Government Unstuck

1. Overview: Why are governments stuck and key practices for the future

Abstract

This overview chapter sets out the Government Unstuck agenda. It identifies four sets of structural constraints that impede governments from adapting, reforming and delivering at the pace and scale required in a fast-changing world. It then presents a direction of change with four mutually reinforcing objectives: forging a new relationship between governments and citizens; simplifying government and regulations; restoring governments’ room for manoeuvre in public finances; and building prepared and proactive governments. It examines the defining practices supporting these shifts across four enablers: digital technologies and data; skilled and empowered public servants; agile government operating systems; and meaningful and strategic citizen engagement. The chapter concludes by considering the evidence and measurement governments require to assess progress, learn and adapt.

In their Declaration on Building Trust and Reinforcing Democracy [GOV/PGC/MIN(2022)3], OECD ministers reaffirmed that democracies are the system of government best placed to ensure prosperous societies, through constant self-assessment and continuous improvement. This capacity for self-improvement matters all the more given the scale at which government operates in modern economies. Across OECD countries, general government expenditure averaged 43% of Gross Domestic Product (GDP) in 2024 and public employment accounted for 18.4% of total employment, with wide-reaching effects on markets, trade, and competition (OECD, 2025[1]). Through the decisions they make on regulation, taxation, public services, procurement and long-term investment, governments actively shape markets, steer economies toward growth, safeguard rights and ensure social and economic prosperity; and by listening to citizens and to markets, they keep those decisions responsive to the people and institutions they affect.

While democratic governments around the world have continued to make progress to ensure the prosperity and security of their citizens, they have been faced with a period of significant change and disruption that requires fast and deep transformation. Public institutions and processes have not been sufficiently shaped for the pace and scale at which the world is changing – with the digital transformation, frenetic and fragmented information ecosystems, a volatile geopolitical landscape, and more informed and vocal citizens with fast-evolving expectations. This adds to the structural challenges governments are facing, including fiscal pressures, environmental risks, ageing societies, and increasing cross border challenges. The OECD Trust Survey shows a persistent low level of trust in government, for the large part driven by people’s perceptions that they lack voice in decision making, and that governments are unable to address long term and complex policy challenges or adjust services to keep up with people’s changing needs (OECD, 2026[2]). There is a sense that governments are “stuck” and that a significant transformation is now required.

The analysis in this report is based on existing cutting-edge practices in governments across OECD countries and draws on the work of the Public Governance Committee and its working parties, as well as the work of the Senior Budget Officials Committee and the Regulatory Policy Committee. More specifically, it draws on the work on Restoring Public Finances and the work on The People and the Budget: Empowering Public Understanding of the Senior Budget Officials Committee (SBO), the work on Simplifying for Success of the Regulatory Policy Committee (RPC) and the work on Governing with AI from the Public Governance Committee (PGC). It also builds on insights from several existing PGC workstreams, including public service leadership, human-centred public services, public communication, public participation, government innovation and digital government, public procurement, as well as the extensive OECD acquis in these fields. Finally, it benefits from three recent and rich collections of case studies in the fields of public innovation and communication, as published in the OECD reports Global Trends in Government Innovation 2026 (OECD, 2026[3]), Public Communication Handbook to Bridge Divides and Shape Better Policy: Voices that Resonate (OECD, 2026[4]) and Reforming Government Communication for the Age of Algorithm (OECD, 2026[5]).

This report makes a first attempt at laying out an agenda for the government transformation to take place. The transformation, which has started in many countries mostly in a piecemeal fashion, is necessary, difficult and will be a long-term endeavour. The Government Unstuck agenda, as the fourth phase of the OECD Reinforcing Democracy Initiative, aims to provide a compass and a vision on this difficult agenda.

