The Rating of Public Administrations

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The municipality of Cuneo, on the proposal of its Mayor Federico Borgna, has decided to participate in our Public Rating project.


THE PUBLIC RATING: A QUALITATIVE INDEX FOR PUBLIC ADMINISTRATIONS

The state of economic and financial difficulty that persists at the international level has triggered a worsening of public accounts and the gradual reduction of the public resources available: this makes it unrestable a use more careful and rigorous than public money.

Beyond the financial motivations, any State that wants to call itself modern, efficient and transparent must be able to know and measure the performance of the complex public machine. Citizens ask for it, who are its financiers and users at the same time.

It is in this context that Fondazione Etica has decided to study and build an evaluation model capable of measuring the effectiveness of public governance according to criteria attributable to the concept of sustainability, also taking into account qualitative variables: the result is the Public Rating (acronym REP).

The Public Rating aims precisely to create an incentive mechanism for Public Administrations, based on merit, allowing the qualitative performance to be measured from the point of view of the stakeholders. It is to the latter that public administrations must account not only for “how much” they have spent, but above all for “how” and “for what“. The evaluation of Public Administrations, in fact, cannot be limited to merely economic and financial criteria, but must also be able to measure the quality of the service performed.Moreover, it is what is done now, even within private subjects: on the stock market the so-called Sustainability Indices allow for some time to evaluate the performance of a financial security or of the economic entity that issues it – company or state – taking into account not only of economic and financial performance, but also of qualitative variables such as the relationship with the environment, social impact and corporate governance (Enviromental, Social and Governance).

 

WHAT IS IT
The Public Rating is an ESG Sustainibility Index for Public Administrations. It is a model for evaluating and measuring the transparency, integrity and performance of local and national Public Administrations, created on the methodological basis of the ESG Indices used on financial markets.Its innovativeness compared to existing evaluation models consists mainly of the following points:

– does not require the collaboration of the Administrations in the evaluation process,

– adopts the point of view of the stakeholders and is, therefore, independent,

– transposes the regulatory provisions of recent years (in particular legislative decree n.33 / 2013 and the anti-corruption laws),

– measures both qualitative and quantitative data of public performance,

– allows the comparison of PA of the same type (ranking),

– identifies a benchmark,

– it follows the chronological trend,

– helps predict default risk,

– helps identify corruption alerts,

– allows the active involvement of citizens.

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