Current Challenges in Strategy and Public Policy

Dear Colleagues,

In the very unpredictable world of the early 21st century, the analysis of public policy and management has come under challenge. Simplistic assumptions about public policy using a top-down analysis are redundant, given that stakeholders are involved in policy formulation, including local communities, citizen groups, and multiple economic interests. Public service delivery has also been subject to radical change through e-government, digitisation, and co-production. Knowledge about public policy and management reform is also rapidly circulated and transferred between states, while at the same time, there have been calls for professionalisation and credentialism of public servants.

As a result of this complexity, which includes greater involvement from stakeholders and multiple modes of public service delivery, the tools of strategy are now being used to a greater degree in the analysis of public policy. However, this has created issues of governance and accountability. Therefore, this Special Issue is timed to invite public policy and management academics to consider how a ‘strategic lens’ can be used to inform better policy making and to offer new insights into navigating the analysis of public policy. The Special Issue also recognises the broad scope of issues that strategy generates for a wide variety of public services.

Dr. Richard K. Common
Guest Editor

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Title: Artificial Intelligence for Financial Accountability and Governance in the Public Sector: Strategic Opportunities and Challenges

Abstract: This study investigates the transformative capacity of artificial intelligence (AI) in improving financial accountability and governance in the public sector. The study aims to explore the strategic potential and constraints of AI integration, especially as fiscal systems become more complex and public expectations for transparency increase. This study employs a qualitative case study methodology to analyze three countries, which are Estonia, Singapore, and Finland. These countries are renowned for their innovative use of AI in public administration. The data collection tools included an extensive review of the literature, governmental publications, case studies, and public feedback. The study reveals that AI-driven solutions such as predictive analytics, fraud detection systems, and automated reporting significantly improve operational efficiency, transparency, and decision-making. However, challenges such as algorithmic bias, data privacy issues, and the need for strong ethical guidelines still exist, and these could hinder the equitable use of AI. The study emphasizes the importance of aligning technological progress with democratic values and ethical governance by addressing these problems. The study also enhances the dialogue around AI's role in public administration. It provides practical recommendations for policymakers who seek to use AI wisely to promote public trust, improve efficiency, and ensure accountability in governance. Future research should focus on enhancing ethical frameworks and investigating scalable solutions to overcome the social and technical challenges of AI integration.

Title: Responsible leadership: Strategic and Integrative lenses in complex systems transformation

Abstract: RL focuses on strategic and integrative leadership orientations and practices at the top of organisations, that promote stakeholder relations and ensue complex problem solving ability in distinct contextual frames. As such, RL represents a viable tool for addressing situations that are organisational, national and supranational in nature, significantly influence citizens, envelope multiple economic interests and are under heavy digitalisation, such as public health care systems. RL is maturity of mind, accountability and context bound. As such, it is better practiced by leaders that demonstrate higher levels of these abilities and/or are proximate to more sophistication in environment. We build on Constructive developmental theory in order to explore maturity of mind property, and on most recent responsible leadership discourse in order to chart the properties of accountability and context. In this paper, we compare two historically distinct public health care systems, that of United Kingdom (NHS) and that of Republic of Slovenia (JZS), having same main current issues of (a) pressure of demography and (b) pressure of technological developments, in post covid era 2022-2024. We explore leadership strategy for further development of these two complex systems through the lens of RL and compare strategist vs. integrator approach in one of the inherent variables of RL, the development of mind. Taken as a whole, this work focuses on responsibly leading currently looked for development in public wellbeing policies and in public health care systems. At the end, this work opens one of the most vital discussions that impacts the fundamental human right of an individual life, that is to a healthy and fulfilling life.

Title: The Situation of Social Cooperatives in Small Villages in Hungary

Abstract: Social cooperatives, which are an important pillar of the solidarity economy, have become increasingly popular and common in Hungary over the past 10 years, especially in disadvantaged settlements, where the administrative burden of public employment is outsourced to social cooperatives. Analyzing social cooperatives in small villages is a relevant topic for local economic development. Of the 3155 settlements in Hungary, 1162 have a population of less than 500 inhabitants, i.e., small villages. In the spatial structure of Hungary, small villages are typically located on the periphery, with mostly disadvantaged inhabitants with low educational attainment and high unemployment. In these settlements, local communities can better understand what hinders and what helps their economies to grow and improve living standards by assessing their economic base. With this new knowledge, local communities can achieve results through strategically designed programmes and projects that social cooperatives can join and help achieve. The methodology of the study is field research, in which I interviewed the manager of the social cooperative to learn about its operations and difficulties. The study described a well-run and successful social cooperative. In small villages, these cooperatives can be an important source of employment, even if the number of people employed is low. The experiences of the field research are presented in the form of recommendations for policymakers, as social cooperatives can be an important instrument of employment policy.