An interview with John Dew in Cardiff today:
“For those keeping an eye on European and Global Economies, the continued fragility of the Eurozone and the “contagion threat” it poses to our own UK recovery, is ever-present. European stock and bond markets have taken a further hit as the spectre of Eurozone default raised its head once again. Both Italy and Spain, the Eurozone’s third and fourth largest economies saw stock values tumble amidst increasing fears that these countries are now locked into an uncontrollable spiral of unserviceable debt and recession. The borrowing costs of both countries has increased - with the debt yield now close to the level seen by many as being both unserviceable and unsustainable.
In Greece, with industrial action affecting infrastructure and public services, the Prime Minister is likely to call snap elections within days. These economies are on “life support machines” and it is by no means certain that they will recover to euro health. Our view is that there will be radical surgical intervention in the Eurozone in the coming months and that will inevitably affect our own recovery.
What does all this mean for the public sector? We need to be doing much, much, more than we currently are to reshape and redesign our public services. We need to be preparing for the worst now (in a planned and structured way) while we still have the chance. We need to be: thinking about the “big picture”; addressing the “big ticket issues”; and we need to be making contingency plans.
We need to access fresh-thinking and find 21st Century solutions to the challenges ahead. We need to significantly increase our transformation effort and gain momentum!
The World has changed – there has been a “seismic shift” in our fate and it will be those that are able to adapt to that shift in economic fortune with real agility and deftness that will emerge ahead of the others. The challenge for our Public Service Leaders is not how can we reduce our expenditure (that is relatively easy to do), it is: How can we transform ourselves from 20th Century Political Machines into 21st Century Living Organisms able to keep pace with the fast-moving, fiscally challenging, digital globalised landscape emerging before us!