1.1. What “stuck” means

The sense that governments are increasingly stuck stems from a set of structural constraints that have been building over many years. In this report, being stuck refers to the inability of governments to adapt, reform and deliver at the pace and scale required in a fast-changing world. Governments increasingly struggle to understand and respond to societal change, build support for reform, make effective choices, implement at pace and sustain improvement over time – that is, to govern. Four interconnected dimensions of this challenge form the diagnostic core of this report and provide the foundation for the direction of change that follows.

1.1.1. A strained relationship with citizens

One reason governments are stuck is that the methods they have traditionally relied on to understand society, build consensus and maintain support for change are no longer fit for purpose. People are more connected, informed and vocal than ever before, yet they engage through fragmented digital ecosystems and peer networks that governments struggle to navigate. At the same time, many of the institutions that once helped channel and negotiate societal debate – political parties, trade unions, civil society organisations and traditional media – have weakened or lost their representative reach. The result is that governments find it harder to detect emerging concerns, anticipate public reactions and communicate the difficult trade-offs that major reforms require. This disconnect is reflected in people’s own perceptions: while more than two-thirds believe voting shapes government decisions, fewer than one in three feel the political system allows them to have a say in what government does, and only 40% are confident in their own ability to participate in politics (OECD, 2026[2]). Without new ways of listening and engaging, governments become stuck between rising public expectations and a declining ability to act with legitimacy and public support.

1.1.2. The weight of accumulated complexity

A second reason governments are increasingly stuck is that the rules, processes and institutional arrangements they have built up over decades, each with a legitimate purpose, have become too complex to deliver the outcomes they were designed to achieve. Across OECD countries, the volume of regulation, organisational structures and internal procedures has steadily increased. Half of civil servants report that existing rules and procedures hinder effective work (OECD, 2025[6]), while government respondents from 72% of countries consider the level of regulation and bureaucracy excessive (OECD, 2026[7]). Citizens experience this complexity through time-consuming administrative processes, confusion and missed entitlements, while businesses face growing compliance burdens that have contributed to declining economic dynamism, with the share of new and young firms in employment falling across selected OECD countries since 2004 (OECD, 2025[8]; OECD, 2025[9]). Public servants themselves find procedural complexity to be undermining of their capacity to deliver (OECD, 2025[6]). When procurement, financial management or implementation frameworks are so complex that officials struggle to determine what they are permitted to do, the rational response is to avoid risk, replicate past practice and defer decisions. The result is a government that becomes stuck in its own processes, unable to respond with the speed, flexibility and innovation that today's challenges demand.

1.1.3. Shrinking fiscal room for manoeuvre

A third reason governments are increasingly stuck is that their public finances leave them with less and less room to respond to new priorities. The architecture of public budgets is oriented towards inherited commitments rather than active choice. Public debt in advanced economies rose sharply from around 73% of GDP in 2007 to approximately 110% in 2024, reflecting emergency responses to the global financial crisis, the COVID-19 pandemic, while debt-servicing costs are now among the fastest-growing items of public expenditure (OECD, 2026[10]). Around one third of public spending in advanced economies is effectively non-discretionary, driven by legally anchored commitments such as pensions, health care and civil service remuneration that annual budget processes cannot readily reshape (Luiz de Mello & João Tovar Jalles, 2026[11]). At the same time, the demands on government are growing rapidly. The Draghi Report estimates that meeting Europe's ambitions will require additional expenditure equivalent to almost 5% of European Union (EU) GDP each year (Draghi, 2024[12]). Rebuilding defence capabilities, responding to environmental challenges, strengthening the digital transition, adapting to demographic change and creating the conditions for the well-being of all require significant new investment. The difficulty is compounded by the fact that most citizens have little visibility over how these trade-offs are made: budgets are among the least accessible areas of government decision making, and when people do not understand why choices were taken or how costs and benefits are shared, support for even well-designed fiscal reforms is hard to build and easy to lose (OECD, 2026[13]). The result is that governments become stuck between rising expectations and increasingly rigid budgets, leaving too little fiscal flexibility to invest in the future or respond to emerging challenges.

