Estonia is in the midst of public sector reform, which`s goal is the fundamental reorganization of state`s functions, improving the quality of services and saving of resources (including workforce) in the context of aging and declining population. The final report analyses possible solutions for the better management of state functions.

The report examines the central functions and missions of the state, the wider definition of states functions and the states functions in the contexts of the constitution and the Government of the Republic Act and their categorization. In addition, their contemporary institutional development, categories of state agencies, principles of their classifications and their financial autonomy are researched,  as well as the characteristics of the Estonian public sector and state functions in each of the agencies in the contexts of their individual types.

The report deals with the creation of analytic method, conducting of discussions in focus groups and interviews and with the analysis of the legal forms and responsibilities of the state and with document analysis.  The goal is to clarify, if and in case of which public (excluding local government) responsibilities and services can be made better and more cost-effective by delegating them to the private or third sectors. An analysis method has been created for describing the specific state institutions and their possible delegation and through it the cases of  Traffic Registry, Health Board, Rescue Service, Police and Border Guard Board and Statistic Estonia.