In less developed areas, the future of the entire country may lie with its public administrators, there being no industrial infrastructure. However, lack of such industrial infrastructure implies a parallel lack in educational and managerial infrastructure as well, with the result being trial-and-error management of governmental agencies and services. In many developing countries, especially those of low income, the government's administrative capacity to carry out a programme of economic reform is poorly developed. Moreover, in most developing countries the bureaucracy forms an influential interest group that may oppose economic stabilization and structural reform since this may require reducing the size of the public sector through government employee layoffs and privatization of state-controlled enterprises. The structure of local government in many developing countries is also inefficient. Often fiscal relations are opaque because of political expediency rather than lack of knowledge or skill. This makes reform much more difficult when more open and transparent systems are urgently needed.
An Israeli government watchdog agency claimed, in 1992, that a state company operating under the Housing Minister may have been guilty of maladministration. It cited suspicion of receipt of considerations, including political interests, many deviations from rules of public administration, sometimes with harm to standards.