1.1.4. Trapped in reactive mode

A fourth reason governments are increasingly stuck is that the institutions and operating models they rely on are shaped today in a way that they respond to events after they occur, rather than anticipate and prepare for what comes next. Governments have always faced disruption, but the pace at which external pressures are changing is now outstripping their capacity to adapt. Technological change is accelerating faster than governance frameworks can evolve, creating both new opportunities and new vulnerabilities. At the same time, geopolitical instability and environmental shocks are generating urgent demands for action, while citizens increasingly expect public services that are proactive, personalised and seamless rather than reactive and administrative. Yet governments continue to struggle to develop the capabilities needed to stay ahead of these challenges. Proactiveness remains one of the weakest dimensions in the OECD Digital Government Index (DGI), despite being central to modern public governance (OECD, 2026[14]). Fewer than half of OECD countries have established formal mechanisms to assess risks associated with major digital government investments, and while most have adopted the once-only principle in law or policy, few have translated it into operational reality (OECD, 2026[15]). The result is that governments become stuck in a continual cycle of reacting to immediate crises, leaving too little time, capacity or political space to anticipate future risks, prevent problems before they emerge or deliver the long-term transformation that citizens increasingly expect.

1.2. What unstuck looks like: The direction of change

The present moment provides a rare opportunity to reengineer the functioning of government to meet the demands and expectations of a fast-changing world – allowing governments to move quickly while ensuring stability and sustained protection of societies and economies. Rapid advances in new technologies, including AI, if used properly and ethically, create possibilities to radically simplify and redesign how governments are organised, and how they interact with people and business. The large-scale retirement of public servants in many OECD countries presents opportunities for generational workforce renewal, which can create space to redesign operating systems, organisational cultures, skills mixes and ways of working across government, focused on engagement and impact. Renewed fiscal pressure, while constraining, can further act as a catalyst for transformation, forcing sharper prioritisation and an imperative for more productive, future-oriented ways of delivering public value. Harnessed together, these forces present an opportunity for governments to cut through unnecessary processes and become proactive partners in shaping positive economic, technological, and societal change.

The first part of this report provides inspiration for how governments can become unstuck, built around four mutually reinforcing objectives, each feeding into one common direction of change and each addressing one of the structural constraints described above:

1. A new relationship between governments and citizens, where people have meaningful opportunities to shape policies and services, building and responding to consensus for reform, and thereby, public trust. This implies a very significant shift and means moving beyond traditional representation mechanisms in our democracies. It requires institutionalising new ways for citizens to participate and making those visibly effective in terms of policymaking, moving towards continuous listening, participation and communication that help governments better understand society, navigate difficult trade-offs and build the legitimacy needed to govern and sustain ambitious reforms.

2. A significantly simplified government and regulations, reducing unnecessary complexity and costs in regulations, rules, processes and structures so that governments become legible, coherent and responsive. Simplification enables faster decision making, supports innovation and makes it easier for governments, citizens, businesses and public servants to achieve better outcomes.

3. Restoring governments’ room for manoeuvre in public finances, creating the flexibility to reallocate resources and invest in emerging priorities in an era of growing fiscal pressure. By strengthening governments' ability to make active choices about where resources are allocated, this direction of change seeks to create the fiscal space needed to fund transformation, respond to future shocks and invest in long-term priorities.

4. A prepared and proactive government that harnesses data, digital technologies, and foresight to deliver services, anticipate challenges, manage uncertainty and strengthen resilience. Rather than continually responding to crises after they emerge, this direction of change equips governments to identify risks earlier, prevent problems where possible and adapt more quickly as circumstances change.

These four objectives are mutually reinforcing and mutually dependent. Governments cannot simplify without creating fiscal space to invest in change. They cannot restore fiscal sustainability without the public trust needed to support difficult choices. They cannot become proactive if the complexity of their own structures prevents them from connecting the information they already hold, or if the relationship with citizens does not ensure that anticipation is experienced as support rather than surveillance. Together, the four objectives provide an integrated direction of change for helping governments become unstuck (see Figure 1.1).

