This article suggests that the concept of social capital may be relevant to
an understanding of the possible impact of public-sector reform on standar
ds of ethical probity within public services, particularly regarding instan
ces of personal corruption. Using New Zealand as an example, it is argued t
hat, especially where such reforms have been largely underpinned by the new
institutional economics and public choice theory, they may tend to counter
more piecemeal efforts to maintain standards of ethical integrity in the b
ureaucracy These efforts may need to be reinforced by new approaches to the
rebuilding of institutionalized public service, based on a fuller understa
nding of the important distinctions between public and corporate management
.