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Finance & Governance Report

Our Key Insights: Public Institutions Responding to a New Era: Strategy in a Transformed Global Landscape

Seven key insights from the Public Sector Strategy Network on how governments should respond to the challenges of the present era

Published date
Written by
Salzburg Global
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While the post-WWII international order was premised on the idea that shared rules generate mutual benefit, many powerful states have shifted toward a transactional approach aimed at extracting maximum advantage from every relationship. Many developing countries, in response, are increasingly diversifying away from Western-centric frameworks and forging new alliances. Western governments, meanwhile, have eroded core state capacity through decades of disinvestment, resulting in reduced in-house expertise and greater dependence on private actors.

Against this backdrop, the 2026 Public Sector Strategy Network retreat on “Responding to a New Era: From Pressure Points to Strategy in a Transformed Global Landscape” convened senior public sector leaders, strategic advisors, and policy experts at Château de Romainville, France to explore how governments should respond to the challenges of this new era. Building on the 2025 diagnosis of the Durability Trap, widening Adaptation Gaps, and the intensifying pressures of Critical Transitions, Fellows turned to a harder question: Where does strategic opportunity exist within constraint, and what makes change endure?

Seven Key Insights

What follows distils these conversations into seven consequential insights that carried weight across regional contexts, challenged Fellows’ assumptions, and pointed toward the capabilities and choices the current moment demands.

  1. Economic models should measure well-being and economic complexity more holistically.
  2. AI investment needs to prioritize substantive literacy.
  3. Strategic foresight needs to become a distributed societal capacity.
  4. Sustained change requires long-term commitments.
  5. Leadership character is the fundamental prerequisite for consequential change. 
  6. Education systems must evolve to support human flourishing.
  7. Trust in public institutions must be restored through actionable inclusion and solid evidence.

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Salzburg Global wishes to express its thanks to Apolitical for their collaboration and involvement in the Public Sector Strategy Network since 2017.

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