Figure 1.1. Government Unstuck

Source: OECD authors’ elaboration.

1.3. The transformation in practice: Tools in development and areas for action

This direction of change is not only an aspiration. It is already discernible in what governments are doing, in the practices they are building, testing and bringing to scale to become “Unstuck.” The second part of this report therefore identifies, across four areas, the defining practices that provide evidence that countries have begun moving towards a Government Unstuck. Amongst these practices, some lay the foundations without which the transformation required for a Government Unstuck would not be possible, such that countries may wish to give them particular priority in their efforts to become Unstuck. These practices are summarised below.

1.3.1. Trusted and connected digital technologies and data

Technology is a core feature of the Government Unstuck agenda, and while the OECD Digital Government Outlook 2026 finds that most OECD countries have the right governance and strategies in place, implementation, and thus, actual positive impact for people and businesses coming from the fast current technological developments, remains a challenge. Therefore, Chapter 3 includes a set of defining practices focused on strengthening the advanced data and digital foundations that allow government to work as a connected system. Amongst these practices, some may require particular attention from countries, as they provide the foundations on which simpler and human-centred services, proactive delivery and joined-up government depend.

These include practices that show how countries are joining up data across organisational boundaries through interoperable infrastructure and common standards, so that information can be shared and reused where it creates value. It also shows how countries are improving shared digital infrastructure (e.g. digital identity, payments, service gateways, and notifications) by strengthening governance, ensuring sustainable funding and encouraging institutions to build on common platforms rather than creating their own.

A second group of these core defining practices focuses on embedding artificial intelligence into the everyday work of government while maintaining public trust. The report includes concrete practices that show how countries are building the in-house skills and capabilities needed to direct, supervise and adapt AI across the public sector, and using tools like procurement and partnerships to scale successful pilots. It also includes practices that introduce clear accountability and oversight for AI systems, including agentic AI, so that systems acting on behalf of government operate within clear legal boundaries, remain subject to human oversight, and can be reviewed or challenged when necessary.

1.3.2. Skilled and empowered public servants

In order to implement the objectives of the Government Unstuck agenda, public servants will need to work across organisational boundaries, collaborate with citizens and external partners, harness AI and digital technologies, exercise judgement under uncertainty and continuously improve policies and services. Yet these are not always the capabilities that civil service systems are designed to develop. Therefore, Chapter 3 includes a group of defining practices focused on creating the leadership, accountability and culture needed to deliver transformation across government. Amongst these, the practices on aligning leadership incentives, building a culture that manages risk rather than avoids it, and preparing the workforce for AI may require particular attention from countries.

A first set of core practices are those that are creating collective accountability for transformation by giving senior leaders shared responsibility for cross-government priorities rather than limiting accountability to vertical relationships within their individual organisations. These include practices that aim to strengthen accountability to citizens by making progress on reform more visible, clearly identifying those responsible for delivery and using transparency to sustain leadership attention and continuous improvement. Finally, they include practices that are creating the conditions for experimentation by providing structured ways to test, evaluate and scale new approaches, allowing public servants to innovate while managing risks in a proportionate way. Together, these practices help create a culture that values collaboration, innovation and results alongside the integrity, impartiality and professionalism that remain central to the public service, which is essential to a Government Unstuck.

A second group of core practices focuses on building a public service with the capabilities needed for the future. As artificial intelligence, digital technologies and changing citizen expectations reshape government, countries are moving beyond training existing staff towards redesigning the workforce itself. The chapter includes concrete practices that show how countries are identifying and investing in the professions that will become increasingly important, establishing common competency frameworks, professional standards and career pathways for capabilities such as AI, data, digital, commercial expertise and service design. It also shows how governments are supporting workforce transitions by using workforce planning and reskilling to help public servants move from declining occupations into emerging roles as capability needs change. Finally, governments are making greater use of workforce data and analytics to anticipate future capability needs, target recruitment and development, and support evidence-based decisions about how the public service should evolve. Together, these practices help build a civil service that can continuously adapt as technologies, public expectations and government priorities continue to change.

