Effectiveness, not just efficiency, should be focus of next government – new report

As the major parties compete to convince Australians they will be better off under their government, a new report from the Centre for Policy Development (CPD) suggests improving people’s quality of life will require wide-ranging structural changes to the way governments operate. 

Embedding Progress: How to align public institutions with a better future reviewed the successes and failures of governments across the world that have attempted to take a ‘wellbeing approach’ to government—an approach in which the top consideration in decision-making is the long-term best interests of people and the environment. It analysed current and former initiatives—from New Zealand’s Wellbeing Budget to Wales’ Wellbeing of Future Generations Act—and identified several components common across successful initiatives.

The report makes 13 recommendations—practical actions that governments can take to begin embedding a wellbeing approach into government decision-making. However, it stresses that transformational change will not occur without all recommendations being implemented, and that picking and choosing risks undermining the effectiveness of the approach.

It suggests governments should start by setting big-picture, whole-of-government wellbeing goals that can drive everything from policy to the objectives of departments and ministers. These goals should be set through a process of engaging the public in a national conversation, ensuring government gains the perspectives and buy-in of Australians. 

The report also says the true costs and savings of policies, rather than just their immediate up front impact, should be factored into budgets to allow for more early intervention and prevention initiatives to be adopted that would improve outcomes for people while saving governments money.

Centre for Policy Development Wellbeing Lead Dr Cressida Gaukroger said the principles and recommendations laid out in the report represent markers of an active, effective government: “I believe all governments want to work towards the best outcomes for their people, but the way internal systems are currently set up make that very difficult. 

“This isn’t unique to Australia—governments the world over struggle with implementing whole-of-government priorities. They struggle with long-term thinking, with breaking down silos between departments and jurisdictions, with shifting the focus to prevention rather than only treating problems once they have arisen. 

“A focus on reining in government spending misses a crucial point—a strong, well-functioning, adaptable government requires investment. But when done right, this investment will result in much greater cost-effectiveness and, in some cases, direct savings. More importantly, it is what we need to improve people’s lives.

“Governments that want to really transform how they work for the better need to consider everything from the goals they work towards, to how they track the effectiveness of policies, to their internal incentives. And they can learn from several great examples of where this is being done well, including several from within Australia.” 

CPD CEO Andrew Hudson said these changes will take time, but are necessary for successfully navigating modern challenges: “The kinds of reforms we are recommending will not be implemented in one or two terms of government.“ 

“Long-term challenges from education and employment, to climate change and the energy transition require long-term thinking and long-term solutions. 

“A majority of Australians (76%) think wellbeing should be the top priority in government decision-making.

“It’s time we stop tinkering around the edges and get to work on broad, whole-of-government changes that put wellbeing at the heart of every policy, regulation, strategy and decision.”

— ENDS —

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