PGEx: The Consequences of Restraint

When governments embark on austerity programs the pace of organizational innovation tends to increase as decision-makers look for ways to make scarce funds go further. This paper draws on experience at home and abroad to explore the intended and unintended consequences of fiscal restraint on governance. The IOG’s governance continuum provides a framework for this examination as expenditure restraint in most jurisdictions has generally involved a shift in favour of distributed governance organizations (DGOs).


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