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Driving Down Cost: How to Manage and Cut Costs- Intelligently: How to Manage and Cut Costs- Intelligently by Andrew Wileman

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10 Cost in the Public Sector

Great nations are never impoverished by private, although they sometimes are by public prodigality and misconduct. The whole, or almost the whole public revenue, is in most countries employed in maintaining unproductive hands. Such are the people who compose a numerous and splendid court…

—Adam Smith, The Wealth of Nations

The public sector presents the biggest cost management challenge. Getting it right increases living standards and opportunity today. Getting it wrong creates a dead weight drag on future growth.

In the West we are facing a huge risk of creating just that drag. In the wake of the credit crunch crisis, government accounts need to be seriously rebalanced to reduce extremely large deficits and public ...

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