Using Regional Institutions to Improve the Quality of Public Services

Rationalizes that governments subcontract the delivery of some public services to regional organizations to access higher quality (and possibly lower cost) services than could be produced domestically. If outsourcing is feasible in fragile states, bridging the gap between current poor quality public services and the type of services necessary to encourage development of a market economy is also possible within relevant development horizons. Eight examples of outsourcing from Sub-Saharan Africa and the Eastern Caribbean of government services are studied: central banking and regulation of the financial system (BCEAO, BEAC, and ECCB); justice provision (ECSC and OHADA), regulation of telecommunications (ECTEL and WATRA) and multi-country security arrangements (AU). The surge in contracting out since 1980 correlates to the increase in the number of independent states. It is easier to subcontract advisory aspects rather than executive aspects of services, but the costs of coordination and organization of service provision are high and have created a barrier to their development in some countries. Picking subcontractors with recognized prestige strengthens fledgling regional institutions.