Government as a Catalyst
The key finding from the research states that translating austerity into growth demands a profound change - modernisation and transformation of the state and its public services. Public spending across Europe makes up half of total GDP, with public sector employees accounting for 20 percent of the workforce. Governments are major consumers too: As a European average, public procurement budgets make up approximately 17 percent of total GDP. Therefore, the sheer economic size and power of government means it must lead the charge for reform by making dramatic changes in the way it delivers healthcare and social services, uses technology in its interactions with business and citizens, fosters growth in new areas such as sustainability and Health IT, reduces waste and fraud by leveraging analytics to improve tax and benefit systems and, importantly, in the way it procures goods and services. The report includes several examples of governments across Europe that are developing these new delivery models for employment, health and human services that showcase both cost reduction and performance improvements.
Based on interviews with senior leaders across Europe, the report concludes that there is a burning platform for public servants to become public entrepreneurs. It finds that:
- Many public service leaders are reshaping services to accommodate reduced budgets
- Some are beginning to embrace innovation as a means of driving public value
- But too few are actively considering how they can be leaders that inspire economic growth by radically adjusting the way they work around new, collaborative business models
“Governments today, and in the future, have an obligation to engage citizens and businesses to develop the new ideas, policies and solutions that will reshape Europe’s economy for the next generation,” said Accenture CEO Pierre Nanterme. “By leveraging technology to drive public sector transformation, in areas such as procurement reform and enhanced tax compliance, governments across Europe have the opportunity to achieve the mutually beneficially goals of social progress and economic growth.”
Jobs and Economic Growth for UK, Germany and Spain
Embracing these lessons could drive job creation opportunities and potential GDP growth rates across three European economies by 2020. As many as 2.6 million additional jobs could be created in the United Kingdom by 2020, signifying an increase in GDP to 3.1 percent per year, up from the 2.6 percent GDP growth rate within the current trajectory. An additional 3 million jobs could be created in Germany, for the same period, allowing for an increase in GDP to 2.8 percent per year from the 1.9 percent growth rate forecast. For Spain, the research found, an additional 1 million jobs could be created by 2020 with an increase in GDP to 2.1 percent per year, up from the 1.5 percent GDP growth rate currently envisaged.
Oxford Economics used advanced macro-economic modelling and analysis to develop the employment and GDP projections. John Walker, Chairman of Oxford Economics said, “Our economic modelling shows that Europe has plenty of untapped economic potential to grow both jobs and GDP at significantly faster rates than currently envisaged. To achieve this growth, government and businesses need to work together at radically changing the way we in Europe work, produce and consume to maximise the assets available, recognising the emerging socio and economic trends at home and abroad, and making sure that Europe is channelling such trends to drive growth.”
New Waves of Growth
Research by Accenture identified four socio-economic global trends, or New Waves of Growth, impacting the global economy and driving opportunities for forward-thinking governments to catalyze innovation and public entrepreneurship.
- The “Silver” Economy: The graying of the population represents a major untapped growth opportunity as older people become more productive, retire later and remain active consumers of goods and services. The report shows how, through embracing the potential of connected health and social care innovation, governments can realize these opportunities.
- The resource economy: Intelligent energy, green infrastructure, resource management and carbon finance and investment (alongside regulation and environmental targets at national and EU levels) are important drivers for change—for businesses, government, voluntary agencies and private households. The report shows how, through smarter procurement and better public-private partnerships, cities like Amsterdam are creating the platform for greener outcomes and new economic growth.
- A multi-technology future: Public investment in technology and e-government is already driving growth in the technology sector. The report shows how, by tapping into the potential of open data and online services, governments can generate efficiencies and support innovation and growth in the wider economy.
- The emerging markets surge: Governments must encourage collaborative learning and skills development between Europe and developing economies whilst establishing new international markets for shared public sector innovation. The report shows how, through collaborative approaches to enterprise, learning and skills, governments can create opportunities from the rise of emerging markets.