1.3.3. Agile government operating systems

The operating systems of government — the institutional architecture, the processes, the rules and the frameworks through which decisions are made, resources are allocated and services are delivered — determine whether political commitments become real outcomes. Yet across OECD countries, these systems have accumulated layers of complexity that make them difficult to navigate for citizens and businesses, burdensome for the public servants who work within them, and slow to redirect when priorities change. Therefore, Chapter 3 includes a broad set of defining practices focused on making these systems simpler, more strategic and more responsive. Three areas of focus stand out for countries seeking to accelerate progress.

The first group of such practices are those that focus on simplifying government and regulations, both for citizens and businesses, as well as for public servants themselves. On the external side, the chapter includes practices showing how countries are calibrating regulation to risk so that compliance is not more burdensome than the problem it addresses, and how services are being redesigned around what people actually need rather than around which institution provides them, including through making the once-only principle work effectively across every channel. On the internal side, it includes practices showing how countries are making beige tape, the procedural burden that government imposes on itself, visible, by giving it an institutional owner, and reducing it on a continuing basis rather than through one-off exercises. This includes reducing controls and approval processes that no longer serve their intended purpose or could be transformed to focus on high-risk transactions, as well as automating some of these tasks through AI. In addition, some countries are creating incentives for organisations and public servants to identify beige tape, thus anchoring simplification in day-to-day administrative practice.

The second set of practices are those that help governments spend strategically. These include practices showing how countries are strengthening medium-term budget frameworks so that fiscal commitments hold across changes of government and protecting investment from bearing a disproportionate share of consolidation. It also includes practices showing how public procurement is shifting from a compliance-driven function toward a strategic one, anchoring procurement in national priorities, opening markets to a broader supplier base, and digitalising procurement end to end so that it becomes a tool for delivering public value rather than simply processing transactions.

The third group pertains to practices that aim to put citizens at the centre of how government operates. These include practices showing how countries are organising services around life events rather than institutional mandates and using data and AI to anticipate what people need before they have to ask. It also includes practices showing how service performance is being measured in ways that drive actual redesign rather than function as a reporting exercise. On the fiscal side, practices on building the trust and transparency that fiscal choices depend on, and on empowering public understanding of public finances, show how governments can make budgetary decisions legible to citizens and give them a genuine voice in shaping priorities.

1.3.4. Meaningful and strategic citizen engagement

The OECD Trust Survey clearly places citizens and their trust at the heart of the Government Unstuck agenda, setting significant challenges for how governments create meaningful opportunities that give citizens a sense of voice and confidence in governments’ ability to tackle the complex long term policy issues that define the future. Therefore, Chapter 3 also highlights a set of practices that point a way forward for government engagement with citizens. Together, these practices redefine how representative democracy functions, with largely embedded citizens voice included throughout the policy and service delivery functions.

One group of defining practices focuses on making citizen participation more meaningful and better connected to decision making. Here, practices show how governments are giving citizens a greater role in setting the policy agenda, rather than asking citizens to comment on predefined policy proposals. They also show how governments are moving beyond standardised consultation exercises and designing participation around the policy challenge, by selecting participation methods that reflect the nature of the policy challenge, the decisions to be made and the intended influence of citizen input. It also shows how governments are experimenting with new participation methods and tools, including more intensive participation methods, such as citizens' assemblies, national dialogues and collaborative governance arrangements, to address policy challenges that require public learning, trust-building and sustained engagement over time. Finally, they show how governments are strengthening accountability through visible feedback so that citizens can clearly see how their contributions influence public decisions, and thereby making participation more transparent, accountable and continuous.

