State activity combines many components since management is carried out in several areas at once. In addition to directly managing political interactions, social and financial issues also need to be addressed. Governance in the latter area can be particularly challenging because of the intersection of political and economic interests. According to the generally accepted concept, the statesman should be a wise person, a respected and skillful political leader (Reeves et al., 2018). In other words, a politician must follow and conform to generally accepted Christian biblical principles in many ways. Returning to the context of financial management, one of the basic principles applied to public administration may be “don’t steal.” The combination of government and economic activities creates many opportunities for corruption due to the concentration of a large amount of power in one place. However, this component should be excluded entirely from the adequate management system.
Instead, public financial management can adopt the traits of private companies. Practice shows that CEOs of various corporations are also influential political players, so their experience can also be helpful in the public sphere (Reeves et al., 2018). As with statesmanship, running a company is about maintaining order and promoting public interests, such as caring for the environment. Many of the principles and approaches used in private financial institutions can be applied in a public context. However, the challenges and problems of these areas also overlap. The most basic is the distribution of available resources following the needs of society. Financial management should be carried out not just to achieve the set parameters but more flexibly. Governance must adapt to people’s needs, changing trends and spontaneous events, such as disasters and pandemics. The budget, in this case, should be planned, taking into account possible inappropriate spending. Thus, for leadership to be carried out most successfully, it is necessary to follow current trends, address urgent problems in time, and redeploy resources in the right direction.
Reference
Reeves, M., Kell, G., and Hassan, F. (2018). The case for corporate statesmanship. Boston Consulting Group. Web.