Nowadays, the chronic shortage of financial resources requires a more rigorous and careful employment of public funds by governments all over the world. Any modern and competitive democracy must be able to spend public money without any wastes and to measure the public machine’s effectiveness, which is the base for its economic growth and overall development. This capability is fundamental to regain the confidence of citizens, who are users, stakeholders and, through taxation, even shareholders of the public machine It is also required by investors and international authorities, who rely on qualitative assessments of a good local governance, as the base of the national wealth.
The project GovLoc comes from an idea developed by Fondazione Etica, which created an index to satisfy those requirements: it’s named Public Rating (PER). It’s an evaluation model that allows to measure public performance not only from a financial point of view, but also from a qualitative one (governance, public services, public procurements, etc.) through the application of the sustainability criteria. PER also assesses transparency and prevention of corruption in the local governments, ; it helps to prevent default risks.
It’s an innovative approach to study the local public machine, since it adopts the citizens point of view, offers default alerts, establishes a benchmark.