IMPLEMENTING THE CONTRACT STATE

The term 'contract state' can capture three different types of contrac tual arrangements: employment contracts intra public sector service co ntracts (often used in the health and education fields) public-private service contracts or outsourcing. Victoria, since the election of the Kennett government in 1992, has engaged in all three, bur in particul ar, public sector change has been characterised by significant outsour cing. This article outlines the extent of outsourcing in Victorian sta re and local government, the managerial challenges of a contract state , and the need for continuous reflection on, and improvement of, the r eform process.