Chapter 12: Challenges for the public sector - a few concluding remarks
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Most countries have faced, and can be expected to face in the future, a number of challenges for the public sector. There will probably be constant challenges for the public sector as a result of changes in the way society functions, changing preferences of citizens, globalization and new technological opportunities. The last chapter presents the challenges facing the public sector in both the short and long term. A key challenge is the demographic development with an ageing population, which will put pressure on, in particular, spending in relation to elderly care and healthcare. It is also important to have an idea about how the public sector can be better prepared for international crises, such as the financial crisis and the recent COVID-19 crisis, as this might require a longer time horizon in planning and to ensure an economic buffer. Technological developments will also challenge the public sector in terms of both expenditure and revenue. Lastly, the chapter discusses the legitimacy of the public sector and how this might influence public sector economy.

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