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Governments have to use changes in public sector organizations and public services to drive changes in national economies and the underlying industrial climate. However, creating lasting change at a rate that is sustainable is extremely difficult. Creating unrealistic expectations among government employees, users of government services, and the public at large may backfire and undermine the longevity of any reform effort. Government often has to start by changing the nature of government itself ‐ in terms of the relationships and interventions with commerce. Big changes at the centre drive a series of smaller changes throughout industry; but these changes cannot be arbitrarily imposed ‐ they must be part of a national consensus. Argues that the changes made and facilitated by governments must be dramatic: nations are unlikely to change their place significantly in the international league table with incremental changes, however sound they may be.

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