the adequate theory of administrative systems and markets by emphasizing the role of emerging markets through the development path. The 26 nations from the MSCI Emerging Markets Index are compared based on various longitudinal and cross-sectional variables. The longitudinal variables are GDP and the country’s share of world GDP at purchasing power parity. Cross-sectional competitive indices are global competitiveness index, indices of institution and market efficiency, doing business index, government effectiveness, the rule of law index, regulation quality index, e-government index, and corruption control index. There are two main contributions in this chapter. The first contribution is the relationship between public administration variables and the economic performance of nations. Results suggest that administration characteristics have a positive impact on country competitiveness and its business situation but no direct impact on the country’s economic growth. Economic growth is the result of the administrative system function. It is the result of the country’s improved competitiveness and the country’s market governance model under globalization pressures. The second is a variety of strategies under the comprehensive public administration reform model to solve the problem of government effectiveness and the country’s growth. Based on findings, public administration is a significant driver of socioeconomic and political development. Therefore, rather than focusing on the immediate solutions to deal with viable challenges of globalization and international competition, it increasingly helps rebuild and rearrange the public administration continuously, to develop the country’s capacity, recognize the new national and international opportunities, enter the markets, and encourage all governance actors to offer products and services efficiently and equitably. The findings propose new insights into public administration reform mechanisms by considering their relationship to the success of the emerging markets.