A Comparative Examination of of Austerity Driven Administrative Reforms to Support Increased Fiscal Responsibility in Two Small Island States

ABSTRACT For more than four decades, Jamaica experienced difficult economic conditions marked by low growth and widening deficits leading to high levels borrowing and unsustainable debt. The 2008 - 2010 global financial crisis... [ view full abstract ]

ABSTRACT
For more than four decades, Jamaica experienced difficult economic conditions marked by low growth and widening deficits leading to high levels borrowing and unsustainable debt. The 2008 - 2010 global financial crisis exacerbated the poor financial conditions and the country turned to the International Monetary Fund (IMF), which imposed a severe austerity programme as part of the conditionalities for funding. The IMF required sweeping reforms to improve fiscal responsibility and debt management underpinned by strengthened information, processes, and fiscal rules. The Ministry of Finance (MOF) and other agencies such as Tax Administration, Customs and the Accountant Genera that have direct responsibility for fiscal programmes were forced to accelerate changes to legislation, organizational structures, systems, processes, human resources, and technology among others. While public sector transformation has been on-going for many years, the pace of reforms far outstripped activities being undertaken in the remainder of the public sector leading to a seeming disconnect with wider public sector reforms. The changes appear to give rise to complex shifts in the patterns of relationships among political and administrative bodies with implications for decentralization and autonomy. Contextual factors relating economic conditions, political and administrative culture, and leadership have been implicated as critical factors influencing administrative reforms. This paper examines how these factors influence administrative reforms made to facilitate changes to public financial management. The study draws on a comparative case study approach and examines the reforms undertaken in Jamaica and Barbados, two Caribbean countries, which experienced austerity conditions that accelerated public management reforms. The study will increase understanding of organizational and broader public management reforms and contribute to increased potential for success of current and future initiatives.