Literature review on cutback management

Introduction The literature review at hand is the first deliverable of Work Package no. 7 The global financial crisis in the public sector as an emerging coordination challenge of the EU Seventh Framework program project Coordinating for Cohesion in the Public Sector of the Future (COCOPS). The main purpose of the review is to give an overview of the cutback management literature and its findings of cutback strategies in the public sector in the 1970-80s. The aim is to look at the application and impact of various cutback management and decision-making practices and discuss whether lessons could be learnt for the current crisis. The recent global financial and economic crisis, followed by fiscal crisis, have lifted the topic of cutback management back on the research agenda, as many governments in Europe and elsewhere either plan or have already implemented austerity measures in order to cope with the concurrent problems of lower revenues and high public debt. It can be expected that the large-scale cutbacks, undertaken by numerous governments, would lead to changes in public administration practices. Thus, the impacts of the global crisis and the subsequent retrenchment on public administration and governance is and will continue to be a challenging issue for several years to come (Pollitt 2010; Thynne 2011; Coen and Roberts 2012). Looking at the patterns of cutback management during the previous era(s) of austerity can therefore provide useful insights for coping with the current crisis. ...