Abstract
The administrative activity of a socialist country in the first stage of the transformation of the economy, enhances the transformation of the property of the means of production. Neoliberal policy, prevailing nowadays, has direct consequences on the public administration. Some scholars talk about the reforms in public administration from two different levels of analysis that are based on the categories of efficiency and effectiveness. These two levels of analysis will affect a third level, the crisis of legitimacy, so it can be argued that the lack of credibility in public management generates the need for changes in the public administration, but in turn inefficiency and ineffectiveness lead to further distrust. State intervention in economy is as old as capitalism, but only during World War I the problem of the control of cycle became to gain relevance. Keywords: capitalism; public administration; World War I
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