The Role of the State and the Quality of the Public Sector

Abstract

Good policies are based on high quality public sector (but also institutions) that can implement, enforce and monitor these policies. The public sector is thus a necessary instrument. 7: the role of the state can be classified as: 1) establish and enforce property rights and availability of the power to alters these rules if conducive with enlarging economic production, 2) provision of a legal framework that reduces transaction costs, 3) public good provision, 4) macroeconomic stabilization, 5) redistribution of income consistent with the prevailing view of the society. 8: the quality of the public sector is thus defined as the characteristic / capacity that allows the state to pursue these objectives in the most efficient way. This, however, is not what the reform agenda in Palestine aims at.