A second group of such practices focuses on helping governments better understand society and communicate more effectively with citizens. As public expectations evolve and information environments become more fragmented, governments are expanding the ways they gather and use public insight. The chapter includes concrete practices that show how countries are strengthening societal listening by bringing together evidence from multiple sources to better understand citizens' experiences, concerns and priorities, and using these insights to inform policy agendas and service design. It also shows how governments are Communicating through trusted voices and relatable content to reflect how citizens consume information today rather than relying on traditional broadcast approaches. Together, these practices help governments become more responsive by ensuring that they are better informed by society and better able to communicate with it.

Together, these four groups of practices show evidence of movement in the direction of change and, ultimately, that governments have begun the transformations required to become Unstuck. Across these practices, a number of cross-cutting lessons and areas for reflection emerge. First, governments will only become unstuck in partnership with citizens. Trust is both an outcome of successful governance and a prerequisite for it, requiring governments to strengthen both citizens' voice in decision making and their confidence that public institutions can deliver meaningful results. Both of these are related and call for a significant rehaul of government-citizen relationship. Second, digital technologies and artificial intelligence offer transformative opportunities across every aspect of government, but their success will depend on joining up data silos, and ensuring human oversight that strengthens accountability, transparency, democratic legitimacy and public trust. Third, governments already possess many of the capabilities needed to become unstuck, yet these often remain fragmented across institutions or confined to individual initiatives, pointing to the importance of stronger mechanisms to connect, scale and sustain successful practices while preserving the benefits of decentralised decision making. Fourth, becoming unstuck requires a different approach to accountability, one that places greater emphasis on outcomes, professional judgement, collaboration and responsiveness to citizens, and which improves oversight of increasingly complex and technology-enabled systems.

Another cross-cutting lesson is that governments will need better evidence to understand whether transformation is taking place and whether this is having the desired effect on important outcomes such as trust and productivity. Internationally comparable data already exist at both ends of that journey: on one side, the enabling conditions governments put in place, captured through sources such as the OECD’s Government at a Glance; on the other, the long-term outcomes those conditions are intended to achieve, from citizen trust to economic performance or other policy goals, increasingly tracked through the OECD Trust Survey, policy areas (education, health, economic performance) and related work on government productivity. What is largely missing is the middle: comparable evidence on whether reforms are actually changing how government performs and how that change is experienced by citizens, businesses and public servants. Without this missing link, governments demonstrate reform activity without demonstrating reform results.

Therefore, the final pages of this report describe an approach to identify a set of measurable intermediate outcomes that sit beneath each of its four objectives, providing governments with a clearer way to track progress towards becoming more responsive, simpler, fiscally sustainable and prepared for the future. This is an opportunity to develop a shared evidence base that helps governments identify what drives meaningful change, learn from one another, and focus reform efforts on the capabilities and outcomes that matter most. The approach would bring together perception, administrative, behavioural and structural indicators to support this ambition, while recognising that the framework will continue to evolve as new evidence and data become available.

Overall, while country practices have progressed along the direction of change, this progress has not been at the level required to being seen by citizens as unstuck governments. Systematising and accelerating change is required. This is no easy task to be carried out in parallel to addressing the policy challenges of the day and navigating the demographic, technological and environmental transitions.

The next chapters will provide a general direction of change followed by indications of the concrete practices that can help turn the table for Governments. They also lay out tensions and open questions that remain unresolved, and that will require sustained attention from governments and the wider public governance community. Taken with the direction of change and the practices that carry it forward, these tensions and open questions define a Government Unstuck agenda. Grounded in the diagnosis set out in this chapter, and underpinned by existing OECD data collection and analysis, as well as new work on measuring government efficiency and productivity, this agenda is anchored in the conviction that the present moment offers a genuine, if time-limited, opportunity for the depth of transformation that is needed.

References

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