This is the second Working Paper in the series of three annual papers that the Directorate publishes in preparation for its major biennial publication, "Government at a Glance", planned for late 2009. "Government at a Glance" will provide a suite of key indicators of good governance and efficient public services, which will help governments to better assess, plan and measure the performance of their public sector and, over time, the impacts of their public sector reform agendas.

This paper focuses on two main themes: (1) the identification of core data for "Government at a Glance", and (2) the publication of existing data that help assess the efficiency of government.  The paper suggests that the core data include indicators on government revenue and expenditure structures; employment and compensation in the public domain; executive governance outcomes; and institutional arrangements such as budget procedures, HRM practices, performance management, and e-government, including the quality aspects of these institutional arrangements.

It is also proposed that in the future, data coverage be extended to sub-national levels as far as possible. Further work is also proposed for the cautious development of composite indicators, which, by combining different aspects of the same phenomenon, simplify data presentation and aid comprehension.

In terms of the second theme, the paper describes the methodological challenges encountered in the measurement of efficiency in the public sector. It also considers the empirical evidence on the institutional drivers of efficiency in the public sector, described in more detail in the accompanying Technical Paper 4.

Currently available data are presented here that highlight some of the core information that "Government at a Glance" will include, this time relating it specifically to the data needs of understanding efficiency in the public sector. New data is also included on efficiency estimation methods used in the budget process in selected, as well as enhancing transparency in lobbying and public procurement.

Finally, the paper presents some highlights of output data from two policy sectors, health and education, as well as efficiency measures from the education policy sector and tax administration. These areas have been selected as they are the most advanced and promising in either output measurement or efficiency analysis.

Related Document: Towards Better Measurement of Government - OECD Working Paper on Public Governance 2007/1, February 2007