In their Declaration on Building Trust and Reinforcing Democracy, OECD ministers reaffirmed that democracies are best placed to ensure prosperous societies through constant self-assessment and continuous improvement. This is particularly important as governments account for a significant share of economic activity, with general government expenditure averaging 43% of GDP and public employment 18.4% of total employment across OECD countries in 2024.
Governments today face a period of rapid change and disruption that requires fast and deep transformation. Public institutions and processes have not been sufficiently shaped for the pace of change, driven by digital transformation, fragmented information ecosystems, and more informed and vocal citizens with evolving expectations. Combined with fiscal pressures, environmental risks, ageing societies and cross-border challenges, this has contributed to low trust, with citizens perceiving that they lack voice and that governments struggle to deliver results. There is a growing sense that governments are “stuck”.
At the same time, this moment presents an opportunity to reengineer how government works. Advances in technologies, including AI, and workforce renewal can support the redesign of systems, cultures and ways of working. Alongside fiscal pressures that demand sharper prioritisation, these forces create scope for governments to cut through unnecessary bureaucracy and become more effective in delivering public value.