Implementing Sustainable Financial Policies in Public Organizations

What distinguish the economic and financial management of a public organization from that of a private one? Nothing. All the business features are all traceable in State organization: the economic organization of equipments and people, the creation and distribution of value, the satisfaction of human needs, the organic whole of the system, the administrative rationality consisting in the pursuit of the principles of effectiveness, efficiency, progress, solvency, self-sufficiency, durability. Continuing to ignore that the Italian State is a performance-oriented organization means to maintain the "iron curtain", that currently isolates the public organizations from innovations obtained by the private ones in management and organizational culture. In dealing with the debt burden this criticality is shown at its highest level. The present study provides useful insights and an innovative approach based on the use of system dynamics models in order to achieve a sustainable financial management of country s finances, that serves the economic development and not vice versa.

Autorentext

Pietro Sorci is an international PhD candidate in Model Based Public Planning, Policy Design, and Management at the University of Palermo (Italy). He has gained experience in recovery strategies for private companies and his current research activity mainly seeks to identify and test new management paradigms for public and private